MEMPHIS, Tenn. — The Memphis Area Transit Authority neglected its bills, and WREG Investigators uncovered they owe more than $10 million to more than 200 vendors.
The long list of vendors stretched throughout five pages and shows entities MATA did business with but hadn’t paid as of mid-October.
This list was handed over to the new interim CEO and CFO the MATA board hired in January. They’re trying to sort through it.
Last month, they told council members 94% of MATA’s payables were a month or more late. They want to get that number down to 10%.
“We are hoping to get many of those folks more current in the near future,” Interim CFO Aaron Headley stated.
WREG Investigators submitted an open records request for the list in October. With help from the Reporters Committee for the Freedom of the Press, we just received a copy.
It shows as of October 14, MATA owed thousands of dollars to phone, battery, tire and software companies.
Many on this list are local companies, including a public relations firm and multiple law firms.
The list included $183,328 owed to G & W Diesel Service, $224,293 to Memphis Light Gas & Water, $489,332 to Gillig LLC, $765,517 to HDR Engineering Inc., and $673,568 to the Downtown Memphis Commission.
It also stated MATA owed $86,914 to the University of Memphis, and $11,246 to the YMCA. Again, these totals were as of October.
One company on the list is now suing MATA. The complaint claims while it provided services, MATA “stopped paying all invoices in or around January 2024 without legal justification or explanation.”
The judge granted MATA more time to respond to the complaint.
MATA’s new leadership has said the vendor accounts are being carefully managed, and the list they were handed only complicated things, as they learned bus repairs were tied up because of the unpaid bills.
“More of every dollar has to be going towards putting buses on the street and moving Memphians from their origin to their destination. That’s our priority,” MATA’s Interim CEO John Lewis told Your News Leader in April.
MATA sent a statement Friday saying the agency intends to meet all its financial obligations “as soon as financially possible.” The full statement is below:
We understand the critical role our vendors play in maintaining safe and reliable transportation for our community. Acknowledging past financial challenges, our Finance team developed a structured system aimed at ensuring consistent, timely payments to our vendors. Due to the tough financial position we find ourselves in, we have had to prioritize payments to vendors that directly support operations, such as bus maintenance and repairs, to keep our fleet in service for our riders. It is our intention to meet all the financial obligations of the agency as soon as financially possible. These strategic adjustments are part of our commitment to maximizing service efficiency, optimizing resources, and enhancing overall reliability for our riders. We appreciate the continued patience and partnership of our vendors as we implement these measures to strengthen financial stability and improve service delivery.
At last check, 64% of buses are on time. MATA’s new leadership hopes to get that number to 85% as they continue to pay off debts, get parts to fix buses, and get more vehicles on the street.
