Parliamentary Committee demands phased funding for PRASA amid oversight concerns

Members of Parliament are calling for the stringent monitoring of the Passenger Rail Agency of South Africa (PRASA) regarding its planned expenditure of R5.8 billion earmarked for a new fleet.

During a session on Friday, members of the Standing Committee on Appropriations questioned whether the funds had already been transferred to the entity. The committee met to consider the Special Appropriation Bill, which seeks to allocate additional funds to state entities requiring urgent cash injections.

The Special Appropriation Bill was originally introduced by Finance Minister Enoch Godongwana in February as part of his 2026 Budget. The bill proposes significant funding disbursements, including:

PRASA: R5.8 billion for its new fleet program.

National Revenue Fund: R8.4 billion for general state requirements.

Despite agreeing on the appropriation, committee members raised serious concerns regarding the PRASA allocation, insisting the entity be closely scrutinised.

Committee member Kingsley Wakelin recommended that the funds be paid out in controlled stages rather than a lump sum, citing the agency’s turbulent financial history.

"Given the well-documented challenges and mismanagement previously at PRASA, a possible way forward would be to recommend the Director of National Treasury to invoke this provision and structure the allocation as conditional tranche payments."

The committee has officially agreed on the Special Appropriation. The bill will now move to the National Assembly for formal adoption.