Transport and Public Works

[1] [a] The Department is allocated a conditional grant – the Public Transport Operations Grant [PTOG] - by the National Department of Tranport for the purposes of subsidising Golden Arrow Bus Services.  The PTOG allocation for the 2022/23 financial year is R1,127, 813, 000.  

[b][i] The subsidy is payable to Golden Arrow Bus Services in terms of an Interim Contract between the Department and Golden Arrow Bus Services. The Interim Contract was originally concluded between the National Department of Transport and Golden Arrow Bus Services on 17 March 1997 for the provision of subsidised scheduled services in terms of the National Land Transport Interim Arrangements Act 45 of 1998. The National Department of Transport ceded its rights and delegated its obligations to the Department of Transport and Public Works in terms of an Addendum to the Interim Contract dated 10 May 2007. The Interim Contract remains in force and is governed by the National Land Transport Act of 2009.

In terms of the Interim Contract and Addendums, Golden Arrow Bus Services delivers services on agreed subsidised and unsubsidised routes and is paid an agreed base subsidy rate per subsidised kilometre in respect of an agreed number of kilometres operated.

[b][ii] The Interm Contract requires that the contents remain confidential and, therefore, it cannot be shared.

[c] The PFMA and Regulations applies generally and do not contain specific provisions applicable to the relationship between the provincial government and Golden Arrow Bus Services. Rather, the relationship between the Department and Golden Arrow Bus Services is regulated in terms of the Interim Contract and Addendums, the annual Division of Revenue Act and the National Land Transport Act of 2009.

[2] [a] The question is unclear.  MyCiTi is operated by four vehicle operating companies contracted to the City of Cape Town.  It is unclear whether the member is asking about the financial performance of the system as a whole, or specifically about the financial performance of each participating company. 

With regards to the financial performance of the system as a whole, the Department has requested this information from the City of Cape Town.    

[b] Again, the question is unclear.  GoGeorge is operated by a single Vehicle Operating Company [VOC], George Link.  With regards to the financial performance of the GoGeorge system, a summary of the system’s finances over the last five years is provided below:

 

SUMMARY OF FINANCIAL RESULTS	2016/2017 [R'000]	2017/2018 [R'000]	2018/2019 [R'000]	2019/2020 [R'000]	2020/2021 [R'000]	2021/2022 [R'000]
National Government Grants	156 444	210 362	167 675	245 626	152 069	209 976
Provincial Government Grants	150 544	98 544	101 086	172 747	187 240	217 587
Fare Revenue	37 302	39 419	44 197	41 133	39 535	49 883
Interest Income	4 935	10 884	3 361	3 552	4 565	10 678
Other Income	1 172	1 883	257	14	9	-
Total Income	350 396	361 092	316 576	463 072	383 418	488 124
Capital Costs	87 356	102 140	66 658	31 770	37 227	105 645
SANRAL Transfer - Thembalethu Bridge	-	-	-	82 127	-	-
Direct Cost	114 918	120 988	139 436	191 505	209 301	227 567
Indirect Cost	20 578	41 123	59 582	68 676	70 597	88 212
Other Cost	20 610	47 161	36 861	15 473	35 733	21 708
Establishment Cost	44 202	71 721	43 634	45 039	39 621	70 170
Total Costs	287 664	383 133	346 171	434 591	392 479	513 302

Over the last 5 years the GIPTN has received in-year allocations in terms of the Public Transport Network Grant [PTNG], allocated by National Government. These in-year allocations are normally received at the end of March for each financial year. In most instances these in-year allocations could not be spent in full by year-end. The GIPTN has, however, been able to succesfully roll-over the funding and complete the specific projects in the following years.

[c] The Department does not have access to the Audited Financial Statements of the MyCiTi vehicle oprating companies and has requested these from the City of Cape Town.  However, there may be confidentiality and/or sensitivity issues which could prevent the City from sharing these publicly.

With regards to the Audited Finanicial Statements for the Go George Vehicle Operating Company, George Link, these items cannot be shared publicly due to sensitivities, including the risk of minibus taxi industry violence.  The Department ensures that the company is audited every year.