Jan 31, 2023

Mawazo Writing Africa

Writing about the main

City pulls the plug on Prasa after nonpayment again

The city of Tshwane is in the process of reconnecting Prasa Headquarters after suspending its services when the Railway Services Agency failed to pay its R11 million bill.

This was not the first time that Prasa was taken off the rails for failing to settle her score with the city. Four months ago, the agency was separated because it owed the town of Tshwane R28 million.

The town told TimesLIVE at the time the amount was a consolidation of all of the properties that Prasa owned in the town.

The city’s spokesman, Selby Bokaba, told TimesLIVE this afternoon that they were on their way to reconnecting the state-owned facility after paying more than R8 million, hours after they were shut down

Bokaba said when the services were first shut down, 60% of the debt had to be paid off before they could be plugged back in.

He said the city was shutting down people who are still defaulting.

“We will no longer list in general how much we have collected. We will do so once we reach a certain threshold,” he said.

In June, the city resumed its tax collection campaign dubbed #TshwaneYaTima to collect 17 billion rand from government agencies and businesses were owed to residents and embassies. It said the campaign would also target prepaid electricity meters that had been tampered with.

According to a city breakdown, residential customers with R9.2 billion in arrears owed the most debt.

Mpumalanga Economic Growth Agency (Mega) owed the most debt among “companies” with arrears of R140 million.

The city confirmed that it had paid Eskom an amount of R876,296,947.97 . This was after Eskom declined its offer to enter into settlement agreements for the R878m owed to the utility.

Support independent journalism by subscribing to The Sunday Times. Only 20 R for the first month.