File picture: Thobile Mathonsi/African News Agency (ANA) Archives
File picture: Thobile Mathonsi/African News Agency (ANA) Archives

Prasa may have its movable assets seized over R25m debt

By Okuhle Hlati Time of article published Mar 18, 2020

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Cape Town – Lawyers representing three private security companies that hauled the Passenger Rail Agency of South Africa (Prasa) to court after it failed to pay them about R25 million are preparing to issue a warrant of execution for their property.

It comes after the Western Cape High Court this month ordered that the parastatal pay the security guards. 

Companies Sechaba Protection Services, Chuma Security Services, and Supreme Security Services, represented by Mark Hess Attorneys, turned to the court for a second time this month, claiming they had been safeguarding trains and commuters without payment for three months. 

Chuma Security Services chief executive Sithethi Ngcwangu said they had hoped Prasa would pay the monies by yesterday.

“When the court order was handed down we had some sort of relief and thought Prasa would pay. We have been struggling to make ends meet. They have until (today) to pay or we can attach their movable assets and remove the same if necessary,” said Ngcwangu.

Punitive costs were also granted in favour of the three companies.

Vusa-Isizwe Security, represented by Advocate Adam Brink, was granted leave to intervene in the matter, and was granted the same relief as the other applicants, barring the punitive cost order. 

Judge Thandazwa Ndita also ordered Prasa to give the court reasons for its non-compliance with the court order issued by Judge President John Hlophe on November 19 last year.

Judge Hlophe had ordered the parastatal to, within 30 days, provide the court with an “adequate contingency safety plan”, approved by the Railway Safety Regulator, for the protection of commuters, employees and Prasa assets.

Prasa must also report to the court on March 27 on their compliance with the order.

Prasa spokesperson Nana Zenani said she would respond to requests for comment.

Cape Times

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