GM Phadziri & Sons, the well-known local bus company, say their wheels are not coming off.

The company was upset after an article appeared in last week’s Zoutpansberger, stating that 10 of their buses will be sold in an execution auction. This came after the sheriff had taken possession of the buses after a notice of sale was granted in February this year by the Thohoyandou High Court.

Valued at R300 000, the buses will be sold to cover costs after Phadziri failed to pay a compensation claim that was instituted against them. This claim, which was granted by the High Court, ordered Phadziri to pay R250 000 over to Mr Edican Rudzani Ramoba.

Ramoba was one of the fortunate passengers who survived a horrific bus accident at Muraleni in April 2005, in which 10 people lost their lives. The accident happened when the driver of an overcrowded Phadziri-bus ignored a railway crossing and crashed into an oncoming train. Lots of people, including Ramoba, were left with serious injuries.

Ramoba’s attorney, Mr Jaco Venter, explained last week that the claim was instituted against Phadziri because the bus that was involved in the accident was not covered by an insurance company. After the claim was awarded, Phadziri was supposed to pay the R250 000 over to Ramoba in instalments of R41 000. The first instalment was payable on 7 December last year. Venter said last week they had not paid anything yet.

This the company, however, denied. The Phadziri office contacted the newspaper, stating that they had paid the money to the Soutpansberg sheriff by means of a bank-guaranteed cheque. Proof-of-payment receipts were promised, but at the time of going to press, the newspaper had yet to receive these.

Venter was approached once again this week for comment and confirmed that the sheriff had in fact paid the first instalment over to him – but only in the middle of February this year.

“According to an escalatory clause in the claim, the full R250 000 becomes payable if Phadziri fails to make a payment on or before the 7th of each month,” explained Venter. “That is why we applied for the execution sale.” He added that the sale, which is scheduled for April 6, will continue as planned. The money that Phadziri claims to have paid will be treated by the sheriff as credit.

Mr Maele Mushasha, GM Phadziri’s advocate, who was taken by surprise last week when the Zoutpansberger informed him about the upcoming sale that had already been advertised, admitted this week that there was a breach of contract from the company’s side. “There was a breach in terms of the payments, and we are currently trying to bring the arrears payments up to date,” said Mushasha. “I think if the payments are up to date, the sale will not continue.”

Ramoba´s claim is not the only one. It was found that at least six more claims had been brought against Phadziri. Venter confirmed that he was representing another client who had been awarded a claim of R1.8 million. Another Louis Trichardt attorney, who did not want to be identified, confirmed that he was handling five claims for clients. He indicated that in two of the cases a settlement agreement was reached with Phadziri and that they were still waiting for payment. Together, the claims totalled about R500 000. The remaining cases are still pending.