United Democratic Movement leader Bantu Holomisa has strongly criticised government's taxi recapitalisation programme, saying it is intended to enrich only a few close to the African National Congress*.

Addressing the Top Six Taxi Management Annual Conference in Durban on Thursday, he said the motives behind government transformation programmes had "become a source of doubt for many".

"In the name of transformation and progress we have been fed justifications for such things as the arms deal, ID smart cards, motor vehicle licensing cards, taxi recapitalisation and massive communications contracts.

"But increasingly we are seeing evidence and allegations surfacing that illustrate how these government programmes are centred around a small group of individuals... who happen to have close ties to the higher levels of the ANC*," he said.

"One cannot help but wonder whether the main aim behind these massive programmes has nothing to do with benefiting South Africa and her citizens, but rather to funnel money to a selected few in the ANC*."

Government's taxi industry transformation process had been "strange and convoluted*".

It had proceeded in a unilateral fashion*, and the taxi industry itself was only told after the decision was taken in 1998.

Consultation had been lacking at major milestones in the process, such as the decision on the specifications for the new vehicles.

"We would have expected specifications being determined and safety standards being set, and then seeing whether manufacturers of current vehicles could meet those, before rushing to seek completely different vehicles," Holomisa said.

"Though Black Economic Empowerment has become a buzzword of government, it is difficult to understand how that is achieved by enriching a small elite with shares, whilst estranging and marginalising thousands of black entrepreneurs in the transport sector.

"For instance, you are still being kept in the dark on whether there is a proper feasibility study of the recapitalisation process, because the authors and sponsors of the proposed system are dodging you when you ask for the details of such a study.

"The question of affordability of the new system for operators and commuters has also not been answered satisfactorily by the architects of this new system," he said.

There was no doubt in anybody's mind that the proposed recapitalisation programme would disempower existing taxi owners and create a small elite class, who had access to funding -- as well as licenses from government-controlled license boards -- for the allocation of taxi routes.

Holomisa urged the industry, which is responsible for 65 percent of public transport, to urgently seek a meeting with government to get clarity on "pertinent questions" to avoid a crisis, which he said everybody could see was looming.

* Does this sound familiar?

With acknowledgement to Sapa.