Cash strapped SANRAL another reason to scrap e-tolling – Ollis

HumanIPO reported yesterday the state-owned roads agency is running out of money as a result of delays to the e-tolling system, according to Vusi Mona, spokesperson for SANRAL.

“If SANRAL were to abandon e-tolling its risk profile would improve, allowing for investment. Moreover, the total of South Africa’s fuel levies over time would have provided enough funding for SANRAL to fulfil its mandate,” said Ollis.

Ollis referred to evidence, which he believes is proof of why SANRAL’s plans for e-tolling are “ill conceived”.

This includes Portugal’s failure to implement the system, two studies conducted by the Southern African Bitumen Association (SABITA) revealing the fuel levy would provide enough funding for the maintenance and construction of South African Roads, and the City of Cape Town’s successful interdict preventing e-tolling in the Western Cape.

“SANRAL’s good reputation for building quality roads is hanging in the balance because of the e-tolls and this is threatening the financial stability of the entity,” said Ollis.

Ollis added the maintenance of the roads in the country are jeopardised due to SANRAL’s “obsession with e-tolls”.

The Opposition to Urban Tolling Alliance (OUTA) believes SANRAL has itself to blame for its financial predicament and if the government had added a ZAR0.10 increase to the fuel levy in 2006, it would have raised ZAR17 million (US$1.7 billion) for the Gauteng Freeway Improvement Project (GFIP).

“We are of the opinion that the system, the biggest of its kind in the world, is too complicated to implement in this environment and enforcement is a huge problem for them,” said Wayne Duvenage, chairperson of OUTA.

“The authorities have underestimated the backlash from society, which is the result of arrogance, poor public engagement and a lack of transparency by SANRAL throughout the e-toll debacle.”