THE United Transport Union (Untu) on Wednesday called for the Passenger Rail Service of SA (Prasa) to be placed under administration, saying its management was failing to lead a turnaround of the embattled service.News that Prasa owed Transnet and municipalities more than R796m in accounts outstanding for more than the stipulated 30 days indicated there was "no light at the end of the tunnel", Untu said.Transport Minister Dipuo Peters should apply immediately to put the service under administration before there were further financial losses, the union’s general secretary Steve Harris said on Wednesday.In a written reply to parliamentary questions, Peters said Prasa owed Transnet almost R283m in amounts outstanding for more than 180 days."As long as Prasa has a cash flow problem, we will be unable to pay service providers on time. The contributory factors of the cash flow challenges include the tough economic climate, the unfunded mandate of Shosholoza Meyl, operational challenges su...

Subscribe now to unlock this article.

Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).

There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.

Cancel anytime.

Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.

Speech Bubbles

Please read our Comment Policy before commenting.