Gauteng's plan to use Gautrain to pay off e-toll debt

Jan

Jan

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New plan for paying R13-billion e-toll debt

The Gauteng provincial government (GPG) wants to use revenue from Gautrain — a partially tax-funded service that is not yet self-sustaining — to pay off a R12.9-billion loan it needs to foot the bill for its part in the e-toll shutdown.

The plan was recently confirmed to be part of a "revenue enhancement strategy" announced by Gauteng Finance and Economic Development MEC Lebogang Maile in his 2024/2025 budget speech.
 
Well, then it seems this loan will never be paid. I think the ANC will default and send the lenders packing. If the Gautrain is not profitable by now it will never be, let alone in such manner that it will even pay off e-Toll debt. The country is bankrupt. People are bankrupt.
 
I.e prices will go up and the guvmint will start looting it, now that they are able to with the handover story
 
r00igev@@r said:
Here is an idea. Stop stealing.
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I highly doubt they are stealing anymore. If they do, it will be a fraction of what they stole since 1994. The fiscus is empty and they are taking from the cronies to pay grants, even if they can't pay everyone every month. Also difficult to fill couches these days. Tough times. For everyone.
 
Speedster said:
This is a winning business plan. Take money from a working, but currently still loss making, entity to pay for a failed project. And then act really, really surprised when the currently working entity also fails.
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We don't need the Gautrain. Take its money, pump it into the criminal eToll debt and let the whole entity fail. The less or fewer businesses or income the ANC has access to the better it will be for the country as a whole.
 
gotaway said:
Who is getting paid, and who is getting robbed? Peter, Sipho...? Thando, Paul...?
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One things is for certain, they can no longer rob Peter to pay Paul. Neither of them has anything. They are all in disarray as we speak.
 
Jan said:
New plan for paying R13-billion e-toll debt

The Gauteng provincial government (GPG) wants to use revenue from Gautrain — a partially tax-funded service that is not yet self-sustaining — to pay off a R12.9-billion loan it needs to foot the bill for its part in the e-toll shutdown.

The plan was recently confirmed to be part of a "revenue enhancement strategy" announced by Gauteng Finance and Economic Development MEC Lebogang Maile in his 2024/2025 budget speech.
Click to expand...
Why not pay it from the R100Bn's the cadres all stole?
 
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Work on making Gautrain profitable. Then plan how to spend the profits.
It's a little philosophy that can be described as follows: Don't count your chickens before they are hatched.

We saw what ignoring this did to Eskom. Eskom became valued for its ability to generate revenue, to drive job creation internally, generate tenders, and to fill up budgetary holes all over the place. Above it's primary purpose of affordable electricity provision to the public. A primary purpose which in and of itself of incalculable economic value. Soon enough perp A, B and C came out of the woodwork: "Woot! Money! I want to be rich." Today we're literally surprised when Eskom operates a bit like normal. The bill handed over to captive rate payers is monumental, causing way above inflation increases to electricity prices. Arguably Eskom's going to put itself out of business eventually. Since in context of developments in the energy landscape it is now utterly financially unsustainable in the long run, in its present form.

Mandating that Gautrain "profits" (if such ever exists) should fund the debt of other projects, could easily lead to a situation where Gautrain is destabilized for lengthy periods of time. If it's bad enough people will come to rely on alternatives. And the inevitable effect. Failing foundational infrastructure. Standing in the way of development. Long periods of development actually being pushed back. Thanks to this kind of nonsense. A bit of ongoing funding FOR public transport makes more sense than whatever this is, because public transport is another purpose which is in and of itself of incalculable economic value.
 
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