HumanIPO reported earlier today on the revelation Kapsch is expecting the huge cash windfall.
“This is money that is being extracted directly from the pockets of hard-pressed citizens to improve the profits and wealth of overseas business,” said Wayne Duvenage, chairperson of OUTA.
“The figure Kapsch mentions is around 45 per cent of the annual running costs for the e-tolling system quoted by SANRAL (South African Roads Agency Limited) and the South African treasury, which depicts sizeable profits for an offshore company paid for by the Gauteng road user.”
According to figures in OUTA’s possession, e-tolling will generate a maximum revenue of ZAR3.5 million (US$325,000), of which only an approximate of ZAR1.5 million (US$150,000) will be spent on the toll collection process.
Duvenage believes each rand sent to Kapsch in Austria is a rand less towards infrastructure development.
“It is also one rand less in disposable income for the citizens who have to pay. SANRAL talks about improving the lives of the poor through e-tolling; how does sending over half a billion rand per annum into the coffers of an off-shore company improve the lives of the poor or be in the best interest of the South African citizens? It simply doesn’t,” he said.
Furthermore, Duvenage said OUTA believes it is necessary for the public protector and possibly the judicial commission of enquiry to “deeply probe” the e-toll deal.
However, SANRAL stated the opposite, saying the money generated from e-tolling would not be sent overseas.
“Of course, everyone is now jumping on the political bandwagon that once e-tolling commences, all the collected monies will be going overseas. This is simply not true,” the Times Live quoted Vusi Mona, spokesperson for SANRAL, as saying.
“What must also be made clear is that all tolls collected on GFIP (Gauteng Freeway Improvement Project) go to SANRAL. ETC (Electronic Toll Collection joint venture) is paid for services rendered on a monthly basis, and the payment is strictly according to a bill of quantities as specified in the tender contract.”
Mona said the dividends declared are only payable to foreign companies after income tax is paid in South Africa.