New e-toll contract makes no sense – Outa
28 Nov 2019 - by
Sanral has confirmed that they have received three bids, including a mammoth R11.4-billion offer, to run a new e-toll collection service after months of uncertainty over the status of the unpopular collection scheme.
The parastatal said they were evaluating the bids as their six-year contract with Electronic Toll Collections (ETC) was set to expire on December 2.
However, according to Wayne Duvenage, CEO of the Organisation Undoing Tax Abuse (Outa), the latest bids to take over the contract make no sense, as the status of the service remains in the balance.
“Entering into any contract while the country awaits Cabinet’s decision on the future of the e-tolls makes no sense,” one online news site quoted Duvenage as saying.
“Should the public be found not liable for payment of e-tolls, the already defunct scheme will be dead in the water, and the country may be legally bound to a contract for up to six years.”
He cited the government’s indecision to scrap the defunct scheme despite the past six years’ failures.
Sanral’s 2019 report indicated that Gauteng’s e-toll scheme had generated a total of R688mn in revenue, which averages at R57m a month. – Bjorn Vorster