E-toll collection contract senseless given pending court case – Outa

The Organisation Undoing Tax Abuse (Outa) has called into question bids for a renewed e-toll collection contract to Sanral, Rekord Centurion reports.

The highest bid is reportedly more than R11-billion.

“Entering into any contract while the country awaits the cabinet’s decision on the future of the e-tolls makes no sense,” said Outa CEO Wayne Duvenage.

“However, that is not Sanral’s only problem, because there is still a court case pending on the lawful objection to non-payment.

“Should the public be found not liable for payment of e-tolls, the already defunct scheme will be dead in the water, and the country may be legally bound to a contract for up to six years.”

Duvenage said the existing e-toll collection contract with Electronic Toll Collections (ETC) expires on 2 December.

“It was a five-year contract to December 2018, which was extended for another year and has been a massive failure throughout the six years of operation,” he said.

“Documents on Sanral’s website indicate the bids submitted on the e-toll collection tender. It does not appear to have been awarded yet.”

Duvenage said Sanral’s annual report for 2019 showed revenue from the Gauteng e-toll scheme in the 2019 financial year generated a total collection of R688-million in 2018/19, which is an average of R57-million a month.

“Yet the cheapest bid submitted works out at an average cost of almost double that collection rate before any money is allocated to Sanral bonds.

“Such collection contracts make no financial sense.”

Meanwhile, Sanral spokesperson Vusi Mona said that as the agency was part of the transport department, only the department could decide the future of e-tolls.

“A tender process is currently underway in anticipation of the ending of the e-toll contract in December 2019,” Mona said.

“While the tender process is underway Sanral cannot comment on how the tenders have been constituted.”

Mona said the tender had not been awarded at this stage.