Pretoria: The appointment of Mahomed Mahier Tayob as the new Business Rescue Practitioner (BRP) for the North West Transport Investment (NTI) has been welcomed. This change follows a ruling by the Gauteng High Court in favor of the North West Department of Community Safety and Transport Management, which led to the removal of the previous BRP, Thomas Hendrick Samons.
According to South African Government News Agency, NTI had applied for voluntary business rescue in July 2022 due to financial difficulties. Samons was initially tasked with making the entity sustainable and generating income to pay creditors, especially employees. However, he failed to account for funds injected by the government and did not pay salaries, leading to the cancellation of employees’ medical aid and non-payment of their PAYE and UIF contributions. Over 1,500 employees did not receive salaries between September and December 2022, March to May 2023, June to November 2023, and February to March 2024.
The NTI group, established in 1973 through its subsidiary Northwest Star, has been a key transport provider in the province for decades. Despite its challenges, the Portfolio Committee on Community Safety and Transport Management, led by Freddy Sonakile, believes that NTI can still be rescued. They plan to conduct a follow-up oversight visit to NTI’s headquarters and depots within a month to assess the entity’s current state and receive a turnaround plan from the new BRP and the department.
The committee expressed concern over Samons’ continued correspondence with NTI staff despite his removal. They urged the department to investigate these allegations and consider criminal charges for fraud if necessary. The committee also called on the new BRP to prioritize a comprehensive turnaround strategy within the 25-day window prescribed by the Companies Act. This strategy should address NTI’s structural challenges, restore salary payments to employees, and audit previous disciplinary processes.
The department stated that Tayob is a senior BRP with qualifications from South Africa and the United Kingdom. He has previously rescued other entities, including a state bus company in Gauteng, and investigated a R2.6 billion investment scheme for the Hawks. Tayob will work closely with Dr. Ntlhopeng Dikobe, the Acting CEO of NTI, to present a turnaround plan and provide regular reports to the shareholder representative, aiming to restore NTI to profitability.
Source: South African Government News Agency