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How Sanral is robbing Peter to pay Paul

Government misses deadline to resolve Gauteng e-tolling issue.

The South African National Roads Agency (Sanral) is taking large amounts of money from its non-toll portfolio, which comprises 87% of the roads under its management, to plug the hole left by Gauteng road users who refuse to pay their e-tolls.

According to information contained in its integrated report released on Monday, Sanral transferred R1.9 billion from its non-toll portfolio to the toll portfolio in the year ended March 31, 2018.

This could escalate to R5.75 billion in the current financial year, in terms of approval obtained from National Treasury. This transfer would only be enough to support Sanral’s liquidity needs up to July next year, the agency states in the report.

The amount is significant and roughly equals the amount Sanral spent in 2017/18 on the maintenance of its non-toll portfolio and only marginally less than the R6.2 billion it spent on capital projects in its non-toll portfolio.

This means the 187 km Gauteng e-toll project is gobbling up more and more of the money meant for building new roads and maintaining the existing 13 000 km of non-toll roads under Sanral’s management.

This comes as government drags its feet on resolving the e-toll impasse. According to the Sanral report, the president and the minister of transport earlier committed to taking a decision by May this year, but this has not happened. It is not clear whether the report refers to the current or previous functionaries.

During the reporting period, traffic volumes on the toll roads increased by 6.5%. Toll tariffs on all toll roads increased by an inflation-linked 5.9%. Income from conventional toll roads increased by 12.4%, but the Gauteng toll roads generated 4.83% less income after an impairment of R2.5 billion was taken on outstanding e-tolls.

Cash receipts on the Gauteng e-toll system amounted to R726 million during 2017/18. When e-tolls were first implemented in December 2013, Sanral hoped to collect R300 million per month.

According to the report road users owed R10.8 billion in toll fees at the end of March, of which R9.8 billion had been outstanding for more than 91 days. That is a deterioration from the total of R8.7 billion a year before, of which R6.4 billion was older than 91 days.

The lion’s share of this is due to non-payment of e-tolls.

Sanral says in the report that it continues to pursue the outstanding debt, but considers debt older than three years, the balances of clients in business rescue or liquidation, and amounts below R500 as unrecoverable.

The agency has government guarantees to the value of R37.9 billion. Of this, it has utilised R29.7 billion. It also has treasury approval for a further R15 billion in unguaranteed debt, with R4.8 billion of that still available for issuing new bonds.

In terms of the current funding requirements, Sanral does not expect that the total guarantee limit will be breached before March 2020. This does not provide for any new toll roads “and limited capital expenditure on roads, where this is possible without compromising the asset”.

Sanral has submitted a request to increase the total guarantee from R37.9 billion to R43 billion and the borrowing limit from R47.9 billion to R54 billion.

The agency stated that it might return to the capital markets in the light of the approval for the transfer of non-toll money to the toll portfolio.

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Nazir Alli and the Sanral board members who mislead government and the public and forced through the etoll system should hang their heads in shame. Alli’s name will forever be in the toilet because of what he did at Sanral.

Nazir Ali was the henchman; and he played his part well. The empowerment looters put him there because they were going to make a packet. The unions also were part of the cabal. I’m soo glad that the public and OUTA made a stand i.e. looting must stop.

It only cost R20 billion to build, and that’s with the gantries/etoll system right? How much have they paid in already And they say they will have to spend another R5.75 billion this financial year. Shouldn’t it be paid off or be near paid off by now?

After selling your birth right for a pot of lentils, you will have to pay your Austrian masters for a loooong time.

and China is next in line…

Ha ha ha, supersunbird. The capital cost of the roads was R22bn. The capital cost of the VPC and tolling infrastructure was R33bn. Plus VAT. In 2012 Rands. Plus maintenance.

There are mineshafts that emit more light than the financial black hole that is GFIP.

Good luck to those that don’t pay their tolls.. gov will have no choice but to force thru some counter measures to make people pay, this when petrol prices are highest will be fun to watch and I will lmfao at the usual folk complain about law which is law. You’re about to be forced to comply or suffer as a result (we heading into a major default or major debt which circles back to higher taxes).

You reap what you soe..personally I think foreign countries should deny non payers visas as it’s actually a tax compliance question asked.

…..and exactly what will the government do? Blanket arrest?

Considering many of the avoiders are potentially ANC voters, I doubt Rama-do-nothing will want to inflame the Gauteng branch

Note Brazil & Portugal tried to impose tolls on old established motorways and eventually ceded to the idea tax payer would stubbornly refuse. Not the case on new motorway infrastructure

Asking foreign countries to deny visas because you have a outstanding toll bill on the N1, this is possibly the funniest and most stupid thing I have seen on Moneyweb. Well done.

I’m here to approve Teamed209’s comment. Hahahahhaaa!!

“…the usual folk complain about law which is law. ”

That’s EXACTLY what we are complaining about. All the laws SANRAL broke and continues to break. That’s why we refuse to pay. SANRAL has never yet operated within the law to get a tolling project through. Nazir Alli fantasised an entire board resolution into existence while under oath. There is a name for that: perjury. And you think we should pay for the illegal results of this illegal process? Nah.

SANRAL’s failure to operate within the law is why the N4 got taken down by the High Court and Winelands got pole-axed by the ConCourt. Even as I write this, SANRAL is building bridges for the N2, despite the fact that there has been court action ongoing since 2012 against that project on which SANRAL has yet again played fast and loose with the law.

If government wants to govern, it must do so according to the law and the constitution. That obligation extends to government’s SOEs.

“… law which is law.” This “law” is an ass. It’s also, according to the courts, an illegal law. This “law is all about theft of state funds, through export to another country, for which there are back-hander rewards. You will not be able to separate the concept from bribery, if you look carefully.

The question that never gets answered is?….. What happens to the money that we pay every year for motor vehicle licences… My car cost me more than R600 a year…. what is that money used for?… was it not for the maintenance of the road infrastructure?

No. Since the last stint of the apartheid years government started to pool their ‘income’. So regardless if it is your car license or fuel levy, it goes into a big pot used for more and more demands – such as social grants and other expenses.
This was actually one of Sanral’s arguments for tolling vs a fuel levy as they knew they would not see that money.

Ring fencing of funds taxed for road development etc is not a bad idea but you can’t have both, fuel levy, license fees and tolls is a step to far and the public have rejected it.

There is no ring-fence reservation of toll fee collections, licence fees, or other collections, Have a look at your vehicle licence receipt: you will see charges for nothing to do with transport or roads or whatever.

Note the e-NATIS system, for which you and i are paying, that has never worked. But we continue to pay, and the provider will never fix it, because in the agreement there are no penalties for non-delivery. So no fixing of faults. Just keep paying.

Some of the non-tolling roads are in such disrepair that only 4×4’s can manage to drive on it safely. There is a backlog on repairs of roads stretching back for years. Sandal, like all SOE’s, is an accident waiting to happen. An analysis of number of employees, average salaries and kilometer of new roads built and /or maintained should reveal whether they are doing their job or is just another drain on the ficus.

Part 2 is on its way I reckon. SANRAl has started construction on a vanity Wild Coast project that will eclipse the etoll cost, I reckon by a factor of two. All for what? Environmental destruction of a relatively unique and pristine area and probably to facilitate mineral extraction for some Australians and connected cadres. Funded how? A toll on commuters in southern eThekwini?

So that is why the toll gates on the N3 and N1 are so expensive. They are using that money for the Gauteng highways. So much for the ‘user pays’ principle.

Exactly. The moment you cross-subsidise, you get into the realm of common sense; ie. having a fiscus-supplied national roads fund. More intelligent people than me have been saying this for years, but the problem is that an NRF makes it difficult to steal the money.

The ANC has been robbing peter to pay paul for a very long time.

Without the kickbacks, no wonder the ANC cannot pay for its website.

Meanwhile SANRAL treats those who pay e-toll with disdain. My car was written off after a head-on collision and towed away never to be seen again – or so I thought. Three months later the “wreck” was back on the road and racking up toll fees on my account! Turned out the car was repaired by the salvage company. Although change of ownership was done, SANRAL kept billing me. SANRAL turned a deaf ear to my pleas. The bleeding only stopped after I took a day off to retrieve the tag from the salvage company and personally handed it in at a SANRAL service center. I was not allowed to manage this online. A sophisticated European system mismanaged by unsophisticated people.

Another case of the consequences an ill considered, badly constructed and poorly implemented funding programme coming home to roost. This together with the SOE corruption pillaging has impoverished and financially enslaved a country that, with its natural abundance, should have been a shining beacon of success.
Stupidly and greed absolutely know no bounds and ignorance continues to reign!

almost but not quite. The e-Toll system was designed to be milked. Like a never-ending cow. A cash cow.

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