He said that the balance of salaries would be paid on a date yet to be confirmed.

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

He said that Autopax, as well as Prasa and the department of transport were seized with turning Autopax around to make it a functioning business which was sustainable.

The shock announcement follows the appointment of Bongisizwe Mpondo as administrator of Prasa in December.

He was installed by transport minister Fikile Mbalula after he fired the interim board in an attempt to “bring stability” to the rail entity.

Speaking in Cape Town this week, Mpondo said that Prasa too was in financial dire straits and was struggling to operate the rail service.

Prasa spokesperson Nana Zenani confirmed the veracity of the circular and said that challenges at Prasa had filtered down to the subsidiary.

She said wide-reaching reforms were needed at Autopax to put it back on a sustainable financial footing.

Attempts to contact Holele, as well as department of transport spokesperson Ayanda Allie-Payne, were unsuccessful at the time of publishing.