More E-Toll Corruption and Lies Uncovered...

SANRAL in NCA CREDIT EVASION FAÇADE

SANRAL’s controversial e-tolling plan for Gauteng has taken a new twist with news that the roads agency is attempting to have itself exempted from the National Credit Act. SANRAL is claiming that the Gauteng Freeway Improvement Project is a pre-paid tolling scheme under which users do not incur debt.

The SA National Consumer Union (SANCU), disagrees. Its Vice-chairman, Clif Johnston, said SANRAL was apparently prepared to stop at nothing in its quest to ramrod e-tolling through.

“The very architecture of the e-tolling freeway network proves it was designed from the ground up on the basis of ‘use now, pay later’,“ he explained. “This creates consumer debt and automatically brings the scheme within the ambit of the NCA,“ he added. “The option to pay by e-tag doesn’t change the system’s underlying nature.“

Johnston said the e-tolled freeways were designed without booms or gates, specifically allowing any motorist free right of passage whether their vehicle was fitted with an e-tag or not. He said this showed that the system regarded post-paid usage as the norm. Motorists without e-tags would be allowed unrestricted usage which would then be billed and paid for in arrears upon the receipt of an invoice, similar to the model used by cellphone networks for their contract subscribers. He also pointed out that SANRAL had previously explained this process, published tariffs for non-tagged users (subsequently withdrawn) and had said it would implement debt collection process for motorists without e-tags who didn’t pay their tolls. “Invoices after the fact? Debt collection? These are words associated with granting credit and possibly allowing people to run up debt for which they may not be able to settle,“ Johnston said.

Johnston also raised the example of a motorist whose vehicle was fitted with an e-tag but who had not loaded credit onto the tag. “Such a user will have reverted to a post-paid method of payment, which again proves that the e-tolling system’s basic design architecture is post-paid in nature,“ he said. He pointed out that SANRAL could not prevent an e-tag user with a zero balance from driving on an e-tolled Gauteng freeway and nor would it be illegal for the motorist to do so.

“E-tolling is clearly a post-paid system and SANRAL is now attempting -through the current amendment to the Transport and Related Matters bills – to legislate its way out of the maze resulting from its irrational and ill-conceived choice of e-tolling,“ Johnston commented. “SANRAL must not be allowed to trample on consumer rights by circumventing the NCA.

Source: http://www.outa.co.za/site/sanral-in-ncacredit-evasion-facade/
 
So etolls is trying to change or add new laws to by pass laws that are set to protect consumers/citizens.

This really does show the intentions behind etolls (and how powerful those trying to push it through are).
 
So etolls is trying to change or add new laws to by pass laws that are set to protect consumers/citizens.

This really does show the intentions behind etolls (and how powerful those trying to push it through are).

Yip. With all the rage/outcry in Gauteng where 90% people don't want it... they forcing it..
 
If they pass it, we need to do mass civil disobedience. If no one buys an eTag, the cost of collecting the money from us will bankrupt them.
 
Radebe might have signed on the dotted line, but it was Mac who set up SANRAL with private investors.... He effectively sold South African roads to foreigners.

So the idiotic Mac ****ed up the school system and now the national (GP) road system. SOME MUST BE VERY PROUD TO HAVE SUCH IDIOTS IN POWER.
 
Massive update - please read and spread to friends and family...

Don't look at this and think it's too long to read. If you live in SA, this is vital info that you should know...

So I've crunched the numbers even further with a very quick and dirty calculation that proves that they are lying.

Check this out:

Using Sanral's numbers, it would be impossible for them to repay their debt.
Their bonds are ten year issuances. They mature in 2020 (which is when final payment including all interest must be paid)
As you can see, using their numbers, they would have an annual shortfall of R9bn in this respect. They would default in their first 3 months of operation.
In fact using their numbers, it would take about 37 years for them to repay their bond investors. But they issued ten year bonds - they cannot extend this term whatsoever.
Ignore the theoretical margin in this one. We'll get to it next.
Al of this assumes a 30% EBITDA margin, which is fair for any company. The likelihood of them operating at a higher margin than that is very slim.
Bottom line: Sanral are lying through their teeth.

Sanral_Lies_1.png


Next lady for a shave:

Let's see what kind of margins and income they would actually have to generate in order to repay their debt (remember that this involves them repaying their entire margin towards their debt - no reinvestment in their roads, no maintenance of the roads, no profits effectively, and this is all before interest, tax, depreciation and amortisation which will erode a massive chunk of that margin as well).

So, using their figures, they would need to operating under the following conditions:

No costs whatsoever to their business. Nothing.
Even with no costs whatsoever, they're still short 10% income to repay their loan.
They'd need to operate on a 100% margin. So every cent they spend, they make double, effectively. In other words, they simply receive money and never spend it. Ever. And, they're still short 10% here.

So even in a world where they have costs at all, do not pay tax, do not depreciate their assets, do not amortise anything at all - they still cannot repay their debt based on the numbers they submitted. Can you believe it? Not even in a world where every single road user goes and pays Sanral's creditors on Sanral's behalf to eliminate the cost element, do so on time, Sanral have no costs, nor maintenance at all. They still cannot repay their debt.

So let's see how much they would need to charge the average road user in order to repay their debt on time, working on a 30% margin which is reasonable, if not high for them:

Sanral_Lies_3.png


So... every single Gauteng road user would have to pay R598 per month just for Sanral to repay their debt. And on time as well. That's an impossible 100% 30 day debtors book. And that doesn't take into account other elements like tax, depreciation, other interest, amortisation etc, and also means no road maintenance whastoever. This is a perfect world scenario.

So what can we conclude?

Sanral are a lying bunch of thieving bastards.

But wait, there's more. Let's actually factor in the other costs. Let's let Sanral work on a 10% net profit margin after absolutely everything:

Sanral_Lies_41.png


Every single Gauteng road user realistically needs to pay about R1794 per month in order for Sanral to operate as a somewhat liquid business. Otherwise they will require cash injections in a massive way in order to stay afloat. So basically, e-tolls should be scrapped now. Nobody is going to pay R1794 per month just to drive on our own roads. This is simply not possible. It's absurd. It's ridiculous. It is quite clear that Sanral are stuffed as an organisation. If only half of road users pay their e-tolls, they'd have to be paying R3600 per month in order for Sanral to break even as a business.

So they're either going to cross-subsidise e-tolling with other projects (which I don't think is entirely legal or ethical) or paying e-tolls means paying money into a dead duck. You might as well burn your money in a big fire.

Spread this around to your friends and family. I'm tired of seeing them bandy about numbers as blatant lies. These numbers works back with what we actually know.

And what we know now, is that paying e-tolls is the WRONG thing to do, not only on moral grounds, but on financial grounds as well. Paying e-tolls will not cover their debt. It's time the government cut its losses and found other ways to monetise the gantries. Like average speed traps, perhaps? Or melting them down and using it for cabling infrastructure to connect SA properly?
 
[video=youtube;4hNYrcU5Hh4]https://www.youtube.com/watch?feature=player_embedded&v=4hNYrcU5Hh4[/video]
 
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