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Prasa Given Friday Deadline To Settle R114m Coct Debt Or Face Disconnection

The Passenger Rail Agency of South Africa (Prasa) has until close of business on Friday to settle its outstanding debt with the City of Cape Town.

If the municipal bill is not paid, services will be disconnected.

The city said that Prasa was behind on rates and services amounting to about R114 million, of which R98 million was in arrears.

Deputy Mayor Ian Neilson said that the passenger rail agency was not paying their bills on a monthly basis.

He said that if payment was not received by Friday, services would be disconnected on Monday.

Neilson said that this included property rates, electricity, water and sewage.

“It was a lot of different accounts and lots of different properties that vary from account to account.”

Eskom recently disconnected the Western Cape rail network because Prasa did not pay the January bill of R6.5 million within its two-day grace period.

Neilson said that if the city disconnected services, it would affect Prasa’s offices and facilities and would not impact on trains.

He said Prasa had made a payment of R86.7 million in February on debt of R168 million.