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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

 

(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.