By Charles Molele

February 10, 2012

Lucky Montana, the group chief executive of the Passenger Rail Agency of South Africa (Prasa), has been accused of tender irregularities amounting to more than R1-billion and organising an unauthorised trip to Cape Town for his friends and associates. 

The damning allegations against Montana are contained in a dossier seen by the Mail & Guardian, which was compiled by the South African Trade and Allied Workers’ Union (Satawu).

Although it has not been proved that Montana has committed any wrongdoing, the union has demanded that he be suspended pending an independent forensic investigation because it believes he might interfere with an internal investigation.

According to the dossier, Montana allegedly went on a joyride to Cape Town with 10 female companions in September 2009 on a Premier Classe train and returned to Johannesburg by air. The trip is said to have cost R170 000.

Montana is also alleged to have awarded Siemens an R800-million tender in 2009 for passenger communication systems that was advertised only in Gauteng but awarded nationally. The dossier further alleges that he awarded another R800-million contract to Rainbow Construction for Doornfontein station in Johannesburg, but it was extended to other stations without following proper tender processes.

The union claims Montana also awarded celebrity consultant Ezra Ndwandwe R10-million as a change management consultant without following procurement policies. Ndwandwe said on Thursday there was nothing untoward in his remuneration and that he had delivered on his mandate…Read more.