PRASA’s Corporate Real Estate Solutions (Cres) company, the entity charged with managing PRASA’s extensive property portfolio owned by the government. It survives for a month depending on the government subsidy of over R20 million.
PRASA Cres’s Performance Result for the month and quarter which ended up on 30th June 2013 states that more than half of the entity’s revenue income includes government subsidies - R69 million in just three months.
Managing property on the part of government should result in millions in profits. Instead of this PRASA Cres is totally dependent on continuous government support and still resulted in R34 million operating loss in just three months.
The DA will write to the Chair of Parliament’s Portfolio Committee on Transport, Ruth Bhengu, asking her to request Tara Ngubane, Prasa Cres’s CEO to come up before our committee and suggest her plans to improve the situations around.
Constant government financial support to some of the incapable entities in the state is not viable. Inspite of total government support in the form of R20 million a month, Prasa Cres is not able to generate profits. Prasa Cres should explain regarding their failure in generating required outputs.
The inefficient resources must be moved towards the delivery of basic services.
