Bad news for people who paid E-tolls
President Cyril Ramaphosa’s cabinet has approved the write-off of E-toll debt, allowing the South African National Roads Agency Limited (Sanral) to write off unpaid amounts owed by motorists.
“Cabinet noted the recommendations by Sanral that the road users who paid toll fees would not be refunded because this was the law at the time,” said Minister in the Presidency, Khumbudzo Ntshavheni.
Transport minister Barbara Creecy and deputy minister Mkhuleko Hlengwa welcomed the decision, saying it would close the Gauteng Freeway Improvement Project (GFIP) matter in an orderly manner.
In a statement on Sunday, the Department of Transport said Cabinet’s approval confirmed that Sanral would not pursue any further collection of unpaid historical GFIP E-toll debt.
“Road users who lawfully paid E-tolls while the system was legally in force will not be refunded,” it stated.
“The no-refund position arises from lawful levies at the time they were paid, that is, before the toll declarations were withdrawn.”
The write-off of outstanding debt gives effect to government’s decision to close the GFIP E-toll scheme and provide finality to road users, Sanral, and the fiscus, the department said.
“Government reiterates that the close-out of the GFIP E-toll debt is intended to provide certainty and resolve historical debt matters,” it said.
“It also supports a sustainable approach to the funding, maintenance and improvement of South Africa’s national road network.”
Government reiterated that the “user pays” principle remained part of South Africa’s road infrastructure funding framework, subject to specific conditions.
“Tolls must be broadly accepted by road users through negotiation and agreement, appropriately structured, legally sound, and supported by clear policy certainty,” the department said.
In addition to bringing finality to the E-tolls saga, Cabinet approved the orderly resolution of the litigation brought by the Organisation Undoing Tax Abuse (Outa).
That included addressing any residual litigation exposure and closing all matters associated with the historical recovery of E-toll debt.
Devil in the details
The South African government has been trying to resolve the E-tolls debacle for years, but the debt Sanral said it incurred during the GFIP has remained a hot potato.
Formal plans to deal with E-tolls date back over four years, when finance minister Enoch Godongwana announced it in his 2022 budget speech.
Godongwana said the national and Gauteng provincial governments had agreed to contribute 70% and 30%, respectively, of Sanral’s debt and interest obligations.
However, at the time, it had not yet been decided whether to end E-tolls, and Godongwana said it would be up to project stakeholders to decide on the fate of the hated scheme.
While the Gauteng Provincial Government had indicated that it favoured ending E-tolls and repurposing the gantries, it took two years for the next step of the plan to be formalised.
According to Ntshavheni, government’s decision to discontinue the electronic tolling system took effect on 12 April 2024. She also said that Treasury would cover motorists’ outstanding debt to Sanral.
Although it is unclear how much E-toll debt remained outstanding, Outa CEO Wayne Duvenage previously said their court case involved 2,028 individuals and businesses owing R265 million.
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