Question NW183 to the Minister of Transport
11 March 2019 - NW183
Hunsinger, Mr CH to ask the Minister of Transport
(1)(a) Why was an amount of R 5,7 billion moved to the SA National Roads Agency Gauteng Freeway Improvement Project in his department’s Medium-term Budget Policy Statement in October 2018, (b) what are the details of the purpose(s) for which the funds will be utilized and (c) why were the funds transferred from the non-toll network’s allocation; (2) whether he has found that the specified transfer of funds was based on a rational decision in the interest of all citizens considering the need for repairs on South Africa’s non-toll road network; if so, what are the relevant details? NW193E
Reply:
1. (a) Due to the SANRAL Toll portfolio experiencing financial difficulty and in order to ensure that SANRAL does not default on its payments to investors, as well as to continue with the maintenance of the toll network across the country, funds were transferred from the non-toll network to the Toll network.
(b) Falls away – refer to (a) above.
(c) Because no additional funding could be sourced from the National Treasury, this was part of a reprioritisation exercise until a permanent solution is generated by Government to deal with the e-Toll challenge.
2. Even though the non-payment by Gauteng road users has a severe impact on SANRAL’s sustainability, an event of default would have even more dire consequences for the country. This would result in SANRAL ‘s full debt of R47bn becoming due and payable to investors. It is however a fact that any money that is diverted from the non-toll network to support GFIP negatively affects road maintenance and improvements elsewhere in the country. This transfer was a necessary intervention while a permanent solution is sought by Government for the e-Toll challenge.