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Prasa won't have to pay 'sorely needed' R58m to Siyaya

Nov 27 2018 21:45

The Passenger Rail Agency of South Africa (Prasa) has been granted a rescission of a default judgment against it, which would otherwise have left the state-owned enterprise having to cough up R58m for services rendered. 

This is according to a statement issued by Prasa on Tuesday afternoon. 

A default judgement is a ruling granted in favour of one party over another, based on the second party's failure to take action or fulfill certain requirements in court processes. 

In this case, the default judgement was granted after a settlement was reached between the former chairperson of the interim Prasa board and the Siyaya companies, which meant Prasa's legal team did not have to carry out their duties in defending Prasa, the rail company said.

Prasa said the R58m was not due to Siyaya, as they did not fulfill their contractual obligations. But following the judgment, Siyaya issued a warrant against Prasa and the R58m was seized through an attachment order.

Transport Minister Blade Nzimande instructed the rail company to apply for rescission of the judgment.

Commenting on the rescission that was granted, board chairperson Khanyisile Kweyama said it meant Prasa would be able to access the R58m, which was held by the Sheriff of the court.

The R58m can be used for Prasa's operations that are "sorely needed" by commuters, Kweyama said.

Prasa intends to challenge the merits of the main case launched by Siyaya against it in the courts.

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