Johannesburg - The Organisation Undoing Tax Abuse (Outa) is worried that the R7 billion loan granted to the SA National Roads Agency Limited (Sanral) will sink the state-owned entity further into debt.
The New Development Bank (NDB), which was established by BRICS countries (Brazil, Russia, India, China and South Africa), announced on Monday that it had granted Sanral a R7 billion loan to improve key national roads which will eventually lead to reducing transportation costs.
According to the NDB, the scope of Sanral’s project includes rehabilitation of pavements for existing toll sections of national roads, construction of additional lanes and rehabilitation of infrastructures such as bridges and intersections.
But non-profit civil rights organisation Outa on Tuesday said the e-toll scheme has failed dismally to fund Sanral’s debt, which now stands at R47bn, and has resulted in a bailout from the National Treasury and reshuffling of its Department of Transport allocation.
”What is required is clarity around the extent and use of Treasury and other bond funding, and the allocation of these funds to manage Sanral’s debt and finance specific road projects,” said Outa chief executive Wayne Duvenage.