15 May 2003
The South African Communist Party (SACP) in KwaZulu Natal has learnt with anger and disgust of the decision by the eThekwini Unicity to privatise Durban Transport.
On 12 May 2003, the Executive Committee of eThekwini Unicity approved the recommendation from the Tenders and Procurement Sub-Committee that a company called Remant/Alton be awarded the tender.
The EXCO approved that this company will receive a subsidy of R186 million per annum to operate Durban Transport Services. This money is expected to come from national, provincial and local spheres of government.
The EXCO also approved bridging finance relating to once-off retrenchment costs of a maximum of R200 million, depending on numbers of staff redeployed. The EXCO hopes that national government will provide this finance and if this is not realised the Unicity will be responsible for financing.
The SACP believes that this EXCO decision is not correct. The SACP firmly belies that other options should have been explored to address operational and financial problems which affected Durban Transport. The SACP believes that the EXCO decision is a betrayal of the mandate of ensuring access to affordable, efficient and safe public transport service.
If the argument is that the Unicity is running Durban Transport at a loss, how is it that the very tax payers will foot an annual R186 million to a privately run service. Certainly the public purse will be delivered to a profit maximisation scheme only benefiting the owners of a single private company. This day light robbery of the tax payer.
Our experience with private buses is that they offer services during the day, leaving outside the majority workers who normally come back home until midnight. Learners and pensioners who benefit from public transport discounts will be victims of non-differentiated fares, as this company will only want to make profits.
As the SACP we will continue to campaign for a greater and expanded role of the state in the provision of basic services like cheap and safer public transport.
The SACP will engage the ANC, COSATU and community based organisations on this issue. The SACP will not take this privatisation lying down.
CONTACT
Smiso Nkwanyana
Provincial Secretary - SACP - KwaZulu Natal
Cell - 082 468 7184