News24

Cancelling tolls 'cheaper than continuing'

2012-04-27 10:23

Johannesburg - Government needs to cancel the toll collection contract with the Electronic Toll Collection (ETC) Consortium, the Democratic Alliance said on Friday.

"This is the only way to escape the exorbitant and unworkable e-toll system that has caused so much protest in Gauteng," said DA spokesperson Jack Bloom.

He estimated that R11bn would be spent on the contract over eight years and R6.6bn would be saved if it was cancelled.

"Damages would have to be paid for capital already spent and for lost profits, but cancelling is still cheaper than continuing with this contract," he said.

The implementation of the e-tolling system on Gauteng's highways was postponed for a month by the transport department and SA National Roads Agency Limited (Sanral) on Thursday.

The announcement was made by transport director general George Mahlalela, just hours after the African National Congress and the Congress of SA Trade Unions said they would ask the government for a month-long delay.

E-tolling was to have been implemented on 185km of highway in Johannesburg and Tshwane on Monday.

Comments
  • IAnon - 2012-04-27 10:35

    Either way - the guy in the street is going to be screwed again.

  • Jacobus - 2012-04-27 10:35

    All e-toll employees paid to "thubs-down' this comment... now is your chance... blink twice, if someone's behind the door listening...

  • Shirley - 2012-04-27 10:39

    Spot on! However now you have to convince the thoughtless airheads who still believe money grows on trees of this!

  • Sam - 2012-04-27 10:42

    Its strange that those who hate COMMUNISTS are the ones supporting freebies while SACP support etolling, when there are pot holes they scream to the roof, where does the govt should get money to fix those pot holes, the little tax that we collect to upgrade townships/rural schools in order to avoid REFUGEES is spent on luxuries/priviledge for ppl driving X5s,cayennas,Range Rovers etc I feel sad for south african ppl for being victims of politicing opportunists

      Press - 2012-04-27 12:11

      Dear Sam - where exactly does your "little tax that we collect" statement come from given that we are already the most over-taxed nation on the planet (with only the eBenzi eating from this tax pot) ? But since you asked - the money to fix and develop social infrastructure should come from taxes generated by an economy growing at 7% plus - bases on sustainable employment opportunities in a bussiness environment where enterpreneurs risking life and limb to try and look after themselves are not punished for daring to mobilize and employ labour.

      Sam - 2012-04-27 15:40

      Im convince ppl did nt read the statement by SACP as result they dont understand my statement , the point is maintaining roads is very expensive it derails other service delivery like rural/township schools which needs R60b to be fixed , in that sense we cannt steal from the poor to maintain roads for ppl to cruise around freely with their SUVs, when there were pot holes are there ones who shout a lot yet the child in the Eastern Cape called a REFUGEE when searching for better school, this money spent to upgrade GP roads should have been spent in the Eastern Cape schools, not for ppl who are greedy , cannt contribute. Australians were the ones who came with the system since there was none in SA ,it is not true that they came with idea, they provided SA with their etolling gates

      peter.kisbeygreen - 2012-04-27 22:10

      Sam, it was not the Australians, it was the Austrians. Australia have kangaroos, Austria has snow. Very different countries.

      Aristar - 2012-04-28 05:53

      Here is something that the criminal elements must never find out: These fancy new 'Toll portals' that are all around Gauteng have TONS and TONS and TONS of copper wire. High quality copper that is worth Hundreds of Thousands of Rand. PLEASE keep this information as quiet as possible! PS: The Earthing mats behind each tollgate shelter house the most copper wire.

  • Siphiwo - 2012-04-27 10:44

    We then urgently, ask the ruling party to listen to this alternative from the DA, before it is too late. We appreciate the construction of our roads nationally, but this e-tolling system, is not going to work for us, already, we are taxed to the marrow. May the reasoning prevail at once. May I wish all South Africans today, the best celebrations of our Freedom Day. There is still a long walk ahead of us, but, may we unite more than before and make this country the best for us now and our generations to come. God bless South Africa.

      maseratifittipaldi - 2012-04-27 11:01

      May you too enjoy your freedom day, Siphiwo. I hope your words "There is still a long walk ahead of us" , does not mean that we will have to sell our cars because of this e-tolling thing.

      WarrenStylin - 2012-04-27 12:10

      Because the DA said scrap it, the ANC will go out of it's way to implement now. They cannot be seen agreeing with the opposition. It happens in all governments. Regardless of how good an idea might be from an opposition party, they cannot entertain it because it is opposition.

  • Siphiwo - 2012-04-27 10:47

    We then urgently, ask the ruling party to listen to this alternative from the DA, before it is too late. We appreciate the construction of our roads nationally, but this e-tolling system, is not going to work for us, already, we are taxed to the marrow. May the reasoning prevail at once. May I wish all South Africans today, the best celebrations of our Freedom Day. There is still a long walk ahead of us, but, may we unite more than before and make this country the best for us now and our generations to come. God bless South Africa.

  • Chris - 2012-04-27 11:02

    It's truly unbelievable! This country is being governed by inept office clerks, at best. What were they thinking when they proposed, and then, unbelievably, approved this project? Did they really stop to think how they were going to recover +/- 80% of the tolls from the people using these roads?? Many of these people without postal addresses and even street addresses!

      George - 2012-04-27 11:08

      There is no government. It is plunder and rapine by largely illiterate hordes who have no concept of personal honor, self control, productivity, i.e. civilization. Just a giant appetite for luxury and idleness. OK slight exaggeration but you get the drift.

  • Steve - 2012-04-27 11:06

    Well said Jack Bloom, now be "effective" for a change and join the campaign to rid us of this contemptuous eSCAM and SCAMRAL disaster. "First Loss is Best Loss!" "Quit when it is obvious that it will fail!" "Never throw good money after bad!" Simple Rules of Life and Survival in business.....Especially when your "Customers" (in this case - unwilling victims) have made it clear to you that your SCAM is over and they will not tolerate your deception. Sorry (NOT) for all the corrupt that had banked on the kickbacks and bribes!!! Also for the fatcat "deployee" executives at SCAMRAL and their masters for not getting all the bonuses that were expected, the debt collectors who thought that Christmas was coming, the lawyers who would have had a field day taking SCAMRAL apart in court and the other lawyers trying to defend the injustice for pieces of Judas' Silver.........(NOT!) Now an inquiry is needed into naming and shaming the myriad of individuals who put the country into this mess. They are surely guilty not only of crass stupidity but likewise of Economic Treason against our struggling society

  • rickvcooper - 2012-04-27 11:11

    E-Tolling is just another way for government to plunder - they think that if they steal in different ways, that it will go unnoticed.

  • Freddy - 2012-04-27 11:12

    Cancelling the e-tolls should also stop R1,2 billion leaving the country in to the hands of Austria. The money can be better utilized here. Sanral has said that the roads were e-toll ready. Absolute bull. Large parts of tar between Olifantsfontein and the New Road turnoff have been removed and not replaced within the last 2 weeks.

      Michael - 2012-04-27 11:58

      Spot-on, Freddy - and also the chunk between N4 and Stormvoel! (and further north).

  • louis.langenhoven - 2012-04-27 11:24

    who are the people responsible for this E-toll fiasco...?

      Keith - 2012-04-27 11:56

      The ANC.

  • Grace - 2012-04-27 11:24

    All provinces should stand together with this matter. Once e-toll is up and running in Gauteng, they'll implement it throughout the country. Besides our daily (already exhausting travel expenses due to the petrol price) everything else will go up yet AGAIN!!! Its getting to the point where its costing honest hard working people more to get to work than they earn!

  • Keith - 2012-04-27 11:50

    I'm not at all clear on this. I don't see how it will be cheaper to pay off the E Toll Consortium that to let the tolling continue. But I suppose Mr Bloom has done his homework; I cannot do any because I do not know how to get the necessary information, especially since Cosatu could not get it.

      Pieter - 2012-04-27 13:57

      They say the devil is in the detail. Mr Bloom is quite right. Over 8 years South Africa will probably save about R 6.6 billion assuming the contract can be cancelled for R 4.4 billion). Over the next eight years it will probably be around R 11 + (.3 * 11) = R 14.3 billion and for the 4 years after that probably (R 7.1 ) + (.3 * 7.1) = R 9.2 billion which gives South Africa a total saving after 20 years of (6.6 + 14.3 + 9.2) = R 30 billion (Rounded to show basic calculations) The 30 percent added is an escalation fee (very conservative) because they are not going to ask the same rate year after year. The total money to be repaid is +- R 32 billion ( R20 billion + interest) of which R 5.8 billion was repaid by the Treasury. So, you can see the amount saved will be +- the amount to be repaid.

      Pieter - 2012-04-27 13:57

      So, why will South Africa save the money? The reason is the "milking fee". For SARS to collect money it costs about 1% of the amount they collect, so for example if they collect R100 it costs R 1 to collect it. For an amount of R 32 billion, SARS's milking fee is a paltry R 320 million For an amount of R 32 billion, SANRAL's milking fee is a hefty R 30 billion + R 4.4 billion = R 34 billion. In other words it is the same as buying a BMW for R 1 million and then having to pay R 1 million extra for the invoice. So, there you have it my friend...as I said in the beginning...the devil is in the detail. What puzzles me though is...how could the Minister of Finance support this even though he knows the consortium's milking fee is 50 times (5000%) more than the Revenue Service's?

      maseratifittipaldi - 2012-04-27 18:25

      2c : The Finance Minister probably supports it in his private capacity, in view of the rich pickings.

      Keith - 2012-04-28 10:01

      I may be naive Mr Fittipaldi, but I get the impression that Mr Gordham is an honest gentleman, unlike a few others in 'high' places.

      Keith - 2012-04-28 10:06

      Oh, sorry! But, 2 cents, how much will we have to pay the Austrian/Swedish company in damages for cancelling the contract? Only R4.4 billion? I am sure they'll want more, but we haven't seen the contract, have we?

      Pieter - 2012-04-28 10:37

      @Keith: Yes Keith. I think you are right that the Austrians will not accept a paltry R 4.4 billion rand. The "Austrians" behind the real Austrians might be the ones that are losing out and they will want their share. These "Austrians" might be in trouble if the tax payers find out who they are. http://www.outa.co.za/wp-content/uploads/2012/04/Calculations-on-E-Tolling-vs-Fuel-Levy-Model-3.pdf Ps. I made an error above. The last sentence should read... What puzzles me though is...how could the Minister of Finance support this even though he knows the consortium's milking fee is 100 times (10000%) more than the Revenue Service's?

      Pieter - 2012-04-28 10:56

      My comment about the Minister of Finance refers... I just want to clarify that I think Mr. Gordhan is definitely the most honest and respectable Finance Minister you can get. What I meant is who or what influenced him to take such a stand because even a layman can see something is very wrong here.

  • Michael - 2012-04-27 11:59

    It's not just the cost/km it's the con on the collection system!

  • Tinus - 2012-04-27 12:12

    For once we as south africans are not backing a particular political party or race. For once we as south africans are backing eachother for eachother. This is wat freedom is about. Happy freedom day to everyone.

  • Andrew - 2012-04-27 12:21

    WE still do not know who is benefitting from this contract. Therein lies the truth behind it but nobody in the ANC want this out as surely it will be another ANC scandal before the secrecy bill comes into effect!!!!!

  • jeremy002 - 2012-04-27 12:39

    Did you hear about the lady who bought an e-tag on Aptil 12th and had R2460 deducted from her account the next day? The tolls are not even working yet. Perhaps Ou Clem Sunter can put her in touch with the nice lady who helped him. I am sure she will sort it out in a jiffy, with interest................yeah, right!(http://www.iol.co.za/news/special-features/e-tag-money-already-deducted-from-account-1.1285374)

      Ridwan - 2012-04-27 13:29

      Let this be an example for the remainder weaklings to.see! So now I guess that this lady has to.proveher case and hope she will get a refund? They got her by.the short and curly's!

      henk63 - 2012-04-28 08:51

      Well she's a traitor and got what she deserved.

      Keith - 2012-04-28 10:10

      Are the Nigerians in on the act as well? The whole matter smacks of their type of operation.

  • patrick.saunders123 - 2012-04-27 12:54

    Since the process was corrupt anyway we could just cancel it and tell the austrians to get stuffed.

      Ridwan - 2012-04-27 13:32

      And get the corrupt officials out of office and replace them with compotent individuals!

  • Ridwan - 2012-04-27 13:21

    Both ANC and Cleary have sold us out! I do believe that Outa must be supported and we as a nation must fight it to the end! Easier said than done but we shouldn't take this on the chin! Next item to.screw the tax payer will be the NHI! Fight it to the end!

  • Bharath - 2012-04-27 14:03

    The citizens are "ruled" over in SA- this has alwas been the case. The rulers will do as they please. There is no culture of democracy on this continent. The "monopolist" government will never go out of power. The only thing that works in SA is struggle and revolution - tried and tested.

      maseratifittipaldi - 2012-04-27 18:35

      So true, Bharath. That is why I am so keen on scrapping the political party system. This is the biggest stumbling block on the road to freedom and democracy. South Africa can be a leader in democratic development on the African continent, but our "leaders" prefer to follow in the well rutted road that leads to misery for the people and unbelievable riches for the "rulers".

      Keith - 2012-04-28 10:15

      Emerson, what would you replace our party system with? What might work is the 'multiple vote' system which I read about, in Julius Caesar's time if my memory stretches back that far.

  • billidp - 2012-04-27 14:48

    And so the cock-up begins.... http://www.news24.com/SouthAfrica/News/Woman-cries-foul-as-E-tag-money-deducted-20120427

  • Sam - 2012-04-27 15:21

    my point was etolling must proceed my tax must be spent on rural/township schools not to mantain roads for ppl living high life driving SUVs, when they are suppose to contribute they whing , when there are pot holes they whing, is this communists state or what

      Trevor - 2012-04-28 07:00

      im sorry sam,where did you receive your edukashen? "suppose to" is supposed to!whing? is whinge ! "is this communists state or what" is actually " is this a communist state or what?" let me guess,you have a matric and this is the standard of english you have acquired in 12 years of schooling? no wonder this country is stuffed!

      Phil - 2012-04-28 09:54

      The government say a lot of things, but for taxis and public transport to be exempted, the government needs to pass into law, which they forgot to do and informed all and sundry during this last week that public transport must pay until they are able to pass the law that they are exempt. Looks like you can't read as well.

      Keith - 2012-04-28 10:21

      I too am sorry, Sam the problem with our education system is not money; South Africa spends far more, in proportion, than most countries. No, the problem is that the ANC closed all the Teacher Training Colleges, at the same time as they abolished apprenticeships. So who is going to teach our pupils and budding artisans? And, of course, the current corruption, mis-spending and underspending.

  • Jannie - 2012-04-27 15:30

    I wonder how amazing it would have been if the same amount of money which was spent to get e-toll built, was rather spent on an effective and safe public transport system

      Keith - 2012-04-28 10:25

      What is an effective and safe public transport system? Is it the same as the Durban Municipal bus service, where the wheels fall off apparently, or will it be modelled on the Eastern Cape's Department of Education, where the wheels also seem to have fallen off?

  • ThaboShakuNews24 - 2012-04-27 16:45

    Nou praat jy DA! Why not dismatle and recycle the gantries in the name of job creation!

      Keith - 2012-04-28 10:26

      No, put them in the apartheid museum.

  • Boy Bana - 2012-04-27 17:30

    @sam. so no poor people use the roads. wonder which rich people ride the thousands of taxis daily. please wake up sam. the day is almost over

      Sam - 2012-04-27 22:36

      it is pretty clear you are blindfolded for cheap politicing , you dont understand what you are protesting for, the govt made it clear that taxis are exempted , etolling must continue when there are pot holes you are there one blaming the govt

  • Victor - 2012-04-27 18:42

    I will not pay any bills

  • Victor - 2012-04-27 18:43

    What about 100 million for an ANC party !!!!!!!!!!

  • Gieljam - 2012-04-27 19:01

    Man I like it when someone has the guts to help the helpless right.

  • aiazmir - 2012-04-27 19:09

    I am inclined to believe that the ANC and Cosatu contrived Cosatu's opposition to e-tolling. The "agreement" reached by them is that Cosatu will now "negotiate" the terms of a new agreement. Who the hell gave them a mandate to "negotiate" new terms. Watch the terms carefully. Because if Cosatu agrees to, say a 10% discount, then it will be seen that Cosatu and the ANC are the heroes. It will be up to us, the electorate, and those that have to pay, to take action. Cosatu seem to imagine that they are the only one's who can organise a resistance. Maybe they are wrong.

  • danie.dewaal - 2012-04-27 20:09

    SO when will we see someone FIRED for this 20 Billion blunder

  • Nikki Bodenstein - 2012-04-27 23:33

    What's going to happen with the pension fund if it does get cancelled?? "Johannesburg - The Inkatha Freedom Party (IFP) said if the Gauteng e-toll project fails, government will have to bail out Sanral, as well as the civil servants' pension fund, according to a report on Friday. Chairperson of the board of trustees of the Government Employees Pension Fund (GEPF), Arthur Moloto, confirmed that as of the end of February 2012, it held roughly 50% of Sanral bonds valued at around R15.7bn, Beeld newspaper reported. The money was invested by the Public Investment Corporation, which is owned by government and manages investment funds on behalf of public sector entities. Clients of the PIC include the GEPF. Moloto said in a statement to the daily newspaper that the GEPF had nothing to hide, and that all investments had been tabled in parliament, in the PIC's 2010/2011 annual report. However, the IFP said the investment was the real reason behind government's push to ensure the controversial Gauteng e-tolling project succeeds. The IFP's finance spokesperson Narend Singh said it was finally clear why government wanted to save this project at all costs, regardless of public opposition and the obvious unfeasibility of the scheme. A failure of the toll system would be disastrous, he warned."

  • Aristar - 2012-04-28 05:52

    Here is something that the criminal elements must never find out: These fancy new 'Toll portals' that are all around Gauteng have TONS and TONS and TONS of copper wire. High quality copper that is worth Hundreds of Thousands of Rand. PLEASE keep this information as quiet as possible! PS: The Earthing mats behind each tollgate shelter house the most copper wire.

  • Mart - 2012-04-28 10:08

    We all know that China will bail out this ANC Government, tightening the grip they already have on this country's assets....they will then for all intents and purposes own this country. If you are unemployed be warned that a chinaman will probably get jobs on mines etc before you...they are already, in your government's eyes, been classified as black and enjoy the same benefits (BEE) as South Africans.

      Keith - 2012-04-28 10:29

      Do you mean that the Chinese will take over the toll collection?

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