Massive e-toll tender collusion in question
Outa has questioned why the government has failed to address a ‘massive tender collusion’ and price fixing scandal which inflated the costs of the freeway upgrade by billions of rands.
This ‘crucial issue’ was highlighted by the e-toll review panel earlier this year, the Civil action group said.
On Wednesday (10 June), deputy president Cyril Ramaphosa said that thousands of motorists had called to ask if they can benefit from the new e-tolls dispensation and the discounts it offers.
Ramaphosa was answering oral questions in the National Assembly.
The deputy president announced the new dispensation for the implementation of the e-toll system in May after the initial system launched in December 2013, was largely rejected by the public.
The new dispensation would see the current fee of 58 cents per kilometre, reduced to 30 cents per kilometre for people using e-roads, while the monthly cap for e-toll road users has been adjusted to R225, from R450 previously.
Motorists will have to pay their outstanding e-tolls upon renewal of vehicle licences,
while all current outstanding e-toll bills will be discounted by 60%, with road users given 6 months to pay these off, the deputy president said in May.
Outa dismissed Ramaphosa’s answers in the National Assembly as sheer propaganda.
It noted that the vast majority of the submissions to the e-toll panel, set up last year to assess the economic impact of the toll system, rejected the scheme and supported either direct transfers from the fiscus or a fuel levy.
Ramaphosa said the e-tolls dispensation safeguards the interest of the fiscus to build and maintain roads. The new e-tolls dispensation aims to be fair, affordable and sustainable which draws from the GP advisory panel, he said.
He said that a fuel levy was considered over e-tolls, “but it would be impossible to exempt buses and taxis and would affect the poor”.
Outa said that input provided during the e-toll panel engagement session in February, saw a further reiteration of the delegates rejection of the hybrid-funding model by an overwhelming majority of the people and associations who attended, including ANC in Gauteng.
“Another crucial issue which the e-toll review panel highlighted, was the massive tender collusion and price fixing scandal which inflated the costs of the freeway upgrade by billions of rands, and which has yet to be addressed by the authorities,” said Wayne Duvenage, Outa’s chairperson.
“Yet government’s reluctance to take a principled and ‘unpopular’ position on this matter appears to be missing.”
“Outa’s research has estimated that the Gauteng Freeway upgrade has cost society an estimated R7 billion (65%) more than it should have, and while the deputy president admitted that Sanral was R20 billion in the red, why was nothing said about any plans and measures needed to recover the GFIP construction overcharging?” Duvenage said.
Outa highlighted a concern that in February 2012, Treasury contributed R5.7 billion toward the GFIP project, which lowered the tariff from 40 cents to 30 cents. The bonds raised from GFIP were R20 billion before this injection, leading to a question of why government still reflects these bonds at R20 billion outstanding, the group said.
“It would appear there is a lack of clarity around the accounting between traditional national roads, toll concession roads and GFIP business units,” Duvenage said.
More on e-tolls
Thousands of motorists asking for e-toll discounts: Ramaphosa
New e-tolls, car licences and your rights
Thank you ANC for e-tolls and load shedding: DA
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