Prasa fleet renewal plan draws fire

Prasa received 60 bids for the empowerment component of its first rolling stock tender, spokesman Moffet Mofokeng says. At least 168 companies bought bid documents.

The winning bidder will be part of a joint venture that will manufacture 3,600 new passenger rail coaches over 10 years.

The list of hopefuls, which the Financial Mail has seen, reveals some surprises. Black Business Council chief executive Xolani Qubeka is one of the bidders through his company Qubelisa Enterprise Empowerment & Training. Pamodzi Investment Holdings chief executive and BBC president Ndaba Ntsele also bid through a consortium between Pamodzi and Tshwaragano Intelligent Metering Services

The council earlier berated Prasa for separating the deal into two tender processes, which, it said, took power away from black investors instead of empowering them.

Qubeka now says the BBC's concerns have been resolved, even though Prasa has not changed anything. He welcomes Prasa's initiative to develop new rail enterprises, despite believing that the main overseas manufacturer and Prasa's existing suppliers will have an advantage.

Since joining the BBC in 2012, Qubeka says, he has handed over management of Qubelisa to his brother and son. "My son manages the business and runs it as he sees fit."

Prasa's bidding process closed in December, a week after it had announced that Gibela Rail Transportation - made up of French company Alstom and local electrical engineering firm Actom - would be the main manufacturer.

The empowerment part of Prasa's investment is worth R37bn, making it one of the largest investment opportunities for local black enterprises. Among the other bidders are the SA Transport & Allied Workers Union Investment Trust, through its 50% ownership of Bashomi Rail Services, and SA Women in Mining Investment Holdings

But more controversy is expected. Prasa has been the target of lobbying and insiders say some people have tried to use political connections to influence its decisions.

But with a probity officer overseeing the deal, and oversight from treasury and the department of trade and industry, Prasa believes it has done enough to safeguard its integrity.

Source: Financial Mail via I-Net Bridge