The Austrian firm contracted to build and manage the controversial e-toll system in Gauteng has fully acquired the South African companies involved with the collection of toll fees.<\/p>\n
According to Kapsch Trafficom’s annual report for 2015\/16<\/a><\/strong>, in the past financial year it has gained 100% controlling interest in ETC South Africa – the E-toll Collection Company – from 87% in the previous year.<\/p>\n The group achieved this by\u00a0completely acquiring South African group TMT Services and Supplies (which forms part of ETC) at a cost of R93 million, the report showed.<\/p>\n ETC is a consortium comprised of TMT and Kapsch.\u00a0Kapsch, through TMT,\u00a0won the contract to build and operate the e-toll system in Gauteng in 2010.<\/p>\n TMT – co-founded by Douglas Davey, Johan du Toit and Neil Louwrens – approached Kapsch for financial investment to build the Gauteng Open Road Project in 2010. The group also partnered with\u00a0black-owned Matemeku Investments for its BEE credentials.<\/p>\n At the time of the e-toll build, TMT owned 35% of ETC,\u00a0while Kapsch TrafficCom AG owned 25%, with Kapsch TrafficCom AB of Sweden owning the remaining 40% stake.<\/p>\n With the new interest however, TMT, its subsidiaries (Berrydust 51 and Mobiserve), ETC and the management of the entire e-toll system and toll collection is now fully controlled by a foreign group.<\/p>\n Remains a big liability<\/strong><\/p>\n For the full year, Kapsch reported a rise in toll collection from ETC, up 13.6% to E389.3 million (R5.9 billion) – with the biggest portion coming from the EMEA region, primarily South Africa.<\/p>\n South Africa however, still remains the group’s largest liability, with a EUR47 million (R707 million) axe hanging over its books.<\/p>\n Kapsch’s report also shows that it employs 40% of its staff in South Africa – of the group’s 3,500-odd salaried employees, 1,400 are employed locally.<\/p>\n The e-tolling system in Gauteng has effectively failed, with low uptake by motorists in and around Johannesburg. The latest financial information around the system shows that, even with a 60% discount offered to motorists, toll collection has continued to miss required targets.<\/p>\n According to civil action group Outa, the full capture of ETC by a foreign company could hold future implications for the toll scheme, as the group’s 5-year contract with Sanral is set to expire in 2017\/18.<\/p>\n The group said that the toll scheme is funneling as much as R70 million a month to ETC and its suppliers, which is now effectively allowing all profits to flow offshore.<\/p>\n Queries were sent through to Sanral asking about the implications for future contracts with ETC and TMT, but BusinessTech did not receive a response by the time of publication.<\/p>\n Sanral\u2019s 60% e-toll discount failed miserably: report<\/a><\/strong><\/p>\n 60% e-toll discount: this is how much road users paid<\/a><\/strong><\/p>\nMore on e-tolls<\/h3>\n