The City of Johannesburg (COJ) has reassured its commitment to Rea Vaya commuters of continued and uninterrupted services as the bus operator PioTrans was placed under business rescue by the Johannesburg High Court. PioTrans creditors brought an application to the high court following allegations of maladministration and mismanagement. Earlier this year, creditors tried to confiscate a portion of its fleet due to outstanding debts. The bus company also struggled for months to pay employees on time.

GOING UNDER THE BUSINESS RESCUE

PioTrans has since appointed senior business rescue practitioner Mahier Tayob to ensure Rea Vaya operations continue uninterrupted. The Rea Vaya board has also been dissolved. Speaking to eNCA, Tayob said there have been fraud, financial maladministration and mismanagement and these issues will bring the company into a liquidity deficiency. "With creditors not receiving their funds, the court granted the business rescue application,". Tayob said he was obliged by the law to investigate the affairs of the operator and that he would not hesitate to involve authorities where he finds criminal activities took place." If somebody has benefited because of impropriety that they have caused, I will seek to recover those funds," he said. In a statement, the City said they were aware of the operational challenges that affected PioTrans. "This led to mediation processes in 2014 and 2019, which involved initiating the appointment of external service providers to assist and support the bus operator,"

REA VAYA TO CONTINE OPERATING  

The City further said that the Transport Department will work closely with Tayob to ensure that uninterrupted bus services are rendered in the best interest of commuters."The city's transport department will work closely with the business rescue practitioner to ensure uninterrupted bus services are rendered in the best interest of commuters. Furthermore, regular updates on operations of all-inclusive Rea Vaya services will continue to be communicated through the city's social media platforms. "It consistently remains in the city's interest as a contracting authority that commuters are transported to their destinations with a public transport system that is safe, reliable, affordable, convenient and accessible," the statement said.