The Passenger Rail Agency of South Africa says it has completed an internal investigation into two rail signalling tenders worth R17.4-billion, awarded to Maziya General Services, and has handed the report to the Department of Transport.

The report is not public. PRASA spokesperson Andiswa Makanda confirmed the handover on Monday.

The board's investigation ran separately from a probe by the Directorate for Priority Crime Investigation, known as the Hawks. Both stem from a detailed whistleblower report released early this year alleging irregularities in the two tenders, which cover signalling equipment in KwaZulu-Natal, Gauteng and the Western Cape.

The whistleblower alleged that advance payments totalling almost R2.7-billion were fraudulently paid to Maziya through five transfers between December 2023 and December 2024. The allegations state the payments were made on tenders awarded without the basic bid criteria having been met.

If substantiated, the allegations would mark a significant setback for PRASA's signalling rehabilitation programme, the foundation of its effort to restore commuter rail capacity across South Africa's three largest urban regions after years of vandalism and underinvestment.

Hawks raid and parliamentary oversight

The Hawks raided PRASA's offices on 23 July as part of the ongoing investigations. Rikus Badenhorst, chairperson of Parliament's select committee on public infrastructure and minister in the Presidency, linked the raid to the inquiries into alleged irregularities at the agency.

During a parliamentary meeting on 9 July, Badenhorst urged transport minister Barbara Creecy to report the investigation's findings to the committee once complete. Creecy agreed to do so. The report's handover to the Department of Transport now triggers that commitment.

Badenhorst has also raised concerns about Maziya's wider footprint in state projects. The company was contracted by the Development Bank of South Africa for demolition work on the parliamentary buildings destroyed in the fire of 3 January 2022. Maziya is separately under investigation over the Independent Development Trust's award of a R152-million tender to supply oxygen plants to ten hospitals, as reported by AmaBhungane.

Board itself under accusation

While the board has overseen the probe into procurement irregularities, its own members face corruption allegations. In September, a report sent to Creecy — purportedly authored by one of PRASA's 11 board members — claimed tenders were being rigged to benefit particular board members.

The Department of Transport has not said whether it will investigate that report. After repeated requests for comment on the board chairperson's response to the allegations and on a possible departmental investigation, spokesperson Collen Msibi told GroundUp last week: "The Minister is still applying her mind and has sought legal advice on the matter."

Accountability questioned

Commuter activist organisation #UniteBehind has criticised the department's handling of the affair. Executive director Zukiswa Vuka said the department has constitutional and legislative obligations to exercise oversight over PRASA, "especially in matters relating to governance and procurement integrity".

Yet, said Vuka, it seemed "the network of accountability has collapsed".

"The department's continued silence and absence of visible action regarding these serious allegations are deeply concerning," she said. "It suggests a failure to uphold the principles of accountability, responsiveness, and openness enshrined in the Constitution … The public deserves clear communication and decisive action, not secrecy and delay."

The completed board report now sits with the Department of Transport. Whether Creecy releases its findings to the parliamentary committee, and whether she acts on the September allegations against the board itself, will determine the next phase of scrutiny over one of the largest signalling procurement programmes in PRASA's history.