Cabinet Writes off Billions

The Organisation Undoing Tax Abuse (OUTA) welcomes Cabinet’s decision to write off outstanding Gauteng Freeway Improvement Project (GFIP) e-toll debt, saying the move finally acknowledges a reality that became clear more than a decade ago: the vast majority of the debt was never going to be recovered.

While the e-toll system was officially discontinued in April 2024, government left motorists facing uncertainty over billions of rands in historical e-toll debt and ongoing legal matters. OUTA warned at the time that the debt issue remained unresolved and questioned how authorities intended to recover debt that SANRAL had struggled to collect for more than a decade.

“The failure of the e-toll scheme was evident within months of its launch,” says Wayne Duvenage, OUTA CEO. “Compliance levels peaked at around 40% during the first six months and then declined steadily thereafter. By mid-2014, it was clear that the scheme lacked public support and was not financially sustainable.”

OUTA says it consistently maintained that SANRAL would never be able to recover the vast majority of outstanding debt and that government would ultimately have no choice but to accept this reality.

“For years, government persisted with the notion that motorists could eventually be compelled to pay debt arising from a scheme they had overwhelmingly rejected,” says Duvenage. “Cabinet’s decision confirms what OUTA and many others have been saying for more than a decade. This debt was never realistically recoverable.”

OUTA says the decision is welcome but comes far too late.

“The scheme was launched in December 2013. Its failure was evident by 2014. Yet it has taken more than a decade for government to formally accept the inevitable. This prolonged delay reflects a broader concern about government’s inability to act decisively when the evidence clearly points to policy failure.”

OUTA says the years of indecision came at a cost.

“Had government acted when the scheme’s failure became apparent, taxpayers could have been spared years of legal disputes, administrative costs, political conflict and uncertainty. Instead, South Africans were left waiting while government delayed a decision that should have been taken years ago.”

The decision will bring significant relief to motorists who have lived with uncertainty over outstanding e-toll accounts and legal action for years.

Thousands of motorists who received summonses have spent years waiting for clarity while government delayed a decision that was ultimately unavoidable. Cabinet’s announcement finally opens the door to resolving these matters and providing certainty to affected road users.

OUTA is currently engaged in negotiations and mediation processes with SANRAL regarding summonses issued to motorists for unpaid GFIP e-toll accounts.

“Government switched off the gantries in 2024 but left the debt question hanging over motorists for another two years,” says Duvenage. “This latest decision finally acknowledges what had become obvious long ago. The debt was not recoverable, and prolonging the uncertainty served no useful purpose.”

Cabinet’s decision also includes the orderly resolution of outstanding litigation and matters associated with the historical recovery of e-toll debt. OUTA says this should pave the way for the final settlement of outstanding legal matters involving motorists who were summonsed for unpaid e-toll accounts.

“This decision paves the way for these matters to be settled and brought to finality,” says Duvenage. “For many motorists who received summonses and have been waiting years for certainty, this announcement will come as a welcome relief.”

OUTA says the e-toll saga should serve as a cautionary lesson for future infrastructure funding decisions and government policymaking.

“The e-toll saga stands as a warning of what happens when government ignores public sentiment, persists with flawed policy and delays corrective action long after the facts are clear,” says Duvenage. “Good governance requires leaders who are willing to acknowledge mistakes early and act decisively. South Africans have waited far too long for this outcome.”