National Land Transport Act, 2009 (Act No. 5 of 2009)

Chapter 5 : Contracting for Public Transport Services

45. Involvement of municipalities in public transport services
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(1)No municipal operator may tender for any commercial service contract or subsidized service contract, unless it is financially ring-fenced in the prescribed manner and it complies with the other requirements prescribed by the Minister.

 

(2)A municipality may not use its municipal fund to subsidize a municipal operator unless that body is a juristic person separate from the municipality and the subsidies are paid in terms of a subsidized service contract concluded between the municipality and such municipal operator.