The Standing Committee on Finance yesterday agreed that National Treasury should be invited back to Parliament to finish briefing it on the fiscal implications of the halt on the e-tolling project.
Democratic Alliance shadow minister of finance Tim Harris says the controversial project has been dogged by a lack of transparency since its inception. “It is disappointing that this veil of secrecy has recently been extended over the impact the South African National Roads Agency's (Sanral) impasse will have on the fiscus.”
Treasury this week said it would not discuss e-tolling or Sanral at the finance committee meeting that was held on Tuesday.
The Parliamentary committee was unable to uncover significant detail on the fiscal implications of the halt in Gauteng's e-tolling project, because the meeting was ended shortly after National Treasury began answering questions put to it by members of Parliament, according to Harris.
“It is a great pity that the committee was not allowed the time to complete its oversight work on an issue that is clearly in the public interest.”
No liquidation
Harris adds that, before the end of the meeting, Treasury confirmed Sanral has R37.9 billion worth of debt and R21.4 billion of this, or 56%, is guaranteed by government.
“The halt in the e-tolling project raises serious concerns about Sanral's ability to repay this debt, but the Treasury director-general today confirmed that Sanral would not be allowed to liquidate and that National Treasury would meet their debt obligations for at least six months.”
Treasury also outlined the negative effect of recent ratings downgrades on Sanral's borrowing costs.
Magnified fall-out
“While we urgently need more clarity on the fiscal implications of the current impasse, it seems clear that National Treasury cannot afford to continue the legal fight to impose e-tolling. They must make public the amount required to end - or fundamentally amend - the e-tolling contracts and urgently put alternative funding models on the table to minimise the negative effect on the fiscus and the cost to taxpayers.”
Harris reiterates that finance minister Pravin Gordhan must explain the fiscal consequences of the halt on the e-toll project and outline alternative options that will minimise the cost to the taxpayer.
“Lack of comment from National Treasury, as well as their clumsy attempt to get questions around the delay in e-tolling off the Parliamentary agenda, has magnified the fall-out from the delay in the project.”