Finance minister Tito Mboweni has indicated that the controversial e-toll system is here to stay.<\/p>\n
Speaking in his medium-term budget policy statement (MTBPS), Mboweni said that after considering a number of issues it was decided that government would remain committed to a ‘user-pay’ model.<\/p>\n
However, he said that there will be a further dispensation and value-added services under the new system and that compliance will also be strengthened.<\/p>\n
The MTBPS shows that since 2014\/15, the South African National Roads Agency Limited (Saral ) has incurred annual average losses of R1 billion.<\/p>\n
“The agency is not generating sufficient cash from its toll portfolio to settle operational costs and debt redemptions falling due over the next three years,” it states.<\/p>\n
Government has extended a total guarantee facility of R38.9 billion to the agency, of which R30.3 billion had been used by 31 March 2019.<\/p>\n
Over the medium term, Sanral is expected to repay R10.7 billion of maturing debt obligations and R10.8 billion worth of interest payments.<\/p>\n
“To enable Sanral to pay these obligations, government will implement direct user charges as outlined in the White Paper on National Transport Policy.”<\/p>\n