TRANSPORT GOVERNANCE
Inert board could trigger withholding of Prasa funding
Department of Transport seeks written assurance from the rail agency
The Department of Transport has threatened to withhold up to R1bn in monthly funding to the Passenger Rail Agency of SA (Prasa) because its board is unable to submit approved financial statements. Transport acting director-general Mathabatha Mokonyane has written a letter, which Business Day has seen, detailing how the department has requested written assurance from the rail agency that it will be able to submit approved financial statements before the department signs off on funds. The letter, dated July 14, notes continued irregular spending at the agency, adding: "The state of service of Prasa’s public transport provision has ... collapsed, resulting in continuous declines in passenger numbers, and increases in operational costs."
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