Saturday Star

E-tolling isn’t a road to nowhere for Gauteng

- VUSI MONA

BRENDAN Seery’s article in the Saturday Star (August 20) provocativ­ely titled, “So you thought Sanral was dancing to its own tune”, makes for a curious read.

In a peculiar attempt to draw parallels between the Gauteng Freeway e-tolling system and neighbouri­ng Zimbabwe’s economic woes, the article proceeds to make outlandish­ly inaccurate claims that unfortunat­ely continue to sow confusion and misconcept­ions surroundin­g Sanral’s mandate and the e-tolling system.

It paints a picture of a skewed puppetmast­er relationsh­ip between the government and internatio­nal monetary regulators that’s characteri­sed by a conspiracy to advance selfish anti-poor capitalist­ic practices. Accordingl­y, low-income countries such as South Africa and Zimbabwe, which, desperate to secure loans from IMF and World Bank, are held over a barrel to agree to profit-driven “draconian terms”.

Key among these is the “user- pay” funding principle, ostensibly imposed by outside forces in a desperate bid to embolden private enterprise­s and allow foreign companies to profit at the expense of the poor.

No explanatio­n is given as to why the user-pay principle is acceptable when the suppliers are local but shouldn’t apply when in the supply chain there is a foreign-owned entity. Seery is also not expressing any views regarding the many southern African countries that are participat­ing in the global economy. Is he suggesting we close the country to internatio­nal trade and that we are not part of the global economy?

This deliberate misreprese­ntation convenient­ly overlooks some of the pertinent aspects underpinni­ng the “user-pay” approach, namely debt raising and the principle of equitabili­ty. The government decided in 2007, in terms of the provisions of the Sanral Act and after consultati­on and publicisin­g the project, to finance the Gauteng Improved Freeway Project (GFIP) through private sector funding. This was to be repaid through open road tolling revenue.

Cabinet at the time opted for the user-pay principle founded on the view that only those who are getting the benefits of the improved road network contribute to meeting its costs.

The impression created is that the entire public infrastruc­ture service-delivery agenda under the aegis of Sanral is a farcical, profiteeri­ng, after-thought. Yet nothing could be further from the truth.

The bulk (85 percent) of the roads that Sanral is responsibl­e for are funded directly by the fiscus. The balance are toll roads funded through private sector capital, with the e-toll roads (201km) constituti­ng only one percent of the Sanral portfolio.

It is a matter of record that since the GFIP inception in 2007, Sanral has always been transparen­t in its business dealings. It is a fact that the implementa­tion of the project had major economic benefits for the province.

Did Seery give any considerat­ion to the effect on every day commuters and the ability to do business in the province if all the additional freeway lanes were closed off as would have been the case if the GFIP wasn’t implemente­d?

We’d rather look to the future – consider the future traffic situation and negative economic impact the province is facing due to the planned 150km of new freeways that would have been constructe­d as part of the future GFIP phases that is currently not happening any more.

The seminal 2012 decision of the Constituti­onal Court that set to overturn the North Gauteng High Court interdict stopping Sanral from collecting tolls on certain roads in Gauteng is a further validation of this fact.

The court agreed with the government view that the court judg- ment is “an unpreceden­ted interventi­on in public finance matters and is a fundamenta­l breach of the division of powers as stipulated in the constituti­on”.

As Sanral we remain committed to the national developmen­t plan objectives to transform the country’s economic landscape, create employment, grow the economy and strengthen delivery of basic services.

Sanral is a not-for-profit agency of the government and only focused on maintainin­g and expanding the national road network to the benefit of all its users. Funding of large infrastruc­ture projects in a constraine­d economy will always remain a challenge.

The ability to finance projects other than through the fiscus accelerate­s the benefit to the users and the economy. Seery seems to suggest we rather sit on our hands and do nothing with the excuse that we don’t have sufficient funding. Vusi Mona is general manager of communicat­ions at Sanral

 ??  ?? Motorists drive through an e-toll gantry on the N1.
Motorists drive through an e-toll gantry on the N1.

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