Gauteng will lose about 30% of the province’s budget allocation towards servicing the controversial e-tolls debt, according to Transport Minister Fikile Mbalula.
Mbalula was speaking in Kirkwood, Eastern Cape, where he is conducting oversight on the construction of R336 road from Kirkwood and Addo, which is a significant route for transportation of citrus from the farms to the port in Gqeberha.
He said over the past seven years, the government looked at various options of servicing its debt when it became clear that there was resistance towards paying the e-tolls.
“E-tolls have been scrapped, it’s a cabinet decision. The Department of Transport has been a champion of that together with Gauteng, but we had to say to Gauteng, where’s the money going to come from? So, they agreed that 30% of their share will contribute to closing the debt,” said Mbalula.
Mbalula said the finer details will be dealt with in a meeting that his department will hold with Gauteng on Tuesday. The meeting will also discuss whether or not to refund those citizens who had been paying for e-tolls.
The minister added that government considered a fuel levy, but the fuel cost crisis caused by the Russian war with Ukraine made it difficult to put more fuel levy burden on citizens, saying government is still left with the burden of paying for expansion of roads in Gauteng.
“We don’t have a bottomless pit of money, it comes from somewhere. As we close down, what are we going to do with the second phase of building roads in Gauteng, because Gauteng is the central point of economic development for the whole country?”
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