Payment dispute between Putco and Gauteng leaves commuters stranded

Commuters using bus services will have to make alternate transport arrangements on Thursday after Putco said it will be suspending its services due to diesel shortages and non-payment by government.

Putco said the disruption is a result of unpaid March subsidy claims by the Gauteng Department of Roads and Transport.

Bus services suspended

Spokesperson Lindokuhle Xulu said they are in consultation with the Gauteng government to resolve the matter. He urged commuters using Putco bus services to make alternate transport arrangements until further notice.

“Putco is working closely with government to ensure that payments are processed as soon as possible to avoid a prolonged service disruption as well as inconvenience to our valued passengers. Should the situation improve, stakeholders will be informed timeously.

“The underfunding of the bus public transport industry, as well as the excessive fuel increases in the past few months, have exacerbated the situation. In addition, the relief that the bus industry requested has not been granted, leaving bus operators in a very difficult situation,” Xulu said.

Gauteng payment

The Gauteng Roads and Transport Department said payments to Putco for the portion of March had been captured and would reflect on the bus operators’ bank account by Monday.

The department said delays in processing subsidised bus operators’ payments for March 2023 were due to transactions from different bank accounts which take about three days.

“Delays in processing subsidised bus operators’ payments for the month of March 2023 are a result of a widely-known procedure and trend. The Public Transport Operating Grant (PTOG) is only being transferred to the province by the National Department of Transport in the first week of May each financial year.

“The department now manages 34 bus subsidy contracts awarded to 13 bus operators, Putco among them,” the department said

Solutions

The department said it was working with the bus company to find a solution to ensure minimal, if any, service disruption and inconvenience to the passengers.

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