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COVID-19 has cost Prasa R199m in lost revenue, Mbalula tells MPs

Transport Minister Fikile Mbalula said that finances remained a source of serious concern for Prasa, which was facing a fare revenue decline due to the state lockdown.

Transport Minister Fikile Mbalula addresses Prasa employees and the media at the state-owned entity's headquarters. Picture: @MbalulaFikile/Twitter.

CAPE TOWN - Transport Minister Fikile Mbalula said that the Passenger Rail Agency of SA (Prasa) had lost hundreds of millions of rand as a result of COVID-19.

Mbalula and Prasa management have briefed Parliament's Transport portfolio committee on the entity's 2020/2021 corporate plan.

Fikile Mbalula said that finances remained a source of serious concern for Prasa, which was facing a fare revenue decline due to the state lockdown.

He said that the COVID-19 pandemic had caught Prasa while it was busy with the upgrading of its infrastructure.

"As a consequence, Prasa suffered revenue loss estimated at R199 million, resulting in further cash constraints."

Prasa administrator Bongisizwe Mpondo told the committee that he inherited a broken business with eroded values.

"Questionable decisions were taken by leadership with disastrous consequences, let alone no consequence management at Prasa, so wrongdoing is long term but nothing's been done about it."