- A bus company run by Jacob Zuma's nephew allegedly owes eThekwini Municipality more than R300 million
- The municipality has since taken legal steps against the company
- However, at this point it appears unlikely that the debt will be repaid
A bus company owned by Jacob Zuma's nephew Mandla Gcaba reportedly owes R370 million to eThekwini Municipality.
The metro is now attempting to have debt to the bus company, known as Transnat, serviced.
Transnat has been plagued by many issues, including diesel shortages and strikes by employees.
The company owns a bus fleet of 450 vehicles. Since 2009, Transnat has operated eThekwini's bus service, but the municipality has had to funnel the company money to keep it afloat.
At this point, it appears unlikely that Transnat's hefty debt will ever be paid off. This comes despite the municipality applying for a liquidation application against the company. The metro has taken legal steps against Transnat, but the company is frustrating their attempts.
Now, several opposition politicians in the metro, including the DA's Nicole Graham, want the city to cease working with Transnat altogether, according to IOL.
Additionally, the DA in the city has slammed the municipality for having agreed to a month-by-month contract with Transnat. They have operated month-to-month for more than a decade, Briefly.co.za has gathered.
Graham says that this month-to-month contract indicates that the metro is not serious about endings its business relationship with Transnat.
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