Sanral is not broke

The Star's reporting on Sanral's presentation to the Gauteng e-toll review panel shows a lamentable understanding of the business of the organisation and the way Sanral is being funded.

To claim in the headline that "Sanral is broke", and then to tell readers that the CEO, Nazir Alli, told the panel that "it is broke" is simply wrong and is not even supported by the report that follows. The comprehensive audio-visual record of the proceedings over the three days' hearings will prove that these words were never used, and not even implied.

Mr Alli's remarks that "there is no new money" were made during a question and answer session with the panel and formed part of a broader exchange of views on how infrastructure - especially road infrastructure - could be funded in future. Within this context, he pointed to the limitations on the fiscus and the competing for funding, especially for social infrastructure and services - education, healthcare, housing and social grants, among others.

He then explained the country has to find alternative solutions for the funding of physical infrastructure such as roads. Sanral has responded to this challenge through the tolling of 15% of the national road network of 21 000km.

The bulk of the highway system - 85% - is still funded by the fiscus through the annual budget allocation. There is simply no logical way for The Star to deduct that 15% of Sanral's portfolio can put the entire agency in trouble. Moreover, taking into account that the 201km of Phase 1 of the Gauteng Freeway Improvement Project (GFIP) constitute only 1% of the total Sanral portfolio of 21 403km, there is no way the GFIP can jeopardise the entire the agency.

For the record: Sanral is not broke. As recently as last month the Auditor General issued its opinion on the agency's finances and did not raise a single concern about Sanral's solvency. This document is freely available in the public domain and the principles of good journalism would require of any reporter doing the story to be aware of these facts. The Auditor General has an obligation to raise concerns about the "going concern" status of any state entity it audits. The going concern status of Sanral is not in question.

Moreover, on the same day the review panel conducted this high-level discussion on infrastructure funding, Sanral went to the market to raise private sector funding through a bond auction. This auction raised R415 mllion, indicating the markets might be worried about the short-term uncertainties around the Gauteng freeway project, but retain confidence in the long-term stability and the quality of its corporate governance and management.

We are disappointed by the quality of journalism and want appeal to our colleagues in the media, particularly The Star and Sapa, to set the record straight and avail themselves of opportunities to get a better understanding of the issues regarding Sanral, and infrastructure funding in general.

Interestingly, many journalists who are covering the hearings approached Sanral this morning surprised at how they could have possibly missed such an obviously big story and whether they did not properly follow yesterday's proceedings. Of course, we assured them that there is no story that they missed.