Gauteng will never be bankrupt – MEC Maile

Gauteng MEC Assures on Etolls Debt Amid Payment Plan

In a major development toward resolving the long-standing etolls saga, the Gauteng Provincial Government has made its first payment of R3,8 billion as part of a larger R12,9 billion commitment to settle the etolls debt.

This milestone comes after the official shutdown of the controversial etolls system in April this year, marking the end of the province’s heavily criticized electronic tolling on Gauteng highways.

Finance MEC Lebogang Maile, during a press conference in Sandton, firmly reassured residents that the province’s finances remain secure despite the hefty payment.

“Gauteng will not be bankrupt. The payment of R12,9 billion, spread over five installments, will not affect the province’s ability to function,” he emphasized.

While departments will need to tighten their belts to maintain financial stability, Maile made it clear that essential services will not be compromised. “We are committed to maintaining fiscal discipline while prioritizing government projects. Our strategy includes the reprioritization of budgets and identifying efficiency gains to ensure macroeconomic stability,” he stated.

The closure of the etolls system in April was a welcome relief for many motorists in Gauteng, who had long opposed the system due to high costs and administrative challenges. However, MEC Maile reminded citizens that those who still owe money for unpaid etolls must settle their debts. “It remains a legal obligation for motorists to pay any outstanding amounts,” he emphasized, indicating that the end of etolls does not absolve users from their financial responsibilities.

Maile explained that the payment includes a maintenance portion of R546 million, ensuring that critical infrastructure is properly maintained, despite the debt burden. The MEC reassured the public that fiscal responsibility remains a priority for the provincial government, and Gauteng’s financial health will not be compromised by the debt repayments.

During the press conference, Inner-City Gazette asked what the government’s outlook would be once the debt is fully paid. With a smile, Maile replied, “We will be happy as government,” indicating optimism for the future.

The closure of the etolls system signals a new chapter for Gauteng’s road infrastructure, but tax payers will still foot the bills to settle outstanding R43 Billion etoll debt.

The province, meanwhile, remains on firm financial ground, according to Maile, as the government continues to work toward resolving the debt without sacrificing service delivery.