PRASA collapse: DA calls for unbundling and rescue model
7 December 2022
The Passenger Rail Agency of South Africa (PRASA) during their presentation to the Portfolio Committee on Transport recently, conceded that the state-owned entity is in “ICU”.
This is a startling concession and the most honest admission yet that the entity will never actually recover under an ANC government.
Corporate governance has been eroded at the entity that has almost 20% of its total workforce unaccounted for. Recent news reports revealed that PRASA has 3 000 ghost employees. Yet, a ballooning wage bill is honoured monthly with no value for money.
In 2009 PRASA was moving almost four million passengers per annum, compared to a paltry twelve thousand passengers in 2021. Over the last 13 years PRASA has lost a frightening 99.5% of their passenger numbers. PRASA is not financially viable nor in a position to recover cost let alone realise any significant revenue. Their chaotic business model ensured the entity’s total collapse, including a looting spree by ANC cadres and their benefactors and total corporate governance collapse.