Gauteng
2 February 2009
The provincial department wishes state its position regarding the commuter
subsidy deficit that is currently prevailing in Gauteng province. In this
regard, the provincial department wishes to indicate that the deficit is a
result of a shortfall in the funds that it receives from national government
and dispenses, on an agency basis, to public transport operators, including
those who are members of the South African Bus Operators Association.
Furthermore, the provincial department would like to state that the current
deficit covers the period starting in November 2008 until the end of the
current financial year. This is because the funds received from national
government, in November 2008, were used to offset the deficit that was already
in existence in the preceding period.
We also want to indicate that, in acknowledging its liability for the
ongoing deficit, the national department has made a commitment to make funds
available for the payment of outstanding claims covering November 2008 until
the end of March 2009.
Regarding the recent outcomes of the court proceedings in which the
department was ordered to pay outstanding subsidies for November 2008, the
department wishes to state that it will abide by the court decision. Thus,
payments are already being processed and paid to respective operators, but the
funds will have to be later reimbursed to the provincial treasury by national
government. These November 2008 payments amount to R114 million.
The provincial department also wishes to state that, in adhering to Treasury
Regulations, it can only pay bus operators if and when funds are received from
national government. Lastly, the department wishes to state that it is
unreservedly committed to ensuring the affordability of public transport for
the commuting public.
For more information please contact:
Alfred Nhlapo
Tel: 011 355 7532
Cell: 083 376 8496
Issued by: Department of Public Transport, Roads and Works, Gauteng
Provincial Government
2 February 2009
