Prasa R796m in debt



September 28, 2016
Prasa R796m in debt

Prasa owes R796m to suppliers and service providers

Operational challenges blamed for the rail service's unsettled accounts.

The Passenger Rail Service of SA (Prasa) owes Transnet and municipalities some R796 million on accounts that have been outstanding for more than 30 days, and is not sure when it will be able to settle.

This was according to a response from Transport Minister Dipuo Peters to Democratic Alliance MP Manny de Freitas yesterday.

Peters said it was not clear when the rail agency could pay, and warned that this would remain the case for as long as Prasa’s cash flow problems continued.

She blamed the economy, the unfunded mandate of Shosholoza Meyl, and “operational challenges such as the many coaches out of service, train burnings, major service disruptions, fare evasion and vandalism.”

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