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Eyewitness News
a day ago
- Business
- Eyewitness News
Gauteng govt says it is making progress in paying of its e-toll debt
JOHANNESBURG - The Gauteng government is making progress in paying off its e-toll debt, with a further payment of R3.3 billion expected to be made to the South African National Roads Agency (SANRAL) on Monday. Finance MEC Lebogang Maile announced at a media briefing on Sunday that this marked the department's second payment. ALSO READ: Gauteng govt set to make second payment of e-toll debt on Monday When the e-toll system was abolished, National Treasury agreed to cover 70% of the debt, leaving the province responsible for the remaining 30%. The province has now paid off nearly half of its R15.9 billion e-toll debt. Maile emphasised that the province remained committed to settling the debt. "We wish to announce that tomorrow, the 30th of June 2025, the Gauteng Provincial Government will honour the province's obligation by paying the second instalment towards the e-tolls debt as disclosed in the 2025 Medium Term Expenditure Framework (MTEF). "The second amount due on the 30th of June 2025, based on the memorandum of agreement, is R3.377 billion in terms historical debt. This is the amount that we will be paying to the National Treasury tomorrow as a second instalment as part of our 30% contribution."
The Citizen
a day ago
- Business
- The Citizen
Gauteng can't pay its e-toll debt — turns to treasury, cap in hand
Is seeking changes to the payment terms, but until then 'will pay'. The fight might be over for motorists, but the debt remains. Picture: Jonathon Rees The Gauteng provincial government is involved in discussions with National Treasury about the payment terms of its R15.9 billion e-toll debt. However, Gauteng MEC of Finance and Economic Development Lebogang Maile stressed on Sunday that the province is committed to sticking to the current Memorandum of Agreement (MoA) arrangements to pay the province's 30% share of the e-toll debt amounting to R12.9 billion – plus interest of R3.3 billion – as it doesn't as yet have an agreement with Minister of Finance Enoch Godongwana about any changes to the terms of the MoA. Maile said the government is having discussions with Treasury on the payment terms to alleviate financial pressure on the province – 'and to give us some additional resources that we can use immediately to deal with immediate social challenges'. In terms of the MoA between the SA National Roads Agency (Sanral), the National Department of Transport, Treasury and the government announced by Godongwana during his 2022 Medium-Term Budget Policy Statement (MTBPS), Gauteng's e-toll debt contribution would be made in five equal annual instalments at government's five-year interest rate. ALSO READ: Gauteng pays R5.44 billion e-toll debt amid budget constraints Province to pay R5.47bn on Monday In addition to the settlement of this debt, the government also made a commitment to contribute a total of R4.1 billion towards the backlog maintenance on the Gauteng Freeway Improvement Project (GFIP). Maile said the province will on 30 June 2025 honour its obligation by paying the second instalment of its 30% portion of the e-toll historical debt. He added that the government made the first instalment amounting to R3.8 billion on 30 September 2024, which comprised R3.2 billion of historical debt and the GFIP maintenance backlog portion of R546 million. Maile said there is currently R3.559 billion outstanding from its commitment to pay Sanral R4.1 billion and that in addition to the e-toll debt payment, the government will on Monday also transfer an amount of R2.099 billion as part of the contribution towards the backlog of rehabilitation to restore the GFIP freeways to an acceptable condition before Sanral resumes its obligations for all future maintenance funded by the national fiscus. The total amount the provincial government will be transferring to Treasury on Monday is R5.47 billion. ALSO READ: Sanral claim for e-tolls doomed Repayments affect service delivery A pothole on a road in Atholl, Johannesburg. Image: Leon Sadiki/Bloomberg Maile said the province could have used that money to build additional schools, hospitals and roads and added if the province was not paying this R5.4 billion, it could for example be announcing that it is 'giving R2 billion to deal with all the potholes, R1 billion to deal with the robots'. 'In the budget, we only announced R300 million to deal with potholes on all provincial roads. It's not going to be enough,' he said. 'The repayment does have an impact on service delivery because it means we have limited resources. For instance, we need about 200 new schools in Gauteng. The money we have is for 18 schools. On average to build a school, is R200 million. 'If this R4.5 billion, or R20 billion over a period of time, was available it would mean we could increase the number of schools we can build … the number of clinics we can build, it means we can improve the quality of services.' ALSO READ: Right step to sort out e-toll debt mess Treasury paying 70% of e-toll debt Maile said there are some financial difficulties that put a strain on the province, which is why it is asking Treasury to help. 'National Treasury is committed to help, which is why it is paying 70% of the historical e-toll debt and the Gauteng provincial government is paying 30%,' he said. He added that the provincial government will over the next few years have to allocate a substantial amount of funds each year to service the repayment obligations for e-tolls – and that this will be happening in a constrained fiscal environment, details of which the province expressed in the initial Budget Speech and reiterated when it retabled its budget for the 2025/26 financial year. 'The reality of the situation is that the funding envelope is stretched by existing allocations, particularly in terms of keeping critical social programmes in health and education funded.' 'Nevertheless, we reaffirm our commitment to the residents of Gauteng that the servicing of the e-toll debt will not compromise our priorities, particularly in relation to social services such as health and education,' he said. ALSO READ: No refunds for those who paid for e-tolls, says Gauteng finance MEC Maile 'Measures and reforms' Maile said the provincial government is implementing various measures and reforms to ensure the sustainability of its fiscal environment. These include active debt management strategies, spending restraint, improving compliance with rules and regulations in supply chain management, as well as revenue enhancement. Maile said the province's revenue enhancement strategy has already been actualised, with provincial departments implementing various strategies to enhance revenue collection. He said this strategy is underpinned by five principles: Accelerating the completion of interventions that have already started; Optimising the existing revenue sources; Enhancing revenue collection processes and systems to increase efficiency, cost-effectiveness, and eliminate leakages; Identifying potential new revenue sources that have not been explored; and The use of alternative funding and implementation models to achieve more value. ALSO READ: E-tolls scrapped, but gantries will remain operational – Chikunga Maintenance, upgrades and capacity expansions projects In terms of the MoA, Maile said Sanral cannot use the funds it receives from the province for any other purpose than the nine projects that are financed by the province. He said the R4.1 billion will be used for the following maintenance, upgrades and capacity expansions projects on 185 kilometres on the N1, N3, N12, N14 and R21: 14th Avenue to Buccleuch Golden Highway to 14th Avenue Buccleuch to Brakfontein Brakfontein to Scientia Heidelberg Road to Geldenhuys Geldenhuys to Buccleuch Uncle Charlie's to Elands Gillooly's to Tom Jones, and Olifantsfontein to Hans Strydom. ALSO READ: E-tolls: Gauteng government to make first debt payment in September – Maile GFIP projects will be complete in four years These freeways are vital for facilitating efficient transportation and supporting economic activity by providing high-speed, controlled-access routes for vehicles in the broader Gauteng city region, Maile said. Gauteng deputy director-general for sustainable fiscal resources management Mncedisi Vilakazi noted that the estimated time to complete the nine projects is four years and that the amounts the province pays and contributes each year fluctuates in line with the readiness of these projects, which are at different stages. 'It will take four years to completely exhaust the nine projects, which will amount to about R4.1 billion,' said Vilakazi. Gauteng's freeways need an update. Image: Moneyweb This article was republished from Moneyweb. Read the original here.
The Citizen
2 days ago
- Business
- The Citizen
Gauteng pays R5.44 billion e-toll debt amid budget constraints
The gantries of the controversial Gauteng freeway improvement project (e-toll) gantries were disconnected in April 2024. Outa – the Organisation Undoing Tax Abuse – hold a protest against e-tolls on the N1 highway in Johannesburg, 26 October 2018. Picture: Tracy Lee Stark Gauteng Finance MEC Lebogang Maile says that R3.8 billion was paid towards the e-toll debt last year, and an additional R5.4 billion will be paid on Monday. Maile briefed the media on Sunday about the substantial e-toll debt incurred when tolling was scrapped. E-tolls scrapped The gantries of the controversial Gauteng freeway improvement project (e-toll) gantries were disconnected in April 2024, after the National Treasury agreed to cover 70% of the debt, while the province took responsibility for the remaining 30%. ALSO READ: Sanral reports nearly R29bn in expected credit losses from toll debtors The total debt owed by the Gauteng government amounted to R15.9 billion, including accrued interest. Second payment Maile said that on 30 September 2024, the Gauteng Provincial Government made the first instalment, amounting to R3.8 billion. He said this instalment consisted of R3.2 billion historical debt and the maintenance portion of R546 million. 'Today, we wish to announce that tomorrow, the 30th of June 2025, the Gauteng Provincial Government will honour the province's obligation by paying the second instalment towards the e-tolls debt as disclosed in the 2025 Medium Term Expenditure Framework (MTEF). 'The amount due on the 30th of June 2025, based on the Memorandum of Agreement, is R3.377 billion in terms of historical debt. This is the amount that we will be paying to the National Treasury tomorrow as a second instalment as part of our 30 percent contribution,' Maile said. WATCH: Lebogang Maile speaking about the E-Toll debt [WATCH] Gauteng MEC for Finance Lebogang Maile says an amount of R5.76 billion will be paid tomorrow for the e-toll debt and towards SANRAL freeway upgrades. June 29, 2025 Road maintenance Maile added that over R2 billion will also be channelled towards road maintenance and over R3 billion for the actual debt. 'With regards to the financing of Sanral's Gauteng freeway projects, the current outstanding amount is R3.559 billion. ALSO READ: Gauteng pays first R3bn of whopping R12.9bn debt 'In addition to the e-toll payment, tomorrow, the Gauteng Provincial Government will also transfer an amount of R2.099 billion as part of the contribution towards the backlog of rehabilitation to restore the GFIP 1 freeways to an acceptable condition before Sanral resumes its obligations for all future maintenance funded by the national fiscus,' Maile said. Money better used Maile said Gauteng could have used that money to build additional schools, hospitals and roads and added that if the province was not paying this R5.4 billion, it could, for example, be announcing that it is 'giving R2 billion to deal with all the potholes, R1 billion to deal with the robots'. 'The repayment does have an impact on service delivery because it means we have limited resources'. Fiscal environment The MEC said the provincial government is implementing various measures and reforms to ensure the sustainability of our fiscal environment. These include active debt management strategies, spending restraint, improving compliance with rules and regulations in supply chain management, as well as revenue enhancement. 'Our Revenue Enhancement Strategy is already been actualised. Provincial departments are implementing various strategies to enhance revenue collection, anchored on a strategy that is underpinned by the following five principles: Accelerating the completion of interventions that have already started. Optimising the existing revenue sources. Enhancing revenue collection processes and systems to increase efficiency, cost effectiveness, and eliminate leakages. Identifying potential new revenue sources that have not been explored. The use of alternative funding and implementation models to achieve more value. Maintenance In terms of the MoA, Maile said Sanral cannot use the funds it receives from the province for any purpose other than the nine projects that are financed by the province. He said the R4.1 billion will be used for the following maintenance, upgrades and capacity expansion projects on 185 kilometres on the N1, N3, N12, N14 and R21: 14th Avenue to Buccleuch Golden Highway to 14 th Avenue Buccleuch to Brakfontein Brakfontein to Scientia Heidelberg Rd to Geldenhuys Geldenhuys to Buccleuch Uncle Charlies to Elands Gillooly's to Tom Jones Olifantsfontein to Hans Strydom 'These freeways are vital for facilitating efficient transportation and supporting economic activity by providing high-speed, controlled-access routes for vehicles in the broader Gauteng City Region,' Maile said Sanral In addition to settling this debt, the Gauteng Provincial Government has also made a commitment to contribute towards the rehabilitation of nine projects that Sanral is undertaking. 'These projects, part of the Gauteng Freeway Improvement Project I (GFIP I) are aimed at the amelioration of the Gauteng freeway network, and will cost the provincial government a total of R4.1 billion,' Maile said. ALSO READ: 'R6 billion in the red'; Gauteng could face bankruptcy by 2025 amid e-tolls debt
Eyewitness News
2 days ago
- Business
- Eyewitness News
Gauteng govt set to make second payment of e-toll debt on Monday
JOHANNESBURG - The Gauteng government is preparing to make its second payment towards settling its e-toll debt, with R3.3 billion scheduled for payment on Monday. The e-toll system was scrapped in 2024, after the National Treasury agreed to cover 70% of the debt, while the province took responsibility for the remaining 30%. The total debt owed by the Gauteng government amounted to R15.9 billion, including accrued interest. Finance MEC Lebogang Maile held a media briefing in Johannesburg on Sunday to provide an update on the repayment of the e-toll debt. In September 2024, the Gauteng government made its first payment of R3.8 billion towards settling its e-toll debt. READ: Gauteng govt makes first payment to settle e-toll debt With the province set to make a second payment of R3.3 billion on Monday, the total amount paid will rise to over R7.1 billion. Maile said this reflects the province's commitment to honouring its side of the deal. "In the budget speech in March of 2024, the Gauteng provincial government announced that as part of the province's arrangement to service the debt, a provision for honouring this commitment would be pencilled into the 2024 fiscal framework. Since making this announcement in the said budget speech, we have maintained the necessary fiscal discipline to ensure adherence to this commitment." The e-toll debt is to be repaid in five equal annual instalments. Besides the R3.3 billion payment to the South African National Roads Agency (SANRAL), the Gauteng government will also allocate an additional R2 billion for freeway upgrades.
