If you were to ask any South African today if they pay tax, the answer will be no. There are only 4 million of us having to support 50 million.
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[May 2013..Dec 2013] The Gauteng E-tolling Thread
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If you were to ask any South African today if they pay tax, the answer will be no. There are only 4 million of us having to support 50 million.
LazyLion
King of de Jungle
eTOLL DELAY IS A FARCE – OUTA
http://www.outa.co.za/site/etoll-delay-is-a-farce-outa/
OUTA regards the decision to delay the signing of the Transport & Related Matters Amendment Bill, under the guise that it may be incorrectly tagged in the parliamentary process, as simply a tactic to give the ruling party time to juggle their way around this most uncomfortable situation.
The question of whether it should be tagged as a Section 76 or 75 bill was raised by the Freedom Front Plus (FF+) earlier in May this year, during the parliamentary process where every political party, barring the ANC, voted against the bill. Today, SANRAL claims this bill is required in order to proceed with eTolls, however, this regulatory requirement was not an issue for them in August 2012, when SANRAL’s legal team argued hard in the Constitutional Court that, they would start tolling within two weeks of the interdict being set aside (which happened a month later). If the tagging of the bill was indeed an issue, this should have been noted last year, or at worst, a few months ago when the FF+ raised the matter in the parliamentary debate on the bill.
The reality is that eTolls has become an election issue and one that is too hot a potato for the ruling party to handle right now. Conveniently, they have latched onto this technicality that could possibly help them to ‘kick the can down the road’ for another eight months or so. In the meantime, SANRAL cries loud for the need to start tolling, as its funds are critically low and they are ready to toll. It doesn’t take much to see through the charade and shambles this matter has turned out to be.
Adding to the farce, is SANRAL’s continued gross expenditure of tax-payer’s money on a failed eTag sales and propaganda campaign, seeking in vain to solicit society to buy into their irrational plan. “This will probably go down in the advertising case study journals as the most unsuccessful marketing campaign of all time in our country” says Wayne Duvenage, OUTA’s Chairman. “When one considers that several millions of rands have been pumped into their radio, television and print campaign, resulting in the sale of an additional ‘handful’ of tags and a growing rejection of their plan, the message to avid marketing students is just this; no matter how you try to disguise it, donkey manure can never be sold as food. The people will simply not buy it. If it’s not good for society to consume, it’s simply not going to happen”.
In September 2012, a significant element in the Constitutional Court reasoning of their decision to set aside OUTA’s interdict, was that court decisions should be careful not to usurp the executive powers of an elected government. “Isn’t it ironical that now, when we have a policy which clearly portrays the ruling party’s position on social infrastructure development, they seek ways to remove the issue from the electorate debate” says Duvenage, who adds “why then don’t the authorities place the eToll matter squarely into the electioneering fray, if indeed this is the stuff that Executive Powers ought to be rated and voted on”.
- See more at: http://www.outa.co.za/site/etoll-delay-is-a-farce-outa/#sthash.ssvg2mKp.dpuf
http://www.outa.co.za/site/etoll-delay-is-a-farce-outa/
OUTA regards the decision to delay the signing of the Transport & Related Matters Amendment Bill, under the guise that it may be incorrectly tagged in the parliamentary process, as simply a tactic to give the ruling party time to juggle their way around this most uncomfortable situation.
The question of whether it should be tagged as a Section 76 or 75 bill was raised by the Freedom Front Plus (FF+) earlier in May this year, during the parliamentary process where every political party, barring the ANC, voted against the bill. Today, SANRAL claims this bill is required in order to proceed with eTolls, however, this regulatory requirement was not an issue for them in August 2012, when SANRAL’s legal team argued hard in the Constitutional Court that, they would start tolling within two weeks of the interdict being set aside (which happened a month later). If the tagging of the bill was indeed an issue, this should have been noted last year, or at worst, a few months ago when the FF+ raised the matter in the parliamentary debate on the bill.
The reality is that eTolls has become an election issue and one that is too hot a potato for the ruling party to handle right now. Conveniently, they have latched onto this technicality that could possibly help them to ‘kick the can down the road’ for another eight months or so. In the meantime, SANRAL cries loud for the need to start tolling, as its funds are critically low and they are ready to toll. It doesn’t take much to see through the charade and shambles this matter has turned out to be.
Adding to the farce, is SANRAL’s continued gross expenditure of tax-payer’s money on a failed eTag sales and propaganda campaign, seeking in vain to solicit society to buy into their irrational plan. “This will probably go down in the advertising case study journals as the most unsuccessful marketing campaign of all time in our country” says Wayne Duvenage, OUTA’s Chairman. “When one considers that several millions of rands have been pumped into their radio, television and print campaign, resulting in the sale of an additional ‘handful’ of tags and a growing rejection of their plan, the message to avid marketing students is just this; no matter how you try to disguise it, donkey manure can never be sold as food. The people will simply not buy it. If it’s not good for society to consume, it’s simply not going to happen”.
In September 2012, a significant element in the Constitutional Court reasoning of their decision to set aside OUTA’s interdict, was that court decisions should be careful not to usurp the executive powers of an elected government. “Isn’t it ironical that now, when we have a policy which clearly portrays the ruling party’s position on social infrastructure development, they seek ways to remove the issue from the electorate debate” says Duvenage, who adds “why then don’t the authorities place the eToll matter squarely into the electioneering fray, if indeed this is the stuff that Executive Powers ought to be rated and voted on”.
- See more at: http://www.outa.co.za/site/etoll-delay-is-a-farce-outa/#sthash.ssvg2mKp.dpuf
LazyLion
King of de Jungle
E-Tags and other horror stories
“If a law is unjust you are not only right to disobey it, you are obligated to.” Thomas Jefferson.
The Gauteng motorists have over the past year or so been lambasted by a neon light show on the highways with the SANRAL E-Toll gantries. These steel constructions are lit up like a baboon’s backside and are a stark reminder that we are facing what cannot be termed as anything less than hi-way robbery. 150 km’s of Urban Tolls that surrounds our city, with the pending doom of 500km more on its way.
In and Eco friendly world where Gillnets are banned worldwide, we have inadvertently found ourselves like fish in a barrel, a mega cash source for SANRAL and the Government. What is even scarier is that, like lambs to the slaughter, the citizens have resigned themselves to this extra fleecing of their wallets. Hope that maybe the next election or the one thereafter they will be saved from this unrelenting rape of their depleting cash reserves.
That’s not about to happen, as SANRAL is forging ahead with new E Toll routes, in Durban, Cape Town, Bloemfontein to name a few. Their multi million Rand buildings being erected all over the country, a harsh reality, people are consciously turning a blind eye to.
SANRAL Representatives are quick to tell you that Tolling is an accepted norm in the civilised world. What he doesn’t tell you is that we’re not that civilised, with corruption theft etc a common factor in our Government and its subsidiary’s.
Let’s take a look at that, this past financial year end; media announced the findings of the auditor General for Central Government.
It was found that R25Billion was declared fruitless and wasteful expenditure.
That R33Billion was untraceable.
R5.7Billion was under fraud investigation.
R90 Billion fruitless and wasteful expenditure in Local Government.
Now when I look at these numbers, I have to ask with so much money available for wastage, why are Toll roads even required in the first place? Here is money to burn, and they are doing a grand job at that.
Our Fuel levy, as publicised, rakes in R41.7 Billion a year. Considering this large cash dump into the fiscus, one would think we would have world class roads. Not the case, over the past 16?year’s only R7Billion has been spent on average per year on upgrades and maintenance. This past year that doubled to R14 Billion. Why? Well SANRAL needed new buildings on almost every off ramp called, believe this or not, Customer Care Centres. Its like calling an Abattoir a health clinic.
OUTA, who’s appeal will be heard this month has been at the forefront of the Anti Toll Campaign, CUSATU and the Freedom Front Plus has also made their feelings heard, with either a petition or taking to the streets with go-slow marches.
My question is where are the citizens? Why no revolt? Why is our Government not on trial? Apathy adds up, in the long run to cowardice and in the words of Plato, “The price of Apathy towards public affairs is to be ruled by evil men.”
There are a group of people who have stood up to be counted, and in as respectful a way possible towards Joe Public, the Motorcyclist fraternity have taken to the streets with a National Campaign against Tolls. These Bikers have had protests in all the major cities and some outlying towns to vent their disapproval and take a stand. Bikers Against E-Tolls have and will keep on bringing the awareness to the public. This money making scheme that SANRAL is forcing on to its tax paying citizens, comes with the threat of imprisonment should you not pay to use our roads.
They have basically been leased out for profit to the Austrian company, Kaapsch TraffiCom. Profit, to the tune of R667Million per year as declared by themselves to their investors. In plain English, SANRAL will use the Criminal Procedure’s Act to force us to pay profits to an offshore company to use our own highways with the threat of criminalisation and incarceration. When will we take our streets back? Its up to us to make a stand. Do not Tag, do not give SANRAL access to your bank. Make this scheme unmanageable and it will fail as it did in Portugal.
I will end this with a quote from Ronald Regan “Freedom is never more than one generation away from extinction. We didn’t pass it on to our children in the bloodstream. It must be fought for, protected, and handed on for them to do the same, or one day we will spend our sunset years telling our children and our children’s children what it was once like in the United States (Read South Africa) where men were free.”
http://www.news24.com/MyNews24/E-Tags-and-other-horror-stories-20130916
“If a law is unjust you are not only right to disobey it, you are obligated to.” Thomas Jefferson.
The Gauteng motorists have over the past year or so been lambasted by a neon light show on the highways with the SANRAL E-Toll gantries. These steel constructions are lit up like a baboon’s backside and are a stark reminder that we are facing what cannot be termed as anything less than hi-way robbery. 150 km’s of Urban Tolls that surrounds our city, with the pending doom of 500km more on its way.
In and Eco friendly world where Gillnets are banned worldwide, we have inadvertently found ourselves like fish in a barrel, a mega cash source for SANRAL and the Government. What is even scarier is that, like lambs to the slaughter, the citizens have resigned themselves to this extra fleecing of their wallets. Hope that maybe the next election or the one thereafter they will be saved from this unrelenting rape of their depleting cash reserves.
That’s not about to happen, as SANRAL is forging ahead with new E Toll routes, in Durban, Cape Town, Bloemfontein to name a few. Their multi million Rand buildings being erected all over the country, a harsh reality, people are consciously turning a blind eye to.
SANRAL Representatives are quick to tell you that Tolling is an accepted norm in the civilised world. What he doesn’t tell you is that we’re not that civilised, with corruption theft etc a common factor in our Government and its subsidiary’s.
Let’s take a look at that, this past financial year end; media announced the findings of the auditor General for Central Government.
It was found that R25Billion was declared fruitless and wasteful expenditure.
That R33Billion was untraceable.
R5.7Billion was under fraud investigation.
R90 Billion fruitless and wasteful expenditure in Local Government.
Now when I look at these numbers, I have to ask with so much money available for wastage, why are Toll roads even required in the first place? Here is money to burn, and they are doing a grand job at that.
Our Fuel levy, as publicised, rakes in R41.7 Billion a year. Considering this large cash dump into the fiscus, one would think we would have world class roads. Not the case, over the past 16?year’s only R7Billion has been spent on average per year on upgrades and maintenance. This past year that doubled to R14 Billion. Why? Well SANRAL needed new buildings on almost every off ramp called, believe this or not, Customer Care Centres. Its like calling an Abattoir a health clinic.
OUTA, who’s appeal will be heard this month has been at the forefront of the Anti Toll Campaign, CUSATU and the Freedom Front Plus has also made their feelings heard, with either a petition or taking to the streets with go-slow marches.
My question is where are the citizens? Why no revolt? Why is our Government not on trial? Apathy adds up, in the long run to cowardice and in the words of Plato, “The price of Apathy towards public affairs is to be ruled by evil men.”
There are a group of people who have stood up to be counted, and in as respectful a way possible towards Joe Public, the Motorcyclist fraternity have taken to the streets with a National Campaign against Tolls. These Bikers have had protests in all the major cities and some outlying towns to vent their disapproval and take a stand. Bikers Against E-Tolls have and will keep on bringing the awareness to the public. This money making scheme that SANRAL is forcing on to its tax paying citizens, comes with the threat of imprisonment should you not pay to use our roads.
They have basically been leased out for profit to the Austrian company, Kaapsch TraffiCom. Profit, to the tune of R667Million per year as declared by themselves to their investors. In plain English, SANRAL will use the Criminal Procedure’s Act to force us to pay profits to an offshore company to use our own highways with the threat of criminalisation and incarceration. When will we take our streets back? Its up to us to make a stand. Do not Tag, do not give SANRAL access to your bank. Make this scheme unmanageable and it will fail as it did in Portugal.
I will end this with a quote from Ronald Regan “Freedom is never more than one generation away from extinction. We didn’t pass it on to our children in the bloodstream. It must be fought for, protected, and handed on for them to do the same, or one day we will spend our sunset years telling our children and our children’s children what it was once like in the United States (Read South Africa) where men were free.”
http://www.news24.com/MyNews24/E-Tags-and-other-horror-stories-20130916
Seriously
Honorary Master
- Joined
- Nov 29, 2012
- Messages
- 16,595
- Reaction score
- 220
Rather to BRAINWASH the uneducated into submitting to pressure to be robbed of their hard earned cash to preventing them to afford an acceptable living standard by unscrupulous and corrupt government officials (read criminals and thieves) and their associate "business" partners who line their private pockets and stuff their bank accounts.
LazyLion
King of de Jungle
Heaven forbid. If they unite, we will never see another working day. It will just be sympathy strike after sympathy strike.
LazyLion
King of de Jungle
E-tolls coming by year end: Dipuo Peters
http://www.timeslive.co.za/politics/2013/09/18/e-tolls-coming-by-year-end-dipuo-peters
The Gauteng Freeway Improvement Project (GFIP) will still be implemented this year, but the commencement date for e-tolling has yet to be determined, according to Transport Minister Dipuo Peters.
In written reply to a parliamentary question, she said the transport department was awaiting the promulgation of the Transport Laws and Related Matters Amendment Bill.
The bill was with President Jacob Zuma, who still had to sign it into law, she said.
On September 5, the presidency said Zuma was still considering the bill.
"Once he has made a decision, the president will inform Parliament and the public," presidency spokesman Mac Maharaj said in a statement at the time.
The e-tolls have been challenged by several political parties, the Congress of SA Trade Unions (Cosatu), and the Opposition to Urban Tolling Alliance (Outa).
In April this year, the SA National Roads Agency Ltd (Sanral) said it would begin e-tolling on Gauteng's roads within two months.
The previous April, the High Court in Pretoria granted Outa an interdict approving a full judicial review before electronic tolling could be put into effect.
The interdict prevented Sanral from levying or collecting e-tolls, pending the outcome of a review. Sanral and the National Treasury appealed the court order.
In September last year, the Constitutional Court set aside the interim order, and, in December, the High Court in Pretoria dismissed Outa's application to scrap e-tolling.
The court granted Outa leave on January 25 this year to take the matter to the Supreme Court of Appeal in Bloemfontein. The appeal is expected to be heard this month.
http://www.timeslive.co.za/politics/2013/09/18/e-tolls-coming-by-year-end-dipuo-peters
The Gauteng Freeway Improvement Project (GFIP) will still be implemented this year, but the commencement date for e-tolling has yet to be determined, according to Transport Minister Dipuo Peters.
In written reply to a parliamentary question, she said the transport department was awaiting the promulgation of the Transport Laws and Related Matters Amendment Bill.
The bill was with President Jacob Zuma, who still had to sign it into law, she said.
On September 5, the presidency said Zuma was still considering the bill.
"Once he has made a decision, the president will inform Parliament and the public," presidency spokesman Mac Maharaj said in a statement at the time.
The e-tolls have been challenged by several political parties, the Congress of SA Trade Unions (Cosatu), and the Opposition to Urban Tolling Alliance (Outa).
In April this year, the SA National Roads Agency Ltd (Sanral) said it would begin e-tolling on Gauteng's roads within two months.
The previous April, the High Court in Pretoria granted Outa an interdict approving a full judicial review before electronic tolling could be put into effect.
The interdict prevented Sanral from levying or collecting e-tolls, pending the outcome of a review. Sanral and the National Treasury appealed the court order.
In September last year, the Constitutional Court set aside the interim order, and, in December, the High Court in Pretoria dismissed Outa's application to scrap e-tolling.
The court granted Outa leave on January 25 this year to take the matter to the Supreme Court of Appeal in Bloemfontein. The appeal is expected to be heard this month.
LazyLion
King of de Jungle
The Gauteng Freeway Improvement Project (GFIP) will still be implemented this year, but the commencement date for e-tolling has yet to be determined, according to Transport Minister Dipuo Peters.
In written reply to a parliamentary question, she said the transport department was awaiting the promulgation of the Transport Laws and Related Matters Amendment Bill.
The bill was with President Jacob Zuma, who still had to sign it into law, she said.
On September 5, the presidency said Zuma was still considering the bill.
"Once he has made a decision, the president will inform Parliament and the public," presidency spokesman Mac Maharaj said in a statement at the time.
The e-tolls have been challenged by several political parties, the Congress of SA Trade Unions (Cosatu), and the Opposition to Urban Tolling Alliance (Outa).
In April this year, the SA National Roads Agency Ltd (Sanral) said it would begin e-tolling on Gauteng's roads within two months.
The previous April, the High Court in Pretoria granted Outa an interdict approving a full judicial review before electronic tolling could be put into effect.
The interdict prevented Sanral from levying or collecting e-tolls, pending the outcome of a review. Sanral and the National Treasury appealed the court order.
In September last year, the Constitutional Court set aside the interim order, and, in December, the High Court in Pretoria dismissed Outa's application to scrap e-tolling.
The court granted Outa leave on January 25 this year to take the matter to the Supreme Court of Appeal in Bloemfontein. The appeal is expected to be heard this month.
Source : Sapa /jk/tk/jje
Date : 18 Sep 2013 08:19
OrigID : LP974185
In written reply to a parliamentary question, she said the transport department was awaiting the promulgation of the Transport Laws and Related Matters Amendment Bill.
The bill was with President Jacob Zuma, who still had to sign it into law, she said.
On September 5, the presidency said Zuma was still considering the bill.
"Once he has made a decision, the president will inform Parliament and the public," presidency spokesman Mac Maharaj said in a statement at the time.
The e-tolls have been challenged by several political parties, the Congress of SA Trade Unions (Cosatu), and the Opposition to Urban Tolling Alliance (Outa).
In April this year, the SA National Roads Agency Ltd (Sanral) said it would begin e-tolling on Gauteng's roads within two months.
The previous April, the High Court in Pretoria granted Outa an interdict approving a full judicial review before electronic tolling could be put into effect.
The interdict prevented Sanral from levying or collecting e-tolls, pending the outcome of a review. Sanral and the National Treasury appealed the court order.
In September last year, the Constitutional Court set aside the interim order, and, in December, the High Court in Pretoria dismissed Outa's application to scrap e-tolling.
The court granted Outa leave on January 25 this year to take the matter to the Supreme Court of Appeal in Bloemfontein. The appeal is expected to be heard this month.
Source : Sapa /jk/tk/jje
Date : 18 Sep 2013 08:19
OrigID : LP974185
Heisenborg
Honorary Master
- Joined
- Dec 15, 2006
- Messages
- 21,872
- Reaction score
- 14,577
Honestly, what do they think is gonna happen??
source: http://www.fin24.com/Economy/Sanral-slams-R11m-CEO-pay-hike-claims-20130917
I especially like the part about the 679k bonus he received. I wonder for what that was. SANRAL was downgraded financially, and have been warned that they will probably be downgraded once more to below investment grade (which means that big funds may no longer invest in them), e-tolling hasn't started yet and they are completely reliant on the treasury to keep them afloat...
LazyLion
King of de Jungle
E-tolling now an election issue
http://www.fm.co.za/politics/2013/09/19/e-tolling-now-an-election-issue
The political sensitivity that has delayed electronic tolling on Gauteng's freeways isn't compromising the SA National Road Agency's (Sanral) finances just yet, CEO Nazir Alli insists. And he says there is no danger that Sanral will default on its debt repayments.
This is despite the agency being slapped with a credit rating downgrade by Moody's this month. But Moody's has also placed Sanral's credit rating under review, pending a further downgrade. This time more is at stake.
Sanral needs to cough up a massive R5bn to repay debt. Its R1,48bn, NRA013 bond matures on October 31 2013. A second bond, the NRA014, matures on April 30 2014.
Without revenue from tolling, investors should be concerned about getting their money back. Sanral last tried to raise money on the bond market in September 2011. The bond auction was a disaster, leading the agency to abandon further attempts to borrow on capital markets until tolling begins.
Moody's view is that Sanral's deteriorating cash flow situation puts its ability to meet operating expenses and service its high debt levels at risk. The problem is the prolonged delay in Sanral's ability to collect e-toll revenue to pay for the costly upgrade to Gauteng's freeways.
Sanral's debt had soared to R36,2bn by March 2013, up from R6,2bn in 2007. This increase is mainly due to the Gauteng investment. Moody's estimates that its debt will rise to R39bn by March 2014.
E-tolling is expected to generate R250m-R300m/month.
With strong resistance from the public and opposition parties, e-tolling has become a pre-election rallying point. Government has endorsed the user-pays principle as a means of financing infrastructure, but allowing tolling to begin is becoming more difficult the closer SA gets to elections.
Sanral's public reputation is in tatters, even if investors have always heaped praise on it.
And the headaches continue to compound. This week, Alli was also left to defend a R1,1m rise in his salary. And R3,3bn in irregular expenditure has been flagged for attention.
For tolling to begin, President Jacob Zuma must approve the Transport Laws & Related Matters Amendment Bill. It already has the approval of both houses of parliament but there is speculation that Zuma may withhold his signature until after the elections.
The effect on Sanral's finances could be disastrous.
Gauteng's upgraded freeways make up just 1% of Sanral's total road portfolio (tolled roads are about 16% of its network of 19704km). But the Moody's downgrade is linked to its financial health, which is failing fast because of its inability to realise any revenue from such a massive investment. The first phase of the Gauteng Freeway Improvement Project cost R20bn.
Moody's analyst Kenneth Morare is concerned about the implications of rising debt: "Inability to generate e-toll revenue will likely prompt the company to further increase its financial leverage. Heavy reliance on debt as a substitute for e-toll revenue will lead to even higher debt service costs for Sanral."
Alli agrees, saying the late start to e-tolling means that Sanral will have to pay much more than it initially expected to.
But, he says, Sanral will use short-term loans to maintain the stability of its cash flow until e-tolling begins. It has national treasury's approval to do that.
"We are negotiating with all the commercial banks and even asset managers like Old Mutual and Stanlib for loans spanning one to three years. Negotiations continue but we should know where we stand within two weeks."
Using short-term loans is within its mandate, as long as it is within the treasury-approved borrowing limit of R47,9bn.
What has changed, says Alli, is the tenure of the debt. Two years have passed since Sanral was last able to borrow using bonds, and at a reasonable cost, he says. "Investors just won't lend us money anymore."
He says Sanral's government guarantee (about R38bn of its debt is guaranteed) will help to secure bridging finance.
Alli believes that should Sanral really require it, government will step in to provide some funding. In February 2012, it supported Sanral with a R5,75bn cash injection.
He is adamant that Sanral will not default on its repayments. "Government has never allowed a state enterprise to default. I believe it will step in if it has to."
RMB credit analyst Elena Ilkova says the consequence of a default is far too risky to be an option. The domino effect on other state enterprises - and their ability to borrow on capital markets - could cripple government, a risk it is unlikely to take.
Sanral's credit rating is still within reasonable limits, Ilkova says. However, another downgrade could be damaging. Many asset managers, including the Public Investment Corp, hold Sanral bonds in their portfolios. If they choose to sell to pre-empt the effects of a further downgrade, the spreads on Sanral's bonds will widen. One major sale has the potential to rerate the entire bond.
The fact that the NRA013 is so close to maturity makes it unlikely they will sell, but Ilkova says other bonds could be affected.
Despite the uncertainty, the auditor-general gave Sanral's financial results for the year to March 2013 an unqualified report. It says Sanral has indicated sufficiently that the delay in the commencement of tolling has not affected its financial health.
Sanral has cash and cash equivalents of R4,4bn, down from R9,2bn in the previous year. The 2012 cash balance reflects the R5,75bn treasury grant. But the drop is also a result of no toll income and its limited ability to borrow. Without the loans it now seeks, it will be forced to use its cash reserves to service and repay debt.
It is that pressure on its cash flow that has alarmed Moody's.
Sanral's board of directors, however, is not concerned. In its year-end directors' report, they state: "The directors are confident that this is an interim phase on a portion (201km) of the Sanral business, and not a material uncertainty."
Ultimately, Ilkova says local banks wouldn't be averse to extending short-term loans to Sanral. "But this is merely postponing the inevitable questions, which are about government policy." More uncertainty could be Sanral's death knell.
And as government explores investment in other sectors, most notably water and energy infrastructure which it wants users to fund, policy uncertainty could have more far-reaching consequences.
Already, Alli is well aware that future toll road projects, like the N1-N2 Winelands project, are at risk of never getting off the ground.
http://www.fm.co.za/politics/2013/09/19/e-tolling-now-an-election-issue
The political sensitivity that has delayed electronic tolling on Gauteng's freeways isn't compromising the SA National Road Agency's (Sanral) finances just yet, CEO Nazir Alli insists. And he says there is no danger that Sanral will default on its debt repayments.
This is despite the agency being slapped with a credit rating downgrade by Moody's this month. But Moody's has also placed Sanral's credit rating under review, pending a further downgrade. This time more is at stake.
Sanral needs to cough up a massive R5bn to repay debt. Its R1,48bn, NRA013 bond matures on October 31 2013. A second bond, the NRA014, matures on April 30 2014.
Without revenue from tolling, investors should be concerned about getting their money back. Sanral last tried to raise money on the bond market in September 2011. The bond auction was a disaster, leading the agency to abandon further attempts to borrow on capital markets until tolling begins.
Moody's view is that Sanral's deteriorating cash flow situation puts its ability to meet operating expenses and service its high debt levels at risk. The problem is the prolonged delay in Sanral's ability to collect e-toll revenue to pay for the costly upgrade to Gauteng's freeways.
Sanral's debt had soared to R36,2bn by March 2013, up from R6,2bn in 2007. This increase is mainly due to the Gauteng investment. Moody's estimates that its debt will rise to R39bn by March 2014.
E-tolling is expected to generate R250m-R300m/month.
With strong resistance from the public and opposition parties, e-tolling has become a pre-election rallying point. Government has endorsed the user-pays principle as a means of financing infrastructure, but allowing tolling to begin is becoming more difficult the closer SA gets to elections.
Sanral's public reputation is in tatters, even if investors have always heaped praise on it.
And the headaches continue to compound. This week, Alli was also left to defend a R1,1m rise in his salary. And R3,3bn in irregular expenditure has been flagged for attention.
For tolling to begin, President Jacob Zuma must approve the Transport Laws & Related Matters Amendment Bill. It already has the approval of both houses of parliament but there is speculation that Zuma may withhold his signature until after the elections.
The effect on Sanral's finances could be disastrous.
Gauteng's upgraded freeways make up just 1% of Sanral's total road portfolio (tolled roads are about 16% of its network of 19704km). But the Moody's downgrade is linked to its financial health, which is failing fast because of its inability to realise any revenue from such a massive investment. The first phase of the Gauteng Freeway Improvement Project cost R20bn.
Moody's analyst Kenneth Morare is concerned about the implications of rising debt: "Inability to generate e-toll revenue will likely prompt the company to further increase its financial leverage. Heavy reliance on debt as a substitute for e-toll revenue will lead to even higher debt service costs for Sanral."
Alli agrees, saying the late start to e-tolling means that Sanral will have to pay much more than it initially expected to.
But, he says, Sanral will use short-term loans to maintain the stability of its cash flow until e-tolling begins. It has national treasury's approval to do that.
"We are negotiating with all the commercial banks and even asset managers like Old Mutual and Stanlib for loans spanning one to three years. Negotiations continue but we should know where we stand within two weeks."
Using short-term loans is within its mandate, as long as it is within the treasury-approved borrowing limit of R47,9bn.
What has changed, says Alli, is the tenure of the debt. Two years have passed since Sanral was last able to borrow using bonds, and at a reasonable cost, he says. "Investors just won't lend us money anymore."
He says Sanral's government guarantee (about R38bn of its debt is guaranteed) will help to secure bridging finance.
Alli believes that should Sanral really require it, government will step in to provide some funding. In February 2012, it supported Sanral with a R5,75bn cash injection.
He is adamant that Sanral will not default on its repayments. "Government has never allowed a state enterprise to default. I believe it will step in if it has to."
RMB credit analyst Elena Ilkova says the consequence of a default is far too risky to be an option. The domino effect on other state enterprises - and their ability to borrow on capital markets - could cripple government, a risk it is unlikely to take.
Sanral's credit rating is still within reasonable limits, Ilkova says. However, another downgrade could be damaging. Many asset managers, including the Public Investment Corp, hold Sanral bonds in their portfolios. If they choose to sell to pre-empt the effects of a further downgrade, the spreads on Sanral's bonds will widen. One major sale has the potential to rerate the entire bond.
The fact that the NRA013 is so close to maturity makes it unlikely they will sell, but Ilkova says other bonds could be affected.
Despite the uncertainty, the auditor-general gave Sanral's financial results for the year to March 2013 an unqualified report. It says Sanral has indicated sufficiently that the delay in the commencement of tolling has not affected its financial health.
Sanral has cash and cash equivalents of R4,4bn, down from R9,2bn in the previous year. The 2012 cash balance reflects the R5,75bn treasury grant. But the drop is also a result of no toll income and its limited ability to borrow. Without the loans it now seeks, it will be forced to use its cash reserves to service and repay debt.
It is that pressure on its cash flow that has alarmed Moody's.
Sanral's board of directors, however, is not concerned. In its year-end directors' report, they state: "The directors are confident that this is an interim phase on a portion (201km) of the Sanral business, and not a material uncertainty."
Ultimately, Ilkova says local banks wouldn't be averse to extending short-term loans to Sanral. "But this is merely postponing the inevitable questions, which are about government policy." More uncertainty could be Sanral's death knell.
And as government explores investment in other sectors, most notably water and energy infrastructure which it wants users to fund, policy uncertainty could have more far-reaching consequences.
Already, Alli is well aware that future toll road projects, like the N1-N2 Winelands project, are at risk of never getting off the ground.
LazyLion
King of de Jungle
E-tolls unlikely this year
http://www.itweb.co.za/index.php?op...id=67504:E-tolls-unlikely-this-year&catid=133
The likelihood of e-tolls going live this year is dim, despite reports citing the Department of Transport (DOT) as suggesting implementation of the system is imminent.
The parliamentary reply from transport minister Dipuo Peters – the source of reports suggesting the SA National Roads Agency (Sanral) will roll out government's open road tolling scheme in Gauteng before the year is over – confuses issues, say observers.
Peters recently responded to a question regarding the commencement date for e-tolls from Freedom Front Plus spokesperson Anton Alberts, saying: "The Gauteng Freeway Improvement Project (GFIP) will still be implemented in 2013; however, the date for the commencement of the tolling has not been determined."
The GFIP – government's road network upgrade and maintenance project – officially started in 2007 and is an ongoing project. Opposition to Urban Tolling Alliance (Outa) chairperson Wayne Duvenage points out that the GFIP and e-tolling are two separate issues. "E-tolling was devised as a means of funding the GFIP, but the road maintenance project itself is an ongoing assignment."
As it stands, according to Sanral and the DOT, the commencement of e-tolling in Gauteng awaits one thing – president Jacob Zuma's signature on the Transport and Related Matters Amendment Bill (e-toll Bill).
Alberts points out that the Bill, which has been sent back to Parliament for a review of the Constitutional tagging process, is unlikely to see the light of day until next year when Parliament reopens for the new year.
"The parliamentary deadline to submit Bills for it to be completed by the end of this year had already lapsed on 7 June 2013. This means that [the e-toll Bill] will only be properly dealt with by the portfolio committee on transport next year."
Alberts adds that it takes a minimum of 15 weeks, without anything delaying the process, for a Section 76 Bill to pass through both the National Assembly and the National Council of Provinces and be sent to the president for his signature. "If one is to consider that the 2014 elections are due in the same period (April/May), the e-toll Bill could possibly only be completed by the second half of 2014 and then in addition to that, it will be dealt with by a new Parliament."
Democratic Alliance shadow minister of transport Ian Ollis says the e-toll Bill is a "dead duck". Ollis says all indications are that the Bill crucial to the implementation of e-tolls will not be signed by Zuma in the near future.
"There is a whole process that has to take place now, before the Bill can be signed. Rumour has it that the president is unhappy with the Bill – and if that is the case, he will have to formally give Parliament reasons for reviewing it. It's my view that the president is waiting until it is too late for us to fast-track amendments to the Bill and push it through so that e-tolling can begin."
Duvenage points out that Outa's appeal against e-tolling is another spanner in the works. "The court case could still change things. If the court rules in Outa's favour, e-tolling will not go ahead."
Outa's appeal against e-tolling will take place in the Supreme Court of Appeal next week.
http://www.itweb.co.za/index.php?op...id=67504:E-tolls-unlikely-this-year&catid=133
The likelihood of e-tolls going live this year is dim, despite reports citing the Department of Transport (DOT) as suggesting implementation of the system is imminent.
The parliamentary reply from transport minister Dipuo Peters – the source of reports suggesting the SA National Roads Agency (Sanral) will roll out government's open road tolling scheme in Gauteng before the year is over – confuses issues, say observers.
Peters recently responded to a question regarding the commencement date for e-tolls from Freedom Front Plus spokesperson Anton Alberts, saying: "The Gauteng Freeway Improvement Project (GFIP) will still be implemented in 2013; however, the date for the commencement of the tolling has not been determined."
The GFIP – government's road network upgrade and maintenance project – officially started in 2007 and is an ongoing project. Opposition to Urban Tolling Alliance (Outa) chairperson Wayne Duvenage points out that the GFIP and e-tolling are two separate issues. "E-tolling was devised as a means of funding the GFIP, but the road maintenance project itself is an ongoing assignment."
As it stands, according to Sanral and the DOT, the commencement of e-tolling in Gauteng awaits one thing – president Jacob Zuma's signature on the Transport and Related Matters Amendment Bill (e-toll Bill).
Alberts points out that the Bill, which has been sent back to Parliament for a review of the Constitutional tagging process, is unlikely to see the light of day until next year when Parliament reopens for the new year.
"The parliamentary deadline to submit Bills for it to be completed by the end of this year had already lapsed on 7 June 2013. This means that [the e-toll Bill] will only be properly dealt with by the portfolio committee on transport next year."
Alberts adds that it takes a minimum of 15 weeks, without anything delaying the process, for a Section 76 Bill to pass through both the National Assembly and the National Council of Provinces and be sent to the president for his signature. "If one is to consider that the 2014 elections are due in the same period (April/May), the e-toll Bill could possibly only be completed by the second half of 2014 and then in addition to that, it will be dealt with by a new Parliament."
Democratic Alliance shadow minister of transport Ian Ollis says the e-toll Bill is a "dead duck". Ollis says all indications are that the Bill crucial to the implementation of e-tolls will not be signed by Zuma in the near future.
"There is a whole process that has to take place now, before the Bill can be signed. Rumour has it that the president is unhappy with the Bill – and if that is the case, he will have to formally give Parliament reasons for reviewing it. It's my view that the president is waiting until it is too late for us to fast-track amendments to the Bill and push it through so that e-tolling can begin."
Duvenage points out that Outa's appeal against e-tolling is another spanner in the works. "The court case could still change things. If the court rules in Outa's favour, e-tolling will not go ahead."
Outa's appeal against e-tolling will take place in the Supreme Court of Appeal next week.
LazyLion
King of de Jungle
E-Tolls to be heard in Supreme Court Today
The Supreme Court of Appeal will hear an appeal by the Opposition to Urban Tolling Alliance (Outa) on Wednesday in its e-toll challenge against the SA National Roads Agency Limited (Sanral).
The High Court in Pretoria granted Outa leave to appeal against a previous judgment it handed down.
Outa argued, on appeal in the lower court, it had misinterpreted a section of the Sanral Act on public consultation to reach its ruling that e-tolling could proceed.
Last year, the high court ruled that e-tolling could proceed because the Gauteng Freeway Improvement Project had been lawfully instituted.
Outa is a civic action group of business associations and individuals formed in March 2012 to challenge Sanral's decision to implement e-tolling of the recently upgraded freeway network in Gauteng.
Outa feels it is irrational, unreasonable and illegal.
Source : Sapa /ag/fg/jje
Date : 25 Sep 2013 09:28
The Supreme Court of Appeal will hear an appeal by the Opposition to Urban Tolling Alliance (Outa) on Wednesday in its e-toll challenge against the SA National Roads Agency Limited (Sanral).
The High Court in Pretoria granted Outa leave to appeal against a previous judgment it handed down.
Outa argued, on appeal in the lower court, it had misinterpreted a section of the Sanral Act on public consultation to reach its ruling that e-tolling could proceed.
Last year, the high court ruled that e-tolling could proceed because the Gauteng Freeway Improvement Project had been lawfully instituted.
Outa is a civic action group of business associations and individuals formed in March 2012 to challenge Sanral's decision to implement e-tolling of the recently upgraded freeway network in Gauteng.
Outa feels it is irrational, unreasonable and illegal.
Source : Sapa /ag/fg/jje
Date : 25 Sep 2013 09:28
OMB
Mountain Man
sounds like OUTA off to a wobbly start if you read ewnreporter on Twitter
MagicDude4Eva
Banned
So who of you have done the honest/right thing and at least donated one month's of eToll fees to Outa? It's unfortunate that an organisation like Outa needs to take on the government, but hardly any activism by South Africans (yes, it is a disgrace that the government uses more of our tax-money to fight something so inherently wrong as eToll - but obviously nothing new).
LazyLion
King of de Jungle
I haven't been too impressed with their in court arguments even in the prior proceedings.
They unfortunately don't seem to be too well organised.
It's a tough job having to accuse the state to somebody appointed by the state
- Status