It’s D-Day for the Passenger Rail Agency of South Africa (Prasa) as the City of Cape Town will on Monday know whether it has settled its debt.
The municipality has threatened to cut disconnect some of the rail operators’ services if Prasa does not pay for municipal rates and services.
The City of Cape Town said Prasa was behind on rates and services amounting to about R114 million, of which R98 million was in arrears.
The municipality said this included property rates, electricity, water and sewage at different properties across Cape Town.
The City added that it was entitled to disconnect services as a result of the rail agency’s repeated failure to pay for services.
Over the weekend, Prasa administrator Bongisizwe Mpondo said his office was trying to set up a meeting with the city regarding this matter.
“We requested a meeting with the city manager because I do believe there could be a misunderstanding.”
In the event that the city disconnects services, it will only affect Prasa’s offices and facilities and will have no impact on the rail system.