The South African National Roads Agency (Sanral) expects credit losses of almost R29 billion as Gauteng drivers are steadfast in their non-payment of e-tolls.
The road agency said that it expects a R28.7 billion credit loss from toll debtors using the Gauteng Freeway Improvement Project (GFIP).
According to Sanral’s 2023/24 annual report, the organisation has been stressing that customers are obliged to settle their accounts even though the agency has scrapped the e-toll system.
In April, Gauteng Premier Panyaza Lesufi, along with Sanral and the national Department of Roads and Transport, announced that e-tolls would no longer serve as a revenue source for the government, effectively abolishing the e-toll system.
Issuing Jozi drivers with a summons
Wayne Duvenage, the Chief Executive Officer (CEO) of the Organisation Undoing Tax Abuse (Outa) told Moneyweb that a large proportion of Sanral’s debt was prescribed.
He stated that Sanral could recover the billions in unpaid e-toll accounts from motorists by issuing summonses against them.
Outa is currently in the high court, testing a case against Sanral on e-toll charges, but the organisation noted that Sanral does not want to enter into a litigious lawfare strategy with the public.
Gauteng pays Sanral’s debt
Outa last week called for transparency on the cross-departmental movement of money regarding the Gauteng freeway debt.
This comes as Sanral received its first instalment by the Gauteng Provincial Government towards its e-toll debt.
In late September, Gauteng MEC for Finance and Economic Development, Lebogang Maile announced that the provincial government would be paying its first instalment towards the R20 billion for the scrapped e-toll debt it owed Sanral.
The provincial government will be paying R12 billion on the actual debt, R4 billion on the interest incurred, and R4 billion on maintenance.
The first instalment paid was around R3 billion.
Duvenage said Outa was disappointed that the Gauteng Government allowed itself to be roped into settling any of the Gauteng Freeway Upgrade construction debt in the first place.
“These bonds were entered into by Sanral (a national entity) and the bonds were guaranteed by Treasury. The Gauteng province had nothing to do with these agreements and it was never their debt to settle in the first place,” Duvenage explained.
He noted this payment came at a time when there were significant financial constraints and shortfalls within the province which is stretched in meeting its needs to serve the residents, including its long-term funding requirements to upgrade the provincial freeway network.
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