BUSINESS REFLECTION: After the Bell: Being railroaded by Prasa

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You do have to have some sympathy for the new Prasa management and their board. This is crisis management at its most extreme. So, how is it going? Factually, not well, notwithstanding the line openings.

reporter Tebogo Tshwane. It’s such a wonderful illustration of everything that has gone wrong with SA’s state-owned enterprises through the lens of a detailed look at a comparatively small contract to maintain Prasa’s trains.

The recent history of Prasa was encapsulated by the decision, you’ll recall, to buy trains that were too tall, using an intermediary company called Swifambo – a transparent skimming exercise, it turned out. I remember taking the train between Johannesburg and Soweto way back when. It was too much fun. There were religious carriages, ANC carriages, IFP carriages, everyone was singing. People hung out of the doors. It was just madness, but somehow, the train left and arrived. This was and is an absolutely crucial transport link, of course.

The new board and management of Prasa is obviously trying to save an organisation that is absolutely on the brink. Of course, being South Africa, the decision to fire some of the old management, who the board decided was part of the corruption, hit a snag when their dismissal was revoked by the Labour Court. Some t was not crossed, or i dotted somewhere, obvs. The decision is being appealed. Just another day in the morass.

So now, of course, the remaining 10 companies are pissed off – losing bidders always are. But their case is massively enhanced since one of the unsuccessful bidders was fellow parastatal Transnet, the most obvious and natural candidate, partly because a) Transnet did it before, b) has the capacity, and c) owns the most crucial component of the maintenance process: a warehouse with rail access.

What occurs to me in this sorry tale is that there is a crucial piece of the puzzle missing: the board.

 

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amaBhungane | Prasa botches critical R7.5bn train repair tender | BusinessPrasa faces the threat of total collapse after shedding millions of customers, and haemorrhaging revenue over the past four years. Now its handling of a R7.5 billion overhaul and maintenance tender has the potential to deepen the existing crisis. luqmaanrawat72 Prasa can NEVER make a comeback! Too much of the infrastructure has been destroyed and the taxi industry now provides transport to Prasa's old passengers, and won't give them up! Prasa is throwing good money after bad! They indirectly want to destroy Transnet by taking its facilities and the work that it was supposed to do... this can't be allowed HeadofficeUntu SATAWU1 what are you guys doing? MbalulaFikile ANCNationalConference Everything For Free. Open borders. Just help yourself.
Source: News24 - 🏆 4. / 80 Read more »