Government debt put brakes on Putco buses
The Putco Transit Company says the entity may not be able to carry out its bus service from Thursday, May 4, until further notice due to fuel shortages.
The disruption is as a result of unpaid March subsidy claims by the Gauteng Department of Roads and Transport.
According to Putco media liaison manager, Lindokuhle Xulu, Putco is working closely with the government to ensure that payments are processed as soon as possible to avoid a prolonged service disruption as well as inconvenience to our valued passengers.
“Should the situation improve, stakeholders will be informed timeously,” Zulu explained.
Xulu added that the underfunding of the bus public transport industry as well as the excessive fuel increases in the past few months have exacerbated the situation. The relief that the bus industry requested has not been granted, leaving bus operators in a very difficult situation.
Gauteng clarifies Putco payment delays
Responding to the claims by Putco, the Gauteng Department of Roads and Transport wishes to confirm that payments to Putco Bus Company for the portion of March has been captured and will reflect on the bus operators’ banks account by Monday, May 8 due to transactions from different bank accounts which takes about three days.
“Delays in processing subsidized bus operators’ payments for month of March 2023 are as a result of a widely-known procedure and trend. The Public Transport Operating Grant (PTOG) only being transferred to the Province by the National Department of Transport in the first week of May each financial year,” said the department in a statement.
The Department currently manages 34 bus subsidy contracts awarded to thirteen 13 bus operators, Putco is amongst them.
Bus contracts are operated in metropolitan municipalities, namely: Johannesburg, Tshwane, Ekurhuleni as well as Sedibeng District Municipality. Services are operated by bus companies on behalf of government.
Both the department and Putco are working together to ensure there are minimal disruptions to the bus service that assist hundreds of people with public transport.