The South African National Roads Agency Limited (SANRAL) reported an annual loss of R2,8bn in the year to March 2014 on the back of challenges implementing the Gauteng Freeway Improvement Project (GFIP), which saw the roll-out of e-tolling in the province.
The loss compares with a R1bn profit in the 12 months to March 2013.  “The loss was occasioned largely by delays in the implementation of the GFIP, which resulted in an increase in finance charges and loss of revenue,” said Inge Mulder, Chief Financial Officer of SANRAL. “SANRAL has certainly not been without challenges since the roll-out of e-tolling and the past three years have definitely been among the most challenging for the organisation,” the company said in its annual report.
During the same period, SANRAL Executive Director and CEO, Nazir Alli, earned R3.6 million in total, which included a long-service award of R1 million, and is a 17.9% increase on his remuneration for the previous period.
Earlier this year, Gauteng Premier, David Makhura, set up a panel to review the implementation of e-tolls in Gauteng. The panel is expected to make a recommendation by November 30. The review was welcomed by the car-rental industry, which has been hurt by the implementation of e-tolls.
At the recent Gauteng African National Congress congress, the province’s arm rejected e-tolling in favour of a fuel levy. "We can unequivocally state that our membership does not support e-tolls in its current form," Gauteng Chairman, Paul Mashatile, was quoted as saying in Business Day.