
Taxi industry's 408 million relief fund raises eyebrows
Tension is brewing between the City of Cape Town and Santaco Western Cape.
JOHANNESBURG - The South African National Taxi Council is standing by the COVID-19 relief fund payments.
This follows the Transport Department allocated a R408-million once-off taxi gratuity in the 2025/26 financial year.
Build One South Africa leader Mmusi Maimane, has questioned the continued financial support for the industry.
Hashtags

Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles

IOL News
39 minutes ago
- IOL News
Road Accident Fund weighs withdrawal from court battle with Auditor-General
Road Accident Fund Board Chairperson Zanele Francois confirms that the Transport Department has given them 21 days to do a risk assessment and impact analysis, so that if they exit court ptoceedings, they can find other amicable ways to resolve the problem with the Auditor-General's audit finding. Image: Twitter The Road Accident Fund (RAF) is considering withdrawing its contentious court case involving a dispute with the Auditor-General over the accounting standards. This emerged when the board of the RAF, the executives, and Deputy Minister Mkhuleko Hlengwa appeared before the Portfolio Committee on Transport at a marathon meeting on Wednesday night. The entity has signed papers to be lodged with the Constitutional Court after the President of the Supreme Court of Appeal (SCA) turned down their petition following the Pretoria High Court decision that dismissed RAF's application to review and set aside the A-G's 2020/21 disclaimer audit report. It undertook the legal action despite the Transport Department instructing it to find a solution to the dispute that was sparked by an audit finding that its use of the International Public Sector Accounting Standards 42 RAF was inappropriate and significantly different from the South African Standards of Generally Recognised Accounting Practice. Briefing the committee on Wednesday night, board chairperson Zanele Francois said the board was looking at options to exit the court proceedings. 'We were given 21 days to do a risk assessment and impact analysis so that if we go out of court and find other amicable ways to resolve the problem,' Francois said. She also said the Transport Ministry was willing to work with the RAF once they had done the proper risk assessment and impact analysis. 'There is going to be a serious impact on the business of the RAF because there are other legal implications around that decision,' she said. Hlengwa confirmed that the RAF board made the request. 'The board has arrived at a determination, and they want 21 days, and we granted those 21 days to see how we, in a responsible manner, facilitate the withdrawal of the court action and apply the standards as it is and at the same time, find appropriate standards.' Hlengwa was due to meet the Accounting Standards Board on Thursday to fast-track the completion of the appropriate accounting standards for the RAF. 'I want to reiterate the position of the ministry on that matter. We don't believe that the RAF should be in court on this matter. We have communicated that clearly and firmly, and we have been met with a response, which is simply a NO.' Hlengwa noted that the RAF was in the Constitutional Court after the SCA judgment, and that action was taken without the support of the ministry. 'That support won't be forthcoming. Because we believe this is a matter that, after three adverse court judgments, should not be proceeding,' he said. He confirmed that the decision to take the matter to the apex court was taken with dissent within the board. 'As a result of that decision, the papers to the court, I am advised, were signed by the CEO, not the chairperson of the board, whom I am told was not in agreement with onward proceeding to the Concourt and, therefore, the board resolved to delegate the signing of the papers to the CEO.' This was dismissed by the executives who were at the board's meeting, saying there was no dissent within the board. CFO Bernice Potgieter said: 'The board voted on continuing and there was no dissenting vote. After that, she had doubts.' Francois confirmed that the board decision was reached after questions raised were not answered at the meeting, and the CEO was appointed to sign the papers instead. 'I did make it clear that if my questions are not answered, I would not be able to sign because I am not comfortable with the decision,' she said. The turn of events comes amid Transport Minister Barbara Creecy announcing last month that she was considering a financial misconduct investigation into the board for pursuing the ongoing litigation against the A-G. The RAF has raked in a massive R10.8 million in legal fees to date. Creecy told Parliament that she and Hlengwa were on record stating that the RAF should not proceed with the legal action. 'And should they do so, I will initiate a financial misconduct investigation into the board as this might constitute a violation of Section 83.1 of the Public Finance Management Act,' she said during a question-and-answer session.


The South African
2 hours ago
- The South African
3 pieces of GOOD news for the South African taxi industry
There have been three major developments in the South African taxi industry in recent weeks. Firstly, government announced it will scrap nearly 2 000 illegal/unroadworthy minibus taxis. Likewise, there is a directive to convert approximately 400 vehicles to alternative fuels, too. This progress in the South African taxi industry is all part of a 'Taxi Recapitalisation Plan' that was presented in parliament last month (Tuesday 20 May 2025). As such, government's broader mandate is to finally modernise the industry through various projects. In time, these vital industry reforms will translate into savings for the end user. Image: File Like them or loathe them, the South African taxi industry is the lifeblood of the country's economy. More than two thirds (66%) of the nation relies on public transport to get to and from work each day. As such, another piece of good news is that the South African National Taxi Council (SANTACO) won't raise fares this month. When the Minister of Finance Enoch Godongwana hiked the General Fuel Levy (GFL) for the first time in three years, it was widely anticipated that taxi fares would increase in June 2025. This would add yet more financial pressure to the country's poor. Effective from this month, the GFL increased by 16c per litre and 15c per litre for petrol and diesel respectively. As a result, the total cost of GFL is R4.01 per litre for petrol and R3.85 per litre for diesel. That taxi fares are unmoved is a remarkable turn of events when you remember that the Carbon Levy increased by 3c per litre back in April, too. We're not there yet, but cleaner, greener and safer, is what the future of the South African taxi industry is all about. Image: File Furthermore, new Liquid Petroleum Gas (LPG) conversions will lower the cost of fuel for taxis by as much 35%, reports BusinessTech . The department says LPG is the most viable alternative fuel because of the ease of conversion for minibus taxis. Better still, LPG runs cleaner, providing a longer engine lifespan and less maintenance. The option of dual systems is also viable for long-range commutes. At last count, the department says only seven taxis have converted as part of the LPG pilot project. It hopes to install 400 conversion kits. Finally, stakeholders in the South African taxi industry are once again encouraged to take advantage of the Taxi Recapitalisation Projects (TRP). Government says voluntarily surrendered unroadworthy minibus taxis will be scrapped free of charge. And owners/operators will gain access to an allowance which they can recapitalise on a new taxi. The department believes there are as many as 2 350 illegal/unroadworthy taxis still operating in South Africa. Let us know by leaving a comment below, or send a WhatsApp to 060 011 021 1. Subscribe to The South African website's newsletters and follow us on WhatsApp, Facebook, X and Bluesky for the latest news.

TimesLIVE
3 hours ago
- TimesLIVE
Innovate Africa: Introducing FlexClub, a smarter way to rent a car
FlexClub, led by co-founder Idan Jaan, is Africa's first prepaid long-term car rental platform. No credit checks, no hidden costs. Just one upfront payment for 30 days or more of fully insured driving. With many people's credit records damaged by Covid-19, FlexClub offers a responsible and flexible way to get behind the wheel of a late-model car without taking on debt. The model also lays the foundation for a more inclusive credit system, where access is based on real behaviour, not outdated scores. It's car access made simple, honest and built for real life. Innovate Africa Founder Kieno Kammies, finds out more about how this model works.