City and Golden Arrow face off

INLSA

Kwanele Butana

THE city will be opposing the court application brought by Golden Arrow Bus Services over disputes about the company’s share of the operating contracts for the buses on the MyCiTi service routes.

Three weeks ago Golden Arrow Bus Services (Gabs) filed court papers in the Western Cape High Court after its negotiations with the city deadlocked. Gabs was negotiating a contract to operate in the City Bowl-Sea Point area, from Atlantis to Table View and on to Cape Town as its share of the first phase of the MyCiTi service.

Brett Herron, the mayco member for transport, roads and stormwater, said this week that the city’s replying affidavits were due to be filed by next Friday when “we will set out our case”.

“We have been engaging with Golden Arrow in good faith and we are very disappointed that they’ve decided to litigate,” said Herron.

“Our primary interest remains the delivery of a reliable, affordable, sensible integrated public transport service and network, operating at a high standard, for the benefit of every resident of the City of Cape Town.”

Gabs spokeswoman Bronwen Dyke said the company was aware of the city’s intention to oppose its court application. “But, we have not yet seen the city’s opposing documents and will therefore only be in a position to comment once our attorneys have had the opportunity to study their response.”

In court papers, Gabs is seeking an order directing all disputes between the company and the city to be referred to mediation or arbitration as well as to interdict the city from concluding negotiated contracts in the Integrated Public Transport Network pending the finalisation of the mediation/arbitration or further negotiations with Gabs.

Alternatively, Gabs is seeking an order to direct the city to negotiate the disputes in “good faith” with Gabs.

Gabs said in court papers that all the MyCiti routes, except for the airport shuttle, ceased to operate as scheduled buses after the World Cup.

The city later extended the MyCiti service to West Coast areas such as Milnerton, Sunset Beach, Table View, Parklands, Blaauwberg, Killarney and Paarden Eiland.

“The establishment of the West Coast MyCiti service impacted upon the services provided by Gabs under (its operational contract), and involved the removal of some Gabs trips in that area,” read an affidavit by Gabs general manager Francois Meyer.

The following issues are considered to be in dispute by Gabs:

l The percentage stake which Gabs will have in the West Coast routes.

l The compensation which Gabs will receive for withdrawing its buses and putting its assets out of use.

l Whether the city is complying with its statutory and regulatory obligations which require it to provide a competitive bidding process when outsourcing municipal services.

kwanele.butana.inl.co.za