By Mikhaila Crowie
26 January 2009
Cape Town bus-company, Golden Arrow says it has been forced to go to the High Court again, due to the fact that the State has failed to pay money due to the company.
The payment relates to an interim contract.
In a statement, Golden Arrow said the State must pay R92 million. If the money is not paid before the end of this month, the bus-company cannot guarantee that it will be able to operate.
This will have an enormous effect on those travelling with Golden Arrow. The number is estimated to be 260 000 passengers.
“The reason for this is because government has breached their agreement it has with Golden Arrow, which provides that the company would receive subsidies on behalf of the passengers that have been carried over a period of time.”, says Vuyisile Mdoda, spokesperson for the bus-company.
Mdoda continued by saying that the money has not been forthcoming and said government should respect the terms of the contract.
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