Gauteng govt to submit ‘concrete’ settlement plan to scrap e-toll debt

He delivered the Medium-Term Budget Policy Statement in the Gauteng provincial legislature on Tuesday morning.

A decision to scrap the e-toll system was taken in September last year.

During the 2022 Medium-Term Budget Policy Statement, Finance Minister Enoch Godongwana promised to scrap the unpopular user-pay system, saying alternative funding mechanisms would be put into place to address the financing of the Gauteng Freeway Improvement Project debt.

"Ministers made a statement, there is no going back on that the negotiations will be finalised, and we will make an announcement on this issue,” Mamabolo said on Tuesday.

“As I announced during the medium-term budget policy statement in the 2023/ 2024 financial year, there will be no specific location for our obligation on e-tolls this year."

This would include an allocation of funds by the provincial and national governments.

Mamabolo told MPLs that the provincial government is in the final stages of settling the R12,9bn.

"To this extent, we will submit our concrete proposal to the national government before 15 December 2023 and expect feedback and finality before the State of the Province Address next year. We will update the people of the province on this proposal on what the national government will say about it."

He explained that the province would strengthen its revenue-generation capacity, as part of its effort to finally switch off the gantries.

"We reaffirm our longstanding commitment to pay the debt, including augmenting our own provincial revenue without burdening the equitable share, especially priorities for social services such as education, health, and social welfare. We believe the time is now to conclude the modalities of the settlement of the debt."

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