This one graph shows the spectacular failure of e-tolls
Outa has released a graphic which shows that despite being in operation for three years, Gauteng’s e-toll scheme has failed spectacularly to live up to its originally planned expectations.
Organisation Undoing Tax Abuse (Outa) noted that in April 2012, South African National Roads Agency (Sanral) argued in court that they would achieve 93% compliance levels and would generate average income levels of over R3 billion per annum, or roughly over R260 million per month, of which they would use roughly two thirds to settle the bonds and one third (over R1 billion) to pay the collection process managed by Kapsch TrafficCom.
“Our research shows that around the world, these electronic toll payment schemes require compliance levels well upward of 80% in order to succeed,” said Outa chairperson, Wayne Duvenage.
“At best and only after a multi-million rand marketing campaign which threatened motorists with criminal records, the scheme was able to achieve around 40% compliance levels at R120 million per month by mid 2014. Today, that level has dropped to below 18% and around R60 million per month.”
Read: This is what Gordhan said about e-tolls – and it’s not good news
From this week, Sanral’s e-toll debt begins to prescribe at a rate of around R10 million per day, noted Duvenage, meaning that Sanral will be forced to write off its debt – ‘which has been falsely reported as a collectable asset in their financial statements’, Outa said.
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