Question NW897 to the Minister of Transport
07 April 2017 - NW897
Groenewald, Mr HB to ask the Minister of Transport
Whether the Passenger Rail Agency of South Africa has any debt that has remained unpaid for 30 days or more; if so, (a) what (i) are the details of these debts, (ii) are the reasons for non-payment in each case, (b) on what date will each debt be settled and (c) what (i) processes, (ii) procedures and (iii) mechanisms are in place to ensure that payments are made on time?
Reply:
Yes, the Passenger Rail Agency of South Africa has debt that has remained unpaid for 30 days or more.
a) (i) Debt outstanding for more than 60 days see link below:
https://pmg.org.za/files/RNW897Table-170407.docx
a) (ii) 95% of debt is owed to Transnet. Discussions are ongoing between PRASA and Transnet to resolve the debt. 4% of debt is owed to other suppliers; some invoices have disputes that are in the process of clearing, whilst others have not have been paid due to cash constraints.
b) Debt is settled twice a month.
c) (i) Invoices are signed off by end user as confirmation that services were rendered
(ii) Invoices are loaded on system
(iii) Payments are made twice a month on invoices 30 days and older dependant on cash flow constraints, small suppliers is prioritised. Age analyses are scrutinised by CFO’s for reasons of non-payment.