Taxpayers To Pay For E-Toll System Shutdown

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As the e-toll system in Gauteng gears up for its shutdown in April 2024, taxpayers find themselves bearing the brunt of the outstanding debt.

With the government stepping in to cover a substantial portion of the debt, questions loom over the fate of historical e-toll debts and refunds promised to motorists. 

Come April 12, 2024, the e-toll system in Gauteng will breathe its last breath, officially shutting down after years of controversy and public outcry. However, the closure comes with a hefty price tag, one that taxpayers will ultimately have to foot. The decision to scrap the e-tolls was sealed through an agreement between National Treasury and the Gauteng Provincial Government, marking the end of a tumultuous chapter in South Africa's transportation history.

Under the terms of the deal, National Treasury has committed to paying a substantial 70% of the South African National Roads Agency's (Sanral's) staggering R43-billion debt on the project. This translates to approximately R30.1 billion, a considerable sum that raises eyebrows as it draws directly from taxpayer funds. The remaining 30% of the debt, totaling around R12.93 billion, falls on the shoulders of the Gauteng Provincial Government (GPG).

The GPG's financial burden doesn't end there. In addition to shouldering a portion of the e-toll debt, the province is obliged to fork out an additional R4.1 billion to Sanral for backlog maintenance on roads encompassed within the Gauteng Freeway Improvement Project (GFIP). To finance these obligations, the GPG is set to secure loans from financial institutions, leveraging revenue primarily generated from provincial taxes, including vehicle licensing fees and other sources such as gambling and excise taxes.

While the government remains optimistic about meeting its financial commitments through hypothetical additional revenue streams, concerns linger regarding the feasibility of such projections, particularly amidst a landscape where motorists have displayed a staunch defiance of the e-toll system over the past decade.

The Democratic Alliance (DA) has voiced apprehension over the GPG's decision to assume the e-toll debt without concrete financial arrangements in place. Furthermore, there is ambiguity surrounding the fate of historical e-toll debts and the promised refunds to compliant motorists, a pledge previously made by Gauteng Premier Panyaza Lesufi.

As the shutdown date draws near, questions abound regarding the handling of historical e-toll debts. MyBroadband sought clarity from key stakeholders including the Gauteng Provincial Government, National Treasury, and Sanral. While Sanral has acknowledged the query, they have refrained from providing further details at this juncture, hinting at an impending media briefing to shed light on the way forward. With taxpayer money at stake and uncertainties looming, the fate of the e-toll debacle continues to unfold, leaving Gauteng residents and taxpayers on edge.

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