Neelam Rahim | neelam@radioislam.co.za

3-minute read
05 October 2024 | 17:09 CAT

The Gauteng provincial government (GPG) wants to use revenue from Gautrain — a partially tax-funded service that is not yet self-sustaining — to pay off a R12.9-billion loan it needs to foot the bill for its part in the e-toll shutdown. (Photo – MYBROADBAND)

The Gauteng Provincial Government (GPG) has made the first payment of R3.8 Billion rand to cover the first instalment of the province’s e-toll debt. The GPG has agreed to fund 30% of the e-toll debt, debt servicing costs, and maintenance backlogs.

However, the DA in Gauteng says the financial burden of paying for the now-defunct e-toll system should have remained the same for the province, as the national government should be responsible for this debt. The provincial government has to fund 30 percent of the e-toll debt, with the first instalment of 3.8 billion rands paid on Monday.

The DA’s Ruhan Robinson says it is unacceptable that the debt will be funded through the province’s revenue, which has already been allocated to medium-term spending. The DA says that the GPG has taken a national liability by paying billions to cover the first instalment of the e-toll debt.

“This financial burden should not have been shifted to the province; the national government should be held responsible for this debt as these are national roads,” Robinson said.

“It is tantamount to a bail out from the province to the national entity as the money was used to pay for national assets and these assets don’t reflect on Gauteng books so the province should not be forking out an amount of 21 billion rand over the next five years to be servicing this debt,” Robinson added.

Democratic Alliance (DA) has argued that the money should be recovered from a fuel levy, as Gauteng pays approximately 70% of the national fuel levy.

According to the DA, While the Gauteng Provincial Treasury, through MEC Lebogang Maile, has explained that the debts will be funded through the province’s revenue, this own revenue—R8 billion—has already been allocated to spending in the medium term.

As explained by MEC Maile, the arrangement would see Gauteng effectively paying approximately R20 billion in e-toll costs over five years. At the same time, the national government would cover the remaining 70% of the bill.

However, the DA stated that this arrangement effectively forces the people of Gauteng to pay for a national entity’s debt, which is unjust and a misallocation of provincial resources. Premier Panyaza Lesufi should have resisted agreeing to such an arrangement, as it is tantamount to a bailout of the South African National Roads Agency (SANRAL), a national entity.

“While MEC Maile has given assurances that service delivery would not be affected by this payment, the fact remains that the province will be servicing debt and maintaining assets that do not reflect on their books. This comes at a huge cost for the many provincial priorities that deserve attention and further exacerbates the ever-increasing deficit,” the DA said.

Listen to the full interview on The Daily Round Up with Moulana Junaid Kharsany and The DA’s Ruhan Robinson here.