By: Sello Theletsane
City of Joburg Member of the Mayoral Committee (MMC) for Roads and Transport Councillor Kenny Kunene on Thursday unveiled a fleet of brand new buses he helped acquire to rescue troubled Piotrans, a company that runs Rea Vaya bus services for the City of Joburg.
Kunene attributed the financial problems plaguing the company to corrupt people, in particular the company’s former board chair and its former chief executive.
Kunene was at Piotrans depot in Dobsonville Soweto, addressing issues related to the embattled bus company, which has been placed under business rescue after months of controversy and the halting of services, which affected thousands of Johannesburg commuters.
Kunene thanked Durban-based taxi boss Mandla Gcaba who he said helped Piotrans acquire a new fleet of buses after all financial institutions and bus companies refused to help as a result of the bad financial status of Piotrans
“Last year March, shortly after my appointment as transport MMC, I was called to a meeting where Piotrans drivers were on strike. At this meeting, there were also shareholders who demanded to talk to me. All they could say was: “Please help us”.
“I demanded to see the board and I was made to understand the problems of Piotrans. I was asked by shareholders to intervene to help the company survive so that they could earn a living. The shareholders gave me a mandate to go and headhunt an independent board of directors to help fix the company. The board found Piotrans’ problems were far deeper. Money, millions of rands were stolen, bus part prices were being inflated. I immediately recommended that drastic action be taken including the dismissal of the CEO. In October the board recommended that the company be placed under business rescue.”
“I agreed and indeed a seasoned business rescue practitioner was appointed by the High Court in December. I agreed because I promised to help the 299 families who are shareholders in the business. I was of the view that these families had been failed by the city. Remember these are people who were taxi operators relying on the daily cash from their taxis. They were made to forfeit their taxis and made to be part of a formal corporate structure without proper training and mentorship.”
“I undertook to fix the mess and this is exactly what I’m doing. I reached out to someone in KwaZulu-Natal, a man I call a hero, and a deal was sealed. Mr Mandla Gcaba took the risk. I said to him there are 299 families that are going to suffer, and I need buses to give them. I had lost hope. But Mr Gcaba came to the party and new buses were secured with his help”
Kunene said the acquisition of new buses meant more money for the shareholders. “The business rescue practitioner, who has been appointed by the High Court, not Kenny Kunene, must stay here. He is a reputable chartered accountant, and a forensic investigator renowned for rescuing businesses. He must be given the chance to save Piotrans and make money for shareholders so that the company can be able to render services for residents of the City of Johannesburg.
Kunene told the shareholders: “Today is a great day for me because my efforts have put smiles on your faces. Thank you for believing in me. Thank you for putting your future in my hands, you have shaped me, you have made me a better leader.”
