Thousands of jobs on the line as a result of PRASA’s woes

The operational performance of the Passenger Rail Agency of South Africa (Prasa) had continued to deteriorate with only a quarter of its targets met in the past financial year.

In the year ended March 2019, Prasa carried 208 million paying passenger trips. That was down from 262 million the previous year. Management and performance instability intensified with executives either suspended, placed on special leave or fired for corruption. This had gutted the utility over the past decade.

Failure to undertake critical maintenance, the writing had been on the wall, even before Treasury cut Prasa’s capital budget. However, as with other state-owned entities (SEO’s) salaries were the biggest expense. Even a golden goose eventually dies.

With Prasa’s demise almost as certain as that of SAA, many companies and contractors it did business with, have to close its doors and thousands of jobs could be scrapped.

Source: Daily Maverick (edited for length)

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