The Gauteng Provincial Government will fund its contribution towards the scrapping of e-Tolls through a loan or loans from financial institutions. This was announced by Gauteng MEC for Finance, Jacob Mamabolo, during his budget speech this week.

Although MEC Mamabolo indicated that the Gauteng government aims to scrap e-tolls by 31 March 2024, this depends on the provincial government's ability to raise a loan.

Should a loan not be obtained, it will be back to the drawing board for the Gauteng government.

The MEC has also indicated that they still need to reach an agreement with SANRAL about how it will contribute a further R4,1 billion towards freeway maintenance.

Thus, the total minimum debt to which the Gauteng government has committed is R18 billion, excluding interest to be paid.

How the debt will be serviced by the provincial government is still unclear. The issue on which the MEC was mum was whether historic e-toll debt would be written off. We need clarity on whether motorists will remain liable for their e-toll debts. The MEC needs to be clear on this.

It is once again clear that Premier Panyaza Lesufi’s government committed to the e-Toll debt without having the finances in place. Finance is yet to be secured.

It is unacceptable that the residents of Gauteng will, in the end, pay double for the Gauteng freeway improvement plan. e-Tolls have caused a massive tax burden on the people of Gauteng and will continue to do so even when the gantries are switched off.

 

Issued by Fred Nel MPL - DA Gauteng Shadow MEC for Roads and Logistics