In an attempt to rescue the Great North Transport (GNT) from plunging further into financial woes, the Limpopo Economic Development Agency (LEDA) has vowed to rescue the bus company.
The government entity plans to do this by paying the outstanding money owed to staff members, which ranges from unpaid medical aid to pension funds.
The troubled state entity bus company is said to be owing over R10-million to medical aid administrators incurred in the past six months and a further R300-million in pension funds to their former staff members accumulated over the past 18 years.
Payments to be fast-tracked
In a media statement, LEDA, through its group CEO Thakhani Makhuvha, said they will fast-track the payment of GNT’s outstanding pension fund and medical aid contributions this week.
“This is a bid to meet the company’s statutory obligations. GNT has been facing ongoing challenges in fulfilling these obligations due to financial constraints. However, the company has recently undertaken several strategic interventions to facilitate its turnaround. These include the acquisition of new buses to replace its ageing fleet. As part of this process.”
Makhuvha indicated that: “GNT has also launched a bus lease programme. This is expected to yield positive results and increase the number of operational buses on the road, and it is for this reason LEDA will step in to close the gap caused by non-payment of these critical employee benefits.
“We have taken an important decision, as GNT’s shareholder, to make the necessary payments and bring all outstanding contributions up to date. We are hopeful this situation will not recur.”
DA takes legal action
LEDA’s rescue mission comes amid DA member Jacques Smalle’s decision to go the legal route. This to force both GNT and LEDA to take full responsibility for this matter.
The party went on to open a fraud case at Polokwane Police Station.
“We couldn’t keep our silence anymore after noticing that GNT’s finances were getting worse by the day. This affected workers, hence we decided to go the legal route for the sake of the workers,” said Smalle after opening the case at Polokwane police station.
The Hawks spokesperson in Limpopo, Lethunya Muroa, confirmed the matter.
Hawks confirm case
“We received a fraud case which was transferred to us from Polokwane police station to the Hawks Serious Commercial Trial Investigations for further handling. According to the case information, the former employees of GNT did not receive their pension fund.
“And the company deducted their money from their salaries on a monthly basis. Still compiling the information from the affected people.”
Makhuvha responded to the DA to have laid criminal charges against officials from both GNT and LEDA.
“While it is within the DA’s right to pursue legal action, we want to assure the public that LEDA has been in continuous engagement with GNT to find a lasting solution to this matter.”
