Question NW1022 to the Minister of Transport
12 June 2020 - NW1022
Hunsinger, Mr CH to ask the Minister of Transport
Whether the Passenger Rail Agency of South Africa (PRASA) failed to pay R23 million towards retirement fund benefits; if not, what is the position in this regard; if so, what is the (a) current situation and (b) solution for this?
Reply:
1. PRASA confirms that it has failed to pay R23 million towards the Transnet Retirement Fund (the Fund) benefits.
(a) The February and March 2020 membership contributions to the Fund is currently outstanding and engagements with the Fund are ongoing to agree on a payment plan to settle the outstanding amount without any risk to employee benefits.
(b) PRASA has written a letter to the Administrators of the Fund informing them of its current cash flow challenges. PRASA is yet to meet with the Administrators in order to discuss a payment plan of the outstanding amounts.