E-tolls col­lec­tion firm no longer in SA hands

Chronicle (Zimbabwe) - - Business -

CAPE TOWN — The com­pany col­lect­ing pay­ments for the con­tentious e-toll sys­tem in Gaut­eng is now fully owned by the Aus­trian con­glom­er­ate Kap­sch.

This was con­firmed on Tues­day with the di­vest­ment of the only BEE part­ner in TMT Ser­vices & Sup­plies, which, with Kap­sch Traf­fi­com made up the e-tolls col­lec­tions com­pany ETC.

TMT Ser­vices & Sup­plies has con­firmed that its cur­rent em­pow­er­ment partners will be di­vest­ing as one of the share­hold­ers in the com­pany af­ter a long term in­volve­ment, the state­ment read.

This was also un­der­lined in the lat­est financial report of Kap­sch Traf­fi­com for the year end­ing March 2015/16, which showed that Kap­sch gained full con­trol of Elec­tronic Toll Col­lec­tions (ETC) af­ter ac­quir­ing three Cape Town­based firms TMT Ser­vices and Sup­plies, Ber­ry­dust 51 and Mo­bis­erve.

Kap­sch, through TMT, won the R6.2bn ten­der from the South African Na­tional Roads Agency (San­ral) for the de­sign and op­er­a­tion of the e-toll sys­tem in Gaut­eng in 2010.

Mate­meku In­vest­ments with a 51 per­cent share­hold­ing was the main BEE share­holder in TMT, a level 2 B-BBEE com­pany. How­ever, in 2010, Mate­meku chair­per­son Moss Mashishi sold 57 per­cent of the com­pany to Kap­sch for more than R70m and on Tues­day TMT an­nounced Mate­meku was fully di­vest­ing from TMT.

Kap­sch said in a joint state­ment with TMT on Tues­day that the exit plan of the mi­nor­ity share­hold­ers had al­ways been in­cluded in the agree­ments be­tween Kap­sch and TMT when the ini­tial in­vest­ment in South Africa was for­mu­lated six years ago, and while the agree­ments be­tween the par­ties have been con­cluded, the ex­e­cu­tion of the deal is still sub­ject to ful­fil­ment of con­di­tions prece­dent.

Mashishi said: “Over 13 years ago we in­vested in a small com­pany whose growth and achieve­ments have more than met our busi­ness ob­jec­tives and have given us ex­cel­lent re­turns.”

Wayne Du­ve­nage, chair­per­son of the Or­gan­i­sa­tion Un­do­ing Tax Abuse (Outa), ex­pressed con­cern over that South Africa’s e-tolls col­lec­tions com­pany is com­pletely in for­eign con­trol.

“What started out as a ma­jor­ity lo­cal BBBEE in­spired own­er­ship of the ETC com­pany, who was awarded the con­tract to col­lect the e-toll rev­enues, has now turned out to be­come a 100 per­cent for­eign owned com­pany whose prof­its will be taken off-shore,” he told Fin24.

He said, in short, a for­eign or­gan­i­sa­tion makes money out of South African cit­i­zens who need to travel on their own roads to get to work.

“This is just another di­a­bol­i­cal sit­u­a­tion that has been al­lowed to de­velop from this far­ci­cal sit­u­a­tion pre­sented to us, cour­tesy of San­ral and our De­part­ment of Trans­port.” — Fin24

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