Gauteng Transport faces legal action over delayed payments to Putco regarding subsidised trips.
The Gauteng High Court, Pretoria has ordered the Gauteng Department of Roads and Transport to pay more than R154 million to bus operator Putco for the provision of subsidised bus services in Gauteng and Mpumalanga.
This is the third time Putco had to resort to legal proceedings to be paid in terms of the 2023 contracts it had concluded with the department to deliver this bus service.
The contracts between Putco and Gauteng Transport are for the provision of subsidised transport to about 130 000 people daily. They make use of this transport to travel to work, to schools, to hospitals and to attend to their daily lives.
Judge Anthony Millar noted that the consequence of a disruption, besides being financial for Putco would likely be devastating to those dependent on the transport provided.
