Finance Minister Godongwana: Sanral to get R47 billion bailout from government

Financed Minister Enoch Godongwana announced a R47 billion government bailout for the South African Road Agency (Sanral) during his Medium-Term Budget Policy Statement address in Parliament on Wednesday.

The entity’s balance sheet has been burdened by the e-tolls debt as Gauteng residents have refused to pay for the gantry system.

Godongwana said the top two tiers of government have committed to foot Sanral’s R47 billion debt bill: “To resolve the funding impasse the Gauteng provincial government has agreed to contribute 30% to settling Sanral’s debt and interest obligations, while the national government covers 70%.”

The finance minister said Treasury had already allocated R23.7 billion to Sanral for guaranteed debt, which will be for the next two years.

Godongwana said how the Gauteng government planned on covering its part of the debt and running the e-tolling system, thereafter, had nothing to do with National Treasury.

Over the last decade, e-tolls have been used as a policing tool between the national and provincial governments, with neither willing to take ownership of the system out of fear that it would translate to the loss of electoral support.

-EWN

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