SIU freezes former PRASA CEO Tshepo Montana’s luxury properties linked to R5.6 billion rail tender
Pretoria | South Africa’s long running investigation into alleged corruption at the Passenger Rail Agency of South Africa (PRASA) has reached another significant milestone after the Special Investigating Unit (SIU) secured a court order freezing two multimillion rand properties linked to former PRASA Group Chief Executive Officer Tshepo Lucky Montana.
The preservation order, granted by the Special Tribunal, prevents Montana from selling, transferring, leasing, mortgaging or otherwise dealing with the properties while the SIU pursues civil recovery proceedings. It marks one of the strongest legal moves yet in an investigation that centres on PRASA’s controversial R5.6 billion Integrated Security Access Management System (ISAMS) contract.
According to the SIU, investigators uncovered what they describe as a direct and uninterrupted money trail connecting the purchase of both properties to funds allegedly originating from companies involved in the massive rail security tender.
The assets placed under preservation include:
- A Hurlingham, Johannesburg property purchased for R13.5 million.
- A Waterkloof, Pretoria property purchased for R2.25 million.
The Tribunal also instructed the Registrar of Deeds to place caveats on both title deeds, effectively blocking any unauthorised transactions involving the properties until the matter is resolved.
SIU alleges legitimate income could not explain purchases
The SIU’s investigation found that Montana’s declared legitimate income could not account for the acquisition of either property.
Instead, investigators say banking records revealed a complex financial trail involving payments from companies within the TMM Group and Precise Trade and Invest 02 (Pty) Ltd. The director of Precise Trade and Invest also acted as legal representative for companies within the TMM Group.
The findings form part of an extensive investigation into PRASA’s ISAMS contracts, which ultimately grew to more than R5.63 billion between 2011 and 2016.
How investigators say the money moved
Waterkloof property
According to the SIU, bank records show that on 18 June 2014, Precise Trade and Invest received:
- R1.85 million from ESS (Pty) Ltd, a company within the TMM Group.
- R4 million from TMM Holdings.
Investigators say Precise Trade and Invest then transferred R2.25 million to attorneys handling the transfer of the Waterkloof property, which was later registered in Montana’s name during 2014.
Hurlingham property
The SIU alleges that the purchase of the Hurlingham property involved a series of linked transactions between Precise Trade and Invest, TMM Holdings and Midtownbrace (Pty) Ltd, a Botswana incorporated company.
Evidence cited by investigators indicates that:
- On 23 March 2015, Precise Trade and Invest transferred R2 million into the transferring attorneys’ trust account.
- On 23 April 2015, Siyangena transferred R13 million to TMM Holdings after receiving substantial payments from PRASA under the ISAMS contracts.
- On the same day, TMM Holdings transferred R12 million to Midtownbrace, whose bank account allegedly held a zero balance before the transaction.
- Midtownbrace then transferred R11.5 million to the attorneys’ trust account, enabling the purchase of the Hurlingham property.
The property was registered in Montana’s name in July 2015 for R13.5 million. The SIU further states that the house originally standing on the property was later demolished by Montana.
Tender that grew into a R5.6 billion contract
The ISAMS project was introduced as part of preparations for the 2010 FIFA World Cup, with the aim of improving security, reducing fare evasion and managing increased passenger volumes at selected railway stations.
The project included the installation of:
- Electronic access gates.
- Public address systems.
- Electronic display boards.
- Other security and commuter management infrastructure.
Although budget limitations prevented every station from being upgraded, PRASA proceeded with expanding the pilot project using Siyangena Technologies, a subsidiary of TMM Holdings.
On 1 April 2011, PRASA awarded Siyangena the first ISAMS contract worth R1.96 billion. Over the following years, four contracts and several extensions were concluded.
By April 2016, the combined value of those agreements had increased to R5,632,604,592.36.
Tribunal hearing set for August
The Special Tribunal has ordered the respondents to appear on 11 August 2026, when they will have an opportunity to explain why the interim preservation order should not be made final.
The Tribunal also directed that the SIU institute its main civil proceedings against Montana within 30 days.
Wider corruption investigation continues
The investigation forms part of Proclamation R.153 of 2024, which authorised the SIU to investigate allegations of maladministration, corruption and unlawful conduct at PRASA between 1 January 2010 and 16 February 2024.
The SIU said the preservation order represents an important step in protecting assets while civil recovery proceedings continue. The Unit reiterated its commitment to recovering public funds lost through corruption, holding those responsible accountable and safeguarding State resources.
Under the Special Investigating Units and Special Tribunals Act 74 of 1996, the SIU has the authority to institute civil proceedings to recover financial losses and set aside unlawful contracts or transactions identified during its investigations.
The SIU added that any evidence suggesting criminal conduct uncovered during the investigation is referred to the National Prosecuting Authority for consideration and possible prosecution.
