• Dangerous games

    Employers' body Neasa is playing a potentially dangerous game, says Terry Bell.

  • Rational thinking

    All players should first consider the net result of their actions, says Leopold Scholtz.

  • Telkom's property poser

    BEE may be hindering Telkom's plans to offload redundant real estate, says Gugu Lourie.

Data provided by iNet BFA
Loading...
See More

Sanral in dire straits without e-tolls

Aug 01 2012 11:41

Related Articles

Outa files ConCourt papers

Alli withdraws resignation at Sanral

Govt challenges e-toll ruling in ConCourt

Govt was warned against e-tolls - report

Options sought on e-tolling

Motlanthe: Sanral debt repayments urgent

 

Cape Town - The SA National Roads Agency Limited (Sanral) faces heavy financial pressure post October 2013 should the roads agency still not earn e-toll revenue, Moody's said in a BusinessLive report.

This was notwithstanding Sanral's current cash reserves of R7.1bn, which should absorb operating costs and debt service in the short term, Moody's said in the report.

Moody's has estimated that Sanral would lose R270m a month for each month toll fees are not collected.

Moody's downgraded Sanral by two notches, after doubts about whether it could meet its debt commitments.

The downgrade means Sanral could see a spike in borrowing costs.

"We believe that Sanral's high gearing and uncertainties over e-tolling issues could make it difficult for the company in (the) medium term to debt-finance the operating deficits resulting from its loss of e-toll revenue," a Moody's analyst is quoted as saying.

Deputy President Kgalema Motlanthe, who chairs an inter-ministerial committee handling the Sanral crisis, has warned that failure to meet the road agency's debt repayments while the legal battle over e-tolling in Gauteng continues would have dire consequences for Sanral and the country.

The Treasury has extended a R5.8bn budget allocation to Sanral to help it meet its commitments.

On April 28, the high court in Pretoria handed down an order preventing Sanral from levying or collecting e-tolls for the Gauteng Freeway Improvement Project  pending the outcome of a judicial review.

The Opposition to Urban Tolling Alliance applied to have e-tolling halted.

A government spokespersonhas said despite the opposition, the state remains committed to e-tolling and would appeal the interim order by the the high court in Pretoria halting its implementation.

 - Fin24

 
NEXT ON FIN24X

 
 
 

Read Fin24’s Comments Policy

24.com publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
14 comments
Add your comment
Comment 0 characters remaining
 

Company Snapshot

We're talking about:

Small Business

A cash flow crunch often occurs in small businesses trying to balance cash coming in with cash going out. Watch this video to help you improve.
 
 

No need to keep up with the Joneses

Fin24 users provide their own personal tips on how to save money instead of trying to keep up with the Joneses.

 
 

Start saving...

Where can you stash your cash?
Time the key for retirement saving
Dummy's guide to saving
Save money with affordable account

Money Clinic

Money Clinic
Do you have a question about your finances? We'll get an expert opinion.
Click here...
Loading...