SANRAL was not bailed out

The government did not bail out SANRAL - because it is not necessary. The opposite impression has been created in some media reports, but seems to be based on a misunderstanding.

The R12.5 billion allocated by the Treasury through the Department of Transport is merely the annual budget for the national roads agency. In the previous financial year, the budget allocation was R10.5 billion.

The funds will be used for the 85% of the road network that the national roads agency controls and is not tolled. The other 15% is made up of toll roads, which have to be self-funded.

There is no cross-subsidisation between the funding of tolled roads and non-tolled roads.

"SANRAL is not bankrupt and does not need a bail-out and did not get one. There is a difference between an annual allocation and a bail-out," says the communications manager of the South African National Roads Agency, Vusi Mona.