SA taxi bosses paid R830,000 per taxi to make way for Rea Vaya

 ·8 Mar 2016
Taxi Minibus Transport

The owners of 317 minibus taxis were paid R263-million to have their vehicles taken off the road to make way for the Rea Vaya bus transport system.

According to Times Live, the taxi bosses scored R830,000 per taxi as compensation for restraint of trade.

The taxis will make way for Phase 1B of Rea Vaya, which operates in Soweto, Noordgesig, Pennyville, Riverlea, Bosmont, Coronationville, Newclare, Westbury, Westdene, Melville, Auckland Park, Parktown and Braamfontein.

According to Times Live, the taxi bosses will be paid R2.6 billion, or R221 million annually, to run the bus system for the next 12 years.

The City of Johannesburg signed an agreement in June 2015 with operating company Ditsamaiso, for the operation of routes along Phase 1B.

Following 24 months of negotiations, taxi and bus operators who worked along the affected routes became shareholders in the operating company.

Phase 1A and 1B of the Rea Vaya project cost an estimated R3 billion.

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