Place Great North Transport under Business Rescue Now!

Issued by Jacques Smalle MPL – DA Provincial Spokesperson for LEDET
07 Nov 2024 in Press Statements

The Democratic Alliance (DA) in Limpopo calls on the ANC-led provincial government to place GNT under business rescue so that a business rescue practitioner can lead the rescue attempt unhindered.

Damning evidence is emerging that Great North Transport (GNT), a source of much-needed government-subsidized transport in Limpopo for the poor, is facing collapse and delinquency. GNT is a transport company owned by the Limpopo provincial government. It is a subsidiary of the Limpopo Economic Development Agency (LEDA), an entity owned by the Limpopo provincial government, which acts as the shareholder. A board appointed by LEDA is supposed to provide high-level oversight and direction to the company, while an executive management team should be responsible for daily operations.

By all accounts, the company’s offices have been closed, and staff have been locked out since Monday due to the security provider not being paid for over six months. We have been told that the company’s diesel supplier, Transversal, is owed R9 million and that only 30 of a fleet of 422 buses appear to be operational. Provident fund and medical aid contributions have reportedly not been paid to service providers, resulting in Discovery Health threatening to withhold benefits from staff.

The DA has been monitoring the situation and has raised questions regarding the circumstances surrounding the suspension and removal of the CFO and whether any disciplinary action was taken. To date, we have received no response.

As the shareholder of GNT, the ANC-led provincial government, through LEDA, must be held accountable for the multiple crises, dereliction, and delinquency faced by GNT. The directors of GNT, appointed by LEDA, are also accountable.

Those responsible for crisis and those who allowed this collapse of a public asset meant for the poorest of the poor must face the consequences of their actions or inaction.

We demand action now!

Where the Democratic Alliance governs, we ensure good, progressive, and accountable governance focused on putting the people’s interests first.