The appointment of Mahomed Mahier Tayob as the new Business Rescue Practitioner (BRP) for the troubled North West Transport Investment (NTI) has been welcomed.
This follows the recent Gauteng High Court’s ruling in favour of the North West Department of Community Safety and Transport Management, which led to the removal of the then BRP, Thomas Hendrick Samons.
The department confirmed that NTI had applied for a voluntarily business rescue in July 2022, after facing financial difficulties.
According to the department, Samons was tasked with turning the entity around to make it more sustainable and to generate income to pay creditors, primarily the employees.
However, he failed to account for the funds that the government had injected into the entity.
The BRP also failed to pay salaries, which resulted in the cancellation of employees’ medical aid coverage, as well as the non-payment of their pay-as-you-earn (PAYE) and Unemployment Insurance Fund (UIF) contributions.
The salaries of over 1 500 employees at NTI companies were not paid from September to December 2022, March to May 2023, June to November 2023, and February to March 2024.
The NTI group, through its subsidiary Northwest Star, was established in 1973 as a wholly owned company of the North West Provincial Government and has served as the primary transport source in the province for decades.
NTI can still be rescued
Meanwhile, the Portfolio Committee on Community Safety and Transport Management, led by Freddy Sonakile, said it remains resolute in its belief that NTI can still be rescued.
“To this end, we will conduct a follow-up oversight visit to the NTI headquarters and depots within a month to assess the current state of the entity and to receive the official turnaround plan from both the newly appointed BRP and the department.
“We note with concern that the former BRP, Mr Thomas Sammons, has launched a further appeal against the ruling. However, we take comfort in the fact that the Court invoked Section 18 of the Superior Courts Act, which ensures that the judgment is enforceable despite any application for leave to appeal,” said Sonakile.
The committee expressed concern that the BRP continues to issue correspondence despite his removal.
“What is deeply alarming, however, is the information received by the committee indicating that Mr Sammons continues to issue correspondence to NTI staff purporting to act as the BRP, despite his removal. Should these allegations prove to be true, we call on the department to urgently investigate this matter, and to lay criminal charges for fraud where appropriate.”
The committee has also called on the new BRP to prioritise a comprehensive turnaround strategy, within the 25-day window prescribed by the Companies Act.
“At the heart of this plan must be the regularisation of NTI’s structural challenges, the restoration of salary payments to its employees who have suffered prolonged uncertainty, and a clear audit of previous disciplinary processes, many of which were reportedly handled arbitrarily,” said the Chairperson.
The have since committed to maintaining its strict oversight role to ensure accountability, transparency, and ultimately, the restoration of NTI as a viable public transport entity that can serve the people of the North West with reliability and dignity.
The department stated that Tayob is a senior BRP with impressive qualifications obtained from South Africa and the United Kingdom.
“Among other entities Mr Tayob has rescued, include a State bus company in Gauteng and has also investigated R2.6 billion investment scheme on behalf of the Hawks.”
According to the department, Tayob will collaborate closely with Dr Ntlhopeng Dikobe, who has been appointed by the department as the Acting CEO of NTI.
Tayob is also expected to present a turnaround plan and provide regular reports to the shareholder representative, ensuring that NTI is restored to profitability. – SAnews.gov.za
