Prasa: We have no money

The United National Transport Union has laid charges of theft and fraud against Prasa administrator Bongisizwe Mpondo. This is after the rail agency said it had witheld about R23-million of pension fund contributions due to cashflow problems. #Day33ofLockdown

JOHANNESBURG - The United National Transport Union (UNTU) is accusing Prasa of withholding workers’ pension fund contributions.

It has even laid criminal charges against the rail agency's administrator.

UNTU General-Secretary Steve Harris said the Act is clear that Prasa -- as the employer -- must transfer the contributions to the Transnet Retirement Fund and the Prasa Sub Fund within seven days after the end of a calendar month.

READ: Prasa losing millions in revenue

 

“Prasa’s excuse is that it is experiencing cashflow problems. This is no excuse to use the hard-earned money of its employee without them knowing," Harris said in a statement.

"It is a criminal offence."

Prasa admits the money has not been paid but says it can not be held criminally liable as the money is simply not there.

READ: SA Lockdown: Metrorail, Gautrain shut services

Spokesperson Makhosini Mgitywa said Prasa doesn't have an income due to the national lockdown.

"You can't withhold funds you don't have," Mgitywa said.

"Here we have a situation of Prasa not having enough money to pay."

Source
eNCA

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