By Rédaction Africa Links 24 with sabcnews.com
Published on 2024-01-18 16:27:54
Shareholders of Johannesburg’s Rea Vaya bus operator Piotrans have given their approval to a Business Rescue Plan in an effort to salvage the struggling company. PioTrans, which was established by a group of Soweto taxi owners to operate the city’s first phase of the Bus Rapid Transport Service, has been facing financial difficulties and mismanagement, leading to the theft of its assets.
The Business Rescue Practitioner (BRP), Mahier Tayob, met with the company’s creditors and shareholders to discuss the plan. Since Tayob’s appointment, ten new buses have been added to the company’s aging fleet in an attempt to prevent the company from collapsing.
Officials, including Roads and Transport MMC Kenny Kunene, have addressed the issues plaguing PioTrans, citing theft, mismanagement, and fraudulent activities as major problems. Tayob, the BRP, has received support from various stakeholders, including the government, SARS, Santaco, shareholders, and unions, making the rescue process significantly smoother.
The partnership between the City of Johannesburg and nine taxi associations, which are owned by over 300 taxi operators, formed Piotrans. The company’s shareholders have welcomed the business rescue process, although there are concerns about their rights.
While some shareholders are relieved and thankful for the rescue plan, others express their frustration and heartbreak over the company’s struggles. The company has reassured employees that their jobs are secure and has urged commuters to continue using the bus service.
Looking ahead, the company aims to add more buses to its fleet in 2024, and the government has pledged to ensure optimal operations through the business rescue initiatives. Piotrans has an active contract to continue providing BRT services in Johannesburg.
In conclusion, the endorsement of the Business Rescue Plan by PioTrans shareholders marks a new beginning for the company and Rea Vaya bus services. With ongoing efforts to address the company’s challenges and improve its operations, stakeholders are hopeful for a more successful and sustainable future for PioTrans.
Read the original article on SABC-News
