Latest news with #R29bn
The Citizen
30-06-2025
- 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
TimesLIVE
13-06-2025
- Politics
- TimesLIVE
Department blame game leaves SANDF personnel in crumbling facilities
South Africa's military infrastructure is on the verge of total collapse, an MP said in the wake of a joint meeting of two parliamentary oversight committees. The high-stakes meeting of parliament's portfolio committee on defence and military veterans (PCDMV) and portfolio committee on public works and infrastructure (PCPWI) this week laid bare deep institutional dysfunction and mistrust between the department of defence (DoD) and department of public works and infrastructure (DPWI). The session aimed to address the stalled devolution of infrastructure maintenance functions from the DPWI to the DoD and the growing crisis in defence facility management across the country. The meeting was called in response to security concerns and service failures at military bases, many of which are more than a century old and suffering from chronic neglect. Members heard that some bases house live ammunition depots and sensitive military equipment yet are surrounded by informal settlements due to land invasions that the DPWI, as the legal custodian of state property, has failed to respond to in a timely manner. 'We are sitting on a powder keg' Chairperson of the PCDMV Dakota Legoete opened the hearing with a stark warning. He said some military bases house ammunition depots and are subject to land grabs by people residing next to these bases. It becomes very difficult to always consult the public works department to say there's a land grab as public works takes six months to respond and by the time they do, squatters need to be provided with alternative land because the law allows for this if they have stayed on the land for over 48 hours. Defence readiness under fire as MPs grill Armscor over failing navy and air force contracts MPs from across the political spectrum on Friday interrogated Armscor and the defence department about delays, underfunding and systemic risks ... Politics 43 minutes ago The DoD underscored that its lack of custodianship over its own bases prevents it from legally evicting trespassers or initiating critical repairs, making the situation untenable. DPWI admits to backlogs and budget deficits The DPWI, represented by deputy minister Sihle Zikalala and senior officials, conceded to a widespread breakdown of infrastructure delivery, pointing to years of underfunding and operational instability. 'In 2016 our budget was R17bn. Today it is R18bn. With inflation and increasing property rates, we are R9bn short of what we should have had,' said Siza Sibande, head of the Property Management Trading Entity (PMTE). He reported a nationwide infrastructure maintenance backlog of R29bn, with R4bn directly related to defence properties. 'We are struggling with underspending, limited planning capacity and a model where the funds for projects sit with the client departments who then delay payment,' he said. The department also revealed it was holding R4.171bn in unpaid accounts under a shared savings utility management programme, with the DoD being the largest debtor. Frustration from defence Vice-Adm David Maningi Mkhonto, chief of logistics in the DoD, detailed the department's efforts to reclaim control of its infrastructure portfolio, citing a 2018 directive from the standing committee on appropriations. 'The poor state of our facilities is due to DPWI's failure to deliver. Our own works capability is being rebuilt so we can take over key functions,' he said. So far, emergency repairs and day-to-day maintenance have been devolved as of April 2024. However, rates and taxes, leases and capital projects remain under the DPWI. The DoD claims to have the professional and technical capacity to manage these, noting it has more than 1,000 trained artisans and professionals in infrastructure roles. Deputy minister of defence Richard Mkhungo reinforced the need for departmental autonomy: 'We are a complex department with security sensitivities. Civilians managing critical infrastructure pose a risk. We do not seek superiority over DPWI, but we do seek independence where it matters.' Committee members voice concern Committee members delivered pointed criticism of both departments, with several voicing frustration at the repeated absence of key ministers. The failure of the minister of defence to attend or stay for the duration of crucial meetings was viewed as indicative of a broader lack of respect for parliamentary oversight. Concerns were raised over the DPWI's track record in managing its responsibilities, with strong views that the department's repeated underperformance had put national security at risk. The notion that the department of defence should continue relying on a landlord that struggles to maintain essential infrastructure was described as unacceptable, with the implications stretching far beyond administrative inefficiency. Others highlighted what they saw as the real drivers behind the ongoing dispute — the competition for control over infrastructure budgets rather than a shared commitment to improving service delivery. There was a call for departments to shift focus from internal power struggles to tangible outcomes. The handling of documentation was also criticised. Committee members questioned why the DPWI submitted a modified version of its presentation without prior notice, suggesting this undermined transparency and accountability. Similar concerns were directed at the defence department, which introduced legal references during its briefing that were absent from the written materials, leaving members unable to scrutinise the claims properly. Way forward: A technical working group and political oversight Despite tensions, both departments agreed to establish a joint technical working group to review project statuses and agree on a path forward. The DPWI proposed an 'accelerated execution model' using pre-approved contractor panels to improve turnaround times. The DoD committed to finalising its internal infrastructure management structure by March 2026. The committee recommended a reversal of the DoD's 2021 moratorium on new infrastructure projects, warning that failure to complete design-stage projects could lead to fruitless and wasteful expenditure. Legoete concluded the hearing by stressing the urgency of progress. 'This is not a bureaucratic squabble. It is a national security risk. We need performance, not paper pushing — and we need it now.' Further hearings are expected as the portfolio committees push for executive-level accountability and the resolution of a dispute that has effectively paralysed the maintenance of South Africa's military infrastructure. DA defence and military veterans' spokesperson Chris Hattingh said in a statement after Wednesday's meeting that immediate political intervention was needed. This, because the DoD and its facilities maintenance arm — the works formation — and minister Dean Macpherson 's DPWI are in 'a destructive stand-off, paralysing infrastructure delivery'. He maintains the DoD/DPWI briefings 'laid bare this dysfunction — a complete breakdown in trust, co-ordination and accountability'. Both sides are to blame, he says, adding years of DWPI underperformance has left defence facilities in disrepair with minister Angie Motshekga's DoD failing to settle its debts. One of these, according to Hattingh, is the more than R4bn owing for municipal services. 'In 2021 the DoD unilaterally froze all unfunded and planned infrastructure projects, citing excessive delays. The DPWI says this action wasted millions in design costs, now likely to be written off. What followed was a blame game: defence accusing public works of inefficiency and public works accusing defence of financial neglect and unilateralism,' his statement on the meeting notes. Hattingh concluded that while departments point fingers, 'our soldiers are left to serve in dangerous, crumbling facilities. This is not just a governance failure it is a betrayal of the men and women in uniform.'
IOL News
02-06-2025
- Climate
- IOL News
News you should know tonight: Top 5 stories you may have missed on June 2, 2025
Rain expected along the southern and eastern coasts midweek, with most inland areas remaining dry and cold. Good evening, IOL News family! It's Monday, June 2, 2025, and it's time for a wrap of the biggest headlines making waves in South Africa and beyond. Don't forget to join the IOL WhatsApp Channel to stay in tune, informed, and in the know SA weather forecast: Expect cooler temperatures and isolated showers this week South Africa will start the week with calm and stable weather, but the South African Weather Service (SAWS) has confirmed that isolated showers and cooler temperatures are expected to arrive by midweek. To read on, click here. Zuma blasts Ramaphosa's US mission: 'South Africa's problems can't be fixed by outsiders' Former President Jacob Zuma has issued a stinging rebuke of President Cyril Ramaphosa's recent diplomatic visit to Washington, asserting that South Africa should not rely on foreign powers to resolve its domestic challenges. To read on, click here. Here's what you're likely to pay for petrol and diesel from Wednesday, June 04 Fuel taxes are set to increase for the first time in three years, but thankfully a stronger rand will shield South African motorists from fuel price hikes in June. To read on, click here. Public safety alert: Gauteng officials warn of rising dangers in online meet-ups The Gauteng Provincial Legislature's Portfolio Committee on Community Safety has issued a serious warning to the public amid a surge in violent crimes linked to online dating and social media mee-tups, particularly in the Maboneng precinct of Johannesburg. To read on, click here. KZN councillor and wife implicated in alleged corruption on R29bn N3 highway upgrade An exclusive investigation by IOL has uncovered disturbing allegations of corruption and financial misconduct involving a local politician and his wife, linked to the multi-billion rand N3 highway upgrade - a critical infrastructure project connecting Durban and Pietermaritzburg. To read on, click here. Get your news on the go, click here to join the IOL News WhatsApp channel. IOL News
