Fin24

Govt was warned against e-tolls - report

2012-05-21 09:02

Johannesburg - The government was warned in 2010 that collection costs for the controversial e-toll system would be considerably higher than a petrol levy or tax, Beeld newspaper reported on Monday.

This emerged from an economic analysis report of the Gauteng Freeway Improvement Project, which was overseen by the University of Cape Town, and given to the SA National Roads Agency Limited (Sanral) in 2010.

"To pay for roads through taxation, or through a fuel levy, is simply cheaper than imposing a toll on the roads, even if it's done through an open road tolling system.

"The costs of collection are lower, because they don't include the costs of toll collection," the report said.

The high court in Pretoria last month halted the e-toll project in Gauteng, ruling that Sanral was forbidden from levying or collecting e-tolls pending the outcome of a judicial review.

Sanral CEO Nazir Alli has since resigned. The government is in the process of appealing the judgment.

 

Comments
  • Alan - 2012-05-21 09:11

    (Alan2) Typical ANC action: ignore warnings, just barge ahead because 'we have the votes'. Eventually however you get judged by results. And the voters are finally catching on that the ANC is an epic fail, as now proven by the e-toll debacle, Eskom, municipalities, hospitals, police, SAA and much more. It's now time for a decent government (of all races) that governs wisely, and uses our limited tax resources to benefit EVERYONE including the poor, not just a few ANC head honchos.

      Alan - 2012-05-21 09:34

      Spot on! I mean - WTF - we are the arrogant Govt. ... we don't 'serve' - we 'impose'!!! I am looking forward to seeing how much egg they are going to get on their faces from this whole saga. At first I thought the appeal was just to make it more difficult for Outa, but I now think it is mainly because Govr. is desperate to keep some things hidden.

      Hugh - 2012-05-21 10:03

      Consider - How else is the government to get back the overpayment of their employees. Unfortunately we the hard working get caught up in the net.

      Nigel - 2012-05-21 10:15

      Dead right!!!!

      mlucejko - 2012-05-21 10:23

      How many times has this Government employed 'Highly Specialised Consultants', who they pay 1000's of Rands to give good advice, only to ignore the advice because they don't like what they are being told.. This Government is too arrogant for it's own good !!

      Konstabel - 2012-05-21 10:49

      The truth seems to be that this project was primarily driven by some self-interest by the parties involved, another example of ANC tenderpreneurs pushing through projects to enrich themselves and their friends. E-tolling must be stopped at all cost as it does not make sense to throw any more money at a totally flawed idea. If e-tolling goes ahead I can gurantee you that they will not even cover operational costs which means the taxpayer will not only pay off all debt but also pay towards the cost of operating the system.

      Ina - 2012-05-21 12:01

      I couldn't agree more Allan. It makes no difference to me who governs, be they black, green, or purple, as long as it is done well, and everybody in the country is being looked after, not only the top few chosen ones. I really think South Africa has been handed a raw deal with this present incompetent, finger in the cookie jar government, please let the next elections repair this inequitous dispensation

      Ina - 2012-05-21 12:14

      Sorry, that should have been iniquitous

      ashne.segal - 2012-05-31 10:40

      Well the same happened with Eskom - "they were warned" and now the water! What next - how many times can one be warned!

  • Felix - 2012-05-21 09:13

    They didn't care as tax money would have been used, their backhands were safe.

  • Charles-Bronson - 2012-05-21 09:16

    Govermnet you will see e-toll war if you carry on trying to retieve your thiefs money back. The people of SA will show you we had enought of your corruption and will no longer pay for your greed!!

  • Fussed - 2012-05-21 09:18

    If you increase the tax base more people will be contrubuting istead of puting all the pressure on the few working class

      Gerald - 2012-05-22 15:54

      Tax, uct aside. The issue here i think was that there'd be no favour-money had funds been raised on existing infrastructure. Heck even the president enjoyed lucre off extreme corruption. You know how it goes here...

  • Jessica - 2012-05-21 09:19

    I see that a lot of etoll customer device centres are still open. So they are still continue to waste money hoping that they will defy the people

      Roger - 2012-05-21 09:31

      No Dear They are open so that you can get a refund . Some hopes HA HA

  • Morne - 2012-05-21 09:20

    Ignorance or arrogance? Whichever it might be, the results are equally destructive...

  • planetdonovan - 2012-05-21 09:21

    Collecting the tolls via existing tax structures presents no tender opportunities.

  • gregory.jurgens - 2012-05-21 09:22

    The government is determined to go against the will of the people. This is a huge can of worms the government wants to open.

  • dave.prinsloo - 2012-05-21 09:24

    that is why they chose it - \collection costs\ in anc-speak means \slush fund\

  • The-third - 2012-05-21 09:27

    Ja. Because there were hands in the cookie jar.

  • danny.levin.351 - 2012-05-21 09:29

    Alan, you are so right but look around at ALL african countries. Sadly there is NOT ONE where the Guvvement has done anything except enrich themselves and their cronnies while screwing the rest of the population and eventually turning once-prosperous countries into famine ridden places that end up needing help form the WEST to feed the population. The reason for the E-Tolling is simple. the fuel levy system does not allow for back-hand contracts and shady deals to be made, so there's no benefit in it for the corrupt people involved. The problem with setting up a decent government is that even if the ANC had to lose the majority of votes they WILL most certainly do the "African" thing, and hold onto power by means of violence (see examples in Kenya, Zimbabwe, DRC) so it is highly unlikely to ever happen. Eventually the E-toll story will fade out and a few months later they will come up with another scam.

  • Pieter Mulder - 2012-05-21 09:33

    Vote for an all race government. That's democracy.

  • toofaan.monsoon - 2012-05-21 09:35

    And many years ago, during Mbeki rule, the government was warned of the need for more power stations. They didn't listen then either, so this one is no surprise.

      jaysonpaul.beckwith - 2012-05-21 10:12

      The best part is. They want to start maintenance work now on the sub stations. Why didn't they didn't they do this in summer??? Mismanagement,, bottom line.

  • Warwick - 2012-05-21 09:36

    Too dumb to listen, too arrogant to care - useless is an understatement. What a bunch of losers we have in Government.

      mike.moja - 2012-05-21 11:34

      well said

  • Ronald - 2012-05-21 09:37

    In the light of this report, I think that the people involved in pushing the decision to go ahead with the tolling system should be liable for the R20 Billion price tag. Any company CEO can be held criminally liable for reckless business practices if it can be proven, which seems to be the case here, that his actions were contrary to accepted norms and placed the interest of the shareholders at risk. No citizen of this country, the shareholders of South Africa, wanted the toll roads in the first place. So go shake your piggy bank, Sanral

  • Dhavandran - 2012-05-21 09:38

    typical gordhan mentality , for a person to be incharge of the country's finances you made a real bolls-up.now to waste the taxpayers money you want to appeal the court decision. why don't you realise that the anc is now past its sell-by date.yes we all have the vote but now lets vote for service delivery and competency .

  • corne.coetzee.92 - 2012-05-21 09:41

    EXCUSE ME! Aren't we already paying levies for roads? Aren't we already paying tax? Why are the Gauteng motorists up in arms. In the rural areas (platteland), we don't have roads anymore. I would gladly pay tolls to be able to drive on a decent road. Why must the whole nation contibute for the few to drive in luxury? lOWER TAXES TO 20% ACROSS THE BOARD ( GRANTS INCLUDED) RAISE VAT TO 15 % and we should see more money in the state coffers. Yes more to waste, but then the whole nation contributes, and then people won't just shrug off the wasting as something that doesn't affect them.

      Nosiphom - 2012-05-21 10:00

      @Corne - I would also gladly pay toll provided my income tax is reduced dramatically.As it stands paying toll would be tantamount to paying twice for the same thing,and that I am not prepared to do.

  • Danie - 2012-05-21 09:42

    Was it not a way for commuters in their own cars and in a taxi, whose rates would inevitably rise to pay the e-tol To fund our high living politicians? Will these these robbed commuters next time round vote for the robbers, to represent and rob them them again?

      Nosiphom - 2012-05-21 10:01

      Yes Danie, the robbed commuters will vote the robbers again - it just a habit. Its like an abused wife hoping the abuser will suddenly change!

      danny.levin.351 - 2012-05-21 11:12

      Yes Danie, the same people that get no treament or medicine in the collapsed govt hospitals, who get poor education so they can be kept illiterate will carry on voting for them. they are fed racist propaganda(how do you say WHITE GEVAAR in Pedi?) and told lies. before 94 they had no vote, now they have a vote which is meaningless since they give it to thieves who do not care about their voters.

  • Loo - 2012-05-21 09:57

    Of course they were .. ECONOMICS 101. They should have asked any school kid, they would have known too.

  • Ronald - 2012-05-21 10:13

    The fuel levy option has the predicament that all fuel users pay and not the actual users of the freeways in Gauteng where the 20 billion rand was spend. The latter in combination with other policing possibilities of having open gantries and cameras may have contributed to the decision not to use the fuel levy. Agreed the system also allows for tenders and a lot more scope for fraud which will hopefully now by exposed. Nevertheless another argument to use the fuel levy instead would be environmental. Those that can afford to drive large capacity SUVs will ultimately consume more fuel and contribute more. People driving allot, damage the environment more and would also need to fork out more. Quite fair

      Pieter - 2012-05-21 10:23

      How do you justify R 20 billion for invoicing costs over 20 years because that is at least what it is going to cost by using the open gantries? No, there is something far more fishy here. With at least 60% of the money being sent overseas, that makes it even more fishy. That the Austrian company that built the gantries has (had) links to the same people who paid the bribes during the weapon scandal, surely leaves the biggest stink of all. I believe they are continuing in court because the cannot let the public see who the real beneficiaries are.

  • danny.levin.351 - 2012-05-21 11:07

    If one looks at the state of the roads in all provinces and see the vast difference between the Western Cape and the rest of the country one can see that there is already enough money being levied on us to pay for road maintenance. if the money in all other provinces was not stolen and wasted but actually spent on the roads there would be noo need for any additional taxes and certainly not for toll roads. funny, can anyone see what is the main difference between the WC and other provinces? the WC is not governed by a bunch of thieves but by decent and honest people, who were democratically elected byt the majority of voters (this means that people of all colours voted for them). why cant we have honest governments in all provinces?

      corrie.bresler - 2012-05-21 13:08

      I have no problem in paying toll fees with the provisio that:- 1) I don't pay for the same thing twice (the road being tolled, with the exception of the new lane added was built and paid for in 1978 thru 1982. Normal upkeep should have been easily paid for by the fuel levy and vehicle license fee. 2) The toll fee equates to the value in fuel and time saved, in other words, the status quo as far as money in my pocket is maintained. For this reason I have no problem in paying a toll fee when using the tunnel on the other side of Worcester when going to Cape Town. 3) Conversion of existing roads to toll roads to be halted, eg., road past Middelburg to Nelspruit, road from Vaal river to Bloemfontein, road north to Polokwane, etc, past Stormvogel down-ramp in Pretoria. On the road in the Free State a lot of improvement is being made, but once again, should the fuel levy, not be used to pay for this. With all the road-works being reported in the area around Ladysmith in KZN, I won't be surprised if tolling stations also appear on the 'improved' roads in the near future.

  • Longfellow - 2012-05-21 12:29

    The decision not to use the fuel levy must surely have something to do with the fact that they were hoping to roll out a similar system in all major centres. It is only the protest of most South Africans standing together that stopped the thieves in their tracks even if only temporarily. Well done South Africans, for the first time we have stood up as one against the stench of ANC corruption that has enveloped our land.

  • Ken - 2012-05-22 14:21

    If and when this systems starts..will the Blue Light Brigade's and Government vehicles also pay the e-toll fees??? I doubt it very much.

  • dhavandran.palavar - 2012-08-31 15:41

    typical cANCer, always in hindsight.

  • King Shaimus Morwanza - 2015-03-04 23:01

    The current and previous governments are both stupid. The old had no human rights. The current one has no logic. All they do is steal, sleep, eat, wake up and repeat the same process tomorrow. Vote them out before you end up eating each other. Remove e nonsense

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