E-tolls set to stay: Government reveal terms of R5.7 billion Sanral bailout

When the people talk, politicians should listen. However, it would seem there have been some spectacular crossed wires in Gauteng. The much-maligned and financially crippled e-tolls system will now live to fight another day, after Transport Minister Blade Nzimande confirmed Sanral would receive a R5.7 billion bailout.

The roads agency have been plunged into fiscal despair by the ill-conceived tolls, which have failed to bring in the revenue previously forecast. It has left Sanral with debts soaring above R10 billion, but thanks to the deep pockets of the ANC, their money woes have effectively been halved.

Why Sanral have been bailed out Nzimande explained the decision via a statement on Monday afternoon. He says the bailout is to help ensure that the department can meet payment terms with its investors. The move was labelled as a strategic intervention to help prop-up the Gauteng Freeway Improvement Project (GFIP).

As a result of Sanral's toll network experiencing financial difficulties, and to ensure that Sanral complies to its payment terms to investors, as well as to maintain the toll network across the country, funds were transferred from the non-toll network to the toll network. However, the department is working to resolve the issue of the GFIP speedily.

Blade Nzimande E-tolls: Where is the money coming from? The money has been taken from the Medium-term budget appropriation. It's important to note that this money was not taken from the Treasury. Instead, money that was set aside for mid-term spending back in October 2018 will now go towards the e-tolls system, which continues to fail upwards.

Despite several promises from local government including Gauteng Premier David Makhura, who vowed to rid the system from the province it seems that national structures of the ANC have had the final word.

You can read the full statement from the Department of Transport here:

Department of Transport transfer funds to @SANRAL_za toll Road Network @DrBladeNzimande @SindiChikunga @GovernmentZA pic.twitter.com/lk3JTdspIS

Department of Transport (@DoTransport) March 11, 2019 Tags: e-tollsSanral

LINK:	https://www.thesouthafrican.com/e-tolls-sanral-bailout-5-7-billion-det...
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