South African rail agency paid more than R1bn to security firms in disputed backdoor deal
South Africa’s Passenger Rail Agency of South Africa paid more than R1bn to two security firms linked to ANC veteran Paul Langa through a procurement
South Africa’s Passenger Rail Agency of South Africa paid more than R1bn to two security firms linked to ANC veteran Paul Langa through a procurement route now under a legal cloud. The spending came through a “piggybacking” arrangement with the Airports Company of South Africa, even though the National Treasury says the regulation often used for such deals did not apply.
The finding raises fresh questions about how a state rail operator handed out work worth more than a billion rand. No normal procurement process. No service-level agreement. No contract, according to the Sunday Times report. Just a backdoor arrangement that Treasury says broke the rules.
How the deal worked
Documents seen by the Sunday Times show that in July 2021, Acsa approved Prasa’s request to piggyback on its panel of security companies. That gave the rail agency access to contractors already appointed through Acsa’s procurement process.
One of those contractors was Reshebile Aviation & Protection Services, or RAPS, which has since been liquidated. Its sister company, Reshebile Aviation Solutions, or Ras, was also led by Langa. Together, the firms pocketed more than R1bn from Prasa.
Quickly, the sums grew. And so did the concern.
Treasury says the rule did not fit
The Treasury, which oversees public procurement in South Africa, has confirmed that the regulation relied on to justify piggybacking did not apply to Acsa or Prasa. That leaves the legality of the arrangement in doubt and puts the two state entities under closer scrutiny.
For Prasa, the stakes are high. The rail agency has long faced pressure over governance and procurement, and this latest revelation touches both at once. For Acsa, the question is why its panel was used in a way Treasury says the rules did not allow.
Political connections and old echoes
Langa is no stranger to South African politics. Available reports describe him as an ANC veteran and former Robben Island prisoner. His role in companies that benefited from the Prasa arrangement will likely sharpen public interest in the deal.
The episode also revives memories of past Prasa-linked money controversies. In 2018, forensic testimony around VBS Mutual Bank said the bank had counted on a R1bn Prasa deposit that never materialised after ANC factional politics shifted. That earlier case showed how deeply the rail agency’s money has been pulled into wider political and financial battles.
For now, the new focus is on the procurement route itself. Treasury has already signalled that the rule did not apply. The question is what follows next — and whether more of Prasa’s security spending will come under the microscope.
