Government has no money to pay out

Golden Arrow has once again warned that it will stall all operations if government fails to settle...

EWN default image new logo

Golden Arrow has once again warned that it will stall all operations if government fails to settle subsidies owed to the company.

The bus firm launched an urgent application in the <?xml:namespace prefix="st1" ns="urn:schemas-microsoft-com:office:smarttags"?><place w:st="on"><placetype w:st="on">Cape<placename w:st="on">High Court earlier this week in an attempt to get more than R90 million paid out.

The court is set to rule on the matter on Friday.

Golden Arrow argues that the Finance minister must obtain the necessary money from the National Revenue Fund, but government’s lawyers say that he cannot.

The company’s Barry Gie says the Transport Department cannot pay them either.

“The National Department of Transport has said listen, we accept we owe you the money, we accept we’ve got binding contractual obligations to you, we understand the ramifications of not paying the money but we physically don’t have the money to pay. That’s the ludicrous situations we find ourselves in,” says Gie.