TAXI RECAPITALISATION

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TAXI RECAPITALISATION

• PRESENTATION TO THE SELECT COMMITTEE ON PUBLIC
  SERVICES (NCOP)
• 25 JUNE 2003

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Introduction

• Progress made with recap
• Issues raised by SANTACO
• MINCOM decisions
• Meetings with SANTACO

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Reasons for delay

• EMS negotiations with SANTACO
• Confirmation of funding
• Finalisation of BAFO

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Progress with recap

• Activity schedule was drawn-up indicating tasks
  to be completed by when and by whom
• According to activity list vehicles can only be
  rolled out by May 2004

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Progress with recap (2)

• NEW TAXI VEHICLE
• Several meetings by Steering Committee
• SC differed on issue of the BAFO
• National Treasurys view to complete first
  affordability thresholds before issuing BAFO
• NDOT and DTI of the view that
• Strategic Review project done in Nov 02 did
  contained indicative affordability figures
• affordability will only be determined through
  BAFO
• BAFO Instruction document issued on 21 May 03

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Progress with recap (3)

• ELECTRONIC MANAGEMENT SYSTEM
• RFP issued during March 2001
• Government prescribed a 25,1 equity of the
  company who wins the bid for SANTACO
• Technical Evaluation Team evaluated the bid and
  recommended a company
• Number of concerns raised by Steering Committee
• Obtained legal advice
• Appoint experts to do a quality check of
  evaluation report
• Busy finalising a recommendation of the preferred
  bid/(s) to Cabinet

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SANTACO issues

• SANTACO raised a number of issues in the media
  given Government 14 days to respond
• No formal document received
• Specific issues
• GOV SANTACO to agree on a fast track process
  for recap
• GOV not able to deliver vehicles before May 04

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SANTACO issues (2)

• Specific issues
• SANTACO to be recognised as a full critical
  partner and must be included in the recap process
  on a permanent basis
• GOV response
• Issues raised in numerous meetings on official
  and political level
• Made clear to SANTACO that these tender processes
  are the responsibility of Government and should
  be managed by Government
• SANTACO was consulted on related issues EMS,
  roll out plan,

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SANTACO issues (3)

• Specific issues
• SANTACO wants the dates in the NLTTA of (2004/
  2006) to be amended
• GOV response
• To obtain a political mandate from MINCOM to
  amend the dates according to the new dates of the
  vehicle roll out plan
• A letter was sent to SANATCO confirming the
  Departments position

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SANTACO issues (4)

• Specific issues
• SANTACO wants exemptions for their members to
  continue to use 16-seaters under specific
  conditions administered by SANTACO
• GOV response
• NLTTA does not provide for such exemptions all
  vehicles to adhere
• Administration of legislation is the sole
  responsibility of Government and the role of
  SANTACO in this regard is unclear

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SANTACO issues (5)

• Specific issues
• SANTACO wants to take over the recapitalisation
  project and Government should only provide the
  legal framework
• GOV response
• The regulatory framework is provided in the NLTTA
  and the Road Traffic Act
• Government issued tenders and is accountable for
  the tender process
• Unclear how this project can be handed to private
  sector
• Government involvement provides certain level of
  surety to manufacturers, banks and insurers

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SANTACO issues (6)

• Specific issues
• SANTACO wants an official enquiry into the delays
  in the project
• GOV response
• In the absence of clear and concrete indications
  of the nature of the alleged vested interests of
  officials difficult to investigate such
  allegations.

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SANTACO issues (7)

• Specific issues
• SANTACO wants to announce the final winner in the
  EMS
• GOV response
• The NTV and EMS-processes are Government
  processes and SANTACO can therefore not announce
  the successful bidder(s)

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SANTACO issues (8)

• Specific issues
• SANTACO requested Government to release agreed
  funding for road shows
• GOV response
• 2002/03 R6,2 million including R272 000
  budgeted for road shows
• The budget for road shows not utilised yet

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SANTACO issues (9)

• Specific issues
• SANTACO requested that the issues of subsidy and
  the scrapping allowance be finalised in order to
  ensure affordability
• GOV response
• Actual vehicle prize as determined by the BAFO
  will influence the level of scrapping allowance
• In Nov 02, the Strategic Review Report
  recommended that scrapping allowance be increased
  

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SANTACO issues (10)

• GOV response
• Model Tender document also provides for smaller
  vehicle types
• Department busy review public transport policy
  including subsidy policy which are currently
  discussed at the BEE Taxi-sub Sector meeting
  where SANTACO is represented

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MINCOM decisions

• MINCOM met on 10 June 2003 and agreed
• That political intervention is needed to fast
  track the process, and an urgent meeting will be
  held consisting of
• Deputy President Mr Jacob Zuma
• Minister Omar
• Acting Minister Radebe
• Minister Manual
• Minister Erwin and
• All MECs for Transport

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MINCOM decisions (2)

• That the BAFO document be circulated to the MECs
• After the the Ministerial meeting was held,
  MINCOM needs to meet with SANTACO to inform them
  of decisions taken

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MINCOM decisions (3)

• That NDOT needs to prepare a discussion document
  for the meeting which will address among others
  the following issues
• The relationship between SANTACO and government
• Re-evaluation of the funds previously budgeted
  for the scrapping allowance
• The need for NDOT to take a lead in all transport
  related issues surrounding the taxi
  recapitalisation process, e.g. scrapping
  allowance, EMS tender and the BAFO process.

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MINCOM decisions (4)

• That at Task team be established to constantly
  monitor progress on the recapitalisation process.
  Such a team will develop a realistic roll-out
  plan based on the decisions of the Ministerial
  meeting. The team to consist of the following
  members
• MEC Ndebele
• MEC Vilakazi
• MEC Mosunkutu
• Mr Jerry Makokoane
• Mr Maishe Bopape

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Meetings with SANTACO (1)

• SANTACO and Government to jointly (through the
  technical teams) look into technical issues in
  the BAFO document, especially concerns raised by
  SANTACO. The ultimate clarities and settlement to
  be finalized by Monday the 23 June 2003.
• SANTACO and DGs of DTI and NDOT to meet again on
  Tuesday, 24 June 2003, so as to update each other
  on progress.

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