Motor giant Toyota has been playing a behind-the-scenes role in the battle over the government’s plans to shake up the taxi industry. Reports by Ivor Powell, Scotch Tagwireyi and Evidence wa ka Ngobeni
Dissidents in the taxi business threatening to disrupt the government’s plans to revamp the industry have been linked to motor giant Toyota – which stands to be the biggest loser if the government’s taxi plans go ahead.
Toyota – which commands a whopping 92% of the taxi market – has distanced itself from the recapitalisation programme which will see the introduction of diesel- driven 18- and 35-seater buses to replace the familiar 15-seater minibus.
But Toyota South Africa has been accused of a behind-the-scenes role in opposing the government’s plans to transform the R15-billion to R20-billion industry.
Government sources told the Mail & Guardian that as early as the middle of last year, Minister of Trade and Industry Alec Erwin directly approached the company to warn its executives about allegations that it was meddling in the government’s plans.
However, Toyota South Africa executive chair Bert Wessels denied this week that any such meeting took place, or that any communication had been received warning the company of the government’s displeasure.
The M&G’s sources said Erwin was acting on reports that Toyota was sponsoring interests in the taxi business opposed to the industry’s government-recognised governing body, the South African Taxi Council (Sataco).
The allegations – contained in an internal government report – were to the effect that Toyota had sponsored members of the National Taxi Alliance (NTA) to actively campaign against Sataco, which has been at the centre of negotiations with the government and labour about the recapitalising of the taxi industry.
Wessels confirmed that Toyota had held meetings with the NTA – but said this did not mean there was any alliance. He also denied ever having sponsored any opposition to Sataco or the government’s taxi plans.
“We invited Sataco to our meetings on a number of occasions,” he said, “but they chose not to attend.”
The NTA was formed from sectors of the taxi industry refusing to submit to the authority of Sataco – despite the fact that the governing body’s executive was democratically elected from the ranks of taxi owners and drivers.
Evidence collected by the Department of Trade and Industry task team suggested that Toyota had given opponents of Sataco cars and taxis to help in campaigning against Sataco – as well as sponsoring flights and expenses to drum up support at anti-Sataco rallies.
There had also been allegations by the National Union of Metalworkers of South Africa (Numsa) that executives had threatened to fire Numsa members unless the union withdrew its support for Sataco and the government’s recapitalisation plans.
The M&G’s sources in the government said Erwin warned Toyota’s top management that if it wanted to be part of the recapitalised taxi industry it would have to play by the rules.
A second warning was given later in the year by the head of the department’s motor development department, Johan Cloete, at a meeting between the government and representatives of the motor industry.
Cloete told the meeting he had been specifically instructed by Erwin to warn manufacturers that meddling in the government’s recapitalisation of the taxi industry would not be tolerated. Toyota was not mentioned by name in this forum.
This reiterated the warning against collusion contained in the minutes of a meeting in September between the government and the National Association of Automobile Manufacturers of South Africa.
On the day that tenders closed for would-be manufacturers of the new 35- and 18-seater buses, Toyota informed the government that it would not be tendering for a manufacturing contract.
Wessels said the decision was prompted by business considerations as a licencee of Totota International. “We don’t have the product available,” he said.
More recently individuals named in government reports as having received sponsorship from Toyota to campaign against Sataco have re-emerged as militant opponents under a different banner.
Chief among these is the leadership of the Soweto-based Top Six taxi association – who had earlier been active in the NTA.
Top Six came to the fore in the newly formed National Taxi Drivers Association, whose members have threatened more violence if the government goes ahead with its plans.
Ironically, several Top Six leaders as well as National Taxi Drivers Association representative Themba Mghabi were part of a delegation which travelled to mainland China to enter into a contract with Chinese businesspeople to tender for the licence to build 35- and 18-seater buses.
The tender company, constituted as Mini- Bus Vehicles (MBV) – which also included the National African Federated Chamber of Commerce as well as former Pan Africanist Congress secretary general Khoisan X – failed to make the shortlist announced last month.
Mghabi confirmed that he was part of the delegation to China but denied any involvement in MBV.