Minister Barbara Creecy and Deputy Minister Mkhuleko Hlengwa welcome Cabinet approval of Gauteng Freeway Improvement Project debt closure

Cabinet finally closes the e-toll historical debt chapter

 The Minister of Transport, Ms Barbara Creecy and the Deputy Minister Mr Mkhuleko Hlengwa have welcomed the Cabinet decision to approve that SANRAL implements the closure of the Gauteng Freeway Improvement Project (GFIP) historical debt. This include two things; the close-out of GFIP historical e-toll debt and the resolution of all outstanding litigation matters

They have characterized this decision as a long-awaited step to close the GFIP e-toll matter in an orderly and responsible manner.

Creecy and Hlengwa stated that this bring much-needed relief and lessens the financial burden to road users who are currently hard-pressed by high fuel costs due to geopolitical matters that are currently unfolding.

GFIP was implemented and operated under the South African National Roads Agency SOC Limited (SANRAL) in terms of the applicable tolling framework and approvals that were in place at the time. The e-toll system was introduced as a funding mechanism for the upgraded Gauteng freeway network.

The approval follows Government’s decision to close the GFIP e-toll scheme and the subsequent withdrawal of the GFIP toll declarations, which became effective on 11 April 2024.

Cabinet’s approval confirms the following:

  • Outstanding and unpaid historical GFIP e-toll debt owed by road users will be written off;
  • SANRAL will not pursue any further collection of historical GFIP e-toll debt;
  • Road users who lawfully paid e-tolls while the system was legally in force will not be refunded;
  • The no-refund position arises from lawful levies at the time they were paid, that is, before the toll declarations were withdrawn;
  • The write-off of outstanding debt gives effect to Government’s decision to close the GFIP e-toll scheme and provide finality to road users, SANRAL and the fiscus;

Government reiterates that the close-out of GFIP e-toll debt is intended to provide certainty, resolve historical debt matters and support a sustainable approach to the funding, maintenance and improvement of South Africa’s national road network.

Government further emphasizes that the user-pay principle remains an important part of South Africa’s road infrastructure funding framework where it is broadly accepted by road users through negotiation and agreement, appropriately structured, legally sound and supported by clear policy certainty.

Media contact:
Collen Msibi
National Spokesperson
Cell: 066 476 9015

#GovZAUpdates

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