WITH Tansnat’s ongoing problems, eThekwini Municipality has stepped in and will form a municipal entity to run the local bus operator.
At a special executive committee meeting on Friday, 22 January the issues facing Tansnat were tabled and the necessary measures decided to streamline the running of the bus service.
The entity is projected to be formed by July. In the interim, an intervention team will manage the operation and finances of Tansnat, while a mediator investigates claims that the municipality owes Tansnat money.
“Claims by Tansnat that the city owes them money must be investigated by the meditator whom we expect will get to the bottom of who owes whom. The city prioritised the running of an efficient bus transport system since hundreds of our community members depend on it,” said deputy mayor, Nomvuzo Shabalala.
Three weeks of strikes disrupted much of the city’s bus services at the start of the year when Tansnat employees did not receive their December salaries and bonuses. Through the municipality’s involvement, the money was paid and the workers returned.
“Commuters told us they had bought their bus tickets for the month but with the bus service running, they were stranded. They were not in a financial position to pay for alternate transport yet were expected to get to work. Tansnat employees also had commitments to meet such as bonds and school fees. Payment was made to employees directly after their details were verified, and not paid to the company,” said city manager, Sibusiso Sithole.
At the special executive committee it was noted that a payment of R33.3-million by the municipality was made to pay the provident fund and the remainder of staff bonuses and salaries.
Further recommendations were made and approved by the executive committee:
- Liquidation matter against Tansnat in March will be postponed.
- An intervention team will manage the operation and ensure financial ring-fencing of the bus operation revenue.
- A ring-fenced account to be opened for the business, into which all revenue generated will be paid. Expenses to be met will be vetted by the intervention team.
- An independent mediator will be appointed to address all claims between the municipality and Tansnat.
- The agreement to be made an order of court.
“Tansnat has indicated they will have difficulties paying the January salaries of employees and have asked the city to intervene. This may also be a problem in ensuing months. We believe the recommendations implemented will assist in effectively managing the bus service until a municipal entity is formed to take over.
We are trying to effectively manage the transition period. Our actions confirm we have always done what has been in the best interest of council,” said Sithole.
Mayor James Nxumalo insisted the municipal entity be formed in the specified time frame.
“We have to manage this process efficiently in the interim until it is finalised. We want a solution as soon as possible,” he said.
