Premier and Province to Act Firmly and Speedily on Taxi Report

"As a Provincial Government we are motivated by a vision we have for the transport and taxi industry in the Western Cape to be strengthened in its continuing role as a driver of BEE, SMME development and as probably Government's most direct intervention in the second economy. The industry can only reach its full potential if regulated within a broad system in which iKapa Elihlumayo and the Recapitalisation and Government public transport subsidy processes are key pillars.

"The Taxi Industry is seriously endangered by a pervasive image of violence, and lawlessness which results in it effectively not being regulated. This leads to overtrading and diminishing profits within the industry, further aggravated by the absence of an integrated public transport system and Plan.

"The Ntsebeza Committee of Enquiry Report rings definite alarm bells. The alarm bell of the existence of iimbovane [hit squads], alarm bells on allegations that warlords are in control of the industry and may be behind ordering assassinations and violence, the alarm bell of parallel enforcement by the industry itself [including imposing fines and levies and even death penalties], alerts us to the build up of a warchest [the existence of large amounts of unaccounted money within industry], an alarm bell indicating tax evasion on a massive scale. A further alarm bell is the prevalence of linkages to organised within the Coloured Taxi industry, where taxis are often a source often of money laundering, drug dealing, prostitution and are at the service of gangs and gangsterism.

"This leads us to the important confirmation of a chilling culture of impunity within the Taxi Industry. The Industry apparently conducts its own enforcement through tools from levies to assassinations; non-compliance with government laws: whether AGMs or Constitutions to not accounting or paying taxes. This impunity is underpinned by perceptions of a State lacking both the will and capacity to act firmly and that contacts in Government and law enforcement agencies will look after them, or that bribes and threats will hold sway. This culture must be turned around. Therefore in response to the Ntsebeza Report, Government will take the following short, medium and long term interventions:

1. The Transport Registrar is the first primary source of compliance, in terms of matters ranging from Constitutions, AGMS and membership to financial compliance and tax status. The Registrar must check the proper accounting of all moneys within the industry. In addition the Registrar's Office must develop a Standing Dispute Resolution mechanism for the industry.
2. Provincial Operators License Board [POLB] - the POLB faces allegations that civil servants and Board members are guilty of extortion; the irregular issuing of licenses leading to over-trading, licenses for non-existent routes, double licenses for single vehicles and allegations of mismanagement if not corruption surrounding application fees.

Actions include:

i) When these allegations first emerged the Premier commissioned a Forensic Audit of the POLB in conjunction with KPMG and Sizwe and these findings will inform the process ahead.

ii)A review of the issuing of license procedures according to a Public Transport Plan.

There will be a fundamental restructuring and reconstitution of the Board and operations of POLB. iv] The Minister for Transport will proclaim a further Pound facility in due course.

3. Management of taxi ranks - it is an immediate priority that Government regain control of all Taxi Ranks in the Province: to ensure the enforcement of all relevant laws and the removal of any parallel authorities that undermine the role and responsibilities of Government and adversely impact on the Industry and commuters. The Provincial Minister of Transport and his Local Authority counterparts must co-ordinate this within a broad Transport Plan for the Province.
4. The immediate establishment of a Transport Multi-disciplinary Investigation Unit [TMDIU] led by SAPS and including Traffic, NIA, SARS and SIU. The TMDIU terms of reference will include:

   i) the investigation of financial non-compliance [tax matters, financial accounting & war chest allegations],

   ii) allegations of warlordism and the existence of the 'iimbovane' [hitmen],

   iii) links in the industry to organised crime,

   iv) allegations of corruption against State agencies and officials and

   v) a thorough investigation into every person, whether SAPS, taxi owner, association leader, POLB official or other amongst the 62 persons named in the Committee's Confidential annex handed to Premier.

   The TMDIU will be the precursor to integrating law enforcement agencies into a co-ordinated standing unit for taxi and transport industry until the integrity of the industry has been secured.

5. In line with strategies in our Growth and Development Strategy of iKapa Elihlumayo we will fast track work toward an integrated public transport system and Plan that is multi-nodal, utilises both the Recapitalisation process and Government public transport subsidies as key incentives to reach the full economic potential of the industry, in which taxis can take their full place.

"This must be the seminal moment in turning around the Western Cape Taxi Industry. In thanking the Ntsebeza Committee of Enquiry we are determined to use this Report to achieve just that. I wish to express sincere gratitude to Advocate Dumisa Ntsebeza and his Committee members Bongani Kupe, Irvin Kinnes and Joseph Makhura for their commitment and contribution."

Please contact either Clayton Wakeford or Shado Twala [483 3528] for further media needs.
Ms Twala is Premier Rasool's Media Liaison Officer.

Clayton Edmund Wakeford
Acting Provincial Head of Communications
Office of the Premier of the Western Cape
Email: cwakeford@pgwc.gov.za

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