South Africa approves R5bn e-toll bailout to settle debt

South Africans could see some relief as the government moves to resolve the long-standing e-toll debt crisis. The National Assembly has approved a R5.12 billion allocation to the Department of Transport, aimed primarily at settling the South African National Roads Agency’s (Sanral) e-toll liabilities. This marks a step toward addressing the R30 billion national government portion of the debt.

The Special Appropriations Bill, which facilitates this bailout, now awaits President Cyril Ramaphosa’s assent after gaining approval from the National Council of Provinces. “This bill is a lifeline for Sanral, allowing us to address a significant portion of the debt while ensuring South Africans aren’t burdened indefinitely,” Finance Minister Enoch Godongwana said in his October budget speech.

Sanral’s debt has grown to R28.9 billion as of March 2024, with nearly R28.7 billion classified as “impaired.” The agency’s tolling system, initially launched to fund road infrastructure in Gauteng, has faced criticism for inefficiency and non-compliance from road users.

The provincial government of Gauteng is responsible for 30% of the debt, but controversy erupted when its reported share surged from R13 billion to R20 billion. The Organization Undoing Tax Abuse (Outa) has called for transparency. “Gauteng taxpayers deserve clarity. The sudden jump in numbers raises serious concerns,” said Outa spokesperson Wayne Duvenage.

Despite objections, Gauteng made an initial payment of R3.8 billion in October 2024. The remaining balance remains a contentious issue. Critics argue the province shouldn’t bear the cost, as the tolling system wasn’t its initiative.

As South Africa grapples with these financial obligations, questions linger about the accountability and long-term viability of large-scale public infrastructure projects.

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