Putco has suspended bus services from Thursday until further notice due to diesel shortages as a result of an outstanding subsidy from the Gauteng Department of Roads and Transport.
"The disruption is as a result of unpaid March subsidy claims by the Gauteng Department of Roads and Transport," Putco spokesperson Lindokuhle Xulu said.
"Putco is working closely with the government to ensure that payments are processed as soon as possible to avoid a prolonged service disruption, as well as inconvenience to our valued passengers."
Xulu said that should the situation improve, "stakeholders" would be informed.
"The underfunding of the bus public transport industry, as well as the excessive fuel increases in the past few months, have exacerbated the situation," he said.
"In addition, the relief that the bus industry requested has not been granted, leaving bus operators in a very difficult situation."
However, the department confirmed that payments to the bus company for March had been captured and would reflect in Putco's bank account by Monday due to transactions from different bank accounts taking about three days.
"Delays in processing subsidised bus operators' payments for March 2023 are as a result of a widely-known procedure and trend," spokesperson Melitah Madiba said.
"The Public Transport Operating Grant (PTOG) is only being transferred to the province by the national department of transport in the first week of May each financial year."
Madiba said the department managed 34 subsidy contracts awarded to 13 bus operators, including Putco.
She added that 26 were tendered contracts, while eight were interim contracts.
"These are funded through the PTOG. Bus contracts are operated in metropolitan municipalities, namely: Johannesburg, Tshwane, Ekurhuleni, and the Sedibeng District Municipality.
"Services are operated by bus companies on behalf of government. The department's primary interest is to ensure the service is available to avoid huge inconveniences to passengers when it comes to transport services."
Madiba said the department was working with Putco to find a solution.