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The Special Investigating Unit (SIU) has secured a court order preserving two luxury properties worth more than R15m linked to former Passenger Rail Agency of South Africa (Prasa) group CEO Lucky Montana.This was allegedly after Montana’s declared income could not explain how he acquired the two properties.This seizure is part of the SIU’s investigation into the agency’s controversial R5.6bn Integrated Security Access Management System (Isams) contract.The Special Tribunal granted the preservation order, preventing Montana from selling, transferring, leasing or otherwise dealing with the properties while the SIU pursues civil proceedings to recover alleged proceeds of corruption.The preserved assets include a property in Hurlingham, Johannesburg, valued at R13.5m and a property in Waterkloof, Pretoria, worth R2.25m.SIU spokesperson Selby Makgotho said the order also instructed the registrar of deeds to place caveats on both title deeds to prevent any unauthorised transactions.“The preservation order follows an SIU investigation which uncovered a direct and uninterrupted money trail linking the acquisition of both properties to proceeds allegedly derived from the Prasa Isams contract awarded to Siyangena Technologies, a subsidiary of TMM Holdings,” he said.According to Makgotho, the Isams project was initially introduced to improve security, reduce fare evasion and modernise selected train stations before the 2010 Fifa World Cup.The SIU has obtained a preservation order for two properties linked to former Prasa CEO Lucky Montana as part of its investigation into Prasa’s R5.6bn Isams contract. Graphic: (Supplied) Though the project started as a pilot at selected stations, Prasa later expanded it, awarding several contracts and extensions to Siyangena.By April 2016 the value of the contracts had ballooned to more than R5.6bn.“The SIU investigation found that Montana’s legitimate income could not account for the purchase of either property. Bank records showed that the funds were directly connected to payments made by companies within the TMM group and Precise Trade and Invest,” he said.The investigation found that in June 2014 Precise Trade and Invest received R1.85m from ESS, a company within the TMM group, and another R4m from TMM Holdings.The company then transferred R2.25m to conveyancing attorneys, enabling the purchase of the Waterkloof property, which was subsequently registered in Montana’s name.The SIU also uncovered a more complex chain of transactions relating to the Hurlingham property.Evidence showed that after Siyangena received substantial payments from Prasa, it transferred R13m to TMM Holdings. TMM Holdings then transferred R12m to Botswana-based Midtownbrace, whose account reportedly had a zero balance before the payment.Midtownbrace subsequently transferred R11.5m to the transferring attorneys, allowing the Hurlingham property to be bought and registered in Montana’s name in July 2015.“The tribunal has directed the respondents to appear on August 11 to show why the interim preservation order should not be made final. It also ordered that the main proceedings against Montana be instituted within 30 days,” Makgotho said.The SIU is investigating Prasa under Proclamation R153 of 2024, which authorises investigations into allegations of maladministration and corruption involving the rail agency between January 1 2010 and February 16 2024.Makgotho said the preservation order marked an important step towards recovering public funds.“The SIU welcomes the tribunal order and regards the decision as an important step in safeguarding assets pending the finalisation of civil recovery proceedings. The unit remains committed to recovering financial losses suffered by the state, holding those responsible accountable, and protecting public resources from corruption.”He added that any evidence pointing to criminal conduct uncovered during the investigation would be referred to the National Prosecuting Authority for further action.Sowetan
