The Gauteng government has begun repaying its R12.9 billion e-toll debt, which will escalate to almost R20 billion over the next five years.
Gauteng government initiated the first payment of its e-toll debt which will escalate to R20 billion over the next five years. E-tolls were scrapped but the province still owes R12.9 billion for the freeway upgrades. Picture: Michel Bega Gauteng Member of the Executive Council (MEC) for Finance and Economic Development Lebogang Maile says the province will not go bankrupt.
He was speaking at a briefing on Monday where he outlined the debt repayment structure of the failed e-toll revenue collection project. The first payment of R3.8 billion has been made and is the first of a five-year plan to cover the historical debt of R12.9 billion.The initial capital investment for the construction of the project was sourced by Sanral via the open market in the mid-2000s. Maile stated on Monday that “conspiracy theories” should not be entertained about who the funders were, but that the repayment of their investment was non-negotiable.However, an entity owned by Austrian-based company Kapsch TrafficCom was granted the contract to manage the E-toll accounts and collections.National government will account for 70% of the debt, with the provincial government covering the remaining 30%. The R12.9 billion excludes maintenance and interest fees, with the total repayment ballooning to almost R20 billion by the time the debt is cleared.No money will be borrowed to make the payments, with the amount already having been budgeted for via the provincial revenue fund.“When people were paying for e-tolls, remember it was legal, it was not illegal,” said Maile. “They were paying because they were utilising the service, so they will not be paid back because that money was not collected illegally by the government,” the MEC clarified. On the blue-lit gantries dotting the province’s freeways, he said they would be the responsibility of the provincial and national “We only deal with the money so we don’t want to speak on their behal
E-Tolls Debt Gauteng Sanral Finance
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