GNT driving to nowhere? Entity owes Polokwane nearly R12 million in unpaid electricity

Nearly 10 months after Limpopo Premier Dr Phophi Ramathuba and President Cyril Ramaphosa moved to save Great North Transport (GNT) from the brink of collapse, the provincial government’s transport company is again facing ruin.

The agency owes nearly R12 million in electricity debt to the Polokwane municipality, with more than R11 million in arrears older thn than 210 days. Some buildings at the facility are reportedly without electricity after the Polokwane municipality disconnected the supply over the unpaid debt.

While the agency confirms it faced challenges and a recent intervention by the provincial government, and that its turnaround plan is helping address the issues, the DA in the province has called for it to be placed under business rescue.

DA spokesperson for economic development, environment and tourism, Jacques Smalle, said this latest crisis confirms that problems at GNT are deepening. He said the entity’s financial collapse is now also placing pressure on the revenue of the Polokwane municipality, and possibly other municipalities in Limpopo.

“Most concerning is that this debt does not appear to have been disclosed when GNT recently appeared before the Limpopo Economic Development, Environment and Tourism (LEDET) Portfolio Committee. This raises serious questions as to whether GNT’s total creditor exposure may be higher than the R50 million previously disclosed.

“GNT may well have similar debt outstanding with other municipalities and we call for full and honest disclosure,” he said.

Massive unpaid bills

According to information apparently received by Smalle, GNT’s total electricity debt to Polokwane allegedly stands at a staggering R12.14 million, with a further current billing amount of about R456 000 due in May 2026.

GNT was reportedly disconnected on 25 March 2026, after it made no payment during April 2026, and remains disconnected pending a significant payment, settlement, or payment arrangement.

“Also concerning is that GNT appears to be the major contributor to parastatal electricity debt owed to Polokwane municipality, accounting for approximately 80% of the overall debt owed by parastatals.

“This is unacceptable and reinforces the DA’s previous calls for urgent intervention by the MEC and Provincial Treasury.

“GNT’s financial distress is no longer confined to unpaid creditors, pension fund obligations, cash-flow shortfalls, fleet failures, and governance instability. It is now also impacting the finances of the Polokwane municipality and its residents.

“GNT’s Board has already raised serious concerns regarding liquidity constraints, creditor arrears, inability to meet obligations as they fall due and the risk of insolvency.

“We call for GNT to be placed under business rescue.

“MEC Matibe, Limpopo Economic Development Agency (LEDA), and the Limpopo provincial Treasury can no longer delay taking decisive action. The people of Limpopo cannot continue to pay the price for failed ANC governance, repeated bailouts, weak shareholder oversight and the ongoing collapse of financial discipline at public entities,” said Smalle.

Payment arrangement

The Polokwane municipality on Thursday confirmed that GNT owed it millions of rands in unpaid electricity bills.

Through its spokesperson, Thipa Selala, the council said it valued the constructive and cooperative relationships it maintains with all spheres of government, state-owned entities and public institutions that form part of its customer base.

“Over the years, several government departments and parastatals have worked closely with the municipality to address outstanding accounts through mutually agreed payment arrangements.

“We are encouraged by the positive progress made, as many institutions have either settled their accounts in full or have entered into payment agreements which they continue to honour diligently.”

Selala said with regard to Great North Transport (GNT), the municipality could confirm that as at the end of May 2026, the entity’s account reflected a balance of R11 942 840.84, of which R11 486 752.52 constituted arrears older than 210 days.

“It is important to note that the municipality and GNT have engaged constructively on the matter and have concluded a formal payment arrangement.

“Under this agreement, the outstanding debt is scheduled to be fully settled by November 2026. We are pleased to report that the arrangement is being implemented within the agreed framework, reflecting the commitment of both parties to sound financial management and responsible governance.

“We will continue to monitor the implementation of all payment arrangements and work collaboratively with our stakeholders to ensure that municipal revenue streams are protected in the interest of maintaining and enhancing service delivery to our communities,” said Selala.

In response, through its spokesperson, Leo Gama, Limpopo Economic Development Agency (LEDA) said the agency has, over time, acknowledged the challenges that Great North Transport experienced and a recovery plan was put together to change the fortune of the company.

Currently, he said GNT was moving towards the right direction, having leased a few buses to augment the current fleet.

“Our focus is to improve GNT operations and satisfy the commuters that we serve across the province. We have purchased a new fleet to be allocated across all 10 of our depots as part of a fleet renewal.

“The provincial government is supporting the recovery plan, and in particular, the Premier of the province, Dr Phophi Ramathuba, who has intervened to ensure that GNT succeed in its plans.

“As a sign of consequence management, the previous leadership was removed and replaced. Our commuters are very excited about the new development within the company, and we remain focused to ensure that GNT delivers the best service for our people.”