Mbalula says decision imminent on e-tolls (again) , with R2 billion budgeted

Transport Minister, Fikile Mbalula says just over R2 billion has been allocated towards the Gauteng Freeway Improvement Project (GFIP).

Mbalula delivered his budget during Parliament’s mini plenary vote meeting on Wednesday, saying the Department of Transport’s planned expenditure will increase at an average annual rate of 7.7% over the medium term

“This means an increase from R69.1 billion in 2022/2023 to R81.6 billion in 2024/2025,” he said.

ALSO READ: Treasury still undecided on scrapping, as e-toll price hikes come into effect

The minister said R76.4 billion has been set aside for South African National Road Agency Limited (Sanral), adding that R45.3 billion of the total allocated amount will go towards upgrading the national non‐toll roads network.

Sanral is expected to receive an additional R9.9 billion for maintaining the non-toll road network for the 2022/2023 fiscal year, as announced by Finance Minister Enoch Godongwana during his budget speech in February.

While R2.8 billion has been budgeted for Moloto Road (R573), the department, Mbalula said, has allocated R3.7 billion for the N2 Wild Coast project.

E-tolls

He also provided an update on e-tolls, saying R2.1 billion has been allocated to fund reduced tariffs for the GFIP.

“We have been working closely with the Minister of Finance to finalise outstanding matters that will enable the finalisation by Cabinet on the funding of the Gauteng Freeway Improvement Project, better known as e-tolls,” he said.

Mablula said Cabinet was seized with e-tolls, as impulsive decisions on the matter can affect the country’s finances.

“We are alive to the adverse impact that the delay in making the final decision on e-tolls has on Sanral’s balance sheet and it’s ability to raise capital for its catalytic projects,” the minister said.

“A pronouncement will be made once a final decision has been made. I can report that the decision is imminent, albeit the fact that it took us a long time,” he added.

READ MORE: Government must ‘bite the bullet’ and make a decision on e-tolls, says Sanral CEO

Godongwana was expected to make a pronouncement on the e-tolls saga during his budget speech, but did not do so.

Mbalula had previously said in November 2021 that Cabinet had finally decided to end the scheme.

He, however, pointed out that the National Treasury stopped the implementation of the decision.

Last month, the minister indicated that government hopes to finalise e-tolls before June.

Mbalula bemoaned the fact that some people were not paying for e-tolls, so government needed to resolve this.

“The culture that we don’t pay for anything, it won’t assist the country,” Mbalula said.

Just before Godongwana’s budget, Stefanie Fick, executive director of the accountability division at the Organisation Undoing Tax Abuse (Outa) told The Citizen that government should accept that the e-tolls project was unsuccessful, as the compliance rate stood at 15%.

Outa’s previous attempts to have e-tolls declared illegal were rejected by the Pretoria High Court as well as the Supreme Court of Appeal (SCA).

However, the high court’s judgment left open the possibility of a legal challenge if and when Sanral issued summonses to motorists to pay their e-toll debt.

NOW READ: Cabinet decided to scrap e-tolls but Treasury has questions about funding