New board bogged down by problems

Transport Minister Blade Nzimande is seriously concerned about the Passenger Rail Agency of SA (Prasa), saying it was so mired in problems from the past that the new board may not have had a chance to look to the future. “We need to have a very serious engagement with the board. I am not even sure they have had a proper board meeting looking forward instead of just dealing with problems of the past,” Nzimande told parliament’s portfolio committee on transport. The agency had not spent R14 billion in its capital fund on new infrastructure, he pointed out. This had resulted in the department withholding an allocation of R4.9 billion to Prasa and returning it to National Treasury during the past financial year. “I am very concerned about this sitting on R14 billion when the president says we must have investment and development.” Transport director-general Collins Letsoalo said it would have been incorrect to transfer the allocation to Prasa when the agency had capital expenditure funds of nearly three times as much on its books which it had not used. “Prasa had spent about 26% of their capital expenditure towards the end of the financial year. They had cash reserves of R14 billion.” Nzimande was at pains to stress that the underspending did not affect rail services in the short term but, ultimately, lack of infrastructure development would hamper services. – ANA