Deal between roads agency, Gauteng govt to fix 231 intersections in Joburg ends

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MEC Jacob Mamabolo.
MEC Jacob Mamabolo.
Gallo Images/Luba Lesolle
  • The deal between the Johannesburg Roads Agency and Gauteng transport department to fix 231 intersections is over.
  • Their relationship ended on 31 March.
  • The duo failed to renew their Service Level Agreement.

The relationship between the Johannesburg Roads Agency (JRA) and Gauteng transport department to fix 231 intersections in the city has ended.

Transport MMC Funzi Ngobeni said he had reached an agreement with Transport MEC Jacob Mamabolo to end the partnership.

Ngobeni added: "Following a period of protracted negotiations between JRA and the department, we have agreed to end the working relationship that has seen the JRA design, install, repair and maintain traffic signals on behalf of the provincial department. Termination is effective 31 March 2022."

He said the parties could not agree to renew a Service Level Agreement (SLA).

The agreement would have seen the agency continue maintaining and repairing 231 signallised intersections on provincial roads across the city. 

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"An SLA was entered into between the JRA and the provincial department, with effect from 1 September 2017. The agreement expired in August 2020. Since then, numerous attempts have been made to renew the SLA, but these have been unsuccessful. 

"During a meeting held between Mamabolo and me in March, the MEC indicated that the reason for not renewing the SLA was due to the entity not having its tax affairs in order. 

"The tax dispute between JRA and SARS is going through a legal process, with the agency's legal team having issued a notification to SARS of its intention to refer the matter to a tax court," said Ngobeni.

He added the JRA had discussed its tax affairs with SARS, which requested it should make an online application for a tax clearance certificate. 

"We are waiting for the outcome. Despite ongoing negotiations, JRA continued repairing and maintaining the province's traffic signals at key intersections.

"It is important to note that JRA could not leave those intersections unmaintained.

"With the failure to agree on a new SLA, we terminated our relationship. A process is underway to [do a] handover to the department."

Ngobeni said 231 maintained intersections would be handed over to the province.

"A technician is available to support the department between 1 and 8 April. The department will have to attend to queries related to its traffic signals," he added.


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