SUBSIDIES * South Africa - Bus operators may be forced to close
On Friday, the Cape High Court ruled that the national government had to pay bus operators millions of rands in arrears for bus subsidies...
Cape Town,South Africa -Independent On Line -February 1, 2009: -- Even though the Treasury has agreed to bail out the National Department of Transport, there is still no clarity on when South Africa's bus operators will receive the millions owed to them in passenger subsidies... On Friday, the Cape High Court ruled that the national government had to pay bus operators millions of rands in arrears for bus subsidies... Bus subsidies were not paid because for three years the National Department of Transport had a budgetary shortfall of R1.2 billion which eventually caught up with them... According to the National Department of Transport's spokesman Collen Msibi, the company was allocated R2.9-billion for subsidies for this financial year, but it already had a R1.2-billion shortfall...* Gauteng transport pays bus subsidies
Gauteng,South Africa -The Times -Feb 02, 2009: -- The Gauteng department of transport had paid the almost R114 million of bus subsidies owed to private bus operators today as required, spokesman Alfred Nhlapo said... "We have made the payment, with interest as well," said Nhlapo... The late payment of the subsidy came after a court challenge by bus operators who warned that commuters would be stranded and that they might have to close down and retrench people if they didn’t get their money... The dispute arose when private bus operators in the Western Cape and Gauteng were not paid the government subsidy that enabled them to keep passenger ticket prices down... The SA Bus Operators Association (Saboa) launched a series of court challenges on behalf of at least 12 companies in the province...
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