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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.<\/p>\n\n\n\n
President Cyril Ramaphosa\u2019s 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.<\/p>\n\n\n\n
\u201cCabinet 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,\u201d said Minister in the Presidency, Khumbudzo Ntshavheni.<\/p>\n\n\n\n
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.<\/p>\n\n\n\n
In a statement on Sunday, the Department of Transport said Cabinet\u2019s approval confirmed that Sanral would not pursue any further collection of unpaid historical GFIP E-toll debt.<\/p>\n\n\n\n
\u201cRoad users who lawfully paid E-tolls while the system was legally in force will not be refunded,\u201d it stated.<\/p>\n\n\n\n
\u201cThe no-refund position arises from lawful levies at the time they were paid, that is, before the toll declarations were withdrawn.\u201d<\/p>\n\n\n\n
The write-off of outstanding debt gives effect to government\u2019s decision to close the GFIP E-toll scheme and provide finality to road users, Sanral, and the fiscus, the department said.<\/p>\n\n\n\n
\u201cGovernment reiterates that the close-out of the GFIP E-toll debt is intended to provide certainty and resolve historical debt matters,\u201d it said.<\/p>\n\n\n\n
\u201cIt also supports a sustainable approach to the funding, maintenance and improvement of South Africa\u2019s national road network.\u201d<\/p>\n\n\n\n
Government reiterated that the \u201cuser pays\u201d principle remained part of South Africa\u2019s road infrastructure funding framework, subject to specific conditions.<\/p>\n\n\n\n
\u201cTolls must be broadly accepted by road users through negotiation and agreement, appropriately structured, legally sound, and supported by clear policy certainty,\u201d the department said.<\/p>\n\n\n\n
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).<\/p>\n\n\n\n
That included addressing any residual litigation exposure and closing all matters associated with the historical recovery of E-toll debt.<\/p>\n\n\n\n
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.<\/p>\n\n\n\n