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The Organisation Undoing Tax Abuse (OUTA) hopes that Sanral’s admission that the fuel levy might be a better option than e-tolls suggests that sanity is beginning to prevail.

The Citizen reports that Sanral acknowledges the e-toll scheme’s failure and is coming to a realisation that the fuel levy may be the best solution to its road infrastructure funding crisis. This comes while Sanral is running a renewed campaign to collect on outstanding e-toll bills.

“We also note with interest that Sanral says its financial solutions lie in the hands of government, and yet it was Sanral’s board that hatched and proposed this supposedly efficient e-toll scheme to government,” says Ben Theron, OUTA's COO.

“Having convinced government to adopt this poorly researched and irrational scheme, Sanral now turns to government for funds to bail it out of the mess it created.”

Sanral had every opportunity in 2007 – when the Gauteng freeway upgrade plan was being introduced – to propose that the freeway upgrade bonds be financed by way of a slight increase to their annual allocation from the National Treasury, which could have been sourced from a 9% to 10% increase in the fuel levy at the time. This would have generated the necessary security to settle the bonds, which would then have been almost settled by today.

What makes matters more confusing is Sanral’s ongoing conduct in running an expensive litigation process to summons motorists who fail to pay e-toll bills for this irrational scheme.

“How can Sanral say in one breath that the scheme has virtually collapsed and that a new financing solution should be introduced, yet then want to sue people for not supporting the scheme which was literally stillborn from the outset?” asks Wayne Duvenage – OUTA’s Chairperson.

“It’s time for government to make the final decision to turn off the failed e-toll scheme, cancel the costly e-toll collection contracts which have almost completed their five-year period and raise the revenue through allocations from Treasury and the fuel levy, which has been the funding mechanism used by government for social infrastructure for many decades.

“Unfortunately, the problem Sanral now faces is that the Treasury cupboard is almost bare, due to the mismanagement of taxpayers’ funds by a delinquent governing leadership.”

OUTA is defending the first group of civil claims brought by Sanral against motorists who refuse to pay. OUTA’s advice to motorists who have refused to pay is here.

OUTA is a proudly South African non-profit civil action organisation, comprising of and supported by people who are passionate about holding government accountable and improving the prosperity of South Africa.

Issued by OUTA