E-tolls: Lesufi says R47 billion debt a ‘time bomb’ because citizens refused to pay

Gauteng Premier Panyaza Lesufi briefed the media on the latest developments on e-tolls and the R47 billion in debt owed to Sanral.

Lesufi on Friday said the Gauteng government will consult the people on how the 30% should be funded, and he didn’t outright say that residents would not be held responsible.

Sanral e-tolls debt

R47 billion owed by government

This comes after Finance Minister Enoch Godongwana said during the Medium-Term Budget Speech (MTBPS) that government will absorb the e-toll debt.

As part of the deal, the national government (through treasury) would pay 70% of the R47 billion Sanral debt, while the provincial government will cover the remaining 30%.

The question on everyone’s minds, however, is how the 30% will be funded. Lesufi said the provincial government didn’t want to “make the same mistake of imposing a model”.

Watch: Gauteng Provincial Government to settle 30% of Sanral debt

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Sanral e-toll debt a ‘time bomb’

He said South Africans might rejoice at the prospect of no more e-tolls, but “the reality is we’re dealing with a time bomb here”.

“We have a debt of R47 billion. We’ve paid R26 billion in terms of interest and people are not paying. So what do we do? Do we fold our arms? The debt would be increasing day in and day out.”

He said government now finds itself in a quagmire “but the debt remains R47 billion, and we’re on the verge of defaulting because people are not paying”.

“And you need R5 billion to maintain the roads every year. Something must give,” he said.

‘You wanted e-tolls gone, it’s not cheap’

Lesufi said the impact of the debt on the province’s budget is “going to be severe until we have a settlement to give us breathing space”.

“You said e-tolls must go. We are implementing that decision, but there is a price to pay and that is not a cheap price.”

One of the methods – other than somehow milking Gauteng residents dry – would be to “quickly sell assets and extend timelines of payment”.

The gantries, however, will remain.

Lesufi said: “We want the gantries. We unleashed a new crime-fighting model and we need the gantries to track cars.”

It all started with 2010 World Cup

Lesufi said e-tolls were initially implemented because South Africa hosted the 2010 World Cup and we “needed top infrastructure to demonstrate our capabilities”.

“We staged the most beautiful, well-appreciated World Cup, and this [e-toll] infrastructure assisted. Those that know the traffic can acknowledge the infrastructure assisted us to alleviate traffic.”

“But the method used to recoup funds was, unfortunately, rejected by South Africans. So what do we do? Do we fold our arms and say it can’t be done or do we cut the umbilical cord and move on?”

Will Gautengers pay the debt?

Despite being asked numerous times throughout the briefing if Gauteng residents would be expected to pay, we still don’t have an answer…

Throughout the briefing, Lesufi avoided the question of whether Gauteng residents would be held responsible for covering the 30% still owed.

When pressed for an answer, Lesufi finally said: “Let’s consult, I don’t want to commit the same mistakes that we find ourselves in.”

“Remember with the e-tolls, people said they were not consulted, so if there is a method or a way that will involve citizens paying or not paying, let’s consult and on the basis of that consultation we’ll have an answer.”

ALSO READ: Confusion over how much Gauteng must pay Sanral to settle e-toll debt

“I really don’t want to pre-empt the outcome. We are starting the consultation process immediately because this matter, we have until 31 December to finalise.

“So we will consult on whether the citizens will pay or not but we’ve got models that we believe are workable models, based on the expert advice we received.”

‘Poor will not suffer’

Lesufi said steps will be taken “to protect the poor”. He added that no job cuts will be implemented as a result of paying the 30%.

“What we want to emphasise – the poor, in particular, those who rely on social grants, will not suffer because of the decision to scrap e-tolls.”

He also said “there must not be a drop in service delivery” during this period.

He said the process will be “fair and just”, and that the provincial government’s model “would not include any form of tolling, so we won’t have this crisis again”.

Certainty about dates and other outstanding matters will be confirmed at a later date.

NOW READ: E-tolls are dead, but could lead to budget cuts elsewhere for years to come