NEWS

The E-Toll System That Keeps Draining Our Pockets, Gives A R550m Boost To Foreign Companies

Who knew providing e-tags, printing and distributing invoices would be such a cash cow?

11/07/2017 16:25 SAST | Updated 28/08/2017 16:21 SAST

Two international companies, Kapsch Sweden and Q-Free, have earned over R550 million for services rendered for the unpopular e-toll system in South Africa. The companies provided e-tags , printing and distributing invoices for the e-toll system.

Kapsch Sweden and Q-Free have been in charge of e-tag provision and upkeep of the service.

According to Fin24, Kapsch TrafficCom (a subsidiary of Austrian company Kapsch) received R167.2 million, while Q-Free got R58.3 million for providing e-tags. Both figures are exclusive of VAT.

An additional payment of R225 million for e-tags provision was also paid out.

Transport Minister Joe Maswanganyi revealed the informtion in answer to a parliamentary posed by the Democratic Alliance's Chris Hunsinger about the breakdown of payments to third parties for e-toll collection and e-tag provision.

Fin24 reported that Sanral paid a further R327.2 million to the respective companies since the end of 2013 for printing and posting for e- toll collection. These amounts were also exclusive VAT.

These figures were revealed by Transport Minister Joe Maswanganyi who gave a breakdown of payments to third parties for the e-toll system who was questioned by the DA's Chris Hunsinge.

In addition, Fin24 reported that the majority of South Africa's motorists are still not paying e-tolls as only 30% of invoices generated to motorists who use Gauteng's toll roads have been paid over a 24-month period.

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