Opinion by Dr Olebogeng Baikgaki, North-West University (NWU) academic in Transport Economics and Logistics

North West Transport Investments SOC Ltd (NTI), through its subsidiaries North West Star and Atteridgeville Bus Services, was founded in 1973 in the former Bophuthatswana as a government-owned entity.

Over time, it became a central provider of public transport in what is now the North West Province and expanded its operations to Limpopo, Mpumalanga and Gauteng. The company’s mandate has been to provide passenger transport services supported by government subsidies and to position itself as a sustainable transport investment entity.

NTI entered several interim and tendered contracts with the Gauteng Department of Roads and Transport in the previous years. A seven-year agreement was negotiated with the potential to generate more than R66 million in monthly subsidies if operations were at full capacity, alongside additional cash inflows.

However, the agreement excluded the North West Department of Community Safety and Transport Management during its finalisation, the contract was concluded between the Gauteng department and the business rescue practitioner, Mr Thomas Samons.

As a Schedule 3D entity under the Public Finance Management Act (PFMA) of 1999, NTI is expected to operate sustainably and contribute as a revenue-generating arm of the provincial government. Instead, the company has faced persistent financial and operational challenges for more than five years. It has become reliant on repeated government bailouts while struggling with service delivery. A critical issue is the absence of an adequate fleet, forcing NTI to depend on private operators at high cost, which further weakens its financial position.

In July 2022, NTI entered voluntary business rescue proceedings due to its financial distress. The appointed business rescue practitioner was tasked with stabilising operations and ensuring that creditors, including employees, would be paid. Four years later, the process has not produced the intended results.

The company remains financially unstable, while public funds continue to be injected through subsidies and bailouts. These funds have not been fully accounted for, raising concerns about governance and oversight. More than 1 500 employees have experienced salary delays with reports of severe consequences including stress-related deaths. Efforts by the North West Government to remove the practitioner have not succeeded.

The Gauteng Department of Roads and Transport is considering terminating its contract with NTI due to ongoing underperformance. While such a move is aligned with its responsibility to protect commuters, it could trigger a prolonged procurement process, potentially disrupting services and affecting thousands of passengers who rely on the network.

Several remedial actions are proposed to address the crisis. As the sole shareholder, the North West Government carries the responsibility to either stabilise the entity or consider selling it. There is also a need for coordinated engagement between the North West and Gauteng governments to develop a joint turnaround strategy. This could include Gauteng acquiring a stake in NTI and participating directly in its management to improve accountability and performance.

Investment in infrastructure is a priority. Procuring a new fleet of buses would reduce reliance on costly contracted operators and improve operational efficiency. Recent bailout funds could have been directed towards acquiring buses, which would strengthen the company’s long-term sustainability.

The expansion of subsidised transport services within the North West Province is another key issue. Areas such as the Dr Kenneth Kaunda District currently lack access to subsidised public transport, raising concerns about equitable service delivery. Public transport is recognised within Chapter 4 of the Constitution, which underscores the importance of access to mobility as a public good.

The current situation also reflects broader structural challenges in South Africa’s public transport funding system. Subsidies remain unevenly distributed with historically disadvantaged regions receiving less support. Addressing this imbalance would require engagement with national government to secure increased funding through mechanisms such as the Public Transport Operations Grant and equitable share allocations.

The recovery of NTI depends on coordinated policy reform, financial oversight and operational restructuring. Strengthening governance, investing in assets and expanding services within the province are central to restoring the company’s viability. Stabilising NTI would not only improve transport access but also support economic activity and service delivery in the North West Province.

Dr Olebogeng Baikgaki