In a troubling saga that has left employees of North West Star, a subsidiary of Northwest Transport Investments (NTI), reeling, staff members have not received their salaries for several months. This lapse in financial support has raised significant concerns as it directly impacts the livelihoods of those who depend on these wages for their daily sustenance.
Freddy Sonakile, the chairperson of the Portfolio Committee on Community Safety and Transport Management in the North West Provincial legislature, addressed the pressing issue. He confirmed that although an adjustment budget was approved to facilitate payments to NTI employees, a verification process mandated by the government has stalled the release of funds.
“The legislature approved a budget which made provisions for salaries of NTI workers,” Sonakile explained. “However, these salaries must be disbursed following a verification process due to concerns about the fraudulent misuse of funds.”
The complication arose when the department won a court case that led to the ousting of the Business Rescue Practitioner (BRP) overseeing NTI. An acting CEO was appointed to commence the verification process. However, an appeal filed by the BRP subsequently halted this verification step, leaving workers vulnerable as the dispute continued.
“It is unfortunate that as these two elephants continue to fight, it is the grass that is suffering, namely the workers in this case,” Sonakile remarked. He acknowledged that the committee had previously advocated for salary payments to be funneled through a separate banking account to avoid entanglement in the ongoing legal disputes.
As the current recess period for the legislature draws on, significant questions remain unanswered regarding the handling of monthly revenues and profits generated by NTI, which could potentially cushion the financial plight faced by the workers. This includes cash sales and contracts with the Gauteng Department of Transport.
“Workers, in any business rescue situation, must be prioritised as they are one of the main creditors,” Sonakile stated, expressing concern over the precarious conditions that the employees are enduring. He cautioned that “a dangerous game is being played at the expense of lives and livelihoods” of these individuals who primarily depend on their salaries for sustenance.
Looking ahead, Sonakile emphasised the need for accountability, expressing intentions to call both the BRP and the department to the committee in early 2024 to explain the lack of salary payments and clarify who is ultimately responsible for the current chaos. Additionally, he stressed the urgency for Premier to exert influence and intervene in this crisis.