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Was Mboweni justified in lashing out at Sanral over e-tolls move?

Finance Minister Tito Mboweni said that Sanral’s board should not have taken the decision as it would have significant financial implications.

FILE: Finance Minister Tito Mboweni addressing the media prior to his Annual Budget speech taking place on 20 February 2018 in Cape Town. Pictures: Cindy Archillies/EWN.

JOHANNESBURG - Finance Minister Tito Mboweni on Thursday hit out at the South African National Roads Agency (Sanral) for its decision not to pursue those defaulting on e-toll payments.

This after Sanral announced this week that it suspended the process of pursuing historic e-toll debt, including summonses dating back to 2015.

Speaking at a press conference to introduce the new South African Revenue Service Commissioner Edward Kieswetter in Pretoria, Mboweni said that Sanral’s board should not have taken the decision as it would have significant financial implications.

The minister said Sanral’s decision would have an impact on the country’s fiscus, the bond market, and credit rating.

Radio 702 host Karima Brown spoke to the chief economist at Pan-African Investment and Research, Dr Iraj Abedian, about the latest development regarding e-tolls.

“There’s no question that the minister feels there’s a government within a government. Remember that at the moment we are in a precarious situation with our international credit rating. Two out of three credit ratings agencies have downgraded us to junk, Moody’s is the only one and is under pressure.”

For more information listen to the audio.

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