The recent allocation of R408 million as a ‘once-off gratuity’ to the taxi industry has sparked a flurry of controversy and demands for transparency within South Africa’s political landscape, reports Cape {town} Etc.
Build One South Africa (BOSA) says it has formally approached Transport Minister Barbara Creecy, seeking a comprehensive explanation for this substantial budgetary decision that was introduced by Finance Minister Enoch Godongwana in the 2025/26 national budget.
As Parliament prepares for a crucial vote on the national budget in the coming weeks, the legitimacy of this massive allocation is under scrutiny. BOSA spokesperson Roger Solomon has raised significant concerns regarding the implications of such a financial commitment to an industry with a questionable tax contribution record.
‘For a multibillion-rand industry that pays zero tax, this allocation is highly questionable,’ Solomon commented, highlighting the disparity between the financial struggles faced by ordinary South Africans, including increased VAT, soaring fuel prices and escalating living costs – and the government’s decision to bestow hundreds of millions upon the taxi sector.
Solomon further stressed that, in a nation grappling with high unemployment rates, economic stagnation and underfunded essential services, a thorough justification of public spending priorities is critical.
‘Taxpayers deserve to know whether this R408 million payment is a necessary intervention or simply another opaque expenditure benefitting a politically-connected sector.’
Solomon and the party urges Creecy to clarify the rationale behind the allocation before it becomes yet another example of government expenditure lacking oversight and accountability.
‘The organisation remains vigilant against corruption and wasteful spending, championing budgets that genuinely reflect and meet the needs of the South African populace.’
Solomon added that BOSA Leader Mmusi Maimane has submitted a Parliamentary Question to Minister Creecy, requesting detailed information regarding:
- The reasoning behind the R408 million gratuity.
- The intended beneficiaries of the payment.
- The criteria and process for determining its distribution.
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