Scholar transport company ordered to pay back money it gained by inflating prices

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Scholar transport company ordered to pay back money it gained by inflating prices
Scholar transport company ordered to pay back money it gained by inflating prices

Africa-Press – South-Africa. The Special Tribunal has ordered a scholar transport company to pay back money gained through inflated prices for transporting children to a North West school.

Special Investigating Unit (SIU) spokesperson Kaizer Kganyago said the Special Tribunal ordered Maczola Tours CC on Wednesday to pay back money after it charged inflated prices for transporting pupils to the rural school.

The funds had been paid by the North West Department of Community Safety and Transport Management.

“The judgment comes after the SIU was authorised to investigate the awarding of scholar transport contracts… following widespread allegations of irregularities concerning the appointment and overpayment of service providers contracted in terms of the tender,” said Kganyago.

“The SIU investigations revealed that Maczola Tours inflated the kilometres travelled when rendering the service in terms of the contract and, as a result, claimed excess payment from the department.

“The company provided scholar transport services to Kopanelo Primary School between October 2010 and June 2017.

“The SIU’s evidence suggests that Maczola Tours benefitted unlawfully from the department by an excess amount of R180 793.20,” Kganyago added.

“The SIU will now have to file an affidavit explaining how it determined the excess amount, and Maczola Tours will be allowed to make a submission in response.

“The Special Tribunal will make a final decision on the payable amount after the submission of the affidavits.”

North West Community Safety and Transport Management MEC Sello Lehari said he believed the ruling would “serve to encourage all businesses to be sincere”.

Lehari said:

According to him, the department has identified similar cases for investigation.

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