R18m payment to taxi operators in Port Elizabeth

The Nelson Mandela Bay Municipality has paid taxi cooperative Laphumilanga R18m to get the stalled Integrated Public Transport System (IPTS) working.

25 Sep 2014

Deputy Mayor Chippa Ngcolomba says the payment of R18m to taxi drivers is legitimate as they will play a fundamental part in ensuring the success of the new public transport system. Image: MyPE

The municipality attached stringent terms and conditions of what the city and auditor-general expected of the taxi cooperative before it handed over the R18m. Laphumilanga is expected to provide monthly financial reports.

A report by city manager Mpilo Mbambisa to the council states that the R18m was paid to the cooperative to help it with start-up and operational costs. He said the city had engaged the provincial and national Treasury before deciding to pay out the agreed amount.

Laphumilanga is an organisation that comprises a number of taxi owners.

Deputy Mayor Chippa Ngcolomba said in an interview that the municipality wanted to make the transport system a reality.

"You will recall that this IPTS is a new thing and it needs the buy-in of every stakeholder to work. The money was to help Laphumilanga have the capacity to operate and engage with government on an equal footing. The money can't be irregular expenditure because it is to assist the taxi operators.

"This project is huge for the government, taxi operators and communities so we need to handle it with care," he said.

"The money paid to Laphumilanga is legitimately due to taxi operators so they can operate in the roll-out of the IPTS," Ngcolomba added.

Source: The Herald via I-Net Bridge

Source: I-Net Bridge

For more than two decades, I-Net Bridge has been one of South Africa’s preferred electronic providers of innovative solutions, data of the highest calibre, reliable platforms and excellent supporting systems. Our products include workstations, web applications and data feeds packaged with in-depth news and powerful analytical tools empowering clients to make meaningful decisions.

We pride ourselves on our wide variety of in-house skills, encompassing multiple platforms and applications. These skills enable us to not only function as a first class facility, but also design, implement and support all our client needs at a level that confirms I-Net Bridge a leader in its field.

Go to: http://www.inet.co.za