Metrorail can't pay its bills yet wastes more money

Manny de Freitas, Shadow Deputy Minister of Transport
7 February 2010

Letters from Metrorail - a division of the state-owned Passenger Rail Agency of South Africa (PRASA) leaked to the Democratic Alliance (DA) indicate that it cannot pay its bills and meet its financial commitments to its suppliers of goods and services. In a letter dated 13 January 2010, it is stated that Metrorail is "experiencing cash flow challenges in meeting its financial obligations."
 
For a copy of the letters click letter 1 and letter 2
 
This state of affairs is simply unacceptable considering that we exposed in December the blatant wasteful expenditure of R584 810.92 by Metrorail for a Women's Day celebration held in August 2009. By November 2009 this bill was also not settled.
 
State-owned entities such as the SABC and Eskom have continued to squander public funds through wasteful and fruitless expenditure, corruption and financial mismanagement thus requiring bail-outs from the already burdened public purse. It seems as though such a situation may also be developing with Metrorail/PRASA. 
 
The Democratic Alliance (DA) will be submitting parliamentary questions to the Minister in order to gain further clarity on the matter.