Black-owned fleet management services firm Afrirent has confirmed that it will continue supplying its vehicles to the City of Joburg.
The company supplies Johannesburg Metro Police Department vehicles and municipal trucks, among others. It revealed this in a media statement released on Tuesday.
The statement comes after Afrirent Fleet Management’s founder and chairman, Senzo Tsabedze, recently announced during a media interview that he was suspending services to the City of Joburg due to non-payment.
Owed R90m by the City of Joburg
According to a News24 article, Africa’s wealthiest city was owing Afrirent a whopping R90-million. Afrirent, which generates over R1.5-billion in revenue per year, owns a fleet of over 4,200 vehicles, which it has leased to the Johannesburg Metro Police Department.
Tsabedze had told the publication that his company will reinstate the services until payment has been received.
“The city can’t enjoy free rides while I’m paying the bank R48-million monthly. Afrirent has suspended or grounded Johannesburg Metropolitan Police Department [vehicles] and PikitUp buses that transport the employees because of non-payment,” said the business mogul.
“[They] owe Afrirent over R90-million. Some money dates back to last year.”
Afrirent makes a U-turn
However, on Tuesday, the fleet management firm made a U-turn. It was not clear whether the City of Joburg has settled its Afrirent debt.
“Afrirent Fleet Management would like to confirm that it is in continuous engagement with the City of Johannesburg. This regarding payment for its fleet management services to the city,” said the company in a statement.
“Afrirent is fully cognisant of the critical role that a vehicle fleet plays in the delivery of services to the residents of the city. Especially during this critical period of the festive season,” said the company.
Delivery of services a priority
Afrirent said it was working with the leadership of the city. It said it was “doing everything in our power to ensure effective and seamless delivery of services”.
“Afrirent can confirm that as of today, in recognition of critical timing for the city’s operations, all fleet management services have been restored and operations are running normally.
“Afrirent will make no further comment on this matter. And we would like to refer all queries to the City of Johannesburg,” read the statement.
