Prasa's audit reveals R19bn in irregular expenditure

Auditor-General says state passenger rail company's underlying position remains precarious

- BANELE GININDZA

THE Auditor-General said Prasa achieved an unqualified audit opinion with findings, an important step up from the disclaimed opinions that persisted until the 2021/22 financial year.

(JACQUES NAUDE Independent Newspapers)

THE Passenger Rail Agency of South Africa (Prasa) has recorded a notable improvement in its audit outcome, but the milestone is being eclipsed by entrenched financial mismanagement, including R19 billion in irregular and fruitless expenditure, according to the Auditor-General.

Briefing Parliament on the entity's 2024/25 audit results on Wednesday, AG's business unit leader Ilze Dieppenaar said Prasa achieved an unqualified audit opinion with findings, an important step up from the disclaimed opinions that persisted until the 2021/22 financial year.

However, she cautioned that the agency's underlying financial position remains precarious, with “material uncertainty” over its ability to continue as a going concern.

"The main reason for raising this material uncertainty was the operating deficit. Importantly, this deficit excludes government funding, even though 88% of total revenue, including capital grants, still comes from the government," Dieppenaar said.