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R408 Million Taxi Payout Sparks Outrage and Calls for Transparency

Neelam Rahim | neelam@radioislam.co.za
3-minute read
22 April 2025 | 17:44 CAT

Build One South Africa’s official media statement shared on Facebook, raising alarm over the R408 million COVID-19 payout to the taxi industry in the 2025/26 budget.

A controversial R408 million payout to the taxi industry has ignited public concern, with Build One South Africa (BOSA) demanding accountability and a full investigation into the prolonged COVID-19 relief disbursements.

Despite the pandemic peaking more than five years ago, BOSA says it is “alarming” that the government continues to allocate funds under COVID-19 relief in the 2025-26 financial year. The revelation surfaced after a deep dive into the Treasury’s latest 900-page budget document exposed the once-off gratuity, prompting immediate action from the opposition.

In an interview with Radio Islam International, BOSA spokesperson Roger Solomons confirmed that the party’s leader wrote to Minister of Transport Sindisiwe Chikunga demanding answers. “She responded in writing to confirm that this is part of a COVID-19 fund payout to the taxi industry,” said Solomons, who added that the explanation offered “very little detail” about how beneficiaries were identified or how the amount was calculated.

“We’re not against the taxi industry—our relationship with industry players like CODETA is sound. But we find it unacceptable that R408 million is quietly slipped in under the guise of a gratuity, especially in a time of rising VAT and underfunded critical departments like health and education,” said Solomons.

The payment, justified as part of a broader Cabinet decision during the pandemic, is being criticized as misaligned with current national priorities. “Gratuity implies a tip at the end of a meal—not a massive payment five years after the fact,” Solomons argued. “It’s morally indefensible.”

BOSA warns that this may only be the tip of the iceberg, with other hidden expenditures possibly buried in the extensive budget document. “Our team is combing through the budget for more questionable line items,” said Solomons. “We’ll continue pressing the Minister of Transport and the Treasury for a full paper trail.”

The party is calling for transparency, accountability, and a review of the government’s fiscal choices, especially at a time when ordinary South Africans are shouldering mounting financial burdens.

Listen to the full interview on The Daily Round-Up with Moulana Junaid Kharsany and Roger Solomons here.

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