ATC220607: Report of the Portfolio Committee on Transport on its Oversight visits to Mpumalanga, North West and Kwazulu-Natal Provinces from 19 to 23 April 2022, Dated 31 May 2022


Report of the Portfolio Committee on Transport on its Oversight visits to Mpumalanga, North West and Kwazulu-Natal Provinces from 19 to 23 April 2022, Dated 31 May 2022


The Portfolio Committee on Transport (the Committee), having undertaken oversight visits in the Mpumalanga, North West and KwaZulu-Natal Provinces from 19 to 23 April 2022, reports as follows:



The Committee conducted oversight in Mpumalanga, North West and KwaZulu-Natal provinces from 19 to 23 April 2022. The focus areas for the Committee’s oversight were as follows:


1.1       Moloto Rail Corridor Development Feedback Meeting: Mpumalanga, 19 April 2022

The Committee conducted an oversight visit to Mpumalanga on 28 November 2020 to meet with the Moloto Corridor Concerned Residents (MCCR) regarding the alleged undue delay to finalise the Moloto Rail Corridor Development Project. During the oversight visit the Committee resolved to schedule a follow-up visit as soon as possible after its meeting with the Department of Transport and National Treasury (18 March 2021) on the implementation of the project. Subsequent to the meeting, the Committee agreed to hold the feedback meeting with the MCCR in KwaMhlanga, Mpumalanga on the viability of the Moloto Rail Corridor.


 1.2 Implementation of The Public Transport Network and Provincial Road Maintenance Grants:  North West Province, 20-21 April 2022

The visit to the North West province focused on (i) the implementation of the Integrated Public Transport Network (IPTN) grant in the Rustenburg Local Municipality and (ii) the implementation of the Provincial Road Maintenance Grant (PRMG) in the North West Province.


The Department of Transport in its quarterly reports to the Committee, reported delays in the implementation of the Rustenburg Bus Rapid Transport.  The aim of the visit was to meet with the municipality on progress made to date pertaining to the implementation of the IPTN (budget allocated vs budget spent).  The Committee further aimed to visit the bus stops, stations and do site inspections on the routes to ascertain whether what has been reported on has been implemented. In addition, the Committee planned to visit road projects (in the areas surrounding Rustenburg) to assess the implementation of the PRMG in the Province.


1.3       Petition from Residents of Okhahlamba Local Municipality, Kwazulu-Natal Province: 22 April 2022

A petition from residents of Okhahlamba Local Municipality, KwaZulu-Natal province, calling on the Assembly to investigate the state of roads in their communities (Mr R A Lees) was referred to the Committee for consideration and report. The delegation who submitted the petition met with the Committee on 22 March 2022. At the meeting, the Committee resolved to conduct an oversight visit to the local municipality in April 2022 to inspect the roads in order to report to the National Assembly on the matter. The observations and recommendations of this visit will be contained in a separate report to the House.


  1. Implementation of the Public Transport Network Grant: Msunduzi Local Municipality: 23 April 2022

The visit will focus on the implementation of the Integrated Public Transport Network grant in the municipality. The Department of Transport reported delays in the implementation of the IPTN grant.  The Committee intends to meet with the municipality on progress made to date pertaining to the implementation of the IPTN (budget allocated vs budget spent). Where progress is alleged to have taken place, the Committee will visit the bus stops to ascertain whether what has been reported on has been implemented.


1.5   Delegation

The delegation consisted of the following members: Mr LE McDonald (Leader of the delegation, African National Congress (ANC), Ms MM Ramadwa (ANC), Mr LN Mangcu (ANC), Mr J Bilankulu (ANC), Mr T Mabhena and Mr I Seitlholo (Democratic Alliance), Mr M Chabangu (Economic Freedom Fighters), Mr P Mey (Freedom Front Plus) and Mr K Sithole (Inkatha Freedom Party (IFP).


The Committee was supported by: Ms V Carelse (Committee Secretary), Adv. A Nel (Content Advisor), Dr S Ngesi (Researcher), Ms P Mahlathi (Committee Assistant) and Mr S Maputi (Communication Officer).



2.1       Background to the Meeting

The Moloto Rail Development Corridor was initiated in 2004, following the Government of Mpumalanga launching a process to improve public transport offered to commuters who travel to Pretoria daily. A feasibility study was conducted in 2006 and 2007 that concluded that the project was indeed feasible.  Although Cabinet recognised the legitimate need of the commuters in the region for an improved transport service, Government was not in a position to implement it due to financial constraints. It attributed this to the global economic crisis at the time. In 2019, the Department reported that it had not transferred any funds to the Departments of Transport of Gauteng, Limpopo and Mpumalanga. In addition, the Department contended that by that time, it had spent R17 million on the feasibility study on the Moloto Rail Corridor.  Of the R17 million, R10.2 million was spent in 2013/14, while R7.7 million was spent in 2014/15. The feasibility study was concluded in October 2014.


The Committee met with the group calling itself the Moloto Corridor Concerned Residents (MCCR) in November 2020 on their complaints. The MCCR requested an investigation into the alleged “undue delay, complaining that several feasibility studies have been undertaken at a huge cost to the taxpayer and yet no movement has to date been recorded on the project”. The group further alleged that Government made numerous promises regarding the development and finalisation of the project from as far back as 1996. The Committee resolved to meet with National Treasury and the Department of Transport regarding the complaints and report back to the MCCR by the end of March 2021. Due to changes in the parliamentary programme, the feedback meeting could only be scheduled for 19 April 2022.


2.2       Meeting with the Department of Transport and National Treasury: 18 March 2021

The Committee met with the Department of Transport and National Treasury on 18 March 2021 on the feasibility of the Moloto rail corridor project. The project since was registered with National Treasury (NT) as a Public Private Partnership (PPP) project in January 2010 - Project N 105. The execution of the feasibility study was undertaken in compliance with the PFMA, Treasury Regulation 16 and the PPP Manual. The Department of Transport feasibility study commenced on 3 October 2012 and was completed by October 2014.  The Feasibility study confirmed rapid rail as the preferred long term transport solution for the corridor. On 29 October 2014 (or 30 October 2014 per reply by the Minister to Question NW2319 on 1 December 2020) PRASA submitted a TA 1 (Treasury Approval) Application to NT and the Department and PRASA made a presentation to NT to motivate and support the TA 1 Application. National Treasury expressed concern that the feasibility only considered possible transport options and that non-transport options falling outside of mandate of transport needed to be considered. The NT appointed an independent and external team to review and assess the feasibility study.

On 3 December 2015, National Treasury informed PRASA that the TA 1 approval was not granted as the Rail option was viewed as unaffordable, unlikely to yield social, economic and development dividends to warrant an investment of the scale and magnitude required.

Since 2015, China Communications and Construction Company (CCCC) has been tracking this project, and a lot of preliminary work has been undertaken.  South Africa signed the Moloto Rail Corridor Development Memorandum of Understanding (MoU) with the Passenger Rail Agency of South Africa (PRASA) and the CCCC as signatories. This despite the NT having not granted approval for the project as is a requirement of Section 16 of the Regulations of the PFMA. The project was discussed and the Chinese indicated that they will need a full government guarantee to invest in the project as a condition. This condition was never met as the NT never granted approval of the TA 1 and also rejected the application for a Government Guarantee.

In June 2017, National Treasury advised the Department to submit a motivation to the Budget Facility on Infrastructure (BFI) in support of the Moloto Rail Corridor Development Project large infrastructure projects for consideration on budget allocations starting in 2018/19. The Department submitted a BFI application (primary submission and supporting documentation) in August 2017. The funds applied for, were for the establishment of a Project Management and Implementation Office for the Project, as a precursor to a TA 1 approval.

On 5 April 2018 the Department was informed that the request for funding was not supported, as per the recommendations made by the MincomBud, summarised as follows:

  • The exploration of non-transport solutions be investigated in addition to transport solutions to comprehensively respond to corridor challenges,
  • The PICC leads and convenes a comprehensive plan to holistically address the challenges along this corridor. This will ensure that in addition to transport plans, proposals to resolve the inherent spatial reform challenges as well as the need for local development also be considered,
  • No further funding should be made available to develop the preferred rail solution because it may be premature before other options are also considered,
  • An interim improved bus transport solution that is flexible yet cost effective be implemented,
  • In addition to the interim transport intervention, budgeting for continuous road improvement investments be prioritised to the extent to which they are required,
  • Moloto Rail Corridor was identified as a long-term project and indication was given that funding for the project was not secured as National Treasury in 2015 did not approve project funding due to the unaffordability of the project. 


2.3       Feedback Meeting

The Delegation leader and members briefed the King at the Kings Cluster in KwaMahlanga prior to delivering the feedback to the Community following the committee engagements on the subject in 2021. The King voiced his disappointment. There was a request that the delegation write to the House Chair and the Ministers of Transport and Finance on the failure of the officials to respond in writing to the invitations to join and present at the feedback session as NT officials were not present and the Department of Transport indicated that they would not be responding to the community at the briefing session.

The Leader of the Delegation delivered feedback to the Community following the presentations in 2021 from the Department and NT on the proposal to continue with the road works along the Moloto route (R573) instead of introducing a rail corridor at this point in time. The delegation leader indicated that the feedback is based on the responses from the Departments at the March 2021 engagement as well as from the feedback received to the Committee’s 2021 BRRR recommendations to the Minister of Finance on the Moloto Corridor (as replied and contained in the Budget Review document of 2022). The replies indicated that funding will be directed to the road corridor as the rail corridor is not a feasible option at this point. The delegation leader further apologised for the delay in replying to the Community as it was already due a year ago. He further indicated that the Committee would continue to press the request for a rail corridor in its engagements with the Department and NT and the relevant entities such as PRASA and SANRAL.

Community members expressed their disappointment at the outcome of the discussions as the area was in need of alternative public transport options.  They also expressed concern about the PUTCO bus contract that was in place since pre-democracy and renewed/extended since 1997. 

The Committee undertook to provide feedback to the MCCR within 30 days on the PUTCO matter.


2.4 Recommendations

The Minister, through the Department of Transport ensure that the following reports are submitted within 30 days of the adoption of this report:

  • The Department of Transport is required to provide a detailed report to the Committee regarding the renewal of Subsidised Bus Service Contracts under the PTOG in all provinces and municipalities, with specific focus on the continued extension of the PUTCO contracts by the Gauteng Department of Roads and Transport and why there are delays in calling for and issuing new tenders for these contract routes.
  • The Department of Transport and SANRAL is required to provide a detailed report to the Committee on the Moloto Road Project progress and continue to provide reports on this on a quarterly basis.
  • The Department of Transport is required to provide a detailed report to the Committee on future plans to revive the Moloto Rail Corridor Project and continue to provide reports on this on a quarterly basis.



3.1       Road Inspections Near Rustenburg: 19-20 April 2022

The Committee conducted road site inspections in the areas surrounding Rustenburg and made the following observations:

  • The North West Road R511 from N4 to Hartbeespoort has a significant number of potholes and the road signage is faded and barely visible during the day.
  • NW/Rustenburg/Kroondal Road just off the R104 to Modderfontein, at the Mooinooi turnoff is full of potholes.
  • R104 from Mooinooi has several potholes and several warning signs for potholes. There were a number of farm/mine workers using bicycles along the route with no cycle lane or big enough portion of an emergency lane to safely ride in, no road side lighting, no reflective vests or helmets worn by cyclists. This is a crucial road connecting Pretoria to Rustenburg for mining, agriculture and hospitality industries as well as the only alternative to the N4 tolled road.
  • R104 to R24, Modderfontein Road/Oorsaak intersection, is littered with potholes (from the R104 to Palestine Drive). Farmers had a fund raiser to fix some potholes on this road. These are provincial roads and links to Airspan Airfield. This is a PRMG road but not on projects for the province due to limited budget.
  • R104 Kroondal Intersection/Waterval/Mooinooi intersection has crater size potholes. This intersection is mainly used by Anglo/Lonmin mine trucks and use the road extensively. In November 2021 was the last time the farmers saw the province deliver gravel to patch the potholes but this just gets washed away.
  • R565 past Phokeng and Tlhabane – At Phokeng some stop signs have been run over and need to be replaced. There is also some road damage 1.5km from the R104 turn off.
  • R104 before Tlhabane the road has surface damage and potholes. Roads in town on the way to the Municipal Offices and the Civic Centre are in a poor state, potholes and poor on road markings.


3.2       Oversight Visit to Rustenburg Local Municipality on the Implementation of the IPTN Funded by the PTNG

3.2.1     Background to the Project

The Development of infrastructure started in 2012 as full-fledged “Bus Rapid Transit” system. In recent years, due to budget constraints, the project switched to incremental implementation approach and to a quality public transport bus service that can be incrementally scaled to BRT system when demand increases. The overall Rustenburg Rapid Transport (RRT) timelines have been amended to start launch before end of 2021/22 Financial Year. The RRT has started with driver training and technical demonstration and testing of the first Bus fleet. The exercise is still underway with various route and stations being tested e.g. station docking, traffic light synchronization. The testing allows for various defects to be corrected before launch and allows for route data, scheduling and operational data to be refined.


3.2.2     Key Achievements to Date Infrastructure

  • 25kms of BRT lanes in 2 corridors and CBD,
  • 40km of Walkways and 150[1] bus stops and way finding,
  • The Bus Depot is at 80% completion,
  • The ABT Automated Fare Collection system is being implemented in partnership with SANRAL,
  • Stations are overall at 65% completion, but the municipality has yet to appoint a contractor to complete construction. Industry Transition

The local operators are supportive for the project to succeed. Various agreements were concluded including MOU and for the establishment of the Bus Operating Company. The Compensation Agreement was recently approved for R 1 200 000 per Vehicle/Operating License. There will be interim monthly payments for those operators who surrender their vehicles and operating licenses.

Each affected operator may elect to participate further in Yarona, a R 200 000 buy-in is required, which is subtracted from the compensation. There will be full Corridor Clearance by using Taxis with AFC as part of transitional operation. Bus Procurement

10 Buses were received in October 2020 with 10 more coming before the end of 2022. In total, the Bus Operating Company, that will procure 90 buses for Phases 1 and 2, have been formed. 34 Seater (with 20 standing and a wheelchair ramp)[2] being designed. The municipality plans to brand and relaunch existing taxis under BOC. Marketing

The policy is to involve stakeholders at all stages of the project. A Stakeholder database has been developed and is updated throughout the project. Public Participation sessions have been planned all through 2022 with strong Media and stakeholder engagement. Branding and local partnerships to create interest and momentum leading up to the launch of initial services.


3.2.3     Business Planning and Development




Next Steps


  • Draft out for public participation
  • Public participation complete
  • Council approval - Council meeting end May

Law Enforcement Activation

  • Part of weekly JOC
  • Agreement with Traffic to define LOS

Emergency Services

  • RRT to be part of the existing Rustenburg Joint Operations Committee. RRT representative to be part of monthly meetings
  • Provide SOP and communication protocols between entities and agree on communication lines

Yarona Operating Licenses

  • OL’s application submitted and paid first week in January, 22-21 days of advertising complete.
  • Meeting with PRE required to agree on way forward
  • Await invitation to present


  • Reviewed Integrated Public Transport Operator Company (IPTOC) Operations SOP’s
  • Drafted Operations KPI’s
  • Drafting of Customer Care SOP’s and Communication Protocols in process
  • Timetables finalised for Dry Run
  • Estimated driver requirement
  • Drafting of Conditions of Carriage and Service Charter in process – legal reviewed.
  • Assess of infrastructure on weekly basis to ensure readiness for Dry Runs
  • Agreements in place for cleaning of the trunk and open stations, tree trimming and related aspects. Implementation in May.
  • Training of customer care personnel – UA training to be included
  • Do driver scheduling and duty schedule
  • Finalise Conditions of Carriage once Council approves by-laws


3.2.4     Industry Transition Progress



Next Steps

Appointment of Advisors



Surveys and data exchange



Compensation model/ offer, DoT

approval, Negotiation



Establishment of IPTOC


  • Interim Service Agreement between IPTOC and RLM to be finalised and signed

Interim Service Agreement between RLM and IPTOC

Basic agreement in place

Scope, Terms being refined and amended as IPTOC business plan is optimised and updated

  • The agreement is being streamlined to incorporate output specifications
  • Ongoing development of output specification to link to KPI’s and payment mechanisms (budget)
  • Amendments, final agreement to be approved by Council and signed

Removal of Vehicles[3]

50 vehicles removed and in safekeeping at Showground temporary depot

Contractual and tax implications of vehicles concluded

  • Mechanical evaluation and valuation of vehicles



3.2.5     Integrated Public Transport Company Establishment




Next Step

IPTOC – Operations Plan

  • Ops Budget and operational reserve approved and secured in principle, subject to refinement of the IPTOC business plan and budget
  • Payment Mechanism approved and agreed by RLM
  • Operations Plan to be submitted beginning of March ‘22 for review approval
  • Approval of appointment for Go Live Monitoring of budget. Cost recovery.

Public Transport Services (Bus or Taxi services)

  • Fleet – 10 Busses – branded, licensed[4], COF. Complete.
  • Drivers - Staff structure reviewed, caveat that certain positions need to be motivated before appointment
  • Drivers already received basic training and obtained licenses - part of industry upskilling program
  • Interviews for all positions in progress - to be completed this week
  • SOP’s submitted and reviewed by RLM Ops – need to be finalised in consultation with IPTOC
  • First set of KPI’s defined and workshopped with IPTOC
  • AFC installation in vehicles complete and APTMS to follow
  • Information display in busses.
  • Drivers and other positions to be appointed next week
  • Classroom training for AFC, APTMS and UA scheduled for next 3 weeks

AFC System Operation and Fare Media Management

  • Roles and Responsibilities concluded – Output specification draft format available
  • Conclude on KPI’s and Roles and Responsibilities
  • Sign agreement and activate IPTOC for management


  • Preparation of Roles and  Responsibilities in progress
  • Conclude on KPI’s and Roles and Responsibilities
  • Sign agreement and activate IPTOC for management


  • IPTOC occupy buildings
  • Dispatch offices available
  • Control Centre available – to be equipped
  • Appoint staff and activate offices[5]


3.2.6     ITS Implementation





Hosted/Lease/SANRAL-ABT Integrated/CiPurse

Fare Collection



SP Appointed

  • Yes. Appoint IPTOC for management and operations

Appoint IPTOC for management and operations



SANRAL ABT Certified

  • SANRAL Certification received first week of Feb 2022




Contract Period

3 Years


3 Years

3 Years

RFQ Value

  • Max Value: R 55 Mil  Scalable and Payable as-  and-when required
  • Max Value: R 10 Mil  Scalable and Payable as-  and-when required
  • Max Value: R 5 Mil  Scalable and Payable as-  and-when required


  • ISAT - Delayed
  • In vehicle installation -- Underway[6]
  • UA assessment of validator height complete
  • SOP’s and compliance matrix draft format
  • Draft report layout
  • Design complete
  • 2000 cards ordered
  • Delivery delayed.
  • Proto – typing – SANRAL and AFC system test -07/04-09/04
  • Contract and Price negotiations underway
  • Contract and Price negotiations underway

Next Step

  • Training to commence
  • Review finalise SOP’s
  • Review training material
  • Finalise report, RLM access to system and reports
  • Finalise registration of users
  • Selling points and top-up points - Onboarding and training
  • On-site testing
  • Distribution to sellers and users
  • Registration of users and integration with SANRAL website
  • Finalise role and Responsibilities, compliance matrix,  implementation schedule and activation.
  • Finalise role and Responsibilities, compliance matrix,  implementation schedule and activation.

AFC Go-Live

April 2022


April 2022

April 2022


3.2.7     Marketing and Communication



Next Step

  • UA Integration
  • Integration between UA community engagement, activations and marketing activities
  • Include aspects in all of alert campaigns
  • Industry Engagement/Value Chain
  • Agreed that industry through MVC (Marketing and Value Chain Committee) be part of marketing program and activities.
  • Meeting postpone for this week. Determine activities where MVC can be involved and responsibilities
  • Meeting re-scheduled – 09/03. Determine activities where MVC can be involved and responsibilities



3.2.8     Infrastructure Completion[7]



Yarona  Phase


Next Step

Completion  date

Trunk Corridors

1 & 2

Complete – 5.3km on Corridor A, 4km in CBD and 17km on Corridor B 



Feeder Routes


Complete for Phase 1A. Yet to issue  tender for Phase 1B, 1C & 2

Issue tender


Number of Stations

1 & 2

2 Kerb side stations complete. 16 stations Under construction – Overall completion at 65%

Completion for all Stations by July 2022.


Stops with Shelters


None planned for Phase 1A pending patronage




1 & 2

150 Stops complete for Phase 1A




1 &2

90km complete for Phase1A



Go Live Stops


Taxi rank stop and Central stop

Contractor appointed execute work


Go Live Stations


Fixing of Education Dept. and Magistrate Court

Contractor appointed execute work



3.2.9 Project Expenditure








 R17.0 M 

 R17.3 M 

 R17.4 M 

 R21.8 M 


 R10.0 M 

 R39.8 M 

 R19.2 M 

 R17.8 M 


 R31.6 M 

 R26.0 M 

 R17.0 M 

 R44.0 M 


 R124.2 M 

 R74.0 M 

 R69.0 M 

 R45.3 M 

Total Capital Expenditure

 R182.7 M 

 R157.1 M 

 R122.6 M 

 R128.9 M 



3.2.10   Reasons for Delay in Project Implementation

The municipality gave the following reasons for delays in the implementation of the RRT:

  • There were town planning objections on the construction of infrastructure in the CBD in the early years of implementation. The court judgement was eventually awarded in favour of the Municipality to implement bus lanes and stations in the CBD. (case number 718/2013 RLM vs Mwenzi Service station registered with North West High Court, Mafikeng). Prior to this, the municipality was unable to start with construction in the CBD pending the conclusion of the court processes.
  • Another challenge was that the municipality could not construct all roads at once because it would have caused a gridlock to motorists, and therefore sections of the roads had to be constructed in order to minimize construction disruptions to commuters and motorists.
  • The other delay was the extent of construction works that included relocation of service i.e. Bulk water, electricity, and Telkom lines that had to be relocated.
  • Another reality was that the municipality is allocated a certain budget in a particular financial year. And thus the entire project had to be broken down into phases in order to have a budget available for each project to be completed.
  • The negotiations with the taxi industry required time and buy-in from the broader taxi membership and the RLM prides itself with a supportive taxi leadership for the project.


3.3       Observations During the Rustenburg Rapid Transport Route Site Inspections

The Committee and other officials boarded 3 Yarona buses to the site inspections and made the following observations:

  • It was noted that the vehicle licences on the 3 buses had expired (October 2021). One of the 3 buses had a defect with the wheelchair access ramp not retracting as it should and travelled with a warning signal for the duration of the site visits, this bus had 1 632 km on the speedometer.
  • While travelling to the first site visit, it could be noted on route that the BRT stop in front of the Magistrate Court building was still under construction and not completed yet.
  • The first site stop was at the station which was in the media in 2019 for the roof collapsing. This stop was at the Lefaragatlha and Tlhabane West intersection and members made observations and asked questions at the station. In terms of the condition of the infrastructure some scaffold was still up, some support pillars appeared rusted, grass overgrown despite an attempt to clean up prior to the visit and rubbish was strewn around.
  • The Municipal manager indicated that the bus stops are not open for public use yet but are being used for driver training and synchronisation of the system.
  • The second stop was at the proposed final depot site, located next to the Driver Licence Testing Centre. This site was overgrown and has some structures on it.
  • Along the route, it could be observed that roadway infrastructure for the system was constructed but these lines were not maintained and grass was not cut along the full length of the route. On the R510, especially near the HTS Rustenburg and New Covenant Academy (the Ridder Street Stop), it was observed that the BRT dedicated lane road surface was in a very poor state. The station at Ridder Street was the most complete enclosed station on the entire route, despite this being part of phase 2.
  • The stops along this route opposite the Correctional Services, stop opposite the Boitekong Mall, the Bophuthatswana Street/R510 crossing stop, and all 3 stops near Kanana was vandalised. It was also noted that the side walk or NMT paths through Kanana had over grown grass and vegetation preventing the use of these paths by pedestrians or cyclists.
  • At the 3rd stop in town behind Grenville High School in the R104, it was noted that the roof of the stop had been damaged by rain and not replaced yet. The security guard at the stop indicated to members that the stop was recently cleaned but is not regularly cleaned.
  • At the 4th stop, members saw the current condition of the interim depot, some of the taxis which have already been taken off routes and 6 of the 10 buses already procured. Members noted that some of the taxis stopped at the depot were originally registered as panel vans and could possibly be part of the illegal converted taxis that formed part of the Public Protector Report. 
  • The Committee held a debriefing meeting with the officials after the site inspection about the observations. Members were of the view that they should have found completed stations and stops, operational bus services and minimal issues given how long the project has been running. Some of the infrastructure was in such a poor state that the structures may have to be rebuilt entirely once a new contractor is appointed.
  • It was the view of members that there was instability in the structure as it was not the work of the Municipal Manager to run the BRT system. There was a need for experienced staff in the management system to run the service.


3.3.1 Recommendations

The Minister, through the Department of Transport, the North West Department responsible for transport and the Rustenburg Municipality ensure that:

  • The permanent appointments for the management structure of the Rustenburg BRT project should be finalised in 3 months. If this is not done, the PTNG funding for the project should be stopped.
  • Busses should be running in 3 months, and if they still are not running in 6 months, then PTNG funding should be stopped.
  • No new funds should be spent on infrastructure, the interim depot should be used and there is no need for the permanent depot. The Municipality should use what it currently has and run the service to start generating some income.
  • The Municipality must report within 30 days to indicate exactly how many stops or stations have been completed by the date of the adoption of this report out of the 150 stops indicated in their presentation.
  • The Municipality must report within 30 days to indicate exactly what the project status is by the date of the adoption of this report, as well as exactly by when it will start running bus services on these routes presented.


3.4 Unannounced Visits

3.4.1 Unannounced visit at the Municipal Fleet Management Depot which was recently in the news for storing a large fleet of municipal vehicles that are not being used due to a tender irregularity dispute (Cnr of Lucas and Bosch Streets, Rustenburg)

Members undertook an unannounced visit to the vehicle fleet management depot where it was alleged that over R430 million was spent on a fleet of vehicles which are meant to be used for the provision of waste management, electrical, law enforcement, roads and transport services. At the facility, members spoke with the Acting Facility Manager who indicated that National Treasury had found tender irregularity with the vehicle purchases hence the court case to reach finalisation on the matter. The vehicles have been standing at the depot for 2 years, and are new vehicles.

During the site inspection members observed the following:

  • Most vehicles have plastic covering on the seats and were clearly new. The keys were indicated as being held by the service provider through which the municipality purchased the vehicles. Many of these vehicles are the vehicles they need to cut grass, repair roads and fill potholes and grade gravel roads.
  • The traffic law enforcement vehicles were stored at the DLTC as the fleet depot was full.
  •  It was indicated that the refuelling system was a problem and the diesel available at the depot was not suitable for the refuelling of the BRT bus services or many of the new purchased vehicles.
  • In terms of fleet management of other vehicles in use, the acting manager indicated that there were problems with procuring vehicle parts and the city is at a point where if a vehicle breaks down and there are no parts for repairs, the vehicles are just parked at the depot – since September 2021 no orders could go out for fleet repair parts. They do have a deviation permission to refuel vehicles.
  • Recently, they only had 1 working fire engine. It was also indicated that there was only 1 electrical testing machine that had to serve 45 wards.
  • The municipal council requested a detailed report on where the court case was by the end of March 2022.
  • The depot was not being maintained with over grown grass.


3.4.2 Unannounced visit to the DLTC/VTC (Rustenburg Traffic Department)

  • The visit was after office hours so the facilities inside the DLTC and VTC could not be accessed, but members noted that the property was overgrown with grass and in need of general maintenance. Members saw several roads and transport vehicles (with flat tyres), as well as several VW GTI traffic law enforcement vehicles parked that were part of the fleet of vehicles that cannot be used due to the court dispute over the tender irregularity finding. There were approximately 20 VW vehicles.


3.4.3 Recommendations

The Minister, through the Department of Transport, the North West Department responsible for roads and transport and the Rustenburg Municipality ensure that:

  • The Municipality provide a report within 30 days of adoption of this report to the Committee on the Purchased Fleet of Vehicles which cannot be used due to the legal dispute, as well as a copy of the National Treasury Report regarding the alleged tender irregularities linked to these vehicles. The report should also indicate where the matter is currently and by when it is estimated to be resolved. If it has not already been done, there must be a forensic report done on this particular fleet procurement contract and if it was already done, a copy of the forensic report must be provided to the Committee.
  • The Municipality should ensure that the Fleet Depot, as well as the DLTC/VTC are properly maintained and resourced and, as a minimum, ensure that the property is cleaned and grass cutting is done.


3.5 Meeting with the North West Province Department of Public Works and Roads: 21 April 2022

The Administrator of the North West Province: Department of Public Works and Roads briefed the Committee on its ten- year Master Plan for the implementation of strategic roads infrastructure in the province. The plan focuses on socio-economic, eco-tourism and rural access roads. The plan further serves as an instrument used for planning and implementation of roads in the province since 2019/20 financial year, and the department has been able to implement 93 road projects to date.

The activities implemented through the Master Plan includes upgrades, rehabilitation or reconstruction and maintenance of the provincial roads infrastructure network. The Department of Public Works and Roads has developed and installed a sophisticated software-based Road Asset Management System (RAMS), which is continuously updated, upgraded and expanded to meet with the current technological developments. The RAMS provides valuable information for proper road network management planning, upgrading and maintenance. The Department has commissioned another study in the financial year 2020/21, which covers all provincial roads and will further provide an updated information pack to update the Ten (10) Year Master Plan.


The Provincial Ten Year Master Plan is composed of the following programmes which are:

  • Planning and Design,
  • Preventative / Periodic Maintenance,
  • Routine maintenance (potholes patching, road markings, fence repairs, Guardrails installation and repairs, erosion controls and weeds removals, road sides clearance, etc.),
  • Re-gravelling and block-paving of access rural roads,
  • Reseal,
  • Rehabilitation,
  • Upgrading from gravel to surface standard (tar),
  • Bridges and Major culverts construction and repairs, and
  • Roads Asset Management System (RAMS).


According to latest and revised records as per the Road Asset Management Reports (RAMS), the North West Province consists of approximately 19 668 km in total.  The road network has been decreasing, the reason being that some of the roads are continuously transferred to SANRAL. This is primarily because of lack of proper maintenance, as a result of inadequate funding for upgrading and maintenance of the roads infrastructure. The reduction in length of the roads network asset is worrying because this reduces infrastructure funding as well.



Description of Activity











Project Cost Estimate

19 /20

20 /21

21 /22

22 /23


















Summary:  Total Transport Infrastructure

Road Asset Management System



                    15 000

                  15 900

                     16 854

                  17 865

                  18 937


  20 073

                   21 278

                    22 554


23 908


25 342


197 712

4% Planning and design for next financial year (DORA Clause 26.1.c. (ii))



                  165 856

               247 219

                   214 902

                161 323

   133 601

      95 028

                   87 852

                    85 574


 90 753


39 277


1 321 384

Road Maintenance



                  200 000

               210 000

                   220 000

                230 000


   240 000


  250 000

                 260 000

                  270 000


  280 000 


 290 000


  2 450 000

Total Additional Costs:



        370 856


   452 219


419 902


366 323


  338 601


 300 028


292 852


290 574


295 753


       244 277


   3 969 096

Total Infrastructure Cost (including additional costs):



4 436 259


  6 437 127


 5 888 849

  5 081 904


 4 476 813


  3 116 484


 2 473 272


  2 160 002


1 981 331


 1 092 282


 37 742 036




3.5.1     Key Activities of the Programme Preventative/ Periodic Maintenance Needs

The funding need of this scenario is exceptionally high at R 2 450 billion, which gives a reasonable estimate of the current needs of the road network of the North West Province. Resurfacing Needs

Resurfacing/reseal needs have been calculated as R 4 680 billion, or 3 045 km of roads for the next ten years, of which in aggregate an immediate amount required per year for the next 10 years is R 468 million. Hence, it is very important to note that the larger percentage of roads currently in the fair condition category requires urgent attention to move it from fair to a good condition category, otherwise it will deteriorate further thereby increasing the cost of repairs. Rehabilitation Needs

Rehabilitation needs have been calculated at R 7 697 billion or 1 924 km at an average rate of R4m per km of road for the next ten years, translating into a 75% backlog of the total road network which varies from light to heavy rehabilitation. Additional to the above need, it is very important to note that a large percentage of roads currently in the fair condition category points to a future peak in rehabilitation needs. Upgrading Needs

Upgrading needs are estimated at R16 343 billion over ten years which is translated into 2 514 km, at an average rate of R6.5m per km. This results in R1 634 billion a year, at a rate of 4% of roads in the province to be upgraded. Therefore, an immediate amount needed per year for 10 years is R 3 774 billion, as opposed to the current allocation of R1 349 billion on average.


Sub- Programme










990 802

1 058 207

1 058 207

957 028

1 004 393

Equitable Share

358 488

304 213

304 213

380 000

405 000


1 349 290

1 422 668

1 422 668

1 337 028

1 409 393 Concluding remarks from the North West Department

  • The Province of the North West requires approximately R37 billion in order to address its roads infrastructure upgrading and maintenance challenges, which translates into R3.7 billion per year. This will make the Province to be easily accessible and to attract potential investors to come and invest in the Province.
  • Priority is given to eco-tourism, economic corridors and other important routes that have the potential for economic development.
  • The North West Province Roads Infrastructure Development funding is not adequately funded and depends primarily on the Provincial Roads Maintenance Grant (PRMG), which is mainly for the maintenance of provincial roads.
  • The current equitable share allocation is by far less than what is required (rand per rand match) with the grant and the current commitments. This clearly shows that roads infrastructure is not a high priority in the Province, which is worrying noting that roads infrastructure is the primary driver of economic development. Demand is in the upgrading of gravel roads to tar, as opposed to the general maintenance of existing infrastructure. The inadequacy of budget (equitable share) puts pressure on the department as communities continue to demand tar roads all over the Province. It is therefore important that the Province considers reviewing its funding model for roads infrastructure.


3.5.2 Observations

  • The figures presented on the PRMG budgets differs from the figures presented by the Department of Transport and National Treasury.
  • Contractors that are appointed to perform the work must be suitably skilled and financially able to complete the contract work without stopping early due to liquidity issues.
  • The Minister should have been at the meeting due to the department being under administration.


3.5.3 Recommendations

The Minister, through the Department of Transport and the North West Department of Public Works and Roads ensure that:

  • The Department of Transport must improve its oversight over the PRMG expenditure and ensure that regular reports are done to the Committee, as requested in the Budget Report and BRRR annually.
  • The Department of Transport must provide a report to the Committee within 30 days of adoption of this report on how much of the PRMG is spent on the upgrading of gravel roads, and whether any of this funding is used to upgrade to tar roads.
  • The province must provide a report to the Committee within 30 days of adoption of this report on which roads it will be upgrading from gravel to tar and which roads are to be graded or re-gravelled.
  • The province should match the PRMG and equitable share with its own funding allocation for road maintenance.
  • The Department of Transport must provide a report to the Committee within 30 days of adoption of this report on what measures were currently in place to prevent vehicle overloading on North West roads, and whether engagements are taking place with the mining industry and its fleet provision services to educate the drivers and operators on the need to prevent overloading of freight vehicles, as well as the fines to be issued for overloading. The province should increase law enforcement to monitor, prevent and issue fines for overloading on roads. Roads are eroded by overloading and will keep damaging any maintenance done on the roads.
  • The Department of Transport must provide a report to the Committee within 30 days of adoption of this report and on a quarterly basis thereafter on which roads are planned to or in the process of being transferred to SANRAL from the provinces – for all provinces. This report must also indicate the budget implications linked to such road transfers for the Provincial Departments and SANRAL.
  • The province should have plans in place to escalate the repair of roads that are of economic benefit to the province.
  • The Department of Transport must work with the province and the municipality to improve co-ordination in the North West relevant to road works, repairs, maintenance, as well as the provision of public transport in the province.




4.1       Background to the Project

The project commenced in the 2011/12 financial year. The suspension letter was received on 18 December 2019. The infrastructure component of the project is currently 99% complete. The expenditure to date is 74% of the current allocation. The funding allocation of the project since inception is R1.534 billion. The expenditure on the project since inception is R991.15 million. The municipality requested support for the reinstatement of the project to operationalise the Phase 1A of the IPTN project.


4.2       Project Status Post Suspension of the Grant

The operational readiness services were suspended. The project only focused on commitments that were entered into before 19 December 2019. Some components of infrastructure where commitments were not signed by the time of suspension were affected, such as the land acquisition and widening of Msunduzi River Bridge. The roads alignments for WP2 and 3 had to be revised due to land acquisition and widening of Msunduzi River Bridge constraints. The contracts for the IPTN PMU staff were not renewed and the project IPTN is currently implemented under the Roads and Transportation Department. After several engagements with the National Department of Transport and National Treasury, the shortfall amount to settle all commitments was approved.


4.3       Work Packages Implementation

  • Work Package 1:  Completed in May 2019.
  • Work Package 4: Completed in February 2021.
  • Work Package 2: Practical completion as from 28 February 2022. Road widening is tying back to existing lanes over the Msunduzi bridge, the bridge was not widened due to suspension as at the time of suspension the contractor was not yet appointed, due to EIA challenges.
  • Work Package 3: Practical completion as from 28 February 2022. Road widening is encroaching on private properties, due to suspension of the project the land acquisition process will not proceed and designs have been reviewed for the road to be constructed on available road reserve.


4.4       Project Budget and Expenditure






2009/10 - 2015/16



R144,90 Roll over was approved




No Roll over required




Roll over not granted




No Roll over required




Roll over  of R94 578 574 granted




Awaiting rollover feedback for R50.4m

2021/22 & 22/23

R62 346 079,16

R46 259 092,91

 R50,4  (2020/22 rollover funds) +R11, 9m shortfall funding


R1 534,30





4.5       Challenges in Project Implementation

The municipality highlighted the following challenges in the implementation of the project:


4.5.1 Procurement delays due to non-responsive bidders and objections

  • Typical construction challenges such as relocation of services, disputes between main contractors and sub-contractors, stoppage of work by business forums and traffic congestion and accommodation.
  • Other challenges were insufficient planning, administrative instability, political instability and the Project team capacity.
  • Although the (road) infrastructure component of the project has been completed, the Municipality is not ready for operations as the operational readiness services were affected by the suspension of the project in December 2019. Therefore, the above will result in loss or delayed opportunity for the Municipality to deliver an improved public transport system for Msunduzi public transport users. Regression with the progress made with the taxi industry and community at large. The value for the money that has been spent will not be realized as the objectives of the project will not be achieved. Community at large and businesses were patient with government during planning and infrastructure implementation looking forward to the benefits of the system, now it will take time for them to realise these benefits. Msunduzi spatial development was planned and implemented around the IPTN, the longer it takes to implement the project the more the alignment is lost with these plans.


4.6       Turnaround Plan and Request for Intervention

  • The implementation has been completed. The Municipality has allocated a budget of R5 million in the next financial year towards the operational and business plan for the IPTN project. There are other funding sources from National Treasury to develop plans (Urban network strategy) that will support the IPTN. However, due to the number of activities and expertise that are required for operations on Phase 1A, additional funding will be required. The Municipality has looked at a number of approaches to operationalise the IPTN, this will be discussed with the National Department of Transport and assistance in this regard has just been requested from the Department.
  • The Msunduzi Taxi industry was united and committed to the project although the suspension affected the trust between these two parties. The Base surveys and business value surveys to determine affected stakeholders and associations has been collected.
  • The city has new political leadership which is positive and committed to this project and all other affairs of the City. Council meetings are quorating and IPTN progress reports are submitted quarterly. All critical vacancies are filled. The post for Municipal Manager has been vacant for 3 weeks, the advert for filling of the position was advertised on the 1st of April 2022.
  • Due to the scaling down of the project, the IPTN project is managed in-house through Roads and Transportation Department (under a General Manager: Infrastructure, Senior Manager: Roads and Transportation Manager, Manager Design and implementation and Transportation Planning staff).
  • Msunduzi Municipality is a primary economic hub within uMgungundlovu District Municipality and its strategic location has favoured and helped the city to establish and develop a strong industrial base. As a result, there are many people from neighbouring municipalities who are commuting daily to Msunduzi Municipality for business, employment and shopping activities, which result in traffic congestion - this was going to be mitigated through an improved public transport system. The IPTN project was used to strengthen economic development in the city as most of the spatial plans and NDPG projects are planned and implemented along the IPTN corridor, with the aim of densifying the corridor, attracting investments and job creation, these plans are now affected by the suspension of the IPTN.
  • The implementation of town centre development which is an NDPG program that was aimed at enforcing the integration between land use and public transport along the IPTN trunk route in Edendale has commenced, budget of R100m for land acquisition has been released by the Provincial Department of Human Settlements -  then the objectives of this integration will not be achieved due to delayed implementation of the IPTN.
  • In addition to this, the Department of Higher Education has invested R500m for realignment of Sukuma technical high school with the Durban University of Technology within the same vicinity of the IPTN corridor. 
  • Based on the surveys that were conducted for the project, about 60% of Msunduzi residents are dependent on public transport, most of these commuters come from the Greater Edendale and Vulindlela areas which form part of Phase1A of the project.

The municipality requested support for the grant to be resuscitated in order to operationalise phase 1A of the project and implement other phases of the project.


4.7       Observations During the Msunduzi Rapid Transport Route Site Inspections

The Committee made the following observations during the site inspections:


Site 1 – Moses Mabhida and Sutherland Road

  • This is the starting point of the BRT trunk route and this is where traffic congestion starts heading into town. This is access to town from Imbali Township and outside towns. This is a Provincial Road. There are dedicated bus lanes from here into Church Street and there are Non-Motorised Transport (NMT) facilities for cyclists and pedestrians and lighting. The traffic lights at the first two stops were not functioning due to cable theft and a contractor had been appointed to attend to the traffic light repairs. These sections of roads and base sidewalk for stops were completed in May 2020. The station will be constructed on the centre meridian. There were questions regarding the site construction regarding the date of completion and the fact that all one can see is a dedicated lane and no other construction. There was a question regarding the grass cutting that is needed and weed removal from the paving. There was also a question regarding whether the station will be a closed or open station. It was indicated that it was meant to be an enclosed station, but will start with open station with only a roof. Only the road was constructed and the station construction has not commenced at any of the stops along the route.


Site 2 –  Approximately 150m from site 1, Moses Mabhida Rd and Archie Gumede Dr

  • The traffic lights here were also not working due to cable theft.
  • There was an 18-month delay due to objections on this site.
  • The proposed depot site for one of the depots is on the left side of the road as one faces town. An EIA was done on the entire route, however, there were some issues with wetland areas and offset had to be done. The plan designs were there for the entire route, but now downscaling as the design was based on a bigger demand forecast for phase 1A and will be extended as it begins to be implemented.
  • There will not be a filling station at the depot but have identified other areas where buses would be able to refuel. There is no EIA approval for a fuelling station here.
  • Only planning 1 Depot for Phase 1A, still planning a total of 9 depots for full operations consisting of mini depots, but only if project is running and in operation.

Site 3 – Start of work package 3 – Moses Mabhida Road

  • The section is affected by land acquisition to be done from the bridge to this site point – there were issues and objections and this is still under discussion. From here on the road tapers back to the existing lanes. This site is roughly 1km from the bridge. The road splits again closer to town.
  • There are negotiations to expand the bridge, however, the EIA issue caused a delay and the land acquisition is to be from the bridge to this site point. The bridge is Msunduzi Bridge and the road from there is a municipal road. There are business stakeholder involvement and working with them and the province in bilateral meetings. The directive from the Premier is to work with the Municipality and eThekwini. The project funding suspension stopped the IGR engagements on this aspect.
  • It was also noted that this site is where the NMT infrastructure ends and it was questioned why this was not continued – the municipal officials indicated that the stoppage was due to the EIA issues and work that could not continue on the bridge. Elected to use a raised crossing as a temporary measure but the EIA was not approved for this.
  • It was also noted that this stop had no infrastructure to allow for universal access, there were no ramps onto the sidewalks on either side of the road or to the stop centre median. The officials indicated that it was also hampered by the EIA not being finalised. They also pointed out that the design was affected by funding stoppage, but that universal access designs were used closer into town again.
  • Officials indicated that there were many wetlands along the route and the EIA was initially done for the entire project, with the suspension of funding they tapered it down to only cover those areas they could continue working on based on existing commitments. The depot, for example, is also not built due to it falling under the EIA assessment linked to the bridge.
  • The phase 1 is a 4.8km stretch and the estimated passenger figures for this route will be forwarded to the Committee. Traffic management plan being considered to open lanes for taxi use, but this would require on route guidance by traffic officers as the taxi doors are not on the side of the centre meridian so passengers would alight into traffic which is dangerous.
  • This 3rd stop area is not paved as there is some final work yet to be completed.
  • There was a view that the taxis should be able to use these lanes by the end of May 2022.


Site 4 – Moses Mabhida Rd into Church and Pine Streets, next to the disused PMB PRASA Train Station

  • There is a large “To Let” sign in the station grounds and the station is not in use as no commuter trains run to or from here anymore.
  • This stop is the end of the Phase 1A corridor. The next phase is from here via Church Street and plan to improve the road to the northern areas through town.
  • The original plan was that this stop would be fed with passengers from the train station and then there will be a station for the bus stops further down in Church Street.
  • The turnaround area for these buses is in mixed traffic and will use a route of the existing streets to turn around.
  • During the debriefing session, members wanted to know why they should support the re-instatement of the grant after what they had observed on the roads as the responses by officials on the site inspection left much to be desired. The passengers gained nothing out of what was constructed so far.  The municipality could not do basic maintenance on the route such as grass cutting or fixing dysfunctional traffic lights.
  • The non-motorised transport section looked of poor quality and did not look like it would last.


4.8 Recommendations

The Minister, through the Department of Transport, the KZN Department of Transport and the Msunduzi Municipality must ensure that:

  • The figures presented by the municipality need to be verified and the correct figures must be sent to the Committee within 30 days of adoption of this report.
  • The municipal management team for the IPTN system must be comprised of skilled officials that are dedicated and permanent appointments must be made to eliminate reliance on acting appointments.
  • Focus in the municipality should be on rolling out quality bus services on the infrastructure already in place.
  • If the Department of Transport and National Treasury reinstated the PTNG grant, it must be phased in with monthly reports to the Committee to monitor progress.


Report to be considered.



[1] This number of bus stops listed as an infrastructure achievement should be questioned as there were not 150 stops along the 2 routes visited by members.

[2] These figures differ from the numbers indicated on the buses – 36 seated, 54 standing and 1 wheelchair bay.

[3] A number of the taxis seen at the interim depot were originally registered as panel vans and an investigation must be done on whether or not these vehicles are part of the hoard of illegally converted panel vans.

[4] It must be noted that none of the buses present on the day of the visit displayed vehicle licenses that were up to date (expired October 2021).

[5] At the depot some staff members were visibly stationed in some of the offices already.

[6] None of these systems were visible on the 3 buses used during the oversight visit.

[7] Based on the oversight visit and viewing the actual infrastructure, there is a real need for the city to review their target dates. One of these that definitely need review is the completion date of July 2022 for the completion of all stations.