As the SA National Roads Agency (Sanral) continues to push e-tag sales in the build-up to the implementation of open road tolling in Gauteng - a date as yet unknown - the state-owned entity continues to be slammed by opposition for wasteful spending.
In the latest attempt at e-toll obstruction by a political party, the Freedom Front Plus (FF Plus) is today approaching the Advertising Standards Authority (ASA) to put a stop to all of Sanral's advertisements regarding e-tolls in Gauteng, saying it constitutes a breach of the ASA's code.
At the same time, says FF Plus parliamentary spokesperson on transport, advocate Anton Alberts, the party will request that the auditor-general investigate whether Sanral's advertising expenses are "fruitless and wasteful expenditure" in terms of the Public Finances Management Act.
Breaking the rules?
Alberts says Sanral is jumping the gun by advertising a product that is not legally being billed yet.
"The ASA's code is being contravened as the advertisements are selling a product, ie, the improved Gauteng highways, which is legally not payable yet, but which in fact has already been paid by way of other previously charged taxes."
He says the roads agency is contravening the second rule of the advertising code (section two) in that "the selling of an already paid and public product is dishonest".
Furthermore, Alberts notes the Opposition to Urban Tolling Alliance's court case, in which it will appeal government's e-toll system, is still pending. "The issue of whether the improved highways are payable through toll taxes, is still pending in the High Court and a decision on this will be taken in September."
The FF Plus's ASA complaint is also based on rule one (offensive advertising) of section two of the advertising code. "The advertisements give offense to the majority of residents in Gauteng. The residents have in various campaigns, from public protests to petitions, as well as in the media, clearly indicated they are fiercely opposed to the e-toll system. The FF Plus itself had a successful online-petition and submitted more than 100 000 signatures to Parliament and the Gauteng legislature."
In terms of rule three (unacceptable advertising) of section two, the FF Plus says Sanral's advertisements are unacceptable in that they "instil fear with the public that they would contravene laws if they did not register for the e-toll system and, therefore, motivates the public on this basis to accept the system".
Alberts says rule four (truthful presentation) of section two is also being flouted, as "the advertisements are also based on an untruth, as no legally mandatory e-toll system has already been implemented and there is uncertainty whether it will at all be happening".
Budget specifics
"As a state-owned company and law-abiding institution, Sanral respects the ASA's process and will respond to complaints and/or queries from the ASA or FF Plus should it receive any," says the agency.
According to Sanral, the agency has budgeted R85 million for advertising related to the e-toll system in Gauteng, which will be spent on "alternative sources of funding campaigns, as well as corporate campaigns".
Sanral spokesperson Vusi Mona says, in the current financial year, the agency has spent R23 257 989 on its toll portfolio; and R1 805 627 on its non-toll portfolio.
"Please take note that our toll portfolio spans more than the Gauteng Freeway Improvement Project, which is only 201km. Sanral has a toll portfolio of 1 832km and has a responsibility to promote and communicate on its alternative sources of funding (the selective use of tolling to build road infrastructure)."
Earlier this week, Sanral responded to the Democratic Alliance's anti-toll statements by saying the party needs to "stop using e-tolling as a political football for electioneering and stick to the facts".
The roads agency also dismissed suggestions that its advertising spend is unjustified and reiterated that it is on track to secure funding to meet its financial obligations. "We have previously clarified our approach to debt financing. We have a clear plan on how we are going to finance the R1.4 billion obligation on the toll portfolio and are concluding discussions with the banks. We have no reason to believe we will not meet our obligations when the five-year bond relating to this obligation matures at the end of October 2013."
Mona says what he calls "over-excitement" on Sanral's liquidity challenges - which recently led to conclusions that the body is bankrupt - "is totally misplaced, unfortunate and a manifestation of a level of ignorance".
He says Sanral will "step up its efforts in the near future to educate our colleagues in the media and public in general about the funding of Sanral".
Department of Transport spokesperson Tiyani Rikhotso previously said the upcoming court case is irrelevant to the fact that e-toll implementation has been deemed legal and will go ahead when all the appropriate formalities have been finalised.
Implementation of the system and the onset of billing rest on the signing of the Transport Laws and Related Matters Amendment Bill - or e-toll Bill - which is currently on president Jacob Zuma's desk awaiting his mark.
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