The DA says it will not support government funding towards financially strained GNT.
THE Democratic Alliance in the legislature says it cannot support another bailout to cash-strapped Great North Transport (GNT) on top of the almost R1 billion already provided over the past decade.
This comes as the Companies and Intellectual Property Commission (CIPC) has questioned why GNT is trading under circumstances prohibited by the Companies Act and given GNT until 31 August 2026 to present a convincing plan, failing which, according to GNT, it could face a directive to cease operations or be placed under business rescue.
GNT itself describes the CIPC intervention as its biggest immediate threat.
The Limpopo Economic Development Agency (LEDA) and GNT told the Standing Committee on Public Accounts (SCOPA) that the turnaround is progressing and asked the committee to support further funding to save the entity and place it on what it describes as permanent financial sustainability.
DA provincial leader, Jacques Smalle has lamented the state of two of GNT’s depots in Phalaborwa and Namakgale in the Mopani district as seen during recent SCOPA oversight visits.
“Almost R1 billion has already been allocated by the ANC-led provincial government to GNT since 2016/17 for buses, repairs and maintenance, employee costs, severance packages, statutory obligations and historical payables. GNT acknowledges that these funds did not solve the problem.
“Its own assessment identifies technical deficiencies, a deficit in operational competence, weak internal controls, possible theft of spares and diesel, a negative working culture and difficulty recruiting critical skills among the causes of its failure;” he says.
Smalle says these are not simply funding problems.
“They are governance, management and operational failures.
Despite this, GNT now says it requires another R198.848 million in bridge financing and warns that without it the company could collapse before reaching break-even.”
Smalle say the party will insist on absolute openness and transparency before another rand is committed.
“GNT’s full financial and operational position must be placed before the Legislature, including its fleet and the condition of GNT-owned buses, existing bus leases and their value for money, revenue and fuel controls, creditor exposure, organisational structure, staffing requirements and the assumptions underpinning the R198.8 million request.”
He further says, any turnaround strategy must be properly costed, independently verified and subjected to full legislative scrutiny.
“The R198.8 million request cannot be separated from GNT’s ongoing section 189 process. Before workers are identified as surplus, GNT must demonstrate what the sustainable entity of the future will look like and what fleet, depot structure, posts and skills it requires.
It would be indefensible for workers to bear the consequences of years of governance and management failure while taxpayers finance another rescue, only for weak controls, revenue leakages and questionable leasing arrangements to remain unresolved;” says Smalle.
The bus utility transport provides an essential public transport service and its collapse would have serious consequences for commuters and employees.
But protecting that service cannot become an excuse for repeatedly funding a failed operating model.