Motorists told to hold on a little while longer for e-tolls decision

Government is still working out the logistics and feasibility of scrapping the much unpopular e-tolls in Gauteng.

Transport Minister, Fikile Mbalula, said he had recently noted statements to the effect that he had suggested that e-tolls could not be done away with.

“Such statements are at best mischievous and at worst, malicious. It is common cause that the Organisation Undoing Tax Abuse (OUTA) and the Gauteng government, among others, are opposed to e-tolls.”

Mbalula said as a national department, they had also taken into consideration the concerns from the Gauteng department and OUTA as part of the process aimed at finding a sustainable solution.

“Work that will inform the final decision of cabinet is currently underway, this includes work being undertaken with the minister of finance,” said Mbalula.

He said the cabinet was determined to resolve the matter “in the best interest of the country” and its economic standing.

“Government will, therefore, make the necessary pronouncements once a decision has been made.”

He said government was giving careful consideration to various options for the e-tolls, as the considerations all had financial implications to be taken into account.

“We are determined to bring this matter to finality before the end of the year.

“We expect that the minister of finance, when he delivers the medium term budget policy statement in November 2021, will talk about the e-tolls. By that time, we believe cabinet would have finalised the matter.”

This follows OUTA in a statement being opposed to the toll system and debt being a reason for government to hold onto the “failed scheme”.

OUTA suggested that Finance Minister Enoch Godongwana waives all outstanding e-toll debt.

“Godongwana was reported as telling a meeting of ANC leaders that difficult trade offs would be required to fund the party’s R73.5b wish list and one of the financial challenges was that R4.6b would be needed to cover Gauteng’s unpaid e-tolls. He cautioned against forgiving this debt.”

OUTA CEO Wayne Duvenage said they maintained that the state had no other option but to face reality and waive the debt as uncorrectable.

Duvenhage said for years motorists were defying the irrational and grossly inefficient scheme.

“The state continues to make this mistake on the e-toll debacle and must surely realise after seven years of failure that raising and clinging to unjustified debt from a defiant public is a lost cause,” said Duvenage.

“In March 2019, Sanral’s board resolved to stop pursuing e-toll debt. Sanral has also halted its court challenge against OUTA, which they had set out to force e-toll defaulters to pay. Essentially, they have no enforcement mechanism available to retrieve the outstanding e-toll debt.”

He said Sanral had already effectively written off R17.3b of e-toll debt which it was forced to reflect as unrecognised revenue since the e-toll scheme began in December 2013, and has impaired a further R6.3b e-toll debt.

He said furthermore, treasury allocated grants of R10.8b to Sanral since 2016, to cover the Gauteng freeway improvement project debt.

He said since July 2019, cabinet had been promising a solution to the e-tolls impasse, however “the self-imposed deadlines repeatedly pass by”.

OUTA called on Godongwana to help resolve the cabinet’s stalemate and engage with OUTA to understand alternative solutions posed.

“This decision is more urgent than ever, as Sanral’s final contract extension with e-toll collections agency ETC expires on December 2, 2021. Sanral has extended this several times, although this has been legally questionable.”