The Passenger Rail Agency of SA (Prasa) Administrator Bongisizwe Mpondo has instructed the group’s finance department to immediately release funds to Autopax to pay employee salaries.
The directive comes after the bus company only paid its employees a quarter of what they were entitled to at the end of February.
“The process to transfer the funds to Autopax and to employees’ bank accounts is underway. The bus company’s staff members can expect the balance of their salaries in their bank accounts on or before Thursday, 5th March 2020,” Prasa said in a statement on Tuesday.
Prasa has apologised to Autopax employees for the inconvenience they have suffered as a result of incomplete salaries being paid.
Furthermore, Prasa said it will make every effort to ensure that in future, salaries of Autopax employees are paid in full and at the contractually agreed date.
“Autopax is in the process of making representations to Prasa, its parent company, with a view to finding a lasting solution to their cash flow crisis and many other problems facing the bus company. Revenues for Autopax have dropped sharply as a result of most of the company’s bus fleet falling into a state of disrepair and unroadworthiness,” Prasa said.
Prasa continues to engage with the Department of Transport for some of the rail agency’s capital expenditure budget to be converted to operational expenditure for it to improve its cash flow position.
“This will enable PRASA to make outstanding payments to its creditors and suppliers and to continue with the business of providing services to the millions of commuters who depend on it for affordable transportation,” Prasa said. – SAnews.gov.za
