Tok Transit Accuses Regional Municipality of Wood Buffalo (RMWB) of mismanaging and wrongly terminating the Transit Contract

Losses could exceed $150 million

Fort McMurray, AB, Feb. 25, 2015 /CNW/ - In March 2013, after following an open RFP and a rigorous, independent evaluation process by the RMWB, Tok Transit was awarded a Contract to revitalize the Wood Buffalo bus transit system in partnership with the Municipality. On February 19, 2015 Tok Transit received, without any prior warning, a Termination of Contract notice from the RMWB.

It is Tok Transit's position that this decision taken by RMWB to terminate the Contract 'for convenience' is both wrong and unfair.

 "Tok Transit believes that this termination attempt is part of a planned strategic effort to replace its extensive value added investments which include infrastructure, temporary bus barn, equipment, along with organizing and training a skilled work force, all of which took immense financial resources, time and effort." stated Mr. Ajay Mehra, Chief Operating Officer.

"We are very concerned that the Municipality did not support or manage the Contract fairly and that RMWB Management is making inaccurate and incomplete statements about our operations. We believe that RMWB Management has used wrong operations audit information to justify its termination and has ignored our detailed evidence and submissions to the contrary. Therefore, it is our intent to inform Council and the public, who may not have been provided with complete information, in order to set the record straight." said Mr. Mehra.

"An important example of RMWB Management's failure to support and promote a successful transit operation is Management's delays in implementing the Intelligent Bus Technology System (IBTS). Council had approved it back in January, 2014, but we did not get the go-ahead from RMWB Management to start the project despite of our numerous verbal and written efforts. Tok Transit has been unduly disparaged for inaction when, in fact, it had done everything it could to expedite IBTS." added Mr. Mehra.

Tok intends on taking whatever action necessary to preserve and protect its business and reputation. That may include court proceedings against the Municipality and those responsible for its losses and damages which could exceed $150 million.

Details regarding Tok Transit's audit response dated October 31, 2014 is attached.

SOURCE Tok Transit

PDF available at: http://stream1.newswire.ca/media/2015/02/25/20150225_C5564_PDF_EN_12567.pdf