Gauteng kisses R3.8 billion goodbye

The Gauteng Provincial Government has paid its first instalment of R3.8 billion to the South African National Roads Agency (Sanral) to cover its e-toll debt.

Gauteng Finance MEC Lebogang Maile also announced the provincial government’s plan to cover the rest of its instalments, which involved reprioritising its budget.

“The instalment that we are paying today amounts to R3.8 billion. We are R3.8 billion poorer but not bankrupt,” said Maile.

“We are also paying a maintenance of about R546 million. The implication of the e-toll debt requires the provincial government to manage finances in a prudent manner, while carefully balancing the service delivery needs of the citizens.”

He explained that the provincial government must reprioritise its budget to ensure it can cover its e-toll debt obligations. Maile said the Gauteng government has adopted a five-year approach to implement “immediate short and medium-term budget reforms”.

This includes a combination of active debt management strategies and spending restraints to eliminate wastage and leakages in the system.

“The province will need to allocate a substantial amount of funds each year for the next five years to meet the repayment obligations,” said Maile.

“Therefore, to address these physical challenges, the government is working with revenue collecting departments to identify alternative sources of revenue.”

This is a marked departure from former Gauteng finance MEC Jacob Mamabolo’s approach. He said the provincial government would have to borrow money to cover the debt.

“To manage the current economic difficulties, and the current complexities of the fiscal space, let’s go borrow, pay now but open up a long-term payment plan and an opportunity to relieve the fiscus in the province,” said Mamabolo.

Finance Minister Enoch Godongwana announced the end of e-tolls during his mini-budget statement in October 2022.

The minister said Gauteng had committed to cover 30% of Sanral’s e-toll debt, while the National Government will handle the remaining 70%.

During his State of the Province address in February 2024, Gauteng Premier Panyaza Lesufi announced that e-tolls would be switched off by 31 March.

A primary concern for many motorists who had complied and paid throughout the period in which e-tolls were in effect was whether they’d be reimbursed for their contributions to the failed scheme.

Lesufi initially indicated that these motorists would be refunded.

“There is a clear decision now that we need to refund people — some form of refund,” Lesufi said.

He added that it had been determined that R6.9 billion must be refunded, and it remained to be decided whether the government would provide cash refunds or a credit to be used on other tolled roads.

However, he later backtracked on this statement, claiming he had never promised that motorists would be refunded.

He contended that he merely said it was one of the issues that still needed to be discussed.

National Treasury deputy director-general Mampho Modise confirmed that motorists would not be refunded in February 2024.

“Gauteng has agreed that that debt should and will be collected,” he said.

However, the Organisation Undoing Tax Abuse (Outa) said Modise’s statement created more confusion than anything else as Sanral collects e-toll debt, not the Gauteng provincial government.

“We are left more confused than ever by the latest announcement by Modise,” said Outa CEO Wayne Duvenage.

“Who should we believe, especially since it’s an election year with different politicians making so many different promises?”

He added that the Gauteng government is incapable of implementing its own strategies.

“Between Sanral, Premier Lesufi, Minister Godongwana and the Department of Transport, it seems that nobody knows what is really going on when it comes to finalising the e-toll debacle,” said Duvenage.