Pretoria - It has not been a good week for the Passenger Rail Agency of South Africa (Prasa), with the public protector first calling for a forensic investigation into the agency’s tenders following claims of maladministration, and the now the court ordering Prasa to pay R22.7 million to a fencing company by close of business today.
SA Fence & Gate Investment Holdings turned to the high court in Pretoria to secure an urgent order that Prasa pays the money owed to it for security fencing it did for the rail agency at various outlets across the country.
Judge Natvarlal Ranchod ordered that Prasa had until today to pay R22 733 732 to the company.
The court was told that in March 2013 the parties entered into a R209m contract for security fences and related structures at various of Prasa depots.
Geoff Greyling, chief executive of the fencing company, said in court documents that for various reasons which are not their fault, the deadline of the contract was extended.
The company used 41 percent of its workforce to install the security fencing at, among others, Durban station, in East London and Braamfontein. Greyling said that earlier Prasa paid as promised, but this stopped in March this year. The outstanding amount, according to him, is more than R22m.
He said it is the first time that Prasa, without any explanation at all, failed to pay. “The huge magnitude of this sum renders it impossible for the applicant and its business to survive, unless paid Prasa immediately.”
According to him, he cannot pay his workers and his company’s future is at stake. Greyling said the issue of non-payment was taken up with Prasa, including its former chief executive Lucky Montana. Empty promises of payment were made, he said.
Prasa subsequently tried to cancel the contract and the applicant’s workers have been barred “with force” from the various sites. Greyling said these issues are all topics of pending court applications.
Prasa denied liability and complained about the company’s “poor performance and unacceptable work pace”. It said there were numerous disputes between the parties, which were under investigation.
Prasa also said there was no legal obligation on it to approve payment to the applicant and that it was simply not happy with the work delivered by the applicant.
Prasa also said the applicant did not undertake any major work to justify the R22.7m it is demanding.
Judge Ranchod the money had to be paid by close of business today.
PRETORIA NEWS