Autopax admits financial crisis and can only pay half-salaries

Autopax admits financial crisis and can only pay half-salaries

The acting CEO of Autopax, Tiro Holele told employees on Saturday that they would only be receiving half their salaries this month. The cash strapped state-owned-bus company is a subsidiary of the Prasa, the state Passenger Rail Agency of South Africa.

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The staff notice revealed the state of the company and the financial crisis it was facing.

“On Monday we will unfortunately not be able to meet the full salary obligations for the month of January and have managed through the operation to collect some funds from fare revenue to pay you 50% of what is due,” Holele wrote.

Briefly.co.za learned that he promised that the balance of their salaries would be paid in the future.

“Colleagues, we are still faced with serious operation challenges which have resulted in serious financial and cash flow shortages.”

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Holele said that Prasa, the department of transport and Autopax were committed to turning the company around and make it a sustainable business according to timeslive.co.za.

Fikile Mbalula fired the interim board in attempt to restore stability in the company and appointed Bongisizwe Mpondo as the administrator of Prasa in December.

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Mpondo confirmed that Prasa was in financial distress and was unable to operate the rail services at full capacity.

Prasa spokesperson Nana Zenani said that in order to make Autopax sustainable a wide range of reforms was needed.

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Source: Briefly.co.za

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