Cape Town – The Gauteng government plans to settle its R13 billion e-toll debt to SANRAL by reprioritising its budget instead of borrowing money.
The Gauteng government revealed during a media briefing on Monday that it has already made a R3.8 billion payment towards the debt.
Finance MEC Lebogang Maile announced the change in strategy, saying that borrowing to settle debt was not practical.
“The province will prioritise the repriotisation of budgets, identification of efficiency gains, and making trade-offs to fund the government priorities,” EWN quoted Maile as saying.
The government will focus on budget adjustments, efficiency improvements, and revenue-boosting measures to cover the remaining balance.
GAUTENG PAYS FIRST E-TOLL DEBT INSTALMENT AMOUNTING TO R3.8 BILLION
Today, the GPG is starting the process to service the historical debt of R12.9 billion in five equal annual instalments at government 5-year interest rate. The first instalment that we are paying today amounts… pic.twitter.com/Mz1uU2JpuN
— Lebogang Maile (@LebogangMaile1) September 30, 2024
According to The Citizen, the total cost of the failed e-toll project stands at R43 billion, with the national government covering 70% and Gauteng handling 30%.
Maile has assured that the province will not face bankruptcy, despite its R12.9 billion e-toll debt, the report said.
No funds will be borrowed for repayments, which will come from the provincial revenue fund.
Maile confirmed that those who paid e-toll fees will not be reimbursed and called for solutions to fund future freeway upgrades.
“When people were paying for E-tolls, remember it was legal, it was not illegal,” said Maile.
“They were paying because they were utilising the service, so they will not be paid back because that money was not collected illegally by the government,” the MEC said, as per the report.
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Picture: X/@LebogangMaile1
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Compiled by Betha Madhomu
