After e-tolls faced with opposition from road users, Gauteng Premier Panyaza Lesufi revealed the proposed finance strategy for the Freeway Improvement Project (GFIP) on Friday 04 November. He outlined that e-toll would be phased out once the appropriate steps to reach an agreement with the National Treasury are completed.
More information about the proposals is expected to be released on Thursday 24 November when Finance MEC Jacob Mamabolo delivers Gauteng’s Medium-Term Budget Policy Statement. The proposal follows Minister of Finance Enoch Godongwana’s declaration during the Medium-Term Budget Policy Statement (MTBPS) delivery that e-tolls would be eliminated.
As part of the agreement, the national government (through Treasury) would pay 70% of the R47 billion Sanral debt, with the provincial government covering the remaining 30%. The provincial executive council met to find a way forward to resolve the burning issue on Thursday 03 November.
“We need to meet again with the ministers of Finance and Transport to conclude on all outstanding matters which includes determining the exact figure of the 30% contribution that we need to make towards settling the e-toll debt,” Lesufi said.
According to the Minister, Lesufi, the provincial government’s plan on maintenance was primarily and only on the 30%, but the Minister’s address included maintenance.
“We are not rejecting or objecting, because these are national roads, and if we as Gauteng are expected to maintain them, there must be due process and therefore we believe the meeting will clarify those aspects,” Lesufi said.
He explained that there are people who have been paying e-tolls and they expect clarity from them. “We need to know what will become of the process of deregistering e-tolls,” Lesufi explained.
The Cabinet further resolved to appoint three task teams or EXCO sub-committees to look at where will the money come from. “This sub-committee will be led by MEC for Finance Jacob Mamabolo and the second task team will investigate how the e-toll can be repurposed,” Lesufi said.
He indicated that the team will be led by MEC for Community Safety, Faith Mazibuko. Both tasked teams will be supported by a technical team lead by the Acting Director General in the Office of the premier Mduduzi Mbada.
“As the provincial government, to relieve the pressure on the GPG fiscus and maintain the delivery of social services and other imperatives like fighting crime, we wish to stager the repayment of the 30% over 20 years,” Lesufi said.
