Prasa becomes latest SOE to have assets attached over late payments
YET another state-owned company under Transport Minister Fikile Mbalula's watch has had its assets attached over outstanding payments.
The sheriff of the court was expected to seize assets at Prasa's Braamfontein, Joburg head offices on Monday but was delayed due to the need for a bigger truck. The execution of the seizure will go ahead sometime this week.
The sheriff's list of Prasa assets that have been attached includes 80 HP laptops, 100 office tables, 100 chairs, 20 industrial printers, a Toyota Quantum,
Toyota bakkie, VW Polo Sedan, VW kombi and 10 three-piece office lounge suites.
Last month Mbalula expressed alarm after the sheriff of the court attached some of the transport department's assets which included his computers and furniture.
This related to unpaid Road Accident Fund claims which were finalised but not yet paid out due to cash flow problems.
In the latest case involving train security service providers Sechaba Protection Services, Supreme Security Services and Chuma Security Services, the companies' legal representative
Mark Hess gave formal instructions to the sheriff after Prasa breached acting Western Cape High Court Judge Bryan Hack's judgment.
In February the state-owned entity was ordered to make invoices payable within 30 working days.
“Make any future payments due to the applicants, in terms of the agreements between them for the provision of private security services, as and when the payment of any issued invoice falls due by transferring the funds electronically by no later than the due date.
“In terms of the agreement, payment of invoices is due within 30 working days after the end of each month or after receipt of the signed invoices and credit notes,” Judge Hack had said.
However, according to Hess Prasa has not paid invoices on the dates stipulated in the court order.
“Clients eventually gave instructions to issue a warrant for the May and June invoices that were due. Despite the attachment Prasa only paid the amount of R7 655 454.36 in respect of the May invoices. I warned them that I am going to remove their assets if they don't pay the June invoices and sent them a copy of the warrant; however there are still no payments,” he said.
desperately needed the money paid out to them by the RAF to survive,” the Judge noted. Acting Judge Nolundi Nyati agreed with this.
During the court proceedings the LPC said Baumann’s victims may enjoy claims against the Legal Practitioners Fidelity Fund, and the court additionally directed the LPC to inform the victims thereof in writing.
The Fidelity Fund’s claims executive Jerome Losper yesterday said they have so far received 19 claims with a combined value of R13.4m, and they have paid five claims totalling R3.2m.
LPC spokesperson Sthembiso Mnisi said they welcomed the judgment.
“We believe that it sends a clear message that Mr Baumann’s conduct will not be tolerated.
“The LPC is established to protect members of the public against errant legal practitioners.
“We have already received several queries regarding Baumann, and these have all been referred to the Legal Practitioners Fidelity Fund.
“We will obtain a list of the criminal complainants and advise them of the possibility of lodging a claim against the LPFF.”
Members of the public are encouraged to contact the LPC Western Cape Provincial Council office on 021 443 6700 or email infowc@lpc.org.za should they have any queries regarding Baumann.