logo
E-toll debt bites into traffic light repair budget

E-toll debt bites into traffic light repair budget

The Citizen12-06-2025

The DA has raised serious concerns about an imminent budget shortfall that will see Gauteng's provincial traffic light maintenance grind to a halt before the end of July.
This looming crisis threatens the safety and mobility of millions of road users across the province, including key urban areas such as Pretoria.
'This will affect the whole of the province,' warned Evert du Plessis, DA Gauteng spokesperson for Roads and Transport. 'There are traffic lights that belong to and are maintained by the province in every metro and municipality. Pretoria will definitely be affected as well.'
The budget shortfall was revealed during a recent Gauteng Provincial Legislature (GPL) Transport, Roads, and Logistics Committee meeting.
Committee members were told that the allocated funds will be exhausted before the end of July, just three months into the financial year.
In Pretoria, provincial roads, designated by the letter 'R', crisscross the city and act as vital connectors between suburbs and national routes.
These include major corridors like the R55 and connecting streets, where intersections often depend on traffic signals to regulate the complex flow of daily commuters.
The problem is exacerbated by the fact that provincial roads often intersect with national (Sanral) and municipal roads, creating shared responsibilities between all three spheres of government.
'We don't have a specific list for dysfunctional traffic lights on Tshwane's provincial roads as it changes on a daily basis,' explained Du Plessis.
'There are, however, a substantial number of provincial and national roads that cross metro boundaries. So all three tiers of government must take responsibility for their own infrastructure.'
However, without a functional maintenance budget, Gauteng's provincial authorities will soon no longer be able to service their share of these intersections.
Du Plessis said this shortfall is more than just an administrative hiccup.
'Non-functioning traffic lights pose a real threat to public safety, placing motorists and pedestrians at risk of collisions, violent crime at intersections, and delays that disrupt the daily routines of workers, parents, and emergency services.
'For the remaining nine months of the year, motorists could be stuck in gridlock, relying on pointsmen instead of functioning systems to reach their destinations,' he said.
The DA has linked the budget collapse to Gauteng Premier Panyaza Lesufi's decision to commit provincial funds to paying off e-toll debt, an obligation the province was never legally bound to.
Lesufi said on March 18 that the Gauteng government will absorb the e-toll debt and will continue to service it.
He also confirmed that the provincial government has gone to the Development Bank of Southern Africa for a loan to be able to service the shortfall on e-tolls.
The total e-toll debt that the provincial government has to pay back is more than R20-billion.
This includes R12.9-billion for the historical debt, R4-billion for interest, and R4-billion for maintenance.
The government has agreed to repay this debt in five equal annual instalments, with the first payment of R3.8-billion being made on September 30, 2024.
'This is another example of service delivery money being squashed by an irrational political commitment,' said Du Plessis.
The party has called on Gauteng MEC for Roads, Transport and Logistics, Kedibone Diale-Thabela, and the head of the department, Thulani Mdadane, to urgently redirect funding and prevent a province-wide gridlock.
'New technology and the assistance of law enforcement would also go a long way to address this ever-escalating problem,' he added.
The DA pledged to continue pressing the issue in the GPL, demanding answers and accountability from the ANC-led provincial government.
'A DA-led Gauteng government would not allow residents to be placed in such dangerous or frustrating situations,' he said.
'We will prioritise funding for traffic lights as a matter of extreme urgency to ensure the safety and well-being of all road users in Gauteng.'
Do you have more information about the story?
Please send us an email to bennittb@rekord.co.za or phone us on 083 625 4114.
For free breaking and community news, visit Rekord's websites: Rekord East
For more news and interesting articles, like Rekord on Facebook, follow us on Twitter or Instagram or TikTok
At Caxton, we employ humans to generate daily fresh news, not AI intervention. Happy reading!
Stay in the know. Download the Caxton Local News Network App
Stay in the know. Download the Caxton Local News Network App here

Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

Multi-billion Limpopo mega-project has ground to a halt
Multi-billion Limpopo mega-project has ground to a halt

The Citizen

time12 hours ago

  • The Citizen

Multi-billion Limpopo mega-project has ground to a halt

Makhado Special Economic Zone, announced in 2018, was intended to attract investments of R40-billion. The mega industrial project in the Musina Makhado Special Economic Zone has ground to a halt. Photos: supplied by Living Limpopo The Musina Makhado Special Economic Zone in Limpopo, announced in 2018 by President Cyril Ramaphosa, was intended to attract investments of more than R40-billion. But seven years later, the project has all but ground to a halt. Only one company has made a firm commitment to invest. Though more than R100-million has been spent, there are no roads, electricity or water connections; and the company contracted to build roads has terminated the contract. However, the chair of the board says a turnaround plan is in place and construction on the first infrastructure projects will start in September. Seven years after its launch by President Cyril Ramaphosa, the multi-billion Musina Makhado Special Economic Zone (MMSEZ) in Limpopo is at a standstill. R67.5-million has been spent on consultants and R50-million on roads and infrastructure. But there is no infrastructure, no electricity connection, no roads and no water. Described on its website as 'a flagship of the Limpopo Provincial Government' the MMSEZ is 'a green field investment platform consisting of two sites' – Artonvilla, near Musina, intended for light manufacturing, and Mopani, near Makhado, intended for heavy industry. The zone claims to offer 'state of the art logistics facilities promoting operational excellence' But though the MMSEZ was touted to bring in R40-billion in investments, so far only one company has made a firm commitment to invest. ALSO READ: Revival of job-creating initiative in Limpopo A report by the chair of the MMSEZ board, Nndweleni Mphephu, to the Limpopo Economic Development, Environment and Tourism department, shows how little has happened in what was to be a mega industrial park in the heart of the Limpopo Valley. The report, dated 28 May, follows questions in Parliament and an oversight visit to the area by members of the Limpopo Economic Development, Environment and Tourism portfolio committee. According to the Minister of Trade Industry and Competition Parks Tau, R2.27-billion would be needed for bulk infrastructure on the site, and R1.07-billion had been set aside between 2020/1 and 2026/7 in the provincial budget. In response to a question in Parliament in May from the DA's Toby Chance, Tau added that the DTIC's Industrial Zones Programme was helping the MMSEZ with advisory support. Some of the money has already been spent, much of it on consultants. In his report, Mphephu gives a list of consultants, service providers and contractors who have benefited to date. Spending of just over R85.2-million was approved for consultants, of which just over R67.5-million has already been paid to 17 consultants, including engineers, planners, quantity surveyors, project managers and horticulturists. Just under R40-million has been paid to service providers, including Eskom. ALSO READ: Limpopo's special economic zones expected to create 21,000 jobs According to the report, three contractors have so far benefited, including Tshiamiso Trading 1 and Tshiamiso Trading 2, which received a R200-million contract for roads and stormwater infrastructure and a R99.3-million contract for bulk sewer and wastewater treatment works. A contract for R134-million was awarded to Rembu Construction, also for the construction of bulk sewer and wastewater treatment works. But though some earthworks have been done by Tshiamiso on the northern site, there are no finished roads, electricity or water on either site. After being paid just over R50.4-million, Tshiamiso had to stop work on the northern site, after beginning bush-clearing, because the land belonged to a different organ of state and transfer had to take place first, the report says. Tshiamiso has now terminated the contract and is claiming more money from the MMSEZ, citing non-payment for standing time. This dispute is currently in litigation. Tshiamiso Trading is also accused of unlawfully removing white rock materials from another site to the MMSEZ site without the owner's consent or any formal agreement or compensation. ALSO READ: Limpopo unveils R1.8 billion budget boost for economic development The MMSEZ southern site was gazetted as a Special Economic Zone in 2017, but it turns out that the northern site at Artonvilla has yet to be gazetted, according to a response by Tau to a question in Parliament. Tau said the Limpopo government had indicated it would submit a request before the end of June 2025 to gazette the northern site. In his report, Mphephu noted fierce 'oppositions, dissenting views and pushbacks' mostly from environmental groups, over the southern site. Some of these were challenging the Environmental Impact Assessment in the Polokwane High Court. But in the absence of an interdict, the report says, 'all activities leading to the development, including township establishment processes are expected to proceed.' Tshiamiso Trading is one of the contractors which has been paid. When President Cyril Ramaphosa publicly announced the MMSEZ in September 2018 following his return from the Forum for Africa and China Cooperation, it came with the promise of an initial investment value of more than R40-billion. To date, little of that money appears to have materialised. ALSO READ: It's war on power, water theft to save Limpopo economic zones Responding to questions in Parliament in May, Tau gave a list of investment pledges amounting to more than R8.64-billion, of which R2.1-billion has been verified and validated from eight prospective investors. But according to the report, only the China-based Kinetic Development Group has come to the party, with a R16-billion promise of a ferrochrome smelter on the southern site, once township development on the site is approved, and subject to EIA approvals. If investors do come, one of the biggest questions will be: where is the water going to come from in this semi-arid area? The MMSEZ has approached the Water Services Authority (Vhembe) and the catchment management agency (the Department of Water and Sanitation, DWS) in the region to determine whether they have capacity, either from treated or raw water, to supply the developments. According to the report, Vhembe agreed to provide the MMSEZ with some of its allocation for raw water to kickstart development on the northern site. The DWS said treated water could be brought from Zimbabwe by pipeline for the future development of the site. 'For the south, a few boreholes were drilled in order to start the development of the site. For further development, a pipeline needs to be built to connect to the bulk pipeline from Zimbabwe. Furthermore, two dams are earmarked to be constructed in future to specifically provide water to the site as it grows,' the report says. According to the report, the MMSEZ has now implemented a 'turnaround plan' including a review of the design of roads and stormwater. A division of the Industrial Development Corporation has been appointed as implementing agent, with four professional engineers assigned to the MMEZ full-time. Construction on the first projects will start in September, the report says. This article is published in association with the Limpopo Mirror/Zoutpansberger. Correction on 2025-06-19 09:53 This article has been amended to clarify that the visit to the site was by members of the Limpopo Economic Development, Environment and Tourism portfolio committee, not by MPs. This article was republished from GroundUp. Read the original here.

Nkomazi Local Municipality CFO suspended
Nkomazi Local Municipality CFO suspended

The Citizen

time14 hours ago

  • The Citizen

Nkomazi Local Municipality CFO suspended

The CFO of the Nkomazi Local Municipality, Steven Thobela, has been put on suspension pending an investigation into his alleged financial misconduct. The municipality suspended Thobela with effect from last week Friday, June 13, following a council resolution that was taken at the KaMdladla Community Hall. 'The suspension stems from several allegations of financial misconduct against the CFO. The suspension will allow proper investigation to be undertaken and also allow the official to clear his name if the allegations are not true,' said the municipality's spokesperson, Mbuso Malale. Sipho Mathaba has been appointed as an acting CFO pending the finalisation of the investigations against Thobela. Malale refused to elaborate on the merits of the investigations saying it was sub-judice. Thobela's suspension comes just a month after the municipal manager (MM) Xolani Mabila resigned without giving reasons. ALSO READ: Nkomazi court sentences rapist to 12 years in jail According to Malale, the reasons for Mabila's resignation remained close to his own chest, but unconfirmed reports suggested it was related to alleged corruption within the municipality The suspension of the CFO and the resignation of the MM come in the midst of serious corruption allegations by the DA against the municipality. The DA councillor in the Nkomazi Local Municipality, Nhlonipho Dlamini, said the party urged the provincial Department of Co-operative Governance Human Settlements and Traditional Affairs (Coghsta) to intervene in the alleged corruption within the municipality. The DA in Nkomazi will write to Coghsta to investigate municipal officials implicated in the delay of upgrading the Naas Water Treatment Works project. The project which aimed to alleviate water challenges for residents around Naas and neighbouring towns was initiated in September 2020. However, the project has cost the municipality over R39m to date and has been delayed by more than two years,' said Dlamini in a statement. 'It is understood that the project was supposed to be completed in different phases. However, according to the Auditor-General's 2023/24 Management Report, the municipality has poorly managed this project. These are some of the alarming findings that the AG flagged,' added Dlamini. 'These items include mechanical and electrical equipment to the value of R2m. The municipality stored some of the equipment to the value of R7m off-site while there is no written agreement with suppliers regarding warranty and insurance,' said Dlamini. ALSO READ: City of Mbombela sounds alarm on tender scam According to him, at some point, the contractor had halted the project due to cash flow problems and that the municipality had failed to impose penalties against the contractor. 'The municipality paid for equipment before it was procured by the contractor from the supplier (up to 15 months in advance). It was also revealed that at some point the municipality failed to efficiently dispatch water tankers to communities affected by the upgrading of the Naas water treatment works project,' Dlamini said. 'Coghsta must intervene and regulate the implementation of infrastructure projects. It cannot be business as usual while money meant for service delivery is misused,' added Dlamini At Caxton, we employ humans to generate daily fresh news, not AI intervention. Happy reading! Stay in the know. Download the Caxton Local News Network App Stay in the know. Download the Caxton Local News Network App here

Gupta-linked Saxonwold mansions head to auction after seven-year legal battle
Gupta-linked Saxonwold mansions head to auction after seven-year legal battle

The Citizen

time18 hours ago

  • The Citizen

Gupta-linked Saxonwold mansions head to auction after seven-year legal battle

Three properties in business rescue will go under the hammer on 24 July. After seven years of drawn-out litigation, three luxurious Saxonwold properties tied to Gupta-owned Confident Concept (Pty) Ltd are set to be auctioned. The properties – including the family's former Johannesburg residence – are being sold by Park Village Auctions following a Supreme Court of Appeal ruling, marking what auctioneer Clive Lazarus calls 'the beginning of the end' of a long-running legal and business rescue saga. ALSO READ: 'Gupta Saxonwold compound' has its lights cut Creditors can breathe a sigh of relief The simulcast auction will take place on 24 July at 11am, with the sale expected to bring long-awaited relief to creditors. Confident Concept held a substantial property portfolio including land adjacent to the infamous Saxonwold compound in Johannesburg. The company became embroiled in litigation with the City of Johannesburg, allegedly owing R726 695 in rates and taxes as of 2022. It has faced two major areas of legal contention: business rescue proceedings due to financial distress, and disputes with municipal authorities over property development. The business rescue process, which began in 2018, ran alongside the municipal disputes and involved other Gupta-linked companies. It was characterised by internal conflict and protracted legal battles over the management of the company and its assets. ALSO READ: Who paid R20 million for the Gupta's rundown Constantia mansion? Opulent and decadent The first property to be sold will be number 5 Saxonwold Drive, measuring 4 207 m², which is a three-storey residence featuring eight bedrooms, extensive living and entertainment areas, an indoor swimming pool, expansive rooftop patio, staff accommodation, and ample garaging. Second on the list is number 7 Saxonwold Drive which also comprises three storeys with 17 en suite bedrooms. The property also features a grand triple-volume foyer with an atrium-like domed skylight, multiple lounges, a cinema lounge, beauty salon, and staff accommodation. The final property to be sold is number 3 Saxonwold Drive which is a single-storey, three-bedroom home with a single garage, storeroom and staff accommodation. The entire contents of each house, namely furniture and appliances, will be sold as a single lot (not individual items) following each respective property. Lazarus says he is humbled by Park Villages Auctions being entrusted to dispose of assets of such political significance once again, recouping millions for the corruption-afflicted creditors. This article was republished from Moneyweb. Read the original here.

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into a world of global content with local flavor? Download Daily8 app today from your preferred app store and start exploring.
app-storeplay-store