Prasa train coaches attached over unpaid security debts

2016-09-12 18:02
Supplied (Prasa).

Supplied (Prasa).

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Cape Town – Prasa's woes mounted with the attachment of seven of its coaches after the parastatal allegedly failed to pay its security bill.

The railway operator owed Chuma Security Services R2.4m. When it failed to pay, the Cape Town High Court issued an attachment order on August 24, the security company's lawyer Mark Hess said on Monday.

The trains would be sold to raise the money owed, but the Passenger Rail Agency of South Africa still had a chance to get them back if payment was made.

On June 22, an order was also granted for five of the company's vehicles to be attached, in relation to a court order for R7.7m owed for ad hoc contracts.

In that case, the company paid two weeks later and the property was released.

Exhausted all avenues

Prasa is expected to be back in court on Tuesday, in connection with a demand for R4.8m by another service provider, Supreme Security.

Hess said the companies had exhausted all other avenues to get the money back and cover their own expenses and salaries, before applying for the attachment orders.

Besides paying the money owed, Prasa had to cover court costs to get the coaches back.

Prasa spokesperson Riana Scott said the dispute between Chuma Security and Metrorail was "subject to legal proceedings and therefore we will not be discussing details in public".

The company accepted its obligations to Chuma Security and intended meeting them.

"We are currently, as Metrorail and our Prasa rail head office, reviewing our cash flow position in an effort to expedite an amicable resolution to this dispute.

"We continue to engage with the management of Chuma Security and their legal representation in doing so," she said.

Prasa is dealing with a catastrophic multi-billion rand order for new, imported trains which turned out to be too high for existing infrastructure.

Read more on:    prasa  |  cape town

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