Putco: Subsidised funding is unsustainable
Today is the final day that Putco will operate in Ekurhuleni, Sedibeng and Tshwane municipalities.
JOHANNESBURG - The managing director of the Public Utility Transport Corporation (Putco) says the company decided to cancel its Ekurhuleni, Sedibeng and Tshwane contracts because the subsidised funding method is unsustainable.
Today is the final day that Putco will operate in these areas.
Putco managing director Franco Pisapia said, "It's not by choice because they have become totally unsustainable. The discussions that have been going on for the last five years with the department of transport are on the funding problem."
In a statement released on Monday, the Gauteng Transport Department said Putco had informed it of the intention to pull busses off routes in those areas.
The department has however given the assurance that Autopax, a subsidiary of Prasa will step in to ferry stranded commuters to work and school.
Passenger Rail Agency of South Africa (Prasa) spokesperson Moffet Mofokeng says its Autopax bus service has enough capacity to avoid delays.
"We will be able to do the job, I don't foresee problems there. I think we do have the capacity, which is why government felt that we could assist."
Gauteng Transport MEC Ismail Vadi is also today expected to shed light on the reasons Putco terminated its services on several routes in the province.
MEC Vadi had earlier announced that his department would renegotiate with contracts with subsidised companies.
He is expected to explain if the latest development is linked to those negotiations.