Another R650 million needed for Nelson Mandela Bay IPTS to get on the road

NOVEMBER 26, 2015

Addressing the media following a protest by members of the Nelson Mandela Bay's taxi industry, Executive Mayor, Danny Jordaan, said that the City needs more than R650 million if it were to implement and sustain its stagnant Integrated Public Transport System (IPTS).

The taxi drivers, who blocked all roads leading to City Hall, demanded the immediate implementation of IPTS.


Jordaan said there is an agreement with the taxi association, Laphum'ilanga Transport Services, that led the protest “To implement the IPTS within the budget that has been set aside for that purpose and in order to get it going, we to have a process to finalise the business plan and the budget to submit to National Treasury for implementation and in that process we have agreed that Laphum'ilanga to be part of the process and we have appointed the deputy executive mayor to drive that process.”

The Nelson Mandela Bay Municipality is hoping to secure the R650 million from National Teasury.

Laphum'ilanga Transport Services CEO, Gregory Rockman, later told the SABC that he believes the agreement will yield positive results.

“What we have agreed upon, is that we want to say it's a beginning of a process to get the IPTS off the ground and it means our campaign will only be able to end when the IPTS starts but this is the beginning.”

The Nelson Mandela Bay Municipality's IPTS project, regarded by some as the City's biggest ever corruption scandal and the most expensive in South Africa, has already seen more than R1 billion injected into its implementation yet not one of the IPTS buses are on the road.

In September, the Democratic Alliance (DA) in the Nelson Mandela Bay Municipality announced it opposed a proposal to sell off the buses.

During the same month, the Nelson Mandela Bay Ratepayers Association (NMBRA) and AfriForum Port Elizabeth served the first of forty High Court Application against a local company, Erastyle (Pty) Ltd, and the Nelson Mandela Bay Municipality, with the aim to claim back about R6 661 157 that was lost on the IPTS. Read more on this

About 60 buses were acquired in 2009 for R100 million as part of the IPTS, but six years on, the buses are gathering dust outside a fresh produce market in Motherwell, Port Elizabeth. The only time they were seen on the roads was during the 2010 soccer World Cup when the project was being piloted.

“The busses were bought without proper planning - had the doors on the wrong side and are too big and uneconomical comparing to the Cape Town buses,” AfriForum Port Elizabeth Vice Chairperson, Kobus Gerber told RNews in September.

He said that the running costs of the pilot phase was R53 million and only R1.8 million was collected in ticket sales, which left taxpayers with a loss of R51.2 million.

FOLLOW DEVELOPMENTS IN THE IPTS SCANDAL BELOW:

AFRIFORUM PE 'VINDICATED' BY SUSPENSIONS OF NMB MUNICIPAL OFFICIALS

SELL OFF THE IPTS BUSES AND PAY BACK TAXPAYERS: AFRIFORUM PORT ELIZABETH

DA SAYS IT WILL OPPOSE '11TH HOUR' SELL-OFF OF IPTS BUSES

IPTS SCANDAL: JORDAAN SAYS DISCIPLINARY ACTION AGAINST OFFICIALS ALREADY UNDERWAY

IPTS SCANDAL: AFRIFORUM PE DEMANDS NELSON MANDELA BAY METRO CANCELS R6.6 MILLION CONTRACT

NELSON MANDELA BAY MUNICIPALITY PAID R11 MILLION FOR A LAPTOP WITH IPTS SOFTWARE

IPTS SCANDAL: PORT ELIZABETH LAW FIRM OFFERS TO PAY BACK R2 MILLION

IPTS SCANDAL: JORDAAN SAYS DISCIPLINARY ACTION AGAINST OFFICIALS ALREADY UNDERWAY