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The amendment bill removes the rights of drivers, passengers and pedestrians to claim compensation for injuries but proposes the fund provide 'social benefits' instead.
As the mayhem unfolded in the city of Cape Town on Monday with more than 400,000 pupils unable to go to school and hospitals shutting down, transport minister Sindiswa Chikunga met with taxi bosses and city officials to broker a deal to bring an end to the violent taxi strike.
The current validity period of driver's licences is five years – but the extension is subject to cabinet approval.
Ramaila's comment came as e-hailing operators are gearing up for a national shutdown starting on Monday.
E-hailing drivers switched off their phones in protest against high commission fees and poor safety measures.