Government approves write-off of historic Gauteng e-toll debt

The long-running Gauteng Freeway Improvement Project (GFIP) e-toll saga has moved closer to its conclusion after Cabinet approved the write-off of outstanding historical e-toll debt and the resolution of all remaining litigation linked to the scheme.

The decision means motorists who still owe unpaid GFIP e-toll fees will no longer be pursued for payment, bringing an end to one of South Africa’s most contentious road funding initiatives.

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In a statement, the Department of Transport said Cabinet had approved the implementation of the closure of the GFIP historical debt, including the close-out of historical e-toll debt and the settlement of outstanding legal matters.

The approval follows the government’s decision to terminate the GFIP e-toll scheme and withdraw the toll declarations, which came into effect on April 11, 2024.

Transport Minister Barbara Creecy and Deputy Minister Mkhuleko Hlengwa welcomed the decision, describing it as a significant step towards bringing finality to the matter.

They characterised the approval as “a long-awaited step to close the GFIP e-toll matter in an orderly and responsible manner”.

According to the department, the decision provides relief to road users who have been affected by rising transport costs.

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Creecy and Hlengwa said the move “brings 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”.

Under the approved framework, all outstanding and unpaid historical GFIP e-toll debt owed by motorists will be written off.

South African National Roads Agency SOC Limited (Sanral) will not pursue any further collection of historical e-toll debt, while motorists who paid their toll fees when the system was in force will not receive refunds.

The government said the no-refund position stems from the fact that the toll charges were lawful at the time they were paid, before the toll declarations were withdrawn.

“The write-off of outstanding debt gives effect to the government’s decision to close the GFIP e-toll scheme and provide finality to road users, Sanral and the fiscus,” the department said.

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The GFIP was implemented by Sanral under the tolling framework and approvals that existed at the time. The e-toll system was introduced to fund upgrades to Gauteng’s freeway network.

The government said the debt write-off is intended to provide certainty, resolve historical debt matters and support a sustainable approach to funding, maintaining and improving South Africa’s national road network.

It added that the user-pay principle remains an important part of the country’s road infrastructure funding model, where it is accepted by road users through consultation and agreement, is legally sound and supported by clear policy certainty.