North West Legislature Public Works and Transport Committee instructs NTI to provide a detailed report on the status of the entity and the planned sale of the assets entity
The North West Provincial Legislature's Portfolio Committee on Public Works, Roads, Transport and Community Safety instructed the North West Transport Investment (NTI)’s new board of directors to submit within seven days their Plan of Action that informs the terms of reference for their appointment.
In 14 days they should also submit a report detailing the total number of buses in the books of the NTI at the end of financial year of 2012, 2013, 2014 and 2015; a number of buses sold and reasons for such sales; number of buses purchased, number of routes, breakdown of a total revenue, cost and cost drivers, surplus and or shortfalls, number of employees and indicate whether there has been retrenchments as well as an indication regarding five main service providers, service provided and annual amounts.
They are also required to submit a report on their audit outcomes with details of the last three audit qualifications, and an action plan to address them. The Committee also wanted a report on the R30 million bailout by government, the entity received in February 2014
This came after the Portfolio Committee read from media reports that the board has been disbanded and that there were also allegations of amongst others, mismanagement of processes for a one billion rand procurement of buses; mismanagement of the funds and assets of the entity; and it is further alleged that some buses have been illegally sold however it is not clear how the process unfolded.
The old board was dissolved on 2 June 2015 and an Administrator Professor Job Mokgoro was appointed in the interim until a new board was appointed in October 2015, consisting of Ms. Ontlametse Mochware, Fetsang Mokati-Thebe and Advocate the old board was represented by Mr Themba Gwabeni who was the chairperson at the time.
Mr Gwabeni told the meeting that the company transports 33 million passengers per annum and has appointed a staff component of over two thousand citizens. He also said while he was Chairperson of the board the financial status of NTI was healthy and that he is “condemning the planned sale of the entity especially that the envisaged sale is not well researched”.
“There is forensic report initiated by former Premier Thandi Modise which I will make available to you and it will answer some of the questions you have on the entity," said Mr Gwabeni. In responding to why they had not submitted a handover report, the former board’s chairperson Mr Gwabeni said they were just told that they have been disbanded and that the administrator or the new board has not called them to request for a handover report.
He alleged that the board was illegally dissolved hence four of the board members resigned leaving the board with only three members but that he will be appearing in court against the provincial government on the 12th of November instantly but the matter(s) is still subjudicare therefore he cannot comment on it.
On the issue about buses sold, he conceded that indeed buses were sold to which effect some individuals got buses for themselves at a price of new buses whereas the buses procured were used (second hand). On the issue of assets, Mr Gwabeni indicated that there are 568 buses that makes up the value of the NTI assets as standing at six billion rand informed by various pieces of land across the Province.
Chairperson of the Portfolio Committee, Hon Jeanette Dibetso-Nyathi, raised concerns about the fact that there was no handover from the previous board. “We acknowledge the fact that they are appointed according to the Company Act however the names of the new board members have not been approved by the Companies and Intellectual Property Commission (CIPC), but I also a concern on whether the board did evaluation of the company and the asset value,” said Hon Dibetso-Nyathi.
The Committee has also requested the board and the task team to also submit responses on management related issues amongst others, organisational structure indicating which positions are vacant and reasons for their vacancy; list of management including CEO and CFO, resignations and dismissals in last 3 years; the report on disciplinary matters dating from January 2012 – October 2015 including progress report on pending cases, finalised disciplinary cases as well as synopsis of such cases.
Hon. Dibetso-Nyathi also stressed that the entity has actually not complied with the prescripts of the PFMA by not tabling their Annual Performance Plan and Annual Report of 2013/14, 2014/15 financial years. The Committee resolved that these must be tabled within 14days.
For more information contact:
Namhla Luhabe
Cell: 079 527 0628
