OPERATIONS are stable at Tansnat, the entity operating Durban’s municipal bus service, following interventions and the signing of an order of court.
This, after the bus service was interrupted in December 2015 and January 2016 due to drivers’ salaries not being paid and disputes between the operator and the municipality.
“An agreement detailing conditions under which the city would intervene to support the operation and how issues of disputes between Tansnat and the city were to be resolved, was signed by both parties in late January. The city’s legal department together with the legal team representing Tansnat took the signed agreement to court and the agreement was made an Order of Court,” said city manager, Sibusiso Sithole.
Once KPMG was appointed as head of the intervention team, work began in February to sort out the financial issues plaguing Tansnat. This includes the opening of a ring-fenced bank account with the city, Tansnat and KPMG as signatories for expenditure approvals and the payment of March salaries made from the fare income collected without requiring the city’s contribution.
The intervention team has moved on to paying debts owed by Tansnat; ensuring monthly obligations such as diesel, salaries and the provident funds are paid timeously and appointing an independent mediator.
