Legal action against Prasa withdrawn

The Dudula Rail consortium has withdrawn its legal action against the Passenger Rail Agency of SA (Prasa) over a tender.

“At this stage, we believe that a lengthy court case will only delay other projects and drain our precious resources,” Stadler Rail’s executive vice-president Felice Massaro told financial daily Business Day.

Business Day reported today that Prasa CEO Lucky Montana announced, three days after the tender was awarded, that Dudula had begun an “aggressive” legal process against it.

Dudula Rail, headed by Swiss Stadler Rail, lost a tender to roll out a R51 billion stock fleet to Alstom’s Gibela Rail Transportation.

In papers filed at the North Gauteng High Court in Pretoria, Dudula reportedly said it wanted two things from Prasa: the reasons why it had not been selected and information on the winning bid.

Business Day reported that Dudula claimed to have been informed by “confidential sources” that Gibela’s bid had not complied with technical requirements.

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