Prasa desperate for unspent R20bn to keep railways open
Administrator appeals to the ministries of transport and finance to help get SA’s passenger trains back on track
In a bid to stave off the collapse of SA’s passenger railway system, Prasa’s administrator has appealed to the ministries of transport and finance for permission to access a R20bn budget, said to have gone unspent due to poor management.
Prasa administrator Bongisizwe Mpondo plans to use the passenger railway agency’s capital expenditure budget for critical operational expenses. These are for the repair and replacement of stolen railway tracks and overhead power lines, and to address security system collapses.
Under the Public Financial Management Act, the Treasury must provide permission for state-owned entities and state-owned companies when the reallocation of multibillion-rand budgets is required...