prasaBusinessLive reports that the Passenger Rail Agency of SA (Prasa), which was placed under administration in December, has suspended 12 senior officials for allegations of gross misconduct emanating from various investigations.  

On Friday afternoon, Prasa said it suspended the officials pending a disciplinary process into the allegations, and that the employees came from various business units, regions and departments within the agency.  Some of the suspensions arise from ongoing investigations by the Special Investigating Unit (SIU) into contracts and payments made by the company from 1 January 2010 to the present, with a view to uncovering corruption.  Prasa is going through a debilitating cash-flow crunch that has depleted its operational budget and further led to the company failing to pay suppliers and creditors.  Its dire financial position is in part due to irregular expenditure amounting to billions of rand under the watch of successive boards and the executive.

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