Question NW57 to the Minister of Transport

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28 February 2023 - NW57

Profile picture: Faber, Mr WF

Faber, Mr WF to ask the Minister of Transport

(1)Given that e-tolls had failed after the Government was warned upfront and even failed to generate half of the operating cost in the past few years, and noting that e-tolls will be scrapped in 2023 whilst the South African taxpayer has to pay for another failed project in the midst of a countrywide energy crisis that needs billions of rands to keep the lights on, (a) how will the Government pay back the outstanding debt of the more than R20 billion e-toll fiasco that was created by the Gauteng provincial government and (b) who will be held accountable for this; (2) given that it has come to light that the Government undertook to start with a R23,7 billion bailout and absorb the R47 billion e-tolls debt that accumulated from non-payment, (a) where will the additional money for the e-toll mess be sourced from, (b) who will bear the brunt of it and (c) from which budgets will it be sourced?

Reply:

1 (a) As the honourable member may be aware, following the announcement by the Minister of Finance on the future of (e-toll) on the Gauteng Freeway Improvement Scheme during the 2022/23 Mid-Year Budget Adjustment Vote, Government undertook to deactivate the e-tolls billing system before end of 2022/23 with both the National Treasury and Gauteng Provincial Government contributing towards the remaining debt for the remaining concession period.

(b) With regards to the outstanding R20 Billion, the Gauteng Provincial Government has agreed to contribute 30% to settling SANRAL's debt and interest obligations, while national government will cover the entire 70% of the debt.

2. (a) The National Treasury and the Gauteng provincial Government shall make a joint contribution towards the settlement of the e-toll debt as was announce by the Minister of Finance.

(b) it is anticipated that National Treasury will bear the bulk of the costs (70%).

(c) Funds to be sourced from both the National and Provincial Budgets.

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