Sanral board requested audience with Gauteng premier on the e-tolling matter

Issued by SANRAL
Pretoria, Sep 17, 2014

The Board of Directors of the South African National Roads Agency (Sanral) sent an eight-page communique to Gauteng Premier David Makhura prior to the commencement of the 15-member panel's hearings.

"We took a proactive step and communicated our position on this matter. We also requested an audience with the Premier to understand his position and exchange views on how, together, we can address the challenges of funding road infrastructure without it being at the expense of social infrastructure. Perceptions that we were not prepared to enter into dialogue are therefore unfortunate," said Sanral Acting Board Chairperson Dudu Nyamane.

As for a presentation by Sanral to the panel established by Premier Makhura, the agency could not make such as the Board is guided by the Sanral and National Roads Act, Act 7 of 1998, and is ultimately accountable and responsible to the shareholder (the national Minister of Transport) for the affairs of the agency. This means the position has always been clear: the user-pays principle is a national policy which was implemented with the Gauteng Freeway Improvement Project.

"We do not take instructions from any political party, as was recently reported in the media, but from the Shareholder and the relevant legislation governing Sanral. We are an implementing agency of government," clarified Nyamane.

The Board expressed its sincere gratitude to all road users - individuals and companies - that have done the right thing by registering for e-tolls, and/or paying what they owe for the use of the world-class roads between Johannesburg and Pretoria.

"Do not be misled by the detractors. By registering and paying, you are making it possible for Sanral to continue to fulfil its mandate by building and maintaining world-class quality roads.

"The user-pays principle is a fair system that has made it possible to improve the vital roads of Gauteng - the economic dynamo of South Africa. To also bring sanity to the question of Sanral and tolling: our portfolio is made up as follows: 85% non-toll, 14% toll and 1% e-toll. It is unfortunate that a single percentage of Sanral's work has been the cause of much misinformation, propaganda and belligerence - to such an extent that at times it threatened the mandate of such an important national asset," averred Nyamane.

Sanral's endeavours reach beyond the borders of South Africa, too. Explains Nyamane: "Sanral's road network is recognised worldwide as being among the best internationally and its staff allocate a considerable amount of time transferring these sought after skills to many countries, particularly on the African continent."

She also clarified that the agency gets an allocation from National Treasury to look after the non-toll national roads (85% of its network) and also raises money from capital markets to fund its toll operations which constitute 15% of the agency's road portfolio.

"Therefore, the argument directed at Sanral that it should fund the GFIP through a fuel levy is misdirected. Sanral does not collect the fuel levy. Besides, Treasury has explained why it does not ring-fence the fuel levy and why, from an equity point of view, a decision was taken to fund the GFIP through tolling," she concluded.