"We question the Democratic Alliance's economic policy. They are supporting protectionism and inefficiency," Prasa's chief executive Lucky Montana said on Monday (14 October).
"They have been big in supporting the private sector, but today they are standing up for Transnet," he said.
He said the DA was trying to fool the country into believing that Transnet would have been able to deliver the locomotives needed to revitalise the rail industry.
The DA said on Sunday (12 October) that Auditor General Terence Nombembe should investigate the R3.5bn locomotive deal.
Montana said Transnet had an important role to play in revitalising the industry and was fully supported by Prasa. "However, none of the South African companies could meet Prasa's requirements for new locomotives," Montana said, adding that Transnet Rail Engineering had been struggling to meet targets in terms of the refurbishment of the existing fleet.
DA spokesman Ian Ollis said in a statement that Swifambo Rail Leasing was awarded a contract to provide 88 dual, diesel-electric locomotives to Prasa for the Shosholoza Meyl long-distance services, according to media reports last year.
"Swifambo Rail Leasing will be buying these locomotives from Vossloh, a Spanish company, at R50m per locomotive. Local train supplier Transnet Engineering's going rate for locomotives is R25m," Ollis said.
"Prasa's acquisition of locomotives from Vossloh, a foreign company, through Swifambo, is a violation of the Preferential Procurement Policy Framework and Treasury regulations on rail rolling stock, which dictates that at least 55% of diesel locomotives and 60% of electric locomotives had to be produced locally," he said.
However, Montana said the DA statement had no merit and was false because Swifambo Rail Leasing was awarded the contract after an "open and competitive" procurement process where six companies submitted bids.
"It is important to note that Transnet Rail Engineering, for this tender, partnered with GE South Africa Technology," Montana said.
"Transnet is also buying locomotives from China South Rail and General Electric. They are not manufacturing those locomotives themselves. Why is that the case? The Democratic Alliance has, conveniently, left these facts out of their statement."
He said it was apparent that the DA had succumbed to a lobby clique within Transnet and elements within the unions. "This is aimed at putting pressure on Prasa to use Transnet to provide locomotives", Montana said.
Ollis said South Africa needed to be assured that no tender irregularities had occurred in awarding the contract to Swifambo, and that the R123bn rail rolling stock fleet renewal programme still to come would not also be fraught with irregularities.
Source: Sapa via I-Net Bridge
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