Lack of clarity on costs, refunds stalling end of e-tolls, says OUTA | Business

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Lack of clarity on costs, refunds stalling end of e-tolls, says OUTA | Business
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A lack of clarity on four issues appears to be stalling the finalisation of the end of e-tolls in Gauteng, says OUTA. | News24_Business

Why is the Gauteng Province being asked to settle any debt that the national authoroties entered into in 2008 when the e-toll scheme was approved? asks OUTA.Gauteng's controversial e-toll system was due to be scrapped at the end of 2022.

Godongwana announced that government would take on 70% of the debt of the SA National Road Agency , while the province would take on 30%. In OUTA's view, the end of the e-toll system will continue to be delayed unless national government and the Gauteng province provide clarity on issues like how motorists will get refunds and why Gauteng should have to pay anything at all.

OUTA says that, secondly, clarity is required on exactly what the amount the province is expected to contribute 30% toward and how the figure is derived. Even if the Gauteng has been convinced into contributing toward 30% of the bonds, it should only cover 30% of the R21 billion borrowed for the GFIP, in the view of OUTA.

On top of this, OUTA suggests the Gauteng Province should be asking why SANRAL paid"excessive costs" of R17.9 billion for the GFIP upgrade - before the e-toll gantries added another R3 billion infrastructure costs into the mix. OUTA estimates that, at most, the GFIP project should have cost society no more than R9 billion.

"However, we fail to see how this will be meted onto Gauteng citizens in the form of any additional provincial related taxes without making Gauteng a more expensive province to live and do business. We look forward to his consultations."

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