Scrap e-toll debts? Not so fast, says Finance Minister Tito Mboweni

Outstanding e-toll debts still need to be paid, says Finance Minister Tito Mboweni, who has ordered SANRAL to immediately reverse its decision.

Gauteng motorists may have celebrated prematurely, when it was announced that all outstanding e-toll debts would be scrapped. The unpopular tolling system, exemplified by towering gantries on Gauteng highways, has been successfully boycotted since its inception in 2013. The controversial electronic toll collection (ETC) process has been a source of major discontent, with both the public and political parties calling for its termination.

It’s not over until Tito Mboweni sings

Struggling under a mountain of debt – owing to the rebellion of disgruntled Gauteng motorists – the e-toll system is classified as a monumental failure. Sensing inevitable defeat, SANRAL announced on Wednesday that it would be abandoning its debt collection process, effectively writing-off billions of rands owed to the government.

While most are celebrating the decision, Finance Minister Mboweni has come to rain on the victory parade. On Thursday, Mboweni blasted SANRAL for its decision to let motorists off the hook, arguing that the abandonment of its debt collection programme would set a bad precedent. Mboweni added that SANRAL’s decision went against what the National Treasury had instructed.

Addressing the media during the introduction of the new South African Revenue Service (SARS) commission‚ Edward Kieswetter‚ in Pretoria, Mboweni said:

“They [SANRAL] must reverse that decision immediately or else this has implications for the bond market. It has implications for the fiscus. It has implications for their own credit rating and the credit rating for the country.”

E-toll debts hang in the balance

Mboweni has effectively ordered SANRAL to reinstate its debt collection strategy. SANRAL has stated that it was, or is, owed at least R9.2 billion.

Public sentiment towards Mboweni, which, at one time, was amicable, has quickly turned on its head. The Finance Minister is now facing a barrage of criticism for his latest e-toll rant. At this stage it is unclear whether SANRAL will consider reversing its decision under pressure from Mboweni and the Treasury.