National government has indirectly admitted the failure in its imposition of e-tolls in Gauteng.
This was announced on Wednesday during the Medium-Term Budget Policy Statement delivered in Parliament by Finance Minister Enoch Godongwana.
Godongwana has washed his hands over Gauteng’s e-tolls and has put the ball in the provincial government’s courts.
This comes after the announcement that the National Treasury will now take over 70% of Sanral’s (SA National Roads Agency) R47 billion debt, and it has allocated R23.7 billion to settle Sanral’s maturing debt while leaving the remaining 30% to be covered by the Gauteng government.
Godongwana said there was a need to move from debates and find solutions to dealing with Sanral’s debt.
He said:
The issue of e-tolls has cost the ANC votes in Gauteng following a massive disobedience campaign as the public decried these, saying they weren’t properly consulted.
The minister said that fiscal support to state-owned companies remained a challenging balancing act, due to the many competing priorities and limited resources.
"Funding to SOEs will now come with strict pre- and post-conditions. Pre-conditions mean SOEs will need to comply with these conditions before they receive government support, not after."