Mayor recommends approval of IPTS taxi cooperative funding

DECEMBER 3, 2014

Nelson Mandela Bay Mayor Ben Fihla has recommended that City Manager Mpilo Mbambisa be authorised to conclude the Funding Agreements which makes provision for the start-up and operational funding for the Laphum’langa Secondary Taxi Cooperative.

In a report to Council, which meets tomorrow for its last scheduled meeting of the year, the mayor also recommends that no further funding be provided to the cooperative for these purposes.

In addition, he recommends that the municipal negotiators with the taxi industry “be given a package of negotiables and non-negotiable’s with the latter”.

Further, Fihla recommends that the City Manager should arrange a strategic session “with a view of refining the institutional approach to the project,” and that Infrastructure and Engineering should prepare a progress report on the IPTS for the next Mayoral Committee meeting.

In terms of the Funding Agreement, the start-up and operational costs “do not constitute compensation for public services rendered “by the secondary cooperative.

It adds that the funds will be disbursed” to allow Laphum’langa to properly function and to comply with its duties and responsibilities as the chosen representative of the taxi industry”.

When the Funding Agreement has been signed, the entire amount of R18.9 million will be paid directly to the attorney appointed by the municipality and immdiately after he/she has taken transfer of the funds an amount of just over R14 million will be paid directly to Laphum’langa.

The agreement says if 30 days after the transfer of the funds to the appointed attorney, the secondary cooperative has complied with its obligations, the balance of the funds will be released to it.

If after 30 days it has failed to comply with its obligations the balance of the funds will be held in trust by the attorney and payments “will only be disbursed on receipt of a valid tax invoice and supporting documentation which corresponds with the budget”.

The Funding Agreement will remain in force for a period of 15 months. - metrominutes