Business Rescue Plan to save Rea Vaya Bus endorsed

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Shareholders in one Johannesburg’s Rea Vaya Bus operators Piotrans have endorsed a Business Rescue Plan to save the ailing company.

The PioTrans Business Rescue Practitioner (BRP) Mahier Tayob met with the company’s creditors and shareholders this week. The entity was formed by a group of Soweto taxi owners to run the city’s first phase of its Bus Rapid Transport Service for 11 years. But the business has been mired by mismanagement and theft of assets.

It’s been almost a month since the appointment of a BRP at Piotrans and things are already on the move. Ten new busses have been added to the company’s ageing fleet in a bid to help the company that is in financial difficulties and on a brink of collapse.

“People came here and stole, mechanics, when a bus had a problem of a fuse they will come and say the problem of the bus cost R300 000. The buses were being branded at R55 000 when a bus can be branded for R15 000. Evil people came to work here and they stole this company blind,” says Roads and Transport MMC Kenny Kunene.

The man tasked with the job of returning the company to a clean bill of health is Tayob, who has since received the greenlight from stakeholders, including creditors.

“I have full support from the government, from SARS, from Santaco, from the shareholders, from the unions and it’s quite unique and when there is that willingness it becomes an easy rescue. It is my opinion that this company will turn to profitability in the next 2 months already. There were large allegations of fraud which I can now prove, maladministration.”

The contract between the City of Joburg and PioTrans ended in January last year but a deviation contract was issued for another two years after Piotrans shareholders threatened a fierce battle against any attempts to end the contract.

Piotrans was formed through a partnership between the City of Johannesburg and nine taxi associations, which are owned by over 300 taxi operators. The company ‘s shareholders have welcomed the business rescue process. But many are worried about their rights.

“I am very happy because I am one of the people that were fighting in Piotrans, politicians are liars, but we thank the MMC for what he’s done for us,” a shareholder says.

“It’s really been heartbreaking, has been so heartbreaking and saddening to actually see the blood and sweat that my grandfather has put into this over the years, it was really frustrating for him with the ups and downs that has been happening,” another shareholder explains.

“May what we are seeing here be a start, as the MMC said, new buses are coming and this will also help passengers that have been complaining and that has put our businesses at risk,” another shareholder elaborates.

The company has also sought to assure employees that their jobs are safe and for commuters to continue putting their trust in the bus service.

It’s a new era for Piotrans and Rea Vaya bus services, with more buses expected to be added to the fleet in 2024 and government vowing to ensure the company operates optimally through the business rescue interventions.

The company has an active year contract to continue offering BRT services in Johannesburg.

Video: 10 new buses operate under Rea Vaya:

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