• Started in 1996 with the inception of the new Department of Education in Mpumalanga.
• In 1997 an agreement was reached between the Department and the then service providers. regarding the amount of subsidisation of scholar transport.
• The agreement was that the Department will pay an amount of R0.20 per learner per kilometer per day.
• For the first two years of providing scholar transport in the Department the routes were serviced by the inherited service providers from the previous dispensation,
• Since 1999 when the first tenders were approved by the Provincial Tender Board the situation changes as follows:

The current situation in the Department is that 26 337 learners on 277 routes are transported to 160 schools at an estimated cost of R63. 4 million

• 
  The Department is currently servicing 222 contracted routes that were approved by the Provincial Tender Board.
• These routes are all serviced by Historically Disadvantaged people,
• The Department is viewing Scholar Transport as a means for Sosio-economic upliftment in the rural areas,

• The Department is currently servicing 55 temporary routes that were approved by the Head of Department as temporary measure to alleviate urgent needs for transport in communities.
• These routes are all serviced by Historically Disadvantaged people.

• To date the Department is in possession of 256 applications for scholar transport in the various regions,
• This is affecting 7 852 learners whom are not included in the total for serviced routes.
• These routes not serviced will cost! the Department a further R20 million.
• Although these applications are already with the Department, the various regions also indicated that there are other needs besides the above-mentioned 256 routes, but that is still under investigation at the Regions.

• Migration of communities.
• Movement of learners between rural and urban areas and vice versa.
• Learners start attending school for the first time due to the availability of scholar transport.
• Unplanned amalgamation of schools.
• Movement of people closer to running transport routes

• Issuing of Circular 23 of 2003, Administration and Control of Scholar Transport , in February 2003.
• Monthly verification on selected routes j by the company Price Waterhouse Coopers and their subsequent reports.
• Unannounced inspections of personnel from Head Office.
• Forensic investigation pertaining Scholar Transport.
• Appointment of scholar transport representatives in Regions,
• The establishment of regional and provincial structures among the service providers themselves in the Province.
• Organizing the data pertaining scholar transport in spatial format to create a visual database.

• To date the Division dealing with scholar transport at Head Office consists of the following personnel:

1 Deputy Director

1 Acting Assistant Director

1 Senior Admin Officer

1 Chief Clerk

1 Senior Admin Clerk

Thus it is not possible to have proper control over 277 routes in the entire Province.

Budgetary constraints:

For the financial year 2004/2005 scholar transport was allocated R63.4 million. R59 million was earmarked for the current running routes and R4.4 million was earmarked for addressing the backlog.

Due to the enormous increase in the number of learners on the current running routes, the Department reached an agreement with the service providers to pay them R0.10 per learner per day per kilometer. This put a further strain on the already inadequate budget. The estimate amount to cover this expenditure will be R4 million.

Due to already overstretch budget the Department is failing it's core function to supply all learners with adequate education. Therefore to start the 256 routes on the prioritised list it will need a further R20 million.

Further more if the same tendency is followed on the 256 routes as on the 277 running routes where there were an increase of + 2500 learners over 12 months a further R5 million will be needed to cover that.

The organised scholar transport service providers requested the Department to urgently review the R01.20 subsidy paid to R0.25 as it was implemented and reviewed in 1997 an did not kept up with inflation and other commodity price increases

If the Department amend the subsidy level to R0.25 it cost a further R25 million.

Further more the organised scholar transport service Further more the organised scholar transport service providers requested that the current contract period of two years must be amended to five years in an effort to increase their profit margins and their standings with the banks to purchase new busses

Therefore if the Department wants to fulfill it's obligations regarding the provisioning of scholar transport the Department have to increase the Budget provided with a further R50 million