The Passenger Rail Agency of South Africa (PRASA) finds itself at the centre of a storm after a shocking forensic probe revealed that the parastatal spent R2.5 billion refurbishing old trains—only to store them unused across depots in the country. Despite this enormous investment, the restored carriages remain idle, gathering dust and rust instead of serving commuters.
More Billions Still to Be Spent
News24 has uncovered that PRASA is set to spend an additional R5 billion on the same initiative. Over a five-year period ending in 2027, PRASA’s General Overhaul (GO) project is expected to cost R7.5 billion. This programme was launched to breathe new life into the outdated yellow-and-grey fleet, which has historically been the backbone of local commuter rail travel.
The contracts, signed in June 2022 while David Mphelo was acting CEO and Leonard Ramatlakane chaired the board, were approved with the backing of then Transport Minister Fikile Mbalula. However, a recent report by legal firm Webber Wentzel, commissioned in May 2024, paints a grim picture of the programme’s effectiveness—and motives.
The Investigation’s Damning Findings
The investigation was launched after a whistleblower alleged that PRASA executives were accepting kickbacks from some of the contractors appointed to handle the refurbishments. By November 2024, Webber Wentzel had submitted a draft report highlighting the lack of value in the GO initiative.
According to the report, the real issue lies in the fact that PRASA no longer requires the older trains, given the roll-out of its newer blue-and-white electric multiple units (EMUs), built by the Gibela Rail Consortium. With demand for commuter rail having plummeted due to widespread vandalism and looting during the Covid-19 period, the need for the older fleet has effectively disappeared.
New Trains Make Old Ones Redundant
PRASA’s corporate strategy confirms this shift. Although the agency had a target of transporting 186 million passengers by 2027 and one billion by 2035, actual usage has been far below expectations. In 2021/22, only 16.69 million passengers were transported, with numbers dropping before slightly recovering to 19.7 million in 2023/24.
Out of 268 EMUs delivered by Gibela, only 142 are currently operational. Yet PRASA justifies the yellow train overhaul by citing past delays in Gibela’s manufacturing schedule, which left a gap of 2,000 coaches.
Officials Question the Project’s Value
Senior PRASA figures have raised red flags. Molefe Mosweu, then acting head of rolling stock, warned that the overhaul was redundant given the sufficient capacity of the new fleet. Despite his concerns, the project continued due to signed contracts. Mosweu was later suspended over unrelated allegations of corruption and has since left the organisation.
Acting CFO Brian Alexander echoed concerns, stating that the funds spent on these unused trains would be better allocated elsewhere. He wasn’t alone. Nomfaneko Xolo, PRASA Rail’s CFO, added that there was insufficient space to store the refurbished trains.
What the Numbers Reveal
According to project manager Arthur Treurnich, only about 50 GO coaches are in service nationwide, out of 244 that have undergone work. In Gauteng, none of the refurbished coaches are in use. In the Western Cape, only four train sets (32 coaches) operate, and in the Eastern Cape, there are just two trains—one each in East London and Gqeberha.
Shockingly, of the 33 locomotives repaired, only eight are in active service. Most of the remaining stock can be seen abandoned at depots like the one in Braamfontein, visible from Johannesburg’s Nelson Mandela Bridge.
Calls for Accountability and Criminal Charges
The Webber Wentzel report urges PRASA to declare the spending on the GO contracts as irregular and wasteful, recommending that criminal charges be pursued against both contractors and implicated employees. Although PRASA has sent queries to the seven companies involved—such as YNF Engineering, Armtech, and Mirai Rail—no firm action has been taken yet.
Transport Minister Barbara Creecy has yet to receive the full report, according to her spokesperson. As the story unfolds, South Africans are left questioning how billions can be spent so recklessly while public transport remains broken and inaccessible for many.
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