The Democratic Alliance (DA) in North West will write to the MEC of Community Safety and Transport, Sello Lehari, requesting him to urgently implement the findings of the 2013 forensic report by Mochabapula Consulting Services into the affairs of North West Transport Investments (NTI).

While the MEC has promised to table all the investigation reports into NTI at their disposal, we request that he moves for the implementation of Mochabapula Consulting Services findings that has already been leaked to the public.

During the tabling of the NTI’s Annual Performance Plan (APP) for the 2019/20 financial year on Thursday, 18 July 2019, it came to light that the state-owned entity’s (SOE) cash flow constraints have reached critical status.

The NTI, which is not showing any profit, needs R264 million to settle accumulated current liabilities and a further R20 million per month in order to sustain current services.

More than 300 buses of the NTI’s fleet are currently broken down and cannot be repaired due to the lack of resources, which begs the question what services the entity is actually able to render.

• The NTI currently does not have a properly constituted executive board, while the CFO position remains vacant. The entity is further riddled with several critical senior management positions that remain unfilled.
• The NTI lacks the leadership needed to apply the requested resources in a manner that would stabilise and improve its performance.
• The 2013 forensic investigation, based on the 2010/11 financial years, cites the following information:
• The irregular acquisition of 95 second hand buses at a cost of R140 million, negatively affected the entity’s operations and profitability due to high maintenance costs and limited seating capacity, thus yielding lower revenues.
• These buses were acquired from three companies all linked to an individual who is a known friend of the then Chairperson of the Board, Mr E P Maponya;
• The previous Board approved a list of 52 unroadworthy buses which were sold to operators appointed in terms of scholar transport tenders;
• More than 20 buses, not on the approved list, have been sold to scholar transport operators, of which at least 3 were sold to the wife of Mr T J Letselela, who served as a Board member at the time. His wife operated a scholar transport business;
• Many of these buses were released without sale agreements and/or documentation;
• The estimated outstanding balance relating to the disposal of buses, excluding those without any documentation and those with only a gate release totals more than R6 million; and
• An aircraft valued at R9 million, along with its hanger valued at R1.7 million, have been sold at a loss of R4.2 million, the proceeds of which have been used to pay salaries.

The damning evidence of blatant looting and the fact that no action has been taken against any Board member or the MEC at the time, should be enough reason for MEC Lehari to, firstly, initiate proceedings against those implicated in the forensic report and, secondly, to consider closing the NTI down at once.

It is clear that the NTI has become a drain on public funds and breeding ground for corruption. Instead of being bailed out year after year, its duties should rather be incorporated into the Department.

It is only under a DA-led government that good governance and efficiency will be restored to SOEs. Consequence management, the delivery of quality services and economic viability should be prioritised in order to turn these entities around.

 

Issued by The DA