Latest news with #GautengFreewayImprovementProject
The Citizen
16-07-2025
- Business
- The Citizen
Take your greedy hands off Joburg parks and sports facilities
Instead of fixing billing failures and recovering billions in unpaid utilities, Joburg officials are targeting public recreation spaces for financial gain. Wanderers Stadium is one of the properties earmarked for review, as the municipality begins the process of redefining cherished community spaces. Picture: Sydney Seshibedi / Gallo Images Joburg Property Company (JPC) spokesperson Lucky Sindane reckons the city needs to 'move with the times' and that it wants to redefine what is meant by parks and recreation facilities, including some of the city's most well-known sports clubs and leisure locations. JPC's general manager for commercial and city-focused interventions, Sizeka Tshabalala, says the process will review how the city is compensated for the land use as current agreements are 'not talking to our current business model as the city'. The current agreements covering sports club facilities and even golf courses 'don't make business sense'. And so, there you have it. In a desperate attempt to gouge money out of ratepayers, our municipal mandarins plan to turn land into cash. All the while, they continue to turn a blind eye to the billions of rands in spiralling debt owed by consumers in places like Soweto. ALSO READ: Joburg's residents fuming as city aims to cash in on public parks and sports clubs We would suggest that taking time and applying your collective municipal management brainpower to recovering that which is being stolen from the city – which is what nonpayment for electricity is – you would come up with something which would talk to your current business model. That, of course, isn't going to happen. JPC says the reassessment process will entail reclassifying portions of land, but only after an 'extensive public participation process'. Something like what was done with the Gauteng Freeway Improvement Project, then? It is deeply offensive that the city continues to hike property rates on the basis that homeowners must pay for the facilities allegedly provided to them. Given that we don't get much in the way of good roads, our refuse removal service is patchy and our street and traffic lights are often out of order, we deserve at least some value for our money. That we get in our recreation facilities, such as they are. Take your greedy hands off them. NOW READ: No budget, no bridge, no answers from JRA
The Citizen
01-07-2025
- Politics
- The Citizen
ANC still doesn't get the e-toll message
Gauteng's e-toll failure proves public anger can topple poor policy—and maybe the politicians behind it. It's your fault – you e-toll boycotters – that the Gauteng government cannot fix the potholes or the broken traffic lights. And you've deprived others of vital public services, like health. That was the message yesterday from Gauteng finance MEC Lebogang Maile – the latest in a long line of ANC luminaries who have failed to acknowledge their role in the most financially disastrous infrastructure project in the history of this country. The Gauteng Freeway Improvement Project cost R20 billion in 2010 money for, effectively, just over 190km of improvements and the odd new interchange… at a cost which must have been pretty close to a world record rate per kilometre. Then, the ANC tried to charge commuters on the 'user pays' principle, utilising all sorts of voodoo economics to try to prove the improved roads would actually save us money. ALSO READ: Gauteng's budget: A fresh coat of paint on a crumbling province? Even now, they still deny that e-tolls were a further tax on an already-overtaxed population. No wonder there was a revolt. As the Gauteng government must now pay off the accumulated debt of those 'refuseniks', perhaps the ANC would do well to reflect on how powerful popular protest can be. If it destroyed e-tolls, imagine what a similar sort of anger could do to you…
TimesLIVE
29-06-2025
- Business
- TimesLIVE
Gauteng to pay second instalment of R3.377bn towards historical e-toll debt
The Gauteng government will on Monday make a payment of R5.476bn towards the e-toll debt and the contribution towards the SANRAL Gauteng Freeway Improvement Project, Gauteng finance MEC Lebogang Maile said. Maile said the government will be paying the second instalment towards the historical e-toll debt which, based on the memorandum of agreement, amounts to R3.377bn. 'This is the amount that we will be paying to the National Treasury tomorrow as a second instalment as part of our 30% contribution,' he said. The provincial government made the first instalment of R3.8bn in September 2024, consisting of R3.2bn historical debt and the maintenance portion of R546m. In addition to the e-toll payment, Maile said the provincial government will also transfer an amount of R2.099bn 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. He said the amount outstanding for SANRAL's Gauteng freeway projects was R3.559bn. 'We must emphasise that in terms of the agreement, SANRAL cannot use these funds for any purpose other than the nine projects that are financed by the province. SANRAL is also required to report to the Gauteng provincial government on progress being made with the implementation of these projects. This will include providing credible information on developmental objectives such as how these projects contribute to economic growth in the province, the number of jobs being created through these projects and related social and economic benefits,' he said. Maile said the implications of the e-toll debt and contributions to SANRAL's Gauteng Freeway Improvement Project require the Gauteng government to manage finances prudently, while carefully balancing the service delivery needs of residents. He said the provincial Treasury has a five-year budget approach that will facilitate provincial delivery based on the Medium-Term Development Plan for the seventh administration. 'The five-year budget approach will focus on introducing and implementing immediate, short-term, and medium-term budget reforms over the 2025 MTEF. This includes maintaining fiscal discipline and credibility, and impactful service delivery. Over the next few years, the Gauteng provincial government will have to allocate a substantial amount of funds each year to service the repayment obligations for e-tolls. This will be happening in a constrained fiscal environment, details of which we expressed in the initial budget speech and reiterated when we re-tabled the budget for the 2025/2026 financial year,' Maile said. Maile noted that the funding envelope was stretched by existing allocations, particularly in keeping critical social programmes in health and education funded. 'Nevertheless, we reaffirm our commitment to the residents of Gauteng that the servicing of the e-toll debt will not compromise our priorities, particularly with social services such as health and education,' he said. Maile said the provincial government was implementing various measures and reforms to ensure the sustainability of the fiscal environment, including active debt management strategies, spending restraint, improving compliance with rules and regulations in supply chain management, as well as revenue enhancement.
The Citizen
14-05-2025
- Business
- The Citizen
Gauteng's ‘debt collector' move against the RAF and Compensation Fund
Province also 'not necessarily' expecting an adverse AG audit opinion because of its commitment to pay R4.1bn for GFIP maintenance backlog. The province is looking into other income streams to pay the e-toll debt and GFIP maintenance backlog, including liquor licences, gambling taxes, and advertising. Picture: Moneyweb The Gauteng provincial government is appointing 'debt collectors' to put systems in place to ensure the payment of the medical costs of road accident victims and injured workers at public hospitals in the province by the Road Accident Fund (RAF) and the Compensation Fund. 'Unfortunately, for the last few years, because of inefficient systems, we have not been collecting that money,' said Gauteng MEC for Finance and Economic Development Lebogang Maile on Monday. 'It's a lot of money. We need it for our revenue,' he said. Maile said last year that the RAF claims alone amount to about R10 billion. ALSO READ: Gauteng aims to use RAF medical expenses claims to pay e-toll debt Province has not started paying e-toll maintenance bill Maile further said he does 'not necessarily' expect an adverse audit opinion from the Auditor-General (AG) because of the province's commitment to pay R4.1 billion for maintenance backlogs on the Gauteng Freeway Improvement Project (GFIP), which is not owned by the province but is a South African National Roads Agency (Sanral) asset. Maile confirmed to Moneyweb in October 2024 that the proceeds of the RAF public hospital claims are one of the income streams to pay for the province's almost R20 billion e-toll-related debt and GFIP road maintenance financial commitments. He said on Monday that the Gauteng government has not yet paid any of the R4.1 billion it committed to pay towards the GFIP maintenance backlog because the province is still engaged in 'a process' with National Treasury about this payment. Maile said once that process is concluded, the province will be able to explain to the public that it is 'on course in ensuring that we meet our commitments'. ALSO READ: R25.5 billion deficit over five years — Can RAF afford to pay out claims? His comment about not making any payments yet towards the R4.1 billion GFIP maintenance backlog is at odds with statements made in September 2024. Maile said then that the provincial government is starting the process of servicing the historical e-toll debt of R12.9 billion in five equal annual instalments at the government's five-year interest rate. He added at the time that the first instalment the province was paying on 30 September 2024 amounted to R3.8 billion, consisting of R3.2 billion in historical debt and the maintenance portion of R546 million. In terms of the memorandum of agreement signed between the Gauteng provincial government, National Treasury, the Department of Transport, and Sanral: Gauteng agreed to pay 30% of Sanral's R43 billion e-toll debt and interest obligations, which amounts to R12.93 billion; Gauteng further agreed to contribute R4.1 billion to the maintenance backlog on the GFIP; and National Treasury agreed to cover the remaining 70% of Sanral's e-toll debt and interest obligations. E-tolls on the GFIP were scrapped effective 11 April 2024 when the connection to the GFIP gantries was disconnected. ALSO READ: RAF/Discovery judgement: the RAF did not 'win' – experts MEC doesn't foresee problems with AG audit Maile said on Monday the province has not yet engaged the AG about its commitment to pay R4.1 billion towards the road maintenance backlog on the GFIP, but this will happen once the process with National Treasury is concluded. He said he did not necessarily see the payment of R4.1 billion towards assets the province did not own creating problems with the AG's audit, 'because our residents are using these roads'. 'It's not like we just are giving [away] our money. We are paying on behalf of the citizens,' he said. Organisation Undoing Tax Abuse (Outa) CEO Wayne Duvenage said on Tuesday it does not make sense for Gauteng to pay for maintenance on assets it does not own. Duvenage said Gauteng has roads that are in its jurisdiction and are its assets, and Johannesburg has its roads, 'and they normally stick to that'. 'Why then don't they [Gauteng] fix City of Joburg and Ekurhuleni potholes while they are about it? There are also Gauteng citizens riding on those roads,' he said. RAF head of corporate communications McIntosh Polela confirmed last year that claims from the state, including the Gauteng provincial government, are nothing new and 'it is something that has always been happening and is currently ongoing'. ALSO READ: Compensation Fund missing documents for 25 000 pensioners Maile said on Monday that the province has not engaged directly with the RAF over the planned claims against the fund and does not anticipate any payment problems when it submits its claims because the law dictates that the RAF and the Compensation Fund must pay. 'All that is required is that person X was there. The onus … the ball is in our court to prove that patient X came through [the hospital] and the RAF must pay,' he said. Maile said other income streams the province has identified to pay the e-toll debt and GFIP maintenance backlog include liquor licences, gambling taxes, advertising, and the commercialisation of some of the province's buildings and land. 'We have actually started a process now through one of our agencies to call for businesses who have ideas on what revenue streams we can get,' he said. This article was republished from Moneyweb. Read the original here.
