Gauteng to use renewal of motor vehicle licences, casino revenue to pay 30% share of e-tolls debt

Gauteng wants to use revenue collected from casinos and renewal of motor vehicle licences to pay its 30% share of the e-tolls debt. Picture: Jacques Naude/African News Agency (ANA)

Gauteng wants to use revenue collected from casinos and renewal of motor vehicle licences to pay its 30% share of the e-tolls debt. Picture: Jacques Naude/African News Agency (ANA)

Published Nov 25, 2022


Pretoria - The Gauteng government is considering using revenue collected from casinos, renewal of motor vehicle licences and other revenue measures to pay its 30% share of the e-tolls debt.

This was revealed by the Gauteng Finance MEC, Jacob Mamabolo, when he delivered his mid-term budget policy statement in the legislature yesterday.

Mamabolo’s revelations came after Finance Minister Enoch Godongwana announced that the national government would take responsibility for 70% of the e-tolls debt, including the improvement of the road infrastructure in other parts of the country.

The province undertook to repay a 30% contribution to the e-tolls debt as well as maintaining and expanding the Gauteng Freeway Improvement Project road network.

“As Gauteng provincial government, we will optimise existing sources of revenue and introduce alternative sources of revenue without burdening further the citizens of the province.

“The Gauteng provincial government reaffirms its commitment to the repayment of the 30% share of debt amounting to R12.9  billion, demonstrating beyond any reasonable doubt its adherence to the principles of the rule of law and respect for contractual obligations.

“In addition, e-toll gantries will not be part of the future Gauteng provincial government revenue generation model. This therefore closes the chapter on e-tolls,” Mamabolo said.

He said Premier Panyaza Lesufi, Godongwana and the South African National Roads Agency Ltd (Sanral) technical team met on Monday.

He said that during the meeting it was agreed that, as part of the implementation of the announcement made by the minister, the national government and Gauteng would conclude a memorandum of agreement to address the provincial government’s proposal of a hybrid model of financing its e-tolls and freeway project obligations.

“This hybrid model is to have multiple funding sources that will come from Gauteng as well as those that are administered by the national government, an agreeable period for the payment of the 30% contribution by Gauteng and the maintenance of the Freeway Improvement Project road network.

“The memorandum will also include the date to switch off the gantries and re-purpose them for crime fighting.

“With respect to the introduction of the hybrid funding model that excludes e-tolls, let me emphasise that this will be underpinned by wider consultations with the people of Gauteng.

“It is in this context that we would like to assure residents of Gauteng that we will not compromise our priorities in social services such as health and education.

“I am also pleased to announce that in the current financial year there will be no specific allocation that is required for the repayment of e-tolls,” Mamabolo said.

He also revealed that the government was planning to collect R7.2bn from existing revenue sources as part of its efforts to resource provincial priorities within a challenging environment of slow and uneven recovery from the impact of the Covid-19 pandemic.

“Part of the efforts towards increasing own revenue collection will focus on efficiencies through the elimination of loopholes in the collection mechanisms, as well as exploring new revenue sources for the Gauteng provincial government,” Mamabolo said.

He said these included, among others, new casino regulations, the automation of casino licence operations, new bookmakers and bingo licences, the online renewal of motor vehicle licences, vehicle impound facilities and the leasing of vacant land parcels.

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