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Competition watchdog refers Prasa and Autopax to tribunal for abuse of dominance

11 February 2020 8:26 AM
Tags:
PRASA
Autopax
Competition Commission
Park Station

commissioner Thembinkosi Bonakele and Africa People Mover CEO Tumisang Kgaboesele weigh in on the ruling on the rail agency.

The Competition Commission has taken the Passenger Rail Agency of South Africa (Prasa) and its subsidiary Autopax to the competition tribunal for prosecution.

The watchdog says this follows complaints of anti-competitive behaviour relating to its PayOn-Use system and access to Park Station.

RELATED: Train torching suspects released as police bungle case

The Commission has accused Prasa and Autopax of abuse of dominance.

It says Prasa charges R480 excluding VAT per hour per bus for access to the loading bays at Park Station, however, if the bus service is at the loading bay longer than required, it gets charged an extra R150 for every 15 minutes it is over.

Bongani Bingwa chats to Competition Commission commissioner Thembinkosi Bonakele and Africa People Mover chief executive officer Tumisang Kgaboesele to weigh in on the matter.

Prasa charges bus services this fee, however, this fee is not imposed on Autopax. If other buses default, they face a threat of being dispelled and removed completely from the station but Autopax doesn't experience that, in fact, it is one of the biggest defaulters to Prasa.

Thembinkosi Bonakele, Commissioner - Competition Commission

He says the second aspect of the complaint is access to Park Station as there are bus operators that are denied access to the station.

RELATED: 'Prasa lost R30bn because of mismanagement and irregular expenditure'

Kgaboesele says the ruling by the commission was inevitable as Prasa was warned that it was in contravention of the Competitions Act.

An opportunity has been missed by Prasa where it could have used its preferential procurement policies to favour emerging enterprises.

Tumisang Kgaboesele, CEO - Africa People Mover

Listen below to the full conversation:


11 February 2020 8:26 AM
Tags:
PRASA
Autopax
Competition Commission
Park Station

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