The Passenger Rail Agency of South Africa's internal probe into allegations of corruption in its multibillion-rand general overhaul programme has found governance execution of the project, including allocation controls, pricing discipline, performance management, and oversight mechanisms.
The programme, which is part of Prasa's long strategy, aimed to stabilise the agency's legacy fleet during the transition to new rolling stock under the rolling recapitalisation programme. However, the investigation revealed that several contractors took advantage of the weaknesses, resultingcharging.
CTE Western Cape, one, was found to have overcharged Prasa by R58 million, while Armature and Karabo-Nhlamolo by R21 million and R7.5 million, respectively.
The report also found that management had implemented structural reforms to ensure that any further capital deployment under the GO contract was legal, defensible, commercially rational, and aligned to operational needs.
The Prasa board is required to consider whether further capital should continue to be deployed towards metro coach refurbishment, taking into account network readiness constraints.
The investigation was triggered by a whistleblower account from one of the GO contractors, which alleged that Prasa's rolling stock senior manager, Arthur Trenuch, had employed his son at CTE Western Cape and was receiving information on payments made to contractors.
The report found that while the GO project was conceived as a strategic intervention, its execution revealed significant governance weaknesses. Prasa spokesperson Andiswa Makanda confirmed that the agency had commissioned the forensic investigation into the management of the GO programme, which3.81 billion had been expended under the programme as of December 31,2025.
YNF Engineering, which was subject to allegations of preferential treatment and overcharging, has reiterated its commitment to transparency, integrity, and delivering quality engineering services.
The company stated that it has never overcharged Prasa, as the costings are all regulated by a price book regulated by Prasa. Prasa also dismissed the allegations against YNF Engineering, stating that the contract between the two parties is currently on track and ongoing.
The report's findings have significant implications for Pr operations, and the agency must now consider whether to continue deploying capital towards metro coach refurbishment, taking into account the governance weaknesses and financial exposure revealed by the investigation.
