‘PioTrans was reduced to nothing by evil people’, says Kunene as Rea Vaya gets new buses

Rea Vaya has received a new fleet of buses as the operator of the Johannesburg bus rapid transport (BRT) service seeks to turn around its fortunes.

PioTrans, which operates Rea Vaya in partnership with the City of Joburg, was placed in business rescue in December last year although the buses remain operational.

Mahier Tayob was appointed as business rescue practitioner (BRP) after a court application launched by PioTrans’ creditors, who alleged mismanagement and maladministration due to outstanding debts.

At the beginning of the year, Rea Vaya buses, which operate from 5am to 9pm, did not operate for two days as a result of labour related issues between Piotrans and its employees.

‘Too many debts’

Speaking at the relaunch event on Thursday, City of Joburg Transport MMC, Kenny Kunene confirmed the 12-year contract between the metropolitan municipality and PioTrans ended in January 2023, but a deviation contract was issued for another two years.

Kunene said PioTrans had been on the brink of collapse because the bus operator’s new board was blocked from placing the company into business rescue before two creditors decided to approach the Gauteng High Court in Johannesburg.

“End of October, the board came to me and said they cannot rescue PioTrans it has got too many debts. It owes Sars [South African Revenue Service] in the region of R80 million and other creditors in the region of R100 million. With what PioTrans is making with the buses that it has, there’s no way that it can survive… it’s a bankrupt company,” he said.

ALSO READ: Business rescue for Rea Vaya bus service – but ‘don’t panic’

The MMC indicated that he was informed by PioTrans that the company needed “new buses, money or both” to address its challenges.

Kunene broke down in tears as he explained how he assisted in securing the “first batch” of six new feeder buses for PioTrans.

“I had lost hope,” he said.

“I don’t want to say how buses will be coming every week, just for three weeks. The BRP will [give all the details],” the MMC continued.

He stressed that the business rescue process would help the bus operator.

“[The BRP] has got the full support from the City of Johannesburg. PioTrans is delivering a service on behalf of the City of Johannesburg so we are not going to sit back. My help does not stop.”

Cashless system

Furthermore, Kunene also revealed that the city was working on plans to install a cashless system on the Rea Vaya buses.

“We want to introduce a cashless system in the buses so that the drivers can deal with that evil that makes them take money and put it in their pockets.

“When you take money and put it in your pocket, you are destroying your job because when PioTrans shuts down, you are going to lose your job.”

READ MORE: ‘Sabotage can’t be ruled out as potential threat at Rea Vaya’ − business rescue practitioner

Earlier, the MMC attributed the issues plaguing Rea Vaya and PioTrans to corrupt people, accusing its mechanics of running the company down the drain.

“The company has been reduced to nothing by evil people who came here [to steal]. Mechanics, when a bus has a problem of a fuse, they will come and say the problem will cost R300 000. The buses were branded at R55 000 when it can be done at R15 000.”

Meanwhile, Tayob has announced that 10 more buses would join Rea Vaya’s existing fleet of 45 buses.

Watch the briefing below: