17c per rand goes to operation – Sanral

2013-11-28 14:41

Only 17c of every rand collected through e-tolling in Gauteng goes towards the cost of managing the operations and collecting tolls, Sanral has said.

“The 17 cents covers all the costs associated with collecting tolls, including salaries, bank transaction costs, toll infrastructure maintenance costs, telecommunications costs, postage costs, [and] municipal rates and taxes, incurred by ETC, the South African firm appointed ... to manage e-tolling,” spokesperson Vusi Mona said today in a statement.

“The remaining 83c goes to a variety of needs linked to the road, including servicing the loan incurred in order to complete the Gauteng Freeway Improvement Project [GFIP].”

In addition to this there were other costs related to the “violation process”, he said.

Mona denied reports that the money would go to Kapsch, an Austrian-based company which has majority shareholding in the electronic collection joint venture that won the multibillion-rand contract to build and operate e-tolling.

He said all the money paid by road users would go into a SA National Roads Agency Limited (Sanral) account and Sanral had an ad-measure account with ETC.

“Having an ad-measure contract means that ETC is paid for services on a monthly basis and the payment is strictly according to a bill of quantities as specified in the tender contract,” Mona said.

Only dividends declared could be paid to the foreign companies involved, after tax was paid in South Africa.

“The argument that money will go overseas is therefore simplistic and misinformed.

“If we add the normal internal administrative costs, payment to service providers, plus salaries, then you would understand that if ETC declare a profit – if it makes one – only at that stage does it send it to its foreign partners,” Mona added.

24.com publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
0 comments
Comments have been closed for this article.

Inside News24

 
Traffic Alerts
There are new stories on the homepage. Click here to see them.
 
English
Afrikaans
isiZulu

Hello 

Create Profile

Creating your profile will enable you to submit photos and stories to get published on News24.


Please provide a username for your profile page:

This username must be unique, cannot be edited and will be used in the URL to your profile page across the entire 24.com network.