Govt and Prasa working on a plan, says Autopax on partial salaries
Autopax – the bus subsidiary of Prasa, which operates Translux and City to City – says government is "working on a plan" following an announcement that staff would only be paid half their salaries for January.
In the meantime, it added in a statement, management would be in regular contact with staff to "explain the situation".
In the statement by senior communications manager Nana Zenani, Autopax said it had faced "operational and financial challenges for a while now".
"These have culminated in a serious cash flow challenge resulting in the recent inability to pay employees their full salaries," Zenani said.
"The parent of autopax , Prasa, the shareholder, Ministry, and the deprtment of transport are working on a long term plan to turn the business around in a difficult economic environment."
"In the meantime, management will be in constant engagement with employees and labour to explain the situation and canvass their support in finding a solution."
The company previously issued a notice to staff stating that it would not only be able to pay 50% of salaries in January, from fare revenues. The balance would be paid at a date not yet confirmed, Fin24 previously reported.
Transport Minister Fikile Mbalula, whose department is responsible for Prasa, recently described the company as a "broken organisation, struggling to provide an efficient commuter and passenger rail service".
The Auditor-General's 2019 report found that the company regressed in its audit outcomes for 2018/19, and as much as R27.2bn was flagged as irregular expenditure.