Johannesburg - The MMC for transport in the City of Joburg, Kenny Kunene, has welcomed a ruling of the Gauteng High Court, Johannesburg that maintained the dismissal of the chairperson of Pio Trans, a company responsible for running the Rea Vaya bus service.
This comes after the Gauteng High Court, Johannesburg on Tuesday dismissed an application by Pio-Tran’s former board chairperson, Nomazotsho Memani, to be reinstated in her position.
She claimed that the independent new board of directors appointed by the shareholders and endorsed by the municipality was illegitimate and was appointed without following proper procedure.
Memani has been accused of corruption and failing to take the company to profitable levels.
Among other operational problems that triggered the rage of shareholders of Pio-Trans, which is owned by the Taxi Operation Investment Companies (TOIC), made up of nine taxi associations based in Soweto, were mechanical problems that grounded dozens of buses and diesel shortages as a result of delayed or non-payment of diesel suppliers.
The Star understands that the fights at Pio Trans would sometimes get physical to the extent that members of the board would threaten each other. The police were involved on a number of occasions.
The Gauteng High Court, Johannesburg found that there was sufficient evidence that the shareholders who were entitled to vote adopted a resolution to remove the board of directors, of which Memani was a non-executive director.
“The board can now concentrate on its huge task at hand, which is not only saving Pio-Trans but making it a much more profitable entity,” Kunene said.
He said he hoped that Pio Trans officials would be able to work together after the court ruling to deliver bus services to the City of Joburg.
“The new board of directors must now hit the ground running and see to it that Pio-Trans meets its mandate of assisting the City of Joburg to build a leading, responsive, and activist transportation sector that works in partnership with stakeholders and residents,” he said.
According to Kunene, the judgment will go a long way in empowering the new board of directors to move expeditiously to ensure that the injustice to shareholders that has been endured for twelve years by not receiving any dividends is reversed.
“I implore the new board to make sure that Pio Trans, which has virtually been run to the ground by the previous board, meets its objectives, from which more than 300 families can finally and deservedly reap the rewards of their investment,” he said.
Kunene also thanked his lawyer, Aadil Mayet, from Mayet Attorneys Incorporated.
Meanwhile, Memani told The Star that she would not be making too many public pronouncements on the judgment.
She said she would be meeting with members of the board to discuss ways to reconcile their differences.
The Star