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Cabinet to appeal e-toll ruling

Nicola Mawson
By Nicola Mawson, Contributor.
Johannesburg, 17 May 2012

The South African government is set to appeal a High Court ruling interdicting the South African National Roads Agency Limited (Sanral) from implementing e-tolling, despite the appeal deadline lapsing.

Cabinet made this announcement in a statement issued this afternoon, following its fortnightly meeting. The statement says: “Cabinet has taken a decision to appeal the interim order to stop the e-tolling.”

The statement points out that government only received the written judgment late yesterday on the Gauteng Freeway Improvement Programme (GFIP) tolling halt, and its lawyers are studying the document. It did not say whether it would apply to the court to condone the late appeal.

Disappointing

At the end of April, the North Gauteng High Court stopped the agency from implementing electronic tolls on the province's freeways, pending a full court review of the issue after the Opposition to Urban Tolling Alliance requested an urgent interdict.

The Justice Project of SA (JPSA) is disappointed in Cabinet's decision, as Sanral had indicated it would not appeal the court ruling.

“While appeal is most certainly the right of anyone, including Cabinet, it is sad to see that in the face of such overwhelming public opposition to the unjustifiably high cost e-toll method of collecting monies to pay for the GFIP roads, government is persisting with its stance that this is a 'done deal' and we are just going to 'have to' accept it.”

Government decided in 2007, in terms of provisions of the Sanral Act and after “extensive planning and consultation”, to finance the construction and maintenance of an improved Gauteng freeway network through an electronic tolling system.

National Treasury earlier this year funded R5.75 billion of the R20 billion debt incurred to improve freeways. Moody's Investors Service warned earlier this month that the delay in paying back the debt through tolls cost Sanral R2.7 billion in revenue, which will grow to R3 billion by month-end.

Cabinet said in today's statement that the state borrowed money and incurred “significant” debt because of the project. “As a country, we need to demonstrate unequivocal commitment to meet all our contractual obligations, including repaying the debt incurred in the construction of GFIP. Defaulting on our debt is simply not an option.”

Obvious benefits

Cabinet says it has “effected major improvements to Gauteng freeways under the first phase of the GFIP, which have brought about observable changes to the flow of traffic on these roads. The benefits to motorists are evident.”

Cabinet's statement adds that Sanral was created by our democratic government and “with its demonstrable capacity to manage large contracts and deliver world-class road infrastructure, it has proved to be a valuable institution of the state”.

Government plans to use Sanral to build more road infrastructure in future, it says. “Accordingly, in light of the delay in e-tolling as a result of the court decision, government will take the necessary steps to ensure Sanral's financial soundness pending the outcome of the legal and consultation processes.”

The committee, chaired by deputy president Kgalema Motlanthe, is exploring interim measures to assist Sanral in meeting its financial obligations, it says. “Cabinet reiterated its commitment to the user pay principle and its decision on e-tolling as an efficient mechanism of collection.”

JPSA adds that the user pays principle would be achieved by a fuel levy.

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