Prasa to appeal ruling to reinstate security companies

Johannesburg – The Passenger Rail Agency of South Africa (Prasa) has stated its intention to appeal recent rulings by the Gauteng and Western Cape High Courts that reinstated the contracts of private security companies along with their 2 400 contract employees.

  Spokesperson Nana Zenani said:  “Prasa lawyers are currently in the process of preparing court documents, meaning that the status quo remains, and the security contracts and personnel are still dismissed.” 

  The decision by Prasa to terminate the security companies’ contracts at the end of last month was prompted by former Public Protector Thuli Madonsela’s “Derailed” report.

  It found a litany of maladministration relating to the contracts in question, financial mismanagement and tender irregularities, among others.

  The rail agency said it also took into account the Auditor-General’s findings on Prasa, saying both “highlighted irregularities in the Prasa security contracts, prompting the board to exercise its fiduciary duties to terminate the contracts”.

  Last month, Prasa terminated contracts of 20 private security companies.

  Last week, the High Court, sitting in Pretoria, issued an urgent order that the security guards should return immediately to their posts and they should receive a month’s notice before their services could be terminated.

  Several security companies turned to the court in a bid to force Prasa to re-employ the guards until their contracts were terminated as well as giving them a month’s notice.

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