R7-billion Sanral loan from Brics bank questioned
“Sanral already has a sizeable interest-bearing debt of R47-billion.”
Sanral believes a R7-billion loan from the Brics bank is an indication of international confidence in the roads agency.
This as the oganisation undoing tax abuse (Outa) called on the agency to clarify the loan which would sink it deeper into debt.
A statement by the Brics New Development Bank on Monday, said the bank had approved the loan for “national toll roads strengthening and improvement programme”.
While the loan had been approved, it had yet to be approved by the transport and finance ministers, according to Sanral spokesperson Vusi Mona.
ALSO READ: Sanral to suspend collection of e-toll debt ‘with immediate effect’
Despite this, Outa said it was worried about Sanral’s growing debt.
“As far as we are concerned, funding for tolled roads comes from the collection of tolls on those road networks,” Wayne Duvenage said.
“We would like to know if this funding is going toward the freeway improvement project bonds (for e-tolled roads) or other Sanral-managed toll roads that are supposed to be self-funding.
“We don’t believe these funds are being allocated to the concessionaire tolled routes and would be extremely concerned if this was the case,” he said.
“Sanral already has a sizeable interest-bearing debt of R47-billion.”
Sanral has, however, come out strongly on the matter, accusing Outa of undermining its efforts to secure funding to maintain the high quality of the road network.
“It is outrageous that an organisation such as Outa can criticise a decision by NDB to extend a R7-billion loan for road infrastructure development projects,” said Sanral CEO Skhumbuzo Macozoma.
“Outa’s malicious actions are designed to destroy Sanral and deprive South African citizens of world-class national road infrastructure.”
Macozoma said Sanral was doing its best in tough economic conditions and unfavourable bond markets to secure funding for road development.
“The loan from the Brics bank shows international confidence in our capabilities despite the destructive comments from Outa.”
ALSO READ: E-toll fee increases ‘out of Sanral, ETC’s hands’
Macozoma said it was time government and the citizens of South Africa held Outa to account for the civil disobedience campaigns that were “contributing to the long-term destruction of critical road infrastructure”.
“Sanral will continue to look for more funding options to address the backlog of R140-billion in toll roads projects that are currently without funding.”
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