Nearly a year after the South African government announced a plan to shut down e-tolls, Gauteng motorists are still paying for the defunct scheme.

During his medium-term budget policy statement on 23 October 2022, finance minister Enoch Godongwana revealed that the government had decided on an alternative funding mechanism to pay the Gauteng Freeway Improvement Project’s (GFIP’s) debt.

Gauteng Premier Panyaza Lesufi confirmed the end of e-tolls in the following days.

Lesufi also flaunted the possibility of refunding R6.8 billion to motorists who had already paid for e-tolls.

Since those promises, there have been no further developments in scrapping the much-loathed e-tolls, despite the South African National Roads Agency (Sanral) receiving additional funds to pay off the GFIP debt over the past year.

The Organisation Undoing Tax Abuse (Outa) — originally established as the Opposition to Urban Tolling Alliance with the sole intention of getting the e-toll system scrapped — said it was dismayed at the government’s failure to implement its own decision.

“As we stand in October 2023, not a single step has been taken to implement the decision to scrap e-tolls,” Outa said.

“The burning questions are: What will it take for the government to honour its own commitment? What has Sanral done with the additional funds it received towards paying off the GFIP debt?”

Outa CEO Wayne Duvenage said the continued delay in ending e-tolls was a betrayal of the trust citizens had placed in their government.

“We have patiently awaited relief from this irrational system, and the government’s inaction is causing needless stress to South African motorists,” Duvenage said.

Wayne Duvenage, Organisation Undoing Tax Abuse CEO

Outa pointed out that Sanral had received multiple billions of rand intended to pay its GFIP debt, and there had been little transparency over what was done with this money.

The 2022 budget provided an additional R27.48 billion for the agency — R3.74 billion through the Adjustments Appropriation Act specifically for the GFIP and R23.74 billion through the Special Appropriation Act for Sanral’s debt redemption fund.

In November 2022, Outa made a formal submission to Parliament’s Standing and Select Committees on Appropriations on the MTBPS money bills and the Sanral transfer, in addition to a verbal presentation to the committees.

“We asked for an explanation of Sanral’s debt, the GFIP debt and what was being paid off,” Outa said. “Parliament passed those bills, but we have yet to receive an explanation.”

Following this request, the 2023 national budget added another R2.2 billion for the GFIP.

Outa said the Transport budget vote also referred to the R23.74 billion received through the MTBPS towards the Sanral debt as “a partial solution” to the GFIP debt, with no clear explanation of the total debt outstanding.

The organisation also pointed out that the R23.74 billion it received from national government for the GFIP debt was only the “first contribution” to its 70% share in its 2022/2023 Integrated Report.

The Gauteng provincial government is being held responsible for the outstanding 30% of the GFIP debt.

Sanral’s Integrated Report for 2022/23 notes that the Gauteng government will contribute 30% of the outstanding GFIP debt and national government the remaining 70% (it refers to GFIP debt rather than Sanral debt) and that the R23.736 billion in the Special Appropriation Act 2022 was national government’s

Outa said the issue transcended the debate between national and provincial government responsibilities.

“It is about the irrationality and injustice of a scheme that has burdened Gauteng motorists for far too long,” Outa stated.

“The irrational e-toll system has placed an unfair financial strain on citizens, and yet the government has either failed or refused to terminate it, despite making a clear decision to do so a year ago.”

Editorial credit: Bruce Smyth / Shutterstock.com

Sanral’s GFIP bill reportedly stood at over R43 billion by March 2022, although Outa has disputed this amount.

The initial partial cost of the GFIP construction was R20.63 billion at its completion in 2012.

Even if Sanral had not settled any part of the initial debt, a bond of R20 billion over the next ten years at an interest rate of 10% would not be worth more than R33 billion.

Outa also raised concerns over how the continued collection of e-tolls since the shutdown announcement has added to the debt,

“One cannot overlook the administrative costs incurred by the government in extending the e-toll collection contract over the last year and sending bills to thousands of motorists for a system that was ended a year ago.

“These costs represent wasteful expenditure and further underscore the impracticality of e-tolls.”

Duvenage called upon government to act immediately on its commitment to end e-tolls and deliver the promised relief.

SOURCE:Big e-toll betrayal (mybroadband.co.za)