Firms seek legal costs from Prasa

LAWYERS representing three security companies contracted to the Passenger Rail Agency of SA (Prasa) will forge ahead with their urgent court application to force the state-owned company to pay legal costs following a dispute over payments for services provided by the companies.

Earlier this week the lawyers launched an urgent application with the Western Cape High Court against the rail agency over its failure to pay their clients more than R10 million for services rendered between April 14 and May 15.

Yesterday, the lawyers confirmed that while Prasa had paid their clients on Wednesday night, they would proceed with their application. The companies involved are High Goals Investment, trading as Chuma Services, Supreme Security Services and Sechaba Security Services.

Attorney Mark Hess from Swartz and Hess attorneys said the decision to continue legal action was due to their clients being entitled to the legal costs they incurred.

“Our clients are also considering a separate claim for interest and penalties they incurred due to the late payments. This has occurred frequently. Prasa imposes penalties as a result of short-posting (insufficient staff being on duty) – however, they are the cause of this dilemma. If the workers are not paid, they are unable to travel to their workplace.”

He said another application heard on June 11 sets out the basis for an order to request the high court to compel Prasa to negotiate wage increases for the companies’ staff. Judgment was reserved in that matter.

Prasa spokesperson Nana Zenani said she had forwarded a query on the matter to Prasa’s legal department, but the Cape Times had not received a response at the time of publishing.