AG notes PRASA's irregular expenditure of over R1 billion

The AG raised concern about the disrepair of PRASA’s assets, record keeping, irregular expenditure and repeat areas of concern.

The Portfolio Committee on Transport has noted the improvement in the audit of the entire transport portfolio but remains concerned with the audit received by the Passenger Rail Agency of South Africa (PRASA).

The Auditor-General (AG) of South Africa briefed the committee on Tuesday on PRASA's audit outcome and noted irregular expenditure of over R1 billion.

The AG raised concern about the disrepair of PRASA's assets, record keeping, irregular expenditure and repeat areas of concern.

Committee chairperson Mosebenzi Zwane said it was important for the committee to remedy the situation by getting PRASA on the correct path.

"The committee appreciates this report and acknowledges the improvement as noted by the AG. The committee is going to enhance oversight of PRASA and the recommendations by the AG are most welcomed," Zwane said.

He said although the issues at PRASA are historical, the committee will ensure that the entity does not fail.

"It is very important that the new board and management team at PRASA focus on addressing the root causes of the challenges, and that complacency around the AG's recommendations will not be tolerated.

"The committee wants serious consequence management on issues of governance, procurement and financial management. Irregular expenditure at PRASA cannot be a runaway item that no one knows how to correct," Zwane said.

The AG committed to providing the committee with a schedule of focus areas in order to reverse and resolve the challenges besieging the entity.

(With Inputs from South African Government Press Release)