PRASA: CEO targetted over crime, needs security protection

[Steve Appleton]

From Business Day, 26 May 2011. http://www.businessday.co.za/Articles/C ... ?id=143829

Crime syndicates ‘targeting rail chief’
Transport Minister Sbu Ndebele says Lucky Montana needs continuous security due to threats
LINDA ENSOR
Published: 2011/05/26 06:32:56 AM

CAPE TOWN — Passenger Rail Agency of SA (Prasa) CEO Lucky Montana’s life has been threatened because of his attempts to crack down on crime syndicates operating within the organisation, Transport Minister Sbu Ndebele said yesterday.

Prasa loses more than R70m a year to various forms of organised crime including rail and cable theft, vandalism, ticket fraud and cash heists on railway stations. If replacement costs are included, this soars to R200m-R300m.

Because of the threats faced by Mr Montana — including his car being followed on a number of occasions by unknown people — it was decided that he needed continuous security protection, Mr Ndebele said in a written reply to a parliamentary question by Democratic Alliance MP Manny de Freitas.

Mr Montana’s first brush with criminal elements dates back to when, as an official of the Department of Transport, he was dealing with the taxi recapitalisation programme and had to interact with irate taxi owners whose livelihood was threatened. His house was invaded and his family placed at risk to such a degree that he offered to resign from the department .

Mr Ndebele said Mr Montana’s "stringent steps" to eradicate criminality had made him "a prime target of these criminal elements and syndicates" in Prasa. The threats to his life intensified as Prasa engaged in a drive to stop collusion between its service providers and employees who profited from crime.

Mr Ndebele said the protection was all the more necessary as Mr Montana worked extended hours both at his office and when attending external meetings. "As the organisation continues to restructure, modernise and transform to create greater efficiencies, the services of various categories of stakeholders are affected — especially when those of longstanding service providers are terminated due to various reasons, including substandard performance and exorbitant pricing," Mr Ndebele said. "This has and continues to result in a number of threats being made to the person and life of the group CEO of Prasa."

Road Accident Fund CEO Jacob Modise also had personal security on the basis of a "regular threat analysis", Mr Ndebele said.

In reply to other parliamentary questions, Mr Ndebele said Prasa was engaged in a detailed feasibility study to determine the level of private-sector participation in its proposed R97bn acquisition of new rolling stock.

It plans to buy 8600 new coaches for Metrorail and 2000 locomotives for the long-distance service, Shosholoza Meyl. The government is unable to fund SA’s most ambitious modernisation and expansion of rail in 30 years, but wants a minimum level of 65% local content. "There may be areas of private- sector participation relevant to the financing and maintenance of new rolling stock," Mr Ndebele said.

The Treasury’s private-sector participation unit was assisting. "The results of the feasibility study will determine what capital portions of the rolling stock recapitalisation will be financed from the National Treasury and which portions will be financed from private-sector sources. The study results are expected to be released in June," Mr Ndebele said. The study would also confirm Prasa’s rolling stock and infrastructure upgrade requirements.

Last month Prasa engaged with potential rolling-stock manufacturers and financiers from international and local markets to gather information that would be used for the feasibility study. "It is anticipated that the first batch of coaches will be ordered late (in) 2012, with a lead time of three years," Mr Ndebele said. The first new coaches would hopefully arrive in the 2015-16 financial year.

Mr Ndebele said he was confident the 18-year programme would contribute to the localisation objectives of the government’s industrial policy action plan as manufacturing and supplier plants would be established in SA. "This will revitalise the local rolling stock manufacturing capacity in the country, transfer skills and create significant long-term decent employment opportunities."