By Lehlohonolo Lehana.
Siyangena Technologies has failed in its bid to have a high court ruling that set aside contracts to the value of more than R6 billion that were awarded to it by the Passenger Rail Agency of South Africa (Prasa) overturned.
The Supreme Court of Appeal (SCA) on Tuesday dismissed the appeal with costs.
Minister of Transport Fikile Mbalula has welcomed the judgment handed down by the Supreme Court of Appeal against Siyangena Technologies.
“The Siyangena Technologies case is one that has prolonged its course. This judgement bolsters confidence in our efforts to uproot all forms of corruption and instil a culture of consequences management in our passenger rail system,” Mbalula said.
The Siyangena matter concerns the awarding of a contract to Siyangena Technologies by Passenger Rail Agency of South Africa (PRASA) to supply and maintain an integrated security access management system at various train stations.
The equipment included public address facilities, speed gates and electronic display boards, intended to enhance the safety, access and efficiency of the Public Rail Commuter System, which PRASA is under a statutory duty to provide and maintain.
The deal was then discovered to have been unlawfully and irregularly awarded to Siyangena and that there was misconduct by certain officials of PRASA in the awarding of the contract.
PRASA brought a review application to the Gauteng High Court and was successful in setting aside the contract. Siyangena took this on appeal and the application was dismissed with cost on Tuesday 01 November 2022.
The ruling has the potential to save PRASA billions of rands pending the evaluation and audit of the work done is concluded.
In accordance with the High Court directive, PRASA said it will look into the aspects of appointment of an independent engineer to determine the value of the work done and whether Siyangena was paid for the value of the work.
This will determine whether Siyangena was overpaid and owes PRASA any money or whether PRASA owes Siyangena Technology money for the work done.
“We are hard at work to rebuild our rail infrastructure and modernise the system. A great deal of this will entail tackling corruption and malfeasance that has undermined massive investments towards the modernization programme.
“We are pleased with the court judgement as it brings finality to the matter. This will therefore enable us to proceed with the implementation of critical elements of the modernization programme, which include securing access to stations and the network,” the Minister said.
PRASA said it hopes the judgment brings the matter to finality in order for the agency to complete the disciplinary hearing and criminal proceedings against all individuals implicated in the deal.
Meanwhile the Department of Transport has released the first draft of the South African Shipping Company Bill, 2022 that aims to establish the country’s first national carrier.
South Africa is mostly reliant on foreign governments and companies for essential imports and exports. As a result, a national shipping company could shield the country from supply chain disruptions, said the department.
The South African Shipping Company (SASCO) falls under the government’s ambitious plans to reform the maritime sector enshrined in the Comprehensive Maritime Transport Policy. The policy initiative dates back to 2017, when the government first set out this goal.
The department’s aim has been to, through consultations, take steps toward the establishment of a national shipping carrier as a ‘strategic pillar in the revival of the maritime transport industry.’
Consultations are planned to begin this month with important virtual stakeholders from across the country. Entities that wish to express their interest or comment are to inform the department.