More Thanks R600 mil toe foreign company for eToll

COSATU condemns Kapsch profits
The Congress of South African Trade Unions is
appalled that Austrian e-tolling company, Kapsch
TrafficCom, expects to rake in annual revenue of 50
million Euros (R664 million) every year, for the next
eight years, from Gauteng’s e-tolling system (see
The e-tolling system is planned to collect total
revenue of between R3 and R3.5-billion a year, of
which, we now know, approximately R1.5-billion a
year will be spent on the actual process of collecting
tolls by Kapsch, which will be at least as much as the
cost of the road improvements themselves. This
makes the argument for tolls more and more
untenable, and the argument for using taxation more
and more obvious.
This is further evidence that e-tolls amount to the
commodification of our highways – a business
opportunity for a private company, rather than a
basic public service for the community.
As OUTA Chairperson, Wayne Duvenage, has pointed
out: "Every Rand we send overseas to Kapsch is one
Rand less which is available for infrastructure
development. And it is also one Rand less in
disposable income for the citizens who have to pay."
He added that the scale of Kapsch’s earnings left no
doubt about the reasons for the high costs involved,
making this the most expensive tolling system in the
world. "If road-building was funded from taxation, the
gross waste of half a billion Rand per year on a
private overseas company’s services could be
COSATU fully supports OUTA’s call "for the Public
Protector, or possibly even a judicial commission of
enquiry, to deeply probe the e-tolling deal. South
Africa’s citizens deserve to know why government has
committed itself to outsourcing infrastructure funding
to the private sector despite the vast wasted costs of
doing so".
This news will make workers more determined than
ever to fight e-tolling and support the call for an
efficient, safe and affordable public transport system.
COSATU urges all its members, and all the citizens of
Gauteng and the rest of South Africa, to support the
next round of mass protest on the highways, on 24
June in Johannesburg and 2 July in Tshwane, and to
continue not to register with Sanral and not to buy e-
tags, so that we make the system unworkable.
Statement issued by Patrick Craven, COSATU national
spokesperson, June 13 2013

Source :

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