The Passenger Rail Agency of South Africa rejects a statement the Democratic Alliance released today, October 13 2013, in which it requested the Auditor-General to investigate PRASA’s contract with Swifambo Rail Leasing.

The statement from the Democratic Alliance has no merit; it is false and obviously based on the work of lobbying elements within Transnet and the unions that organize workers at PRASA and Transnet.

The fact of the matter is that PRASA awarded the contract for the provision of diesel-electric locomotives to Swifambo Rail Leasing at the end of an open and competitive procurement process. Swifambo was one of six companies that submitted bids, which we are listing below:

- Harvdap
- GE South Africa Technology
- RRL Grindrod
- Swifambo Rail Leasing
- Thelo Rolling Stock Leasing
- CRM Consortium

It is important to note that Transnet Rail Engineering, for this tender, partnered with GE South Africa Technology. It is also worth asking the proponents of Transnet Rail Engineering why did TRE not go it alone if they had the capability to perform this function.

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.

It is clear to us that the Democratic Alliance has succumbed to a lobby clique within Transnet and elements within the unions to put pressure on PRASA to use Transnet Rail Engineering for the provision of the locomotives when we know that Transnet Rail Engineering does not have the capacity to do so.

It is also clear that the Democratic Alliance is commenting on something it knows nothing about. We therefore reject their attempts and challenge them to a public debate on this matter.

Transnet Rail Engineering has an important role to play in the revitalization of the rail industry in South Africa and PRASA is in full support of Transnet. However, the Democratic Alliance is wrong to exaggerate the capacity of Transnet Rail Engineering or any of the industry players to meet our requirements.

Transnet Rail Engineering has been struggling to meet targets in terms of the refurbishment of the existing fleet. Even the current fleet of trains in the country was manufactured by Union Carriage, not Transnet Rail Engineering.

The Democratic Alliance, some unions and elements within Transnet are trying to fool the country into believing that Transnet Rail Engineering is capable of doing this work when we know that this is false.

Mr Lucky Montana, the Group CEO of PRASA, said: “We question the Democratic Alliance’s economic policy. They are supporting protectionism and inefficiency. They have been big in supporting the private sector but today they are standing up for Transnet.”