The businessman behind the failing multimillion rand Mayibuye Transport Corporation (MTC) bus lease deal wanted to pull out of the contract, despite receiving a R17-million advance payment.
Patuxolo Nodada, of Siga Capital, was last year awarded a lucrative contract to supply 40 new buses.
A second service provider, Ronnies Motors, was contracted to supply 10 buses.
The wheels, however, came off the R60-million contract.
Siga Capital missed its deadline of end November to supply the first batch of 20 buses, and when Mayibuye officially launched its new fleet on December 9, Siga had only produced one bus. By December 24, it managed to supply another 21 buses but most of them did not meet the right specifications.
The Saturday Dispatch has seen a text message by Mayibuye CEO Ntombizine Madyibi, sent on December 19 last year, in which she states Nodada wanted to pull out of the deal.
“Colleagues, we have a big problem, Mr Nodada has pulled out of the deal due to his problems.
“While the legal side has to kick in, he has to return the R17-million urgently, with interest, as we urgently go back to the drawing-board, as we need buses urgently.
“This is a big setback and think of the treasury implications etc and the promises we have made to commuters,” read the text message.
Madyibi this week said they were not going to let the deal fail.
In a meeting with the Dispatch this week, Nodada confirmed receiving the advanced R17-million, and that he wanted out of the deal.
“There are reasons for that, which I can’t divulge right now.
“I am committed on this tender and we are going to deliver and empower the people of this province,” Nodada said.
Transport MEC Weziwe Tikana said the government had invested more than R60-million in MTC buses. — bonganif@dispatch.co.za
Bus deal hits reverse
Patuxolo Nodada, of Siga Capital, was last year awarded a lucrative contract to supply 40 new buses.
A second service provider, Ronnies Motors, was contracted to supply 10 buses.
The wheels, however, came off the R60-million contract.
Siga Capital missed its deadline of end November to supply the first batch of 20 buses, and when Mayibuye officially launched its new fleet on December 9, Siga had only produced one bus. By December 24, it managed to supply another 21 buses but most of them did not meet the right specifications.
The Saturday Dispatch has seen a text message by Mayibuye CEO Ntombizine Madyibi, sent on December 19 last year, in which she states Nodada wanted to pull out of the deal.
“Colleagues, we have a big problem, Mr Nodada has pulled out of the deal due to his problems.
“While the legal side has to kick in, he has to return the R17-million urgently, with interest, as we urgently go back to the drawing-board, as we need buses urgently.
“This is a big setback and think of the treasury implications etc and the promises we have made to commuters,” read the text message.
Madyibi this week said they were not going to let the deal fail.
In a meeting with the Dispatch this week, Nodada confirmed receiving the advanced R17-million, and that he wanted out of the deal.
“There are reasons for that, which I can’t divulge right now.
“I am committed on this tender and we are going to deliver and empower the people of this province,” Nodada said.
Transport MEC Weziwe Tikana said the government had invested more than R60-million in MTC buses. — bonganif@dispatch.co.za
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