Prasa CRES to make payment of R22m for Cape Town by 15 March

Prasa CRES is a division of Prasa, which was established to manage the entity’s property portfolio.

The Passenger Rail Agency of South Africa (Prasa) says it is negotiating with the City of Cape Town regarding payments for services to Prasa Corporate Real Estate Solutions (CRES).

Prasa CRES is a division of Prasa, which was established to manage the entity's property portfolio.

Last month, Prasa CRES paid the city R77 million. However, the city is claiming further R63 million.

"We have to reconcile our transaction history to determine if the amount the city claims corresponds with our own records. At any rate, Prasa CRES will be making another payment of R22 million by 15 March 2020," the entity said.

Prasa has expressed optimism that it will arrive at an amicable solution with the city and keep the lights on at train stations.

"It is, however, important to clarify that the affected account is not with Eskom, which supplies power to Prasa rail. This means that in the unlikely event that power is switched off, it will not directly affect the movement of the trains.

"However, a power cut would only affect stations, which would mean that there would not be sufficient lighting. That would negatively affect commuters, especially before dawn and after dusk," Prasa said.

The entity has assured its customers that it is working on resolving the matter.

(With Inputs from South African Government Press Release)