AG warns probes could worsen Prasa’s financial position

September 11, 2018 6:17 am Published by Leave your thoughts

CAPE TOWN – The Auditor-General has warned that Prasa’s real financial position could be worse than it appears on paper.

The group has suffered losses of almost R1 billion in the 2016/17 financial year and it’s going concern status is in jeopardy.

But Kimi Makwetu says the outcome of a number of ongoing investigations could further negatively impact the finances of the rail agency.

More than two years since the Public Protector concluded her report on allegations of financial mismanagement and tender irregularities at Prasa, investigations have still not been finalised.

Based on her Derailed report, National Treasury instituted a forensic investigation which is still ongoing.
It is investigating 216 cases into contracts worth R3.7 billion.

The Hawks have also been investigating 41 cases since 2016.

The Auditor-General says that the outcomes could reveal further irregular expenditure at the agency which has been put at R20.3 billion.

The agency reported a loss of R928 million during 2016/17, an increase of 68% from the previous year.

(Edited by Shimoney Regter)

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