PRASA facelift by October

After much emphasis being placed on the state of the Passenger Rail Agency of South Africa’s (Prasa) operations in the last few months, things are reportedly looking up. Acting CEO Collins Letsoalo has announced that a turnaround strategy will be implemented in October. This is said to guarantee that service improves.

“As Prasa we are happy to announce that we have received an unqualified Audit opinion from the Auditor General of South Africa (AGSA) for the financial year 2015/16,” stated Prasa.

While further attention was drawn to the fact that only 47% of their targets set for the financial year were met, they remained set on improving.

“We have achieved in this regard 47% of our annual targets. In this financial year we are busy implementing key initiatives to improve both Prasa financial and operational performance. Some of the key initiatives include the improvement of our rail services,” Prasa added.

Mention was also made of operational irregularities and the fact that investigations around this will continue. This despite communication between Transport Minister, Dipuo Peters and PRASA board chairperson Popo Molefe.

Letsoalo, who was appointed as CEO to stabilise the rail agency, is adamant that plans are going well, and this is evident in the financial results.

“The reduction in operational costs, improving revenue, and aligning Prasa to effectively deliver on its primary and secondary mandate. In this regard we anticipate by the end of October 2016 to release Prasa’s turnaround strategy which will go further into detail and elaborate on the above matters,” stated Prasa.

Letsoalo further in assuring members of the public denied any acceptance of financial contributions from political parties.

“This follows Molefe's affidavit that the director of train supplier Swifambo claimed that R80 million made its way to mystery parties, including the African National Congress during a controversial deal with Prasa,” reported EWN.

Though the leadership remain in high spirits about the turnaround strategy, there is no denying that the agency has suffered quite a number of consecutive blows this year. From operational strikes to train commuter violence to the tune of millions in damages. That coupled with the looming deadline of within a month’s time, have many speculating about whether the national rail agency can indeed pull it off.

With quite a few state owned enterprises (SOEs) in the media lately for financial difficulties, against a backdrop of whispers around privatisation and it potentially being the way to go, the South African public will simply have to wait and see.