KZN bus operator claims R6m-a-month contract was reassigned without a tender process

A KwaZulu-Natal bus operator has alleged that the provincial department of transport awarded a contract worth about R6 million without advertising it for competitive bidding.

Mduduzi Sithole, 47, the owner of Zululand Bus Service, which operates passenger routes between uMtubatuba and Nseleni in northern KwaZulu-Natal, says he initially held the contract before losing it in January 2025. 

He alleges that departmental officials colluded with another bus operator to remove his company from the service, which was subsequently taken over by Ikhwezi Bus Service. 

Ikhwezi Bus Service is linked to businessperson Sol Paruk and the Paruk Group, a large commuter transport operator with more than 130 buses operating across parts of KwaZulu-Natal.

The matter is under litigation.

In an interview with the Mail & Guardian, Sithole alleged that senior officials in the department demanded bribes from him over a prolonged period, under the pretext of protecting his contract.

He said he ultimately lost the contract after he stopped making payments. 

“Speaking out was the last resort. But I’ve endured bullying and torture from the department officials for far too long. 

“I’m prepared to accept anything that will happen to me after I have revealed the rot and corruption committed by the department officials.”

Sithole alleged that on one occasion he was summoned to Florida Road in Durban, where a senior official instructed him to place R25 000 inside a compartment of his vehicle. 

The M&G has seen documentation, which Sithole claims reflects payments made to officials. 

Sithole also alleged that an official requested a stake in his business. “One official went to the extent of requesting that I give her a stake in some of my buses, saying she was struggling financially. I ended up giving her two buses,” he said.

Sithole said his difficulties began in November 2024 when departmental officials inspected his bus depot in eMpangeni in northern KwaZulu-Natal.

According to the inspection report, which the M&G has seen, 16 buses failed compliance checks. The report also noted that the fleet had been placed under administrative restrictions by authorities in Mpumalanga because of investigations. 

Sithole disputed the findings, alleging that the inspections were used to remove him from the contract.

He said he was pressured to provide buses for free for political events, including ANC rallies and youth league gatherings in KwaZulu-Natal and other provinces.

He also alleged that he was instructed by officials to cover costs for accommodation and catering for political events and on one occasion to pay for funeral-related expenses at a private funeral service provider. Sithole said he had invoices and supporting documents related to some of the expenses.

He said the dispute had left 27 or so buses idle at his depot for more than a year, causing significant financial losses.

He had written to KwaZulu-Natal Premier Thamsanqa Ntuli requesting an investigation into the conduct of the officials involved.

In a letter dated October 2025, Ntuli said the allegations of corruption, fraud and procurement irregularities had been referred to the provincial forensic investigation unit for investigation.

“You will be contacted in due course to provide evidence to the investigators,” Ntuli said.

Ikhwezi Bus Service has denied any wrongdoing. In a statement through its attorneys, Cuzen Randeree Dyasi Inc, the company said it was not involved in any illegal procurement process.

“Our client denies any collusion with the KZN Department of Transport,” the lawyers said. “Our client understands that the KZN DOT [department of transport] and Mr Sithole have been embroiled in litigation. Our client is not privy to any further details in respect of such litigation.

“Our client denies that he is being favoured by the KZN DOT. Our client is not privy to any allegations/or any further information in respect of any contract between Mr Sithole and the KZN DOT.”

KwaZulu-Natal department of transport spokesperson Ndabezinhle Sibiya said there was nothing improper about the decision to appoint an alternative service provider. The contract contained a clause allowing the department to appoint a substitute operator if a service provider failed to deliver services. 

“There is a clause in the contract signed by all bus operators contractors contracted by the department (including him) which provides for a substitute contract in case they fail to provide services,” Sibiya said. “He signed the contract well aware of this provision. Such a procurement process is within the framework of supply chain management practices built into the system by the treasury.”

Sibiya also accused Sithole of attempting to damage the department’s reputation amid the litigation. Sithole disputed that interpretation, arguing that the clause could be applied in the circumstances and that the termination was illegal.