Mayibuye bus deal penalty clause: how much?

According to a reply Reply to question 416 IQP 49 to legislature questions I asked Transport MEC Weziwe Tikana, a penalty equal to the daily income that a bus would be making has been levied by the Mayibuye Transport Corporation (MTC) against Siga Capital Assets for each day delivery has been delayed.  This follows an R81-million deal with Siga Capital Assets for the delivery of 40 buses to MTC.

How much has been paid in penalties and how many buses have been delivered?

The DA will not allow tender rigging and the wasting of state resources at the expense of poor commuters who rely solely on a reliable, efficient, effective and affordable public transport service.

It is debatable whether Siga Capital Assets will be able to comply with the penalties. It is clear that the tender was manipulated and delayed in order to cater for a preferred bidder.

I have submitted follow-up questions to MEC Tikana about what amounts have been paid back by Siga Capital Assets in terms of the penalty clause, if any.

I have repeated my written request to the Chairperson of the Portfolio Committee on Transport, MPL Tamara Xhanti, for an urgent meeting with the leadership of MTC to get a comprehensive presentation on this tender.

In this tight economic climate, every tax rand must be stretched to provide proper service delivery and value for money. — Marshall von Buchenroder MPL, Shadow MEC for Transport 

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