Prasa told to pay up, or else

SOE ordered to settle with security firms

THE Passenger Rail Agency of South Africa (Prasa) and its administrator Bongisizwe Mpondo have been given until this week to pay outstanding amounts to security firms or face a warrant of execution for property.

This followed after another small victory by companies Sechaba Protection Services, Chuma Security Services and Supreme Security Services, represented by Mark Hess Attorneys, at the Western Cape High Court on Friday over non-payment for services rendered to Prasa from February 1 to April 30.

The companies alleged they were struggling to make ends meet during the lockdown and guards were refusing to work without pay while others were seeking employment elsewhere.

Judge Patrick Gamble ordered that Prasa make any necessary arrangements to effect and pay the guards.

“In the event that payment of the aforementioned amounts, including legal costs and interest, if applicable, are not paid, within seven court days from date of service of this order, that a warrant of execution be authorised to be issued forthwith,” said Gamble.

This order follows that of Judge Thandazwa Ndita in March, when the parastatal was instructed to pay the companies money it owed in 2019, after it tried to dismiss the workers in November.

Vusa-Isizwe Security, represented by advocate Adam Brink, which was granted leave to intervene in the matter, was still awaiting payments.

Vusa-Isizwe and the private securities composited an order and arranged another court date on August 24 for Mpondo to state why he should not be personally liable to be held in contempt of court.

Judge Gamble also ordered the parastatal to pay Vusa-Isizwe Security R10 806 990 without delay.

“Prasa is to file the envisaged affidavit by no later than June 19 and failure to comply with Ndita’s order, show cause why it should not be found to be in contempt of court and why they (Prasa and the administrator) should not, jointly and severally, pay the applicants’ costs on a punitive scale of attorney client, the one paying the other, to be absolved, as the case may be,” said Gamble.

Prasa spokesperson Nana Zenani said Prasa would respond today regarding the warrant of execution for its property.

“Prasa made payments in March to security companies after receiving court orders.

“The rail agency is committed to settling its debts, especially to SMMEs, which are job creators. However, Prasa has always been transparent with its creditors and suppliers regarding its financial challenges.

“We continue to endeavour to settle outstanding debts to our service providers using the limited resources at our disposal,” said Zenani.