Good news for South African motorists who did not pay for e-tolls

The National Department of Transport announced that all outstanding and unpaid historical GFIP e-toll debt owed by road users will be written off.

This followed a cabinet decision to approve SANRAL’s implementation of the closure of the Gauteng Freeway Improvement Project (GFIP) historical debt.

This includes two things: the close-out of GFIP historical e-toll debt and the resolution of all outstanding litigation matters.

The Minister of Transport, Barbara Creecy, and the Deputy Minister, Mkhuleko Hlengwa, have welcomed the cabinet’s decision.

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

“This brings relief to road users who are currently hard-pressed by high fuel costs due to geopolitical matters that are currently unfolding,” they said.

The Gauteng Freeway Improvement Project was implemented and operated by the South African National Roads Agency (SANRAL).

The e-toll system was introduced as a funding mechanism for the upgraded Gauteng freeway network.

However, it was highly controversial, and there were many indications of widespread corruption linked to the scheme.

The Opposition to Urban Tolling Alliance (OUTA), a civil action group formed to challenge e-tolls in Gauteng, was highly effective in opposing the system.

It convinced motorists to refuse to pay e-tolls in Gauteng, and the GFIP e-toll scheme collapsed financially.

On 11 April 2024, the government closed the GFIP e-toll scheme and subsequently withdrew the e-toll declarations.

Cabinet’s approval of SANRAL’s implementation of the closure of the Gauteng Freeway Improvement Project (GFIP) confirmed:

• 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The no-refund position arises from lawful levies at the time they were paid, that is, before the toll declarations were withdrawn.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 the government’s decision to close the GFIP e-toll scheme and provide finality to road users, SANRAL and the fiscus.

The government reiterated that the close-out of GFIP e-toll debt is intended to provide certainty and resolve historical debt matters.

It also aims to support a sustainable approach to the funding, maintenance and improvement of South Africa’s national road network.

“The user-pay principle remains an important part of South Africa’s road infrastructure funding framework,” Creecy said.

“The framework must be broadly accepted by road users through negotiation and agreement, appropriately structured, legally sound and supported by clear policy certainty.”