Soweto residents using Pio-Trans buses branded Rea Vaya could soon be forced to find alternative transport to get to their destinations between the township and the city centre.
This comes after the financially troubled Pio-Trans, the bus company that operates and manages the City of Johannesburg’s Rea Vaya Bus Rapid Transit (BRT) phase 1A between Thokoza Park in Soweto to the city’s Ellis Park, finds itself having fuel challenges due to debt.
Pio-Trans owes another bus company, Litsamaiso, more than R9,1-million for fuel. Litsamaiso is also operating Rea Vaya phase 1B on another Soweto route to the Johannesburg CBD via Auckland Park.
Today, Sunday World can reveal that Litsamaiso has stopped supplying the troubled Pio-Trans with fuel for its buses after it failed to service its debt of R9,132 141.13.
In the letter of demand sent on February 17, lawyers for Litsamaiso – SGA Law Africa – notified Pio-Trans acting CEO Zozo Mogoera that the supply of fuel to Pio-Trans will be suspended.
“We refer to the abovementioned matter and our letter of demand dated November 12 2022. As you are aware, we act on behalf of Litsamaiso. It has been brought to our attention by our client that Pioneer Transport [Pio-Trans], notwithstanding demand, has failed to make the required regular payments to our client… Please be advised that our client has taken a decision to terminate the supply of fuel to Pio-Trans with immediate effect,” reads the letter.
SGA Law Africa said Litsamaiso would only recommence supplying fuel to Pio-Trans after receiving the full payment of over R9.1-million on an acceptable legally binding arrangement, including a written confirmation of the renewal or extension of the contract
between Pio-Trans and the City of Johannesburg.
On the same day on which the lawyers had sent a letter of demand to Pio-Trans, Litsamaiso CEO Nelson Rikhotso issued a letter to the staff and labour unions that there will be a termination of fuel for Pio-Trans.
“In August 2022 Litsamaiso assumed responsibilities for the sourcing of fuel for the depot after Pio-Trans was unable to honour its contractual obligations to the previous supplier of fuel. Litsamaiso concluded a fuel supply agreement with Sasol in August 2022 and assumed the responsibility of supplying fuel to Pio-Trans at the same cost paid by the company to Sasol.
“Due to Pio-Trans financial problems, Pio-Trans has not adhered to the required payment schedules for the fuel supplied, and to date has accumulated a debt of R9,132 141.13,” reads Rikhotso’s letter.
Sizwe Gcayi of SGA Law Africa, a law firm representing Litsamaiso, said on Friday: “SGA Law Africa does not make public comments on letters of demand issued on behalf of clients. We only comment on summons issued, which by nature, are public knowledge.”
Pio-Trans board charperson Nomazotsho Memani said: “I wish to state to you that your concerns ponder on operational issues. They have nothing to do with public interest. In any case, Pio-Trans has dealt with issues of this nature successfully before. I’m sure there are many companies that face operational matters such as these every day. Pio-Trans endeavours to make sure that customers receive the best possible service. The integrity and reputation of our valued clients, the COJ, is always protected and that we provide a consistent, high-quality service [to] all other stakeholders, like fuel suppliers are being liaised with accordingly.”
Spokesperson for transport department in the City of Joburg Corrine Lekhoane declined to comment on the matter. Rikhotso asked to be sent questions but failed to respond.
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