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Sanral 'writes off' e-toll income

Nicola Mawson
By Nicola Mawson, Contributor.
Johannesburg, 20 Oct 2014
Outa expects Sanral to be R2 billion in debt after a year of e-tolling.
Outa expects Sanral to be R2 billion in debt after a year of e-tolling.

As public outrage over e-tolling grows, the South African National Roads Agency (Sanral) is unable to "recognise" almost half of the amount it invoiced during the first four months of the system going live.

On Saturday, the Gauteng arm of the Congress of South African Trade Unions, the National Association of School Governing Bodies, the National Taxi Alliance and United Transport in Gauteng staged yet another protest march against e-tolling. "We are continuing with the mass action in which defiance of the system is part of the campaign," said the congress in a media alert.

The action reportedly culminated in a 50-vehicle go-slow, after which motorists burned bills in defiance of the system, indicating they would not pay for the privilege of using the expanded freeways.

While Sanral has yet to provide updated figures, despite repeated requests, indicating just how much it is collecting from the system, the Opposition to Urban Tolling Alliance (Outa) claims compliance recently dropped from around 40% to 30%. The drop-off has been attributed to Gauteng MEC David Makhura's panel, which was convened to look into the social and economic consequences of e-tolling.

Not recoverable

Sanral's own figures show it may not be likely to claw back all the debt charged to users that has fallen outside its seven-day grace period. Its latest annual report, for the year to March - which includes four months' worth of e-tolling revenue - shows it earned R1.145 billion from the controversial system. This, assuming Sanral's claim of 2.5 million motorists using the electronic freeways monthly is accurate, means each user is only forking out R114.50 a month.

However, in notes to its financial statements, it says - of the R2.27 billion charged in total - some R1.123 billion was not recognised "because the probability/reliable measurement" has not been met. It adds this amount, which falls outside the seven-day grace period, is unlikely to be collected - or "realised" - because it has no historical information upon which to base trends, including the likely outcome of prosecution.

Transport minister Dipou Peters has placed a moratorium on prosecutions until billing issues are sorted out, and also extended carrots to motorists in a bid to get them to pay up. Sanral's annual report indicates the billing system "initially started with a few hiccups and Sanral is working around the clock to ensure these teething problems are ironed out as time proceeds".

Spiralling situation

Outa chairman Wayne Duvenage says the R1.123 billion Sanral has not recognised amounts to a write-off. He questions how much behind the agency will be when it has hit a full year's tolling, noting Outa's estimates put it around R2 billion in the red. "This is an example of a failing system. It is getting worse."

Absa Investments analyst Chris Gilmour says Sanral has accepted the R1.123 billion will not be paid over and has effectively written the amount off. "They are as good as throwing in the towel."

Duvenage adds Sanral needs to find R3.2 billion each year to cover debt and e-tolling costs. He adds, of the amount (R1.145 billion) Sanral has recognised, it is unlikely to pull this in because compliance rates are falling. "They are not getting there."

In addition, notes Duvenage, Sanral's financial lack of transparency means it is not clear just how much debt it is carrying on its books, and how much is being carried by its collection agency, Electronic Toll Collection.

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