Rental company may ground Joburg fleet over pay dispute

Fleet management company Afrirent has threatened to ground City of Joburg fleet for the second time in less than three months if it does not receive confirmation that the municipality has paid the car rental company. The city insists it has paid all that was due and the threat will not be carried out.

Afrirent on Tuesday confirmed that it had asked the city to pay the R80m it owes for the right to use 2,700 vehicles, except those used by the city’s police department.

In November last year, Afrirent grounded its fleet, citing nonpayment. The vehicles were back on the road a week later after the city and the lease company made a payment arrangement.

Joburg spokesperson Nthatisi Molingoana said the city had paid its outstanding bill and had averted a grounding.

Asked how much and when it had paid, Molingoane responded: “Unfortunately we are not in a position to disclose certain contractual details between the city and the service providers.

“It is like when ratepayers owe the city, we issue a pre-termination notice and when they pay we do not publish the date and the amount paid. The letter by Afrirent serves as a pre-termination notice in this case,” said Molingoana.

Afrirent CEO Senzo Tsabedze refuted the claims that the city had paid.

Tsabedze said only Joburg Metro Police Department (JMPD) – who use more than half of the leased cars (about 1,400) – would not be affected because the entity had since made a 50% payment and made an arrangement to settle the balance by the end of the week.

“As a Joburg resident, I cannot sleep comfortably knowing that JMPD is grounded. So, I try to reason with them but sometimes they take advantage of things and we have to act,” said Tsabedze.

JMPD owed Afrirent about R51m.

Refuting claims that the city had paid, Tsabedze said: “Until we have cash in the bank or proof of payment, we have not been paid.”

Tsabedze told Sowetan that unless the city paid by Tuesday close of business, the grounding would affect various city entities and would include sedans, bakkies, trucks and buses used by Pikitup to pick up its staff who work from early morning and late night.

“It is regrettable that this is happening in the same week as the politicians are having a vote of no confidence. It is just a coincidence. It is month end and I need to pay salaries and pay the banks. I cannot tell the banks I did not want to be seen playing politics.

“I have invoices that are 90 and 120 days [that have not been paid]. I am running a business. Just like the city switches you off if you owe it,” said Tsabedze.

ANC caucus leader in Joburg Dada Morero blamed the situation on “a lack of leadership” and the DA lacking the humility to admit that the city had serious financial problems. “The reality is that the situation in the city is getting worse. There is a serious crisis.

“If the DA had been open about the situation it finds itself in, we as councillors would have contributed ideas as to how we can try and save the situation. Unfortunately they have chosen to be stubborn.

“I just hope they do not default on Eskom and Rand Water,” said Morero, whose party has called for a motion of no confidence against mayor Mpho Phalatse tomorrow.

The current fleet is described as a non-specialised fleet: the trucks, vans, cars and bakkies are used by JMPD, City Power, Joburg Water and all other branded city vehicles. The five-year contract for the lease expired on October 31 2022, and has been running on a month-to-month contract since.

SA Municipal Workers Union (Samwu) spokesperson Karabo Ramahuma said the union was concerned because vehicles were effectively tools of trade for many employees who would not be able to perform their duties because of the grounding.

“As Samwu we are concerned about the city’s finances and how they are affecting workers. We have employees who need but do not have protective personal equipment. We are not even sure if we will be paid this month and the next,” said Ramahuma.