Durban - The GO!Durban bus project could run into trouble following a warning by the Department of Transport that the Public Transport Network Grant (PTNG) funding to eThekwini Metro could be halted.
The grant funding is made available for the construction of reliable public transport in municipalities. The GO!Durban project has faced serious problems, with the taxi industry refusing to allow it to be launched over an ownership dispute with the metro.
The taxi operators, whose operation would be displaced by the buses, believe they should own the buses, while the city is of the opinion that it should have the biggest ownership of the project.
According to a letter from the Department of Transport, the funding could be halted for the next three months or more. The letter was authored by the acting programme manager in the office of the PTNG.
The letter, directed to then acting municipal manager Musa Mbhele, who has since been permanently appointed to the post, warned that the metro was in danger of losing the funding.
It is titled: “Extension of notice to withhold the Public Transport Network Grant first tranche transfer to a maximum of 120 days due to continuous and material deviations by eThekwini.”
The material deviations that have raised red flags are in the GO!Durban project. It said the transferring officer initially communicated an intention to withhold the first tranche transfer of the PTNG in a letter on June 28 and a follow-up letter on July 20 this year.
“The metro has still not responded to the two letters sent proposing the withhold. The City must further note that the non-submission of the 2023/24 PTNG budget application will affect the transfer of the second and subsequent in-year tranche transfers,” the letter said.
Mayor Mxolisi Kaunda said they were aware of the letter and were working hard to address the challenges it raised, so as not to affect the project.
The Mercury understands that the city had raised concerns with the Department of Transport about halting the funding, saying in the 2022/23 financial year, all existing Integrated Public Transport Network contracts were funded through the PTNG.
Without the grant transfer, the city will be compelled in terms of the Municipal Finance Management Act to suspend or terminate all existing contracts, which will result in fruitless and wasteful expenditure due to time delays and other claims.
DA councillor Thabani Mthethwa said it was concerning that the city could lose the funding, and anyone complicit in that happening should face consequences.
“There is no political will to address this issue, the people who negotiated with the taxi industry over-committed themselves to something they now cannot get out of. The city needs to finalise these projects and negotiate with the taxi industry, with them accepting whatever the city has to offer, or the city should go at it alone.”