Gauteng pays R5.44 billion e-toll debt amid budget constraints
Outa – the Organisation Undoing Tax Abuse – hold a protest against e-tolls on the N1 highway in Johannesburg, 26 October 2018. Picture: Tracy Lee Stark
Gauteng Finance MEC Lebogang Maile says that R3.8 billion was paid towards the e-toll debt last year, and an additional R5.4 billion will be paid on Monday.
Maile briefed the media on Sunday about the substantial e-toll debt incurred when tolling was scrapped.
E-tolls scrapped
The gantries of the controversial Gauteng freeway improvement project (e-toll) gantries were disconnected in April 2024, after the National Treasury agreed to cover 70% of the debt, while the province took responsibility for the remaining 30%.
ALSO READ: Sanral reports nearly R29bn in expected credit losses from toll debtors
The total debt owed by the Gauteng government amounted to R15.9 billion, including accrued interest.
Second payment
Maile said that on 30 September 2024, the Gauteng Provincial Government made the first instalment, amounting to R3.8 billion.
He said this instalment consisted of R3.2 billion historical debt and the maintenance portion of R546 million.
'Today, we wish to announce that tomorrow, the 30th of June 2025, the Gauteng Provincial Government will honour the province's obligation by paying the second instalment towards the e-tolls debt as disclosed in the 2025 Medium Term Expenditure Framework (MTEF).
'The amount due on the 30th of June 2025, based on the Memorandum of Agreement, is R3.377 billion in terms of historical debt. This is the amount that we will be paying to the National Treasury tomorrow as a second instalment as part of our 30 percent contribution,' Maile said.
WATCH: Lebogang Maile speaking about the E-Toll debt
[WATCH] Gauteng MEC for Finance Lebogang Maile says an amount of R5.76 billion will be paid tomorrow for the e-toll debt and towards SANRAL freeway upgrades. pic.twitter.com/NC8AmyC64T
June 29, 2025
Road maintenance
Maile added that over R2 billion will also be channelled towards road maintenance and over R3 billion for the actual debt.
'With regards to the financing of Sanral's Gauteng freeway projects, the current outstanding amount is R3.559 billion.
ALSO READ: Gauteng pays first R3bn of whopping R12.9bn debt
'In addition to the e-toll payment, tomorrow, the Gauteng Provincial Government will also transfer an amount of R2.099 billion as part of the contribution towards the backlog of rehabilitation to restore the GFIP 1 freeways to an acceptable condition before Sanral resumes its obligations for all future maintenance funded by the national fiscus,' Maile said.
Money better used
Maile said Gauteng could have used that money to build additional schools, hospitals and roads and added that if the province was not paying this R5.4 billion, it could, for example, be announcing that it is 'giving R2 billion to deal with all the potholes, R1 billion to deal with the robots'.
'The repayment does have an impact on service delivery because it means we have limited resources'.
Fiscal environment
The MEC said the provincial government is implementing various measures and reforms to ensure the sustainability of our fiscal environment.
These include active debt management strategies, spending restraint, improving compliance with rules and regulations in supply chain management, as well as revenue enhancement.
'Our Revenue Enhancement Strategy is already been actualised. Provincial departments are implementing various strategies to enhance revenue collection, anchored on a strategy that is underpinned by the following five principles:
Accelerating the completion of interventions that have already started.
Optimising the existing revenue sources.
Enhancing revenue collection processes and systems to increase efficiency, cost effectiveness, and eliminate leakages.
Identifying potential new revenue sources that have not been explored.
The use of alternative funding and implementation models to achieve more value.
Maintenance
In terms of the MoA, Maile said Sanral cannot use the funds it receives from the province for any purpose other than the nine projects that are financed by the province.
He said the R4.1 billion will be used for the following maintenance, upgrades and capacity expansion projects on 185 kilometres on the N1, N3, N12, N14 and R21:
14th Avenue to Buccleuch
Golden Highway to 14 th Avenue
Buccleuch to Brakfontein
Brakfontein to Scientia
Heidelberg Rd to Geldenhuys
Geldenhuys to Buccleuch
Uncle Charlies to Elands
Gillooly's to Tom Jones
Olifantsfontein to Hans Strydom
'These freeways are vital for facilitating efficient transportation and supporting economic activity by providing high-speed, controlled-access routes for vehicles in the broader Gauteng City Region,' Maile said
Sanral
In addition to settling this debt, the Gauteng Provincial Government has also made a commitment to contribute towards the rehabilitation of nine projects that Sanral is undertaking.
'These projects, part of the Gauteng Freeway Improvement Project I (GFIP I) are aimed at the amelioration of the Gauteng freeway network, and will cost the provincial government a total of R4.1 billion,' Maile said.
ALSO READ: 'R6 billion in the red'; Gauteng could face bankruptcy by 2025 amid e-tolls debt
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
The Citizen
25 minutes ago
- The Citizen
Provinces surrender R923m in unspent funds
Gauteng's R465.4 million surrender dwarfed other provinces, representing nearly half of all surrendered funds. South African provinces surrendered R923 million in unspent conditional grant funds during the 2023-24 financial year, according to Finance Minister Enoch Godongwana. The surrendered amount represents funds that provinces were unable to utilise within the allocated timeframe across critical sectors, including health, education, and human settlements. Gauteng province recorded the highest surrender at R465.4 million, while KwaZulu-Natal was the only province that did not surrender any funds. Provincial breakdown reveals disparities The provincial breakdown, revealed in a parliamentary response to DA MP Wendy Alexander, shows stark differences in spending capacity across South Africa's nine provinces. Gauteng's R465.4 million surrender dwarfed other provinces, representing nearly half of all surrendered funds. The Western Cape surrendered R224.4 million, making it the second-highest contributor to unspent funds. Limpopo followed with R68.6 million, while the North West province surrendered R66.6 million. The Eastern Cape surrendered R62.7 million, while the Free State's unspent amount totalled R19.3 million. Mpumalanga surrendered R10.5 million, and the Northern Cape recorded the smallest surrender at R5.6 million. ALSO READ: Here's how much National Treasury has spent on consultants in two years Human settlements sector records highest underspending According to information provided by Godongwana, analysis by sector revealed that human settlements experienced the most significant underspending, surrendering R409.1 million of allocated funds. This represented nearly 45% of all surrendered provincial grant money. Health sector underspending reached R193.3 million, while roads and transport surrendered R155.9 million. The education sector returned R92.3 million in unspent funds. Sports, arts and culture surrendered R32.7 million, while agriculture returned R24.4 million. The public works sector recorded the smallest surrender at R15.5 million. ALSO READ: Godongwana hits back at Reserve Bank's 3% inflation target Systemic challenges behind underspending Godongwana outlined specific challenges that prevented provinces from utilising allocated funds across different sectors. Human settlements faced particularly severe constraints that hindered project delivery. 'Unfilled vacancies, such as planners, engineers and project managers, led to projects not being delivered on time, resulting in the under expenditure, and subsequent surrender of funds,' Godongwana explained regarding human settlements underspending. Meanwhile, the health sector encountered procurement delays that significantly impacted spending capacity. 'Delays in procurement on the National Tertiary Services grant. A large part of health technology is imported,' the minister noted. ALSO READ: 'Barrelling towards collapse': Concerns mount as Godongwana gives Morero deadline to fix Joburg's finances Education and infrastructure sectors face implementation delays The education sector underspending stemmed from procurement and staffing challenges that delayed programme implementation. 'Delays in the procurement of laptops for officials and the non-appointment of personnel under the School Nutrition Programme' contributed to the R92.3 million surrender, according to Godongwana. Public works struggled with employment programme timelines that affected the utilisation of funds. 'Contracts of EPWP workers not finalised on time, hence unspent funds were surrendered and not rolled over,' the minister stated. Transport sector challenges included legal obstacles and contractor performance issues. 'Delays in project completion due to legal action that halted implementation, and poor contractor performance, which resulted in the project not being completed,' Godongwana explained. ALSO READ: Macpherson suspends all EPWP funds to municipality Agriculture sector hampered by community unrest The agriculture sector's R24.4 million surrender resulted from external disruptions. 'Projects not completed due to community unrest, and planned training of farmers not completed on time' prevented full fund utilisation, the minister revealed. Bus subsidy allocations within the transport sector also contributed to underspending due to contracting delays. 'Regarding bus subsidies, some contracts were only finalised in the 2nd quarter, resulting in the funds being unspent,' Godongwana noted. National Treasury response and oversight measures According to Godongwana, the National Treasury has implemented regular engagement mechanisms to address provincial underspending challenges. These interventions aim to improve grant performance across all sectors and provinces. 'The National Treasury regularly engages with departments responsible for administering conditional grants,' Godongwana stated. The treasury's approach includes active participation in sector-specific review processes. 'The National Treasury officials frequently participate in sectoral meetings where grant performance is reviewed,' the minister explained. He said the treasury provides ongoing support to enhance implementation capacity. 'During these engagements, issues of non-performance are raised with both provincial and national departments and the National Treasury provides guidance to support improved implementation,' Godongwana stated. READ NEXT: R279 million budgeted for National Treasury's building rentals and parking spaces
TimesLIVE
13 hours ago
- TimesLIVE
Former rugby player fined for failing to submit tax returns
The Paarl magistrate's court has fined former Springbok rugby player Schalk Burger Sr and his company Welbedacht Wines for failing to submit VAT, pay-as-you-earn (PAYE) and income tax returns. The court fined the company R6,000 on each count of failing to submit a VAT201 return for February 2023 and a monthly employer declaration return for March 2023. Burger, 69, was convicted on 14 counts, which included failure to submit a VAT201 return for February 2023, a monthly employer declaration (EMP201) return for March2023 and IT12 income tax returns for the period 2011 to 2022. He was fined R6,000 or 12 months imprisonment on each count, of which R2,000 or four months imprisonment was suspended for five years. 'This amounts to a payable fine of R56,000, or 112 months imprisonment and a further R28,000 or 56 months imprisonment suspended for five years on specific conditions,' National Prosecuting Authority spokesperson Eric Ntabazalila said. Burger successfully requested the court to grant him a deferred fine and was ordered to pay the R56,000 in instalments of R6,000 per month and a final payment of R8,000. The accused entered into a plea and sentence agreement with the state. The court confirmed the agreement and convicted and sentenced him accordingly. According to the agreement, Burger admitted that Welbedacht Wines was registered for VAT and PAYE at the Paarl office of the South African Revenue Services. Burger failed to submit the returns on behalf of the company. In addition, Burger, in his personal capacity, was registered for income tax at the Paarl Sars office . 'Following his successful registration for e-filing in 2011, he failed to submit his IT12 income tax returns for the tax years of 2011 to 2022. This was despite Sars' best efforts to encourage all taxpayers to submit their income tax returns.' It was only after the institution of a prosecution and his being summoned to appear in court that he submitted all outstanding returns relating to himself and his company, and both are currently tax compliant. 'The accused's son, Christiaan Francois Burger, was on July 21 also convicted and sentenced on 12 counts of failing to submit his IT12 personal income tax returns for the 2011 to 2022 period.' The 40-year-old was sentenced to a fine of R48,000 or 96 months imprisonment, and a further R24,000 or 48 months imprisonment, suspended for five years on conditions. The NPA said the sentence sent a strong message of deterrence. 'With the filing season for income tax currently under way, this is a clear message that failure by persons and juristic persons to file their Income Tax returns will not be tolerated. It is a serious offence that impacts negatively on the fiscus,' he said.
The Citizen
16 hours ago
- The Citizen
Here's how much National Treasury has spent on consultants in two years
The National Treasury does not sign contracts directly with the consultants. The National Treasury has spent hundreds of millions of rands on consultants for specialised projects over the past two years. This was revealed in a written parliamentary reply from Finance Minister Enoch Godongwana. Freedom Front Plus (FF Plus) MP Wouter Wessels requested details on whether the National Treasury had appointed any consultants in the last two years, including the nature of their work and the duration of their contracts. National Treasury's spend on consultants Godongwana detailed an extensive list of service providers and revealed that R350 million (R350 902 028.62) was paid to at least 30 consultancy firms between April 2023 and June this year. From April to June 2025 alone, contracts worth more than R20 million were signed. These included a R6.3 million three-year deal with Ston Infrastructure Services to support provincial treasuries in infrastructure delivery, R4.6 million to Nexor 312 for local government infrastructure management, and R3 million to Thovu Construction Group for architectural space planning services. Among the biggest beneficiaries was OBT Advisory, awarded a R161.9 million, five-year contract in March 2024 to support and maintain the Treasury's back-office system for its asset and liability management division. ALSO READ: Almost 40 municipalities facing sanctions from Treasury over mismanagement Tipp Focus Holding secured a R96.3 million contract to enhance and maintain the central supplier database for the office of the chief procurement officer over the same period. Other multimillion-rand consultancy contracts went to firms such as Akhile Management and Consulting, Mntambo Financial Consulting, Luta Management Services, Stangra Investment, S and G Business Consulting, and Propellius. These companies were primarily engaged to review, amend, and prepare Financial Recovery Plans for financially distressed municipalities across the country. The affected municipalities included Mangaung, Madibeng, Sekhukhune, Emfuleni, Thabazimbi, Modimolle, Govan Mbeki, Thaba Chweu, Musina, and Phalaborwa. Individual contracts for the work generally fell in the range of R1 million to R2.7 million each. More contracts The South African arm of the international advisory firm Rothschild and Co was paid R2.5 million in 2023 for debt structuring and capital markets advice during Eskom's debt relief process. Other notable projects included a R3 million contract awarded to PTP Integrated to source a service provider from the Government Employees Pension Fund and Public Investment Corporation panel for professional services on software-related projects within Treasury's Information and Communication Technology unit over a 12-month period. ALSO READ: R279 million budgeted for National Treasury's building rentals and parking spaces Former National Treasury deputy director-general and current adviser, Ismail Momoniat, was also contracted twice – first in 2024 for R1.38 million and again in 2025 for a smaller R10,563.57 engagement – to lead South Africa's efforts to exit the Financial Action Task Force greylist and support related anti-corruption initiatives. Several more contracts were awarded to enhance municipal supply chain management compliance, develop women empowerment programmes, and support local government infrastructure delivery oversight. National Treasury doesn't sign contracts directly with consultants Responding to concerns about whether consultants were filling in for vacancies, Godongwana stated that all appointments were for 'specific and time-bound projects' and not due to staffing shortages. 'No consultants are appointed as a result of vacancies. National Treasury follows the public service regulations to fill positions,' he said. The minister added that the National Treasury signs the service level agreements with the company, not directly with the consultants. NOW READ: Government under fire for splashing on employees' salaries
