The National Department of Transport advised the Southern African Bus Operators Association during August 2008 that projections indicated that the Department had a funding shortfall of around R1, 3 billion and that its passenger subsidy budget for the 2008/2009 fiscal year would be exhausted by November 2008 and would preclude the payment of passenger subsidies to contracted operators for the last four months of the current fiscal year ending in March 2009.
Despite high level discussions that have taken place between the National Department of Transport and Treasury, additional funding has not been made available and the Provincial Departments of Transport are it is believed, unable to meet its contractual obligations with bus operators’ country wide.

After extensive unsuccessful representations at both the National and local level, Golden Arrow has no alternative but to apply to the High Court for an order to compel the Provincial Department of Transport to meet its contractual obligations in terms of the current contract between the company and the Province. The company is not in a position to continue rendering services unless the Province meets its financial obligations on a timeous basis.


Media enquiries: Vuyisile Mdoda

(021) 507 8800 or 083 279 4818

Date: 14 January 2009