Transport for London has bought the Oyster brand and settled a new contract for the electronic smart card in a deal it claims will make "significant savings."

It is unclear weather TfL have bought the right to the Oyster brand or is licensing the name from owners TranSys.

Zimbabwe connection

Last July the Private Finance Initiative partners TranSys who operate the system had its contract terminated shortly after links to despot Robert Mugabe were revealed.

German firm Giesecke and Devrient produce the travel smart card for TranSys but also supply Zimbabwe with banknotes - a means the discredited leader uses to control his beleaguered people.

However, a spokesman for TfL said the decision to end the contract "was part of a long-term review and was not in any way related to the incidents that occurred in July." 

Mayor frustrated

At the time Mayor Boris Johnson vowed Transport for London would not renew the firm’s contract and TfL then exercised a break option in their contract.

Johnson told the Evening Standard:

"It is a huge frustration to learn that there is any link between the Oyster card and a firm providing services to Zimbabwe."

The 1998 deal with TranSys was set for 17 years but will now run until 2010.

New contract

The new contract to maintain the Oyster card system across London's Tube, bus, DLR, London Overground and rail network passes to Cubic Transportation Systems Limited and EDS.

These two companies were also the principle partners of TranSys.

Shashi Verma, TfL's Director of Fares and Ticketing said:

"Transport for London is delighted that its successful partnership with Cubic and EDS will now continue for the next five years.  The new contracts will deliver better value for money and improvements to Oyster for passengers across London."