BusinessLive reports that dire financial challenges at the Passenger Rail Agency of SA (Prasa) have resulted in the state-owned enterprise (SOE) failing to make payments to its employees’ retirement fund in the past two months.  

Prasa announced in March that it was going through a “debilitating cash flow crunch” that has depleted its operational budget and further led to it failing to pay suppliers and creditors.  The United National Transport Union (Untu) said the money due to the fund amounted to R23m and that it was a criminal offence to withhold it.  Untu’s Steve Harris advised that the union had laid charges of fraud, theft and contravention of the Transnet Pension Fund Act against Bongisizwe Mpondo in his capacity as the Prasa administrator.  Prasa spokesperson Makhosini Mgitywa said Untu was being alarmist, but admitted that for the past few months the rail agency had failed to meet a number of its financial commitments due to cash-flow challenges.  Mgitywa added that Prasa was aware of the implications of non-payment of contributions to the retirement fund and was acting with “urgency to address the matter and ensure that the interests of its employees are protected”.

• Read the full original of the report in the above regard by Luyolo Mkentane at BusinessLive

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