National Treasury: Government will lose billions if e-tolls are to go

National Treasury: Government will lose billions if e-tolls are to go

- South Africans have just about had it with e-tolls, but if the public is to have its way and e-tolls are scrapped, the government could lose billions

- This is according to a warning by the National Treasury

- Whether this is something motorists care about is yet to be seen

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E-tolls have been the bane of many motorists' existence for so long that it almost feels like it's a lost cause.

There is still a little bit of hope that, somehow, the government will scrap e-tolls and put an end to the system.

However, should the South African public have its way and see e-tolls become a thing of history, the government will suffer billions in losses.

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IOL News reports that the National Treasury has warned that stopping e-tolls will see the government pay R11.1 billion in unguaranteed debt.

Furthermore, the government will also be responsible for guaranteed debt - an amount of R19 billion.

"In the event of the termination of the e-tolling or default in the guarantee, government may have to support the balance of the unguaranteed debt of R11.1bn in addition to the guaranteed debt."

Briefly.co.za gathered that SANRAL (the SA National Roads Agency Ltd) has a total unguaranteed debt of R15 billion.

The Treasure advised:

"Given that Sanral’s continuing liquidity challenges and default risk specifically related to GFIP, by un-earmarking the transfer to the non-toll by R5.75bn, this would allow for a shifting of funds from non-toll to toll network."

SANRAL incurred R39 billion in e-toll-related debt and is struggling to collect its e-toll debt from motorists.

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This comes about two weeks after DA's Solly Msimanga said that under ANC, e-tolls are here to stay. He is of the opinion that while the ANC rules South Africa, there isn't any chance of them being scrapped.

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Source: Briefly.co.za

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