Question NW3528 to the Minister of Transport
10 November 2017 - NW3528
Brauteseth, Mr TJ to ask the Minister of Transport
(1)What subsidy has his department paid to the Brakpan Bus Company over the past three financial years; (2) whether he has been informed of a 2014 feasibility study into future options of the specified bus company; if not, what is the position in this regard; if so, which option does his department support; (3) (a) what are the relevant details of the kind of oversight that this department has over the bus company, in view of the subsidy paid by the taxpayer; (4) (a) what (i) fraud and/or (ii) corruption has been identified in the running of the bus company and (b) why is the bus company running at a loss?
Reply:
(1) Subsidized bus services are managed and administered by Provincial Departments of Transport and subsidy is paid by Provinces through the Public Transport Operations Grant, which is a supplementary grant. The Brakpan Bus Company contract is managed by Gauteng Department of Roads and Transport and their subsidy allocation for the past three financial years is:
- 2014/15 – R11 554 076.00
- 2015/16 – R18 291 488.00
- 2016/17 – R23 293 376.00
2. Brakpan Bus Service is a municipal owned bus company and any decision about the future of the company is the prerogative of the municipality as long as it is aligned with all legislative prescripts governing public transport. The Department is conscious of the fact that Gauteng Department of Roads and Transport has appointed CSIR to conduct a due diligent exercise for all subsidized bus contracts in the Province, including Brakpan, with the aim of designing new public transport contracts in future.
3. The bus company is monitored by the Province through a Supervisory and Monitoring Firm (SMF) appointed by Gauteng Department of Roads and Transport to ensure that the operator complies with all contractual obligations.
4. a) The running and performance of the bus company is solely the obligation of the municipality as the owner.
b) Same as (a) above.