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OUTA: SANRAL attempting to exempt itself from the NCA

The Opposition to Urban Tolling Alliance (OUTA) revealed yesterday (Thursday) the South African Roads Agency Limited (SANRAL) is attempting to exempt itself from the National Credit Act (NCA).

According to OUTA, SANRAL claims the Gauteng Freeway Improvement Project is a pre-paid tolling scheme through which debt will not be incurred by users.

OUTA has described this as a “new twist” in the controversial e-tolling plan for Gauteng.

Clif Johnston, vice-chairperson of the South African National Consumer Union, told OUTA he disagrees with SANRAL’s attempt to be exempted from the NCA and the agency is apparently prepared to stop at nothing to ramrod e-tolling through.

“The very architecture of the e-tolling freeway network proves it was designed from the ground up on the basis of ‘use now, pay later.’

“This creates consumer debt and automatically brings the scheme within the ambit of the NCA. The option to pay by e-tag doesn’t change the system’s underlying nature,” said Johnston.

Johnston explained the e-toll gantries have been designed without booms or gates, which will allow motorists to move freely between them, with or without an e-tag. This, according to Johnston indicates the system considers postpaid usage as the norm.

Similar to the payment model used by mobile operators for their contract subscribers, motorists without an e-tag will be allowed to travel e-tolled routes unrestricted and be billed after receiving an invoice.

Furthermore Johnston said SANRAL previously explained this process and produced tariffs for non-tagged users, which was subsequently withdrawn.

SANRAL said it would also implement a debt collection process for motorists who do not have an e-tag and who do not pay their e-toll bills.

“Invoices after the fact? Debt collection? These are words associated with granting credit and possibly allowing people to run up debt for which they may not be able to settle,” said Johnston.

Referring to motorists who fitted their vehicle with an e-tag, but had not loaded credit onto the device, Johnston said: “Such a user will have reverted to a postpaid method of payment, which again proves that the e-tolling system’s basic design architecture is post-paid in nature.”

“E-tolling is clearly postpaid system and SANRAL is now attempting – through the current amendment to the Transport and Related Matters bills – to legislate its way out of the maze resulting from its irrational and ill-conceived choice of e-tolling. SANRAL must not be allowed to trample on consumer rights by circumventing the NCA,” concluded Johnston.

Posted in: Policy

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