City’s R8m advance keeps buses running

eTHEKWINI Municipality will advance R8.1 million to the flailing Durban Bus Service operator, Tansnat, to avert a disruption of the service. City Manager, Sibusiso Sithole told Exco members on Tuesday that the payment would allow Tansnat to pay its staff to ensure the bus service continues uninterrupted.

Sithole also advised Council that an urgent decision had to be taken on the future of the bus service to ensure that commuters were not affected by operational matters.

Various options have been presented to Council about the future sustainability of the bus service and the funding models the City should adopt to ensure the service runs more efficiently.

In August 2012 Council resolved that the Municipality would take over the full operation of the bus company.

Another option was that the City could either operate the Durban Transport Service as a council unit or as a trading service. The Municipality could also establish a Municipal entity in terms of the Local Government Municipal Systems Act to run the service.

Sithole yesterday said the Municipality had to decide on an option that would be in the best interest for the City’s ratepayers.

“We must speed up the process and make a decision on the ultimate option. Thereafter we must give a report to the Province as it will have to give input because they have a say on the subsidy allocation,” said Sithole.

Sithole said the bus service had been briefly disrupted in December because of allegations that Tansnat employees had not been paid on time. Other allegations were that there were diesel supply problems.

He said the operator also claimed that it was owed R50 million by the City since 2010 which was being investigated.

“We are refuting the claim, but we are not dismissing them, an independent service provider will do an analysis to determine the veracity of their claim,” said Sithole.

Meanwhile, a report was presented to Council clarifying that an agreement had been signed by Sithole on 24 October 2013 of which R18 million of the credit due to Tansnat was paid to the company on condition that they settled the debt they owed the City over a six month period.

Sithole said Tansnat agreed to sign a cession for the payment of R4 million per month to the City. Claims by Tansnat that they were being over-charged were still being investigated.