• Inside Labour

    The 'casualisation' of the workforce is often a ploy to cut costs, says Terry Bell.

  • When drones go dancing

    Drone technology's future is about to come to life in Cape Town, says Arthur Goldstuck.

  • Testing times for Matona

    New Eskom CEO Tshediso Matona has his work out cut out for him, says Mzwandile Jacks.

Data provided by iNet BFA
Loading...
See More

Prasa plans R15bn BEE scheme

Sep 05 2012 09:25 Sapa

Related Articles

Rolling stock companies invited to bid

Prasa revamp to create 65 000 jobs

Prasa: Trains back on schedule

State eyes R137bn passenger rail upgrade

Prasa hit by R1bn loss

Prasa accused of derailing black business

 

Johannesburg - The Passenger Rail Agency of SA (Prasa) is planning a R15bn black economic empowerment (BEE) programme as part of its plans to modernise Metrorail, Business Day reported on Wednesday.

Metrorail's fleet of commuter coaches would be modernised, in what will rank among the top five empowerment deals that have been concluded.

Prasa told the newspaper that a minimum of 30% equity for black investors would be required for a project company that would be established to manufacture the coaches in South Africa.

More details on how black investors would be selected would be released on September 25, and the selection process was expected to be completed by the end of January, Prasa manager Piet Sebola was quoted as saying.

Prasa CEO Lucky Montana said there was no turning back on the programme to buy modern train technology and manufacture commuter coaches locally .

"Any attempt to undo what we have started would cause a collapse of the commuter rail system," Montana said, commenting on attempts by "some rolling stock manufacturers and some people in the black business environment - not necessarily the BBC (Black Business Council)," to delay the implementation of the programme.

In June, the BBC attacked Prasa's approach to empowerment, calling it "dangerous".

BBC secretary general Sandile Zungu said it fed into stereotypes that "black economic empowerment is about handouts".


* Follow Fin24 on Facebook, Twitter and Google+.

 
metrorail  |  prasa  |  bee
NEXT ON FIN24X

 
 
 

Read Fin24’s Comments Policy

24.com publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
43 comments
Add your comment
Comment 0 characters remaining
 

Company Snapshot

We're talking about:

Small Business

Expanding your business requires capital and banks have stringent lending criteria in place.
 

Money Clinic

Money Clinic
Do you have a question about your finances? We'll get an expert opinion.
Click here...
Loading...