Gauteng road project costs rocket

2012-05-25 13:58

Johannesburg - The costs of the first phase of the Gauteng Freeway Improvement Project (GFIP) have increased significantly to almost R90bn, ITWeb Financial reported.

Democratic Alliance Gauteng transport spokesperson Neil Campbell said the entire project, not just phase one, was estimated to cost R6.3bn.

He said the opposition was shocked at the extremely high cost increases of the GFIP and e-tolling, the website reports.

The figures have never been made public, despite attempts by the DA and media to access the information, he is reported as saying.

He cited the huge costs of borrowing which amounted to R38.3bn over a 20-year loan period, the expensive toll operating costs and the possibility of kickbacks as causes of concern.

The South African National Road Agency Limited had not responded to requests for comment by the time of publication, according to the website.

*This article originally appreared on ITWeb Financial.


  • Stille - 2012-05-25 14:06

    From an AustralianNewspaper on South Africa E-Tolls "The dealbetween Sanral and Kapsch of Austria, the e-tolling operating company is not with the corporate entity, but with Kapsch Sweden. Kapsch Sweden used to be SAAB Aerospace, a 50%shareholder in a company called SANIP. British Aerospace held the other 50%. SANIP is alleged to be the payment vehicle used by SAAB and BAE to pay the alleged bribes of around R100Million in the Arms Deal saga to ensure that the Gripen fighter was chosen. The names Hlongwane, Modise, ANC, Zuma, Shaik figureprominently in the list of alleged recipients. So why Kapsch Sweden, not the corporate entity? Ileave it to your imagination. How much? According to the corporate structure used toimplement e-tolling in SA, about 80c of each rand of profit can be repatriated to Austria viaSweden. Gauteng alone expects to generate about R350Million a month in toll fees. Assuming a very conservative 10% profit available tobe repatriated, that means about R28Million a month to go overseas"

      Foodfor - 2012-05-25 14:11

      In Economics 101 you are taught that before attempting anything, 'count the cost'. Something the government obviously didn't do... And I am not just talking about money...

  • B - 2012-05-25 14:09

    Old news News/Fin24. Already heard about this yesterday on MixFM! Was also in Star so get more up to date?!

      jaba.kov - 2012-05-25 14:50

      So? I didn’t read about this yet... and now I feel sick... like you felt probably yesterday.

      Greg - 2012-05-25 14:52

      Heard it on LM Radio out of Moz

  • Pieter Mulder - 2012-05-25 14:14

    DA I take my hat off, trying to speak to walls. You really have passions. Maybe try talking to the trolls.

  • bernpm - 2012-05-25 14:16

    From a 6 billion budget to an 90 billion spend in a couple of years????? Must be easy for a learner forensic accountant to find the "hole in the pocket" :-))

  • dennis.vermaak.5 - 2012-05-25 14:31

    That is a 1350% increase !! African maths at it's very best !!

  • anthonycharles.williams - 2012-05-25 14:50

    so this is what the government was trying to hide behind that zuma painting yes now it all makes sence...

  • vmeiring1 - 2012-05-25 14:51

    Wonder how many politicians, comrades and friends are benefitting from this. ANC policy, see how it was done and try. They've got no cooking glue

  • TdJ01 - 2012-05-25 14:56

    This figure will increase until SANRAL can justify implimenting the e-toll and make billions for the nameless stakeholders!! Suffer the beloved country!

  • Johnathon - 2012-05-25 15:06

    What I find just so amusing about the whole e-toll Motor Gate Scam, is that although tons of information are coming to light on the whole disgraceful public rip off, corruption, back hander’s bribes, personal gains of certain individuals, the Government is still determined to appeal the court order temporarily halting e-tolling, and continues to demand that the project goes ahead at all costs, despite all the objections from the public. After all this, do they really think they will ever convince the motorist to ever pay a cent in tolls, even if this diabolic shambles is ever able to rise from the ashes. They can legislate, criminalise non payment, and try to send motorists to jail, but nothing in the world will ever make the motorist contribute 1 cent towards this criminal abortion they do not want to let go of. They must really take us to be a crowd of total brainless imbeciles, too scared and cringing to ever think of challenging the might of the Zuma led ANC. After all they were part of the "Great Struggle”, and let you forget this only at your peril.

  • ian.d.samson - 2012-05-25 15:21

    BAH HUMBUG! They are taking one heck of a chance by reporting this increase that's way out of line! Original estimate R6.2bn, now suddenly it's over R90bn - who are they kidding here? - and other reports show just how RICH the ANC is (or think they are). The opposition must call for a forensic audit of SANRAL and everyone associated with it.

  • gpaarman - 2012-05-25 15:24

    R 90 billion for +/- 180 km of upgrades (not new roads) amounts to R500 million per km. Is this possible?

  • Adam - 2012-05-25 15:31

    I think a new minister of finance is needed. This one is showing his stupidity, or is he so scared of zuma?. The phallic symbol should have been on the head.

  • danny.levin.351 - 2012-05-25 15:35

    WTF?? this is becoming worse than the arms deal...

      Roy - 2012-05-25 20:29

      Any common denominators? - Zuma!! Perhaps thats why he had to let ol' Shaik out - to work on the fine print!

  • SynJyn - 2012-05-25 15:44

    This must be one of the biggest fraud deals in the world.

  • comurray - 2012-05-25 16:15

    Is the 90 billion before or after all the bribes have been paid???

  • Jim Jam - 2012-05-25 18:48

    And all we do is sit back and let it happen

      danny.levin.351 - 2012-05-25 19:06

      JimJAm, sadly until the Sheeple stop voting these scum into power there is not much anyone can do...

  • richard.lemmer1 - 2012-05-26 06:51

    We are in trouble ! I suggest they repossess the roads ! How the hell did they get from a R6B budget to 90 BN ? They will have to tripple their suggested tolls to ever make a dent in that debt !

  • flysouth - 2012-05-26 10:08

    This is shaping up to be a bigger scandal than the Arms Deal! A full official enquiry is needed into this entire scheme - and urgently.

  • dewalddl - 2012-05-26 14:18

    Best of all, come the next election, the majority wil again vote for this incompetent and corrupt ANC government.

  • braamc - 2012-05-26 21:34

    All down the drain, the thieving cANCer

  • braamc - 2012-05-26 21:34

    All down the drain, the thieving cANCer

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