Thursday, January 15, 2009

Golden Arrow files court application after fallout with Transport Departmant

By Mandisi Tyulu
15 January 2009

Southern African Bus Operators Association has filed court applications to the high court this follows the National Department of Transport advising the Southern African Bus Operators Association during the month of August that projections indicated that the Department had a shortfall around R1,3 billion and that its passengers subsidy budget for the year 20008/2009 fiscal year would be exhausted by November 2008 and that the Department would preclude the payment of passenger subsidies to contract operators for the last four months of the current year ending in March 2009.

Golden Arrows Vuyisile Madoda says despite high level discussions that have taken place between the National Department of Transport and Treasury, additional funding has not been made available and the provincial Departments of Transport are unable to meet contractual obligation with bus operator’s country wide.

Madoda says a result of this situation Golden Arrow would be unable to proceed with the carrying of passengers if government does not pay subside that is linked to the clip cards that are sold, unless the solution is not solve to the situations this means passengers would suffer.

“After extensive unsuccessful representations at local and national Golden Arrow has decide to file a High court application in order for the Department of Transport to meet contractual obligations.”

Meanwhile a Transport Department official said discussions were taking place national and he is unable to comment until the discussions are concluded.


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