Rail agency mum on why it hasn't paid security companies despite court order

Prasa House in Hatfield, Pretoria. File picture: Thobile Mathonsi/African News Agency (ANA) Archives

Prasa House in Hatfield, Pretoria. File picture: Thobile Mathonsi/African News Agency (ANA) Archives

Published Jan 9, 2020

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Cape Town – The Passenger Rail Agency of SA (Prasa) has remained tight-lipped on why they had not paid their security companies for Christmas.

Chuma Security Service said it had not been able to pay the salaries of 400 guards since the start of the festive season.

This is despite an order from the Western Cape High Court in

November, which instructed Prasa to pay costs and pay the companies money it owed them following late payments.

Private companies had taken Prasa to court in October after it terminated their contracts allegedly without notice, leaving more than 1000 rail security guards jobless.

They won their case and the court ordered that they go back on duty.

In the past, Chuma Security Services chief executive Sithethi Ngcwangu said he had to use his VAT to pay employees their salaries while waiting to be paid by Prasa.

“With the new appointments in Prasa leadership, we had hoped our payments would be among the first priorities. This is because they are dealing with people who have families and our business is suffering.

“Every year, we must deal with the same issue of late payments. We send our invoices on time each month. All we want to know is when we are getting paid,” said Ngcwangu.

According to Association of Private Security Owners of SA, representing Chuma security, continuous alleged late payments by Prasa would result in talks with Transport Minister Fikile Mbalula, as well as recourse the courts again.

Prasa has not responded to questions since Sunday, despite having indicated that they would.

Cape Times

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