Subscribe

Outa: Gauteng govt is funding e-tolls black hole

Paula Gilbert
By Paula Gilbert, ITWeb telecoms editor.
Johannesburg, 18 Nov 2015
Outa accuses the Gauteng government of wasting taxpayers' money by promising R123 million to help fund e-tolls.
Outa accuses the Gauteng government of wasting taxpayers' money by promising R123 million to help fund e-tolls.

The R123 million set aside by the Gauteng provincial government to help fund the controversial e-tolls system is a "drop in the bucket for the financial black hole that Sanral's e-toll system has become," according to the Opposition to Urban Tolling Alliance (Outa).

Outa chairman Wayne Duvenage says the R123 million would have been valuable for other critical priorities in the province, but does little to help the e-toll system's financial shortfalls.

This after finance and e-government MEC Barbara Creecy announced during her medium-term budget policy speech for Gauteng yesterday that the province would fund 50% of the shortfall on the e-tolls project, amounting to R123 million, "which occurred as a result of the reduced user charge dispensation".

Earlier this month, Sanral announced motorists with outstanding e-tolls could get a 60% discount on their fines. The discount was one of the new e-toll dispensations announced by deputy president Cyril Ramaphosa in May, including reduced tariffs and up to 50% lower monthly caps for all motor vehicles. There would also be monthly contributions from both national provincial government. At the time, the deputy president said reductions would leave a funding shortfall of R390 million.

When Creecy presented the main budget in March, the MEC committed to paying for a portion of the shortfall of the Gauteng Freeway Improvement Project (GFIP).

Justice Project SA chairman Howard Dembovsky says if provincial government's contribution equates to 50% of the annual shortfall for e-tolls, then "we have been lied to dramatically".

"The monthly payments required by the e-toll scheme to meet its required target is over R260 million. Gauteng's contribution doesn't even settle half of one month's payment requirements of the ill-fated scheme, which in effect means that none of this regional allocation will go to refunding the bond for the tarmac," according to Duvenage.

"With all due respect to everyone involved, Sanral says it needs at least R250 million a month for e-tolls, so if R123 million is half of the annual shortfall after reducing tariffs, then who has been fooling who here?" Dembovsky asks.

Taxpayers footing the bill

Outa says it fears the money allocation has serious consequences to Gauteng taxpayers and is simply a waste of money for the province.

"Gauteng taxpayers' money will merely be wasted on Sanral's e-toll extravagance once again."

The graph illustrates Sanral's actual collections versus amounts motorists have refused to pay from the start of the e-tolls system until September 2015. (Graphic courtesy of Outa.)
The graph illustrates Sanral's actual collections versus amounts motorists have refused to pay from the start of the e-tolls system until September 2015. (Graphic courtesy of Outa.)

Outa says it supports the Gauteng provincial government's willingness to invest in Gauteng's road infrastructure, but advocates the full amount rather be allocated towards road maintenance on the rest of Gauteng's critically neglected roads and "not to prop up Sanral's incurable and exorbitant e-toll system".

Outa remains firm that urban freeway upgrades such as the GFIP should be funded through fuel levy allocations from National Treasury.

"When compared to the massive costs of the e-toll system, the R123 million in taxpayers' money paid by the Gauteng provincial government to Sanral amounts to nothing more than rearranging the deck chairs on the sinking Titanic.

"It illustrates the enormous burden Sanral has placed on Gauteng motorists, which the vast majority (now at close to 80%) have continued to reject by refusing to pay," says Duvenage.

Contravening the law

Outa has also alleged the financing of the e-toll system "could even be in direct contravention with the Sanral Act, which clearly states there could be no-cross subsidisation between tolled and non-tolled funding and operations".

Dembovsky says he would need more time to look into the Act more carefully but says it is definitely something that should be investigated.

"Taking Gauteng taxpayers' money and pushing it into funding of a national e-toll project would appear to be a gross violation of the Sanral Act, and is another serious blow to the residents of Gauteng," says Duvenage.

Sanral GM for communications, Vusi Mona, denies any violation, saying funding decisions fall within the purview of National Treasury.

"As far as Sanral is concerned, allocations to it from the fiscus do not violate the Sanral Act. Treasury has in the past allocated money to GFIP," Mona told ITWeb.

"Gauteng's contribution is part of the new dispensation. The contribution will be made to National Treasury, not Sanral. National Treasury will then make an allocation to the transport department to cover for the shortfall. Gauteng province agreed to the contribution as part of the new dispensation."

Share