The Gauteng Department of Roads and Transport says it has paid bus company Putco over R154.4 million for its operated scheduled kilometres within the required five court days.
On May 22, Gauteng High Court, Pretoria, Judge Anthony Millar delivered his judgment in which he ordered the department to pay Putco within five court days.
“The first and second respondents (the head of department and Gauteng Roads and Transport MEC Kedibone Diale-Tlabela) are directed to make payment within five court days of this order of the outstanding amount due to the applicant (Putco) for the applicant’s operated scheduled kilometres – as more fully set out in the founding affidavit – amounting to R154,400,171.87 (the outstanding amount),” the judge ruled.
Judge Millar stated that it is recorded that, following payment of the outstanding amount, nothing in this order detracts from the first respondent’s (HoD’s) right to raise a dispute, by following the contractual dispute-resolution mechanisms provided for in clause 41 of the June 2023 contracts.
He said his order was also subject to any defences that Putco may raise in any such dispute, regarding the computation raised in the supplementary affidavit regarding the number of buses used to render services, in terms of the Mpumalanga negotiated contract.
The court heard that Putco claimed payment from the department in terms of various contracts entered into by it with them on June 30, 2023.
The contracts were for the provision of subsidised bus services in both Gauteng and Mpumalanga, and sought an order for payment for services rendered in February and part of March 2026.
When the bus company launched its application in April this year, and during the proceedings, the department asserted that certain payments had been made towards the outstanding amount.
However, Putco was only able, when the matter was heard, to confirm having received one of the payments, an amount of R7,843,062.51, and once it was credited, the outstanding amount reduced from R162,243,234.38 to R154,400,171.87.
The department made two further payments in the sum of about R52,959,169, which had been made by the department, which it was expected would be received by Putco on Friday, May 16.
An amount which would be outstanding after those two further payments would be about R101,441,002.90.
In its defence in court, the department stated that it was unable to pay due to budgetary limitations and the insufficiency of the discretionary grants which it used to supplement its budgetary shortfall.
The department added that it had in its records a list of 490 buses, which were operated by Putco on the Moloto route, and that the claims that had been submitted and accepted were for 526 buses.
It is this alleged discrepancy that was put up as a justification for querying and non-payment, according to the judge.
The court also found that the contract between it and Putco is extant, and it is to be held to it for so long as it remains so.
“Liability in terms of the contract is separate and distinct from execution. The alleged inability of Gauteng Transport to pay is not a matter which this court, approached to order payment in terms of a valid contract, needs to concern itself,” Judge Millar found.
He added that whether, in fact, the department is actually unable to pay is something more properly to be determined consequent upon execution in the event of non-compliance with the order of this court.
“The mere say so of Gauteng Transport that it cannot pay, when it has pending proceedings, which it has elected not to prosecute diligently and which may have offered it succour, cannot be accepted,” the judge said.
In response to questions, the department said: “Regarding the recent court order, the department has made payments.”
In terms of its contracts, Putco is subsidised to transport about 130,000 persons daily to work, schools, hospitals, and to attend to their daily lives.
Judge Millar said the consequence of a disruption, besides being financial for Putco, would likely be devastating to those dependent on the transport provided.
Putco spokesperson Lindokuhle Xulu has not responded to questions by Tuesday afternoon.
Loyiso Sidimba
iol.co.za
