On 12 June 2013, Kapsch TraffiCom, the Austrian company operating South Africa’s eTolling system, announced that additional annual revenue of €50 million will be coming from the pockets of Gauteng’s drivers. The Automobile Association of South Africa (AA) was stunned by this latest revelation.
The AA said this announcement shows a continued disregard for the South African motorist. While it is the mandate of every organisation, local or international, to increase the bottom line, in this case the South African government is allowing this to happen to the detriment of its already hard hit citizens who are simply trying to make ends meet.
The AA said it remained committed to fighting eTolling, not just in Gauteng but in the rest of South Africa, and continues to urge AA Members to not register for etags yet as there is still a belief in an equitable solution.
The Congress of SA Trade Unions added it was appalled that an Austrian e-tolling company expects to make about R664m a year from the Gauteng e-tolling system, the trade union federation.
"This makes the argument for tolls more and more untenable, and the argument for using taxation more and more obvious," Cosatu said in a statement.
"This is further evidence that e-tolls amount to the commodification of our highways, a business opportunity for a private company rather than a basic public service for the community."
Bloomberg reported that Andre Laux, a board member of Kapsch TrafficCom (KTCG), the Austrian maker of toll-road systems, said it would get an annual revenue boost of "significantly more" than €50m (R664m) for eight years from the Gauteng project.
Of course the SA National Roads Agency Limited (Sanral) has hit the denied button, saying that no money collected from e-tolling in Gauteng would go overseas.
Not true, says Sanral
"This is simply not true," spokesperson Vusi Mona said in a statement.
"What must also be made clear is that all tolls collected on GFIP [Gauteng Freeway Improvement Project] go to Sanral. ETC [Electronic Toll Collection joint venture] is paid for services rendered on a monthly basis, and the payment is strictly according to a bill of quantities as specified in the tender contract."
Mona said the dividends they declared could be paid to foreign companies only after income tax was paid in South Africa.
Sanral awarded the e-tolling contract to the ETC because its tender was more than R2bn lower than the next offer, he said.
The Opposition to Urban Tolling Alliance (Outa) expressed its shock at Kapsch TrafficCom's announcement.
"This is money that is being extracted directly from the pockets of hard-pressed citizens to improve the profits and wealth of overseas business," chairperson Wayne Duvenage said in a statement.
"The figure Kapsch mentions is around 45% of the annual running costs for the e-tolling system quoted by Sanral and the South African Treasury, which depicts sizeable profits for an offshore company, paid for by the Gauteng road user."
Cosatu said it supported Outa's call for the public protector or even a possible judicial commission of inquiry to probe the e-tolling deal.
"This news will make workers more determined than ever to fight e-tolling and support the call for an efficient, safe, and affordable public transport system," Cosatu said. (Source: Fin24.)
The AA said this announcement shows a continued disregard for the South African motorist. While it is the mandate of every organisation, local or international, to increase the bottom line, in this case the South African government is allowing this to happen to the detriment of its already hard hit citizens who are simply trying to make ends meet.
The AA said it remained committed to fighting eTolling, not just in Gauteng but in the rest of South Africa, and continues to urge AA Members to not register for etags yet as there is still a belief in an equitable solution.
The Congress of SA Trade Unions added it was appalled that an Austrian e-tolling company expects to make about R664m a year from the Gauteng e-tolling system, the trade union federation.
"This makes the argument for tolls more and more untenable, and the argument for using taxation more and more obvious," Cosatu said in a statement.
"This is further evidence that e-tolls amount to the commodification of our highways, a business opportunity for a private company rather than a basic public service for the community."
Bloomberg reported that Andre Laux, a board member of Kapsch TrafficCom (KTCG), the Austrian maker of toll-road systems, said it would get an annual revenue boost of "significantly more" than €50m (R664m) for eight years from the Gauteng project.
Of course the SA National Roads Agency Limited (Sanral) has hit the denied button, saying that no money collected from e-tolling in Gauteng would go overseas.
Not true, says Sanral
"This is simply not true," spokesperson Vusi Mona said in a statement.
"What must also be made clear is that all tolls collected on GFIP [Gauteng Freeway Improvement Project] go to Sanral. ETC [Electronic Toll Collection joint venture] is paid for services rendered on a monthly basis, and the payment is strictly according to a bill of quantities as specified in the tender contract."
Mona said the dividends they declared could be paid to foreign companies only after income tax was paid in South Africa.
Sanral awarded the e-tolling contract to the ETC because its tender was more than R2bn lower than the next offer, he said.
The Opposition to Urban Tolling Alliance (Outa) expressed its shock at Kapsch TrafficCom's announcement.
"This is money that is being extracted directly from the pockets of hard-pressed citizens to improve the profits and wealth of overseas business," chairperson Wayne Duvenage said in a statement.
"The figure Kapsch mentions is around 45% of the annual running costs for the e-tolling system quoted by Sanral and the South African Treasury, which depicts sizeable profits for an offshore company, paid for by the Gauteng road user."
Cosatu said it supported Outa's call for the public protector or even a possible judicial commission of inquiry to probe the e-tolling deal.
"This news will make workers more determined than ever to fight e-tolling and support the call for an efficient, safe, and affordable public transport system," Cosatu said. (Source: Fin24.)
