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SA tolling under fire

Bonnie Tubbs
By Bonnie Tubbs, ITWeb telecoms editor.
Johannesburg, 26 Nov 2012
Government's controversial e-tolls proposal will be reviewed in the High Court this week, amid reports of questionable practices.
Government's controversial e-tolls proposal will be reviewed in the High Court this week, amid reports of questionable practices.

Today sees the long-awaited judicial review of the proposed Gauteng e-tolling system get under way at the High Court in Pretoria, amid reports of questionable practices on the part of government-driven SA National Road Agency (Sanral).

The Opposition to Urban Tolling Alliance (Outa), which called for the court case earlier this year, following what it said was a lack of appropriate consultation and disclosure by Sanral and the Department of Transport (DOT), has now also called for an independent tolls inquiry.

This follows a report by the Sunday times yesterday that underpins Outa's allegations against the Gauteng e-toll system, on the grounds of it being illegal and unduly expensive - as well as those against Sanral for lack of transparency.

The report, published on the back of a three-month-long investigation into the toll industry, suggests the e-toll system "appears to operate under a , with sub-contractors reluctant to criticise economically unsound decisions by Sanral, fearing they will be excluded from further deals worth billions".

Questionable practice

Outa chairperson Wayne Duvenage says the report reveals a "veil of questionable practices" within the South African tolling industry at large. He says this hints at the need for a much broader and deeper examination into all tolling, and not just Gauteng's e-toll plans - which has occupied the limelight since April.

"South African road users have for some time queried the high costs of toll charges on most tolled routes. It appears there is reason to question the apparent predatory pricing of an industry that seems to favour certain suppliers/insiders and is reluctant to report transparently on its costs and revenues."

Duvenage says the growing voice of opposition to e-tolls as a funding method now extends well beyond Outa, the Congress of SA Trade Unions and other entities that have been outspoken on the matter. "This was clearly demonstrated by the public during recent information sessions held by government in Gauteng, which Sanral simply cannot ignore when it reports back to the minister on these engagements."

He says Outa is disconcerted by the stance that both Sanral and government have taken on the public outcry against being taxed further for the use of Gauteng's roads. "[They] choose to continually ignore the clear message of rejection supported by the overwhelming arguments highlighting the inefficiency and high costs of the e-toll proposal, which may ultimately run the of creating further uncertainties and credit re-ratings."

Negative view

It appears that Outa will argue in court that implementation of e-tolls will cause SA's credit rating and standing in the world's eyes to plunge.

Sanral has, in the past, blamed Outa's court action for negative re-ratings. Duvenage suggests the escalation of anti e-toll protests, together with the overwhelming public dissent, "will most certainly aggravate the already poor impression of SA among international media and investors".

Duvenage reiterates that the inter-ministerial committee needs to make public its recommendations to Cabinet. "Given the Sunday Times revelations, [Outa will] support an independent commission of inquiry into all tolling concessions and contracts issued by Sanral, to ensure the South African motorist has not been unnecessarily overcharged."

Of concern, adds Duvenage, are other court judgments against Sanral over the past few years, the most recent being about three months ago, when the KZN High Court ruled that Sanral's awarding of the N2 South Coast toll concession to Tolcon Lehumo be set aside.

"All appears not to be as 'squeaky clean' as Sanral [makes itself] out to be and Sanral's credibility throughout the Gauteng e-toll saga has indeed been questionable."

He says Outa is "ready" and "looks forward" to presenting its case in court this week. The court case will take place over the next three days, after which the presiding judge will deliberate.

Duvenage says time frames as to when a decision will be made are unclear. "After proceedings wrap up on Wednesday, the judge will have to deliberate and a ruling may only be passed weeks later - possibly in January."

DOT spokesperson Tiyani Rikhotso says it is Outa's right to make the call to launch an independent inquiry - or to call for an investigation of any nature.

Regarding the Sunday Times report, Rikhotso says, as far as the department is concerned, all processes conducted in line with tolling practices are legitimate. "We have that assurance from Sanral itself, so from where we sit we are of the view that the tolling processes have been above board - as informed by the agency."

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