Cash-strapped Prasa has been operating without risk insurance cover on R3bn worth of its assets for the past six months, exposing commuters to another risk calamity while executives cruise in luxurious vehicles.
The operational meltdown decimating the Passenger Rail Agency of South Africa (Prasa) continues unabated, with at least one major risk insurance house cancelling its cover to the embattled state-owned enterprise (SOE) as crime and arson take its toll on Prasa’s assets across the country. Among the assets running without insurance cover for the past six months are two new trains in the Western Cape which Prasa bought for R146-million each.
Daily Maverick can reveal that Emerald Africa, a subsidiary of JSE-listed short-term insurer Santam, has informed Prasa that it had terminated its insurance risk cover for its assets in many parts of the Western Cape and some in Pretoria, on account of the rail operator’s failure to implement risk mitigation measures since April.
In a letter to Prasa’s general manager for group insurance, Tokollo Mahlake, and to insurance provider AON South Africa, Emerald’s Mary Driscoll said: “Regrettably we are not able to provide cover for the New Trains whilst in the Western Cape. Emerald and its re-insurer are unable to evaluate the increased exposure in the Western Cape due to the absence of satisfactory underwriting information regarding the security and existing fire protection at the staging yard and stations en route, as requested on 30 July 2019,” wrote Driscoll. (The letter was signed on August 23).
Source: Business Insider and Sikonathi Mantshantsha.