POLOKWANE – It remains to be seen whether the Polokwane Council will agree to settle the R7m it reportedly owes to taxi operators who partnered with the municipality to make the city’s bus service, Leeto La Polokwane (LLP), operational over the past four years.

The operators, who were bought out of their local taxi routes and listed as LLP beneficiaries, had agreed to a R21m compensation deal with the municipality, which was to be released in three tranches.

The first payment was made shortly after the signing of the agreement, but the second instalment, which was due within three years of negotiations, is now overdue by more than a year.

The delay sparked a 10-day shutdown of bus operations in September, leaving commuters stranded and frustrated after having already recharged their bus cards.

Many had to find alternative transport from areas such as Seshego and Nirvana into the CBD.

According to Moshita Lekganyane, the chairperson of Esilux (the administrative company overseeing LLP) and former spokesperson of the Seshego-Polokwane Taxi Association, the third payment is scheduled for release after 12 years.

He confirmed that disgruntled members were assured the matter would be addressed during the next council sitting on October 29, where a proposal to settle the overdue debt will be tabled.

Taxi associations from Seshego-Polokwane, Flora Park and Westenburg have previously blocked the entrance to the bus depot in Ladine, preventing 26 buses from operating in protest.

Some commuters, however, dismissed the concerns, describing these as a reflection of the industry’s long-standing resistance to competition.

During the launch of the R24m Thabo Mbeki Bus Station on Friday, Polokwane Mayor John Mpe described the recent service stoppages as actions by “rogue elements”.

“We have to educate all stakeholders that for us to have a viable city, transport modes must diversify. Some do not appreciate that government is working to formalise the transport sector, even though all our drivers come from taxi associations and Esilux is led by former taxi industry leaders.”

Missing buses linked to job cuts

At the Leeto La Polokwane annual general meeting, it emerged that the service had paid around 35 drivers for work being done by only 26 drivers, worsening its financial strain after two consecutive years without profit.

According to Lekganyane, this imbalance led to the non-renewal of 10 drivers’ contracts, despite earlier assurances that no retrenchments would occur.

Initially, the bus service employed 35 drivers based on the understanding that 36 buses would be operational.

Ten buses worth approximately R16m, however, never arrived – a shortfall now central to the company’s restructuring and subject to ongoing legal proceedings.

Although the service won a labour case justifying the dismissals, Lekganyane said about five former drivers have since been reabsorbed into other roles within the system.

Leeto La Polokwane has since apologised to commuters for the repeated disruptions.