Assertions by state passenger rail agency Prasa that its board chair Leonard Ramatlakane is paying a market-related rental for a company house in a posh Cape Town suburb have been challenged by agency insiders.
Last week the Sunday Times reported that Ramatlakane had moved into a Prasa-owned double-storey home in Newlands while his own home in the north of the city was being renovated.
The report quoted Prasa spokesperson Andiswa Makanda as saying Ramatlakane had entered into a lease agreement with the state-owned company and was paying a market-related rental that included utility charges such as electricity and water.
A house down the road is currently on the rental market for more than R37,000 a month, according to Property24.
This week, several highly placed insiders at Prasa told the Sunday Times the agency had asked Ramatlakane to pay R50,000 a month but he had paid less than half of that since he moved into the house with his family in December last year. It also emerged that the board was not aware that Ramatlakane had moved into the unoccupied house and this prompted it to commission accounting firm SNG Grant Thornton to investigate.
The firm has been given 14 days to conduct an investigation and compile a report for the board.
“The lease is not even signed but we understand that there was some kind of agreement with the office in the Western Cape that he will pay R50,000, but he has paid less than half of that in the three months that he has been staying there,” said one insider, who asked not to be named for fear of repercussions.
This was confirmed by two other independent sources with close knowledge of Prasa matters.
“Prasa must produce the lease agreement and the proof of payments and who signed the lease for Prasa,” one of these sources said.
This is in stark contrast to what Prasa told the Sunday Times last week, when it said Ramatlakane had paid the rent in full before he moved in. The agency said Ramatlakane’s initial short-term lease from December 15 to February 15 had been extended.
It has also emerged that the board has often discussed options for Prasa properties, including the house in Newlands. Ramatlakane never mentioned that he was interested in renting it.
“The board was still waiting for a submission [from executives] about how the house was going to be commercialised,” one of the sources said. “In this case, where the chair is involved, even if as courtesy he could have informed the board that he was occupying a Prasa house.”
Ramatlakane did not respond to questions about how much he has paid since moving into the house, and did not provide evidence of a signed lease.
The Sunday Times understands that he was asked this week to immediately move out of the premises.
Prasa declined to address further questions this week about how much Ramatlakane was paying and whether he had signed a rental contract.
“The Prasa board of control has appointed SNG [SizweNtsalubaGobodo] to conduct an independent inquiry into the allegations pertaining to the leasing of Prasa property by its chairperson in Newlands, Cape Town,” Makanda said.
“The inquiry will be guided by the terms of reference developed by the board. The shareholder, the department of transport, has been informed of these developments. The board will respond after the inquiry.”
Prasa spent R2.5m renovating the Newlands house so it could be used by its executives during business trips to avoid the company having to pay for hotel accommodation. Its top-tier finishes include glass balustrades, immaculate paving and an extensive balcony.
Ramatlakane recently hosted a number of friends and family members at the house, which is close to Newlands cricket stadium, to celebrate his 70th birthday. Newlands is one of Cape Town’s most sought-after suburbs, where houses are on the market for more than R15m.
When the Sunday Times visited Ramatlakane’s own home in Cape Town’s northern suburbs last week, it was still being renovated and extended. The roof had been removed to make way for a double-storey extension and a number of decorative pillars had been installed.
Last week a builder on the construction site said work began in December.
Prasa has suffered serious financial losses in the past four financial years and received a disclaimed audit opinion from auditor-general Tsakani Maluleke, the worst possible finding, indicating that the organisation cannot account for how its money was spent.
The department of transport did not respond to questions.
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