SANRAL rubbishes reports on being broke - CNBC Africa

SANRAL rubbishes reports on being broke

Southern Africa

by Trust Matsilele 0

SANRAL rubbishes reports on being broke.

“SANRAL is not broke. As recently as last month the Auditor General issued its opinion on the agency’s finances and did not raise a single concern about SANRAL’s solvency,” the company said in a statement.

(READ MORE: SACCI endorses SANRAL’s improvement programme in principle)

The organisation described media reports as showing a lamentable understanding of the business of the organisation and the way SANRAL is being funded.

 “To claim in the headline that “SANRAL is broke,” and then to tell readers that the CEO, Nazir Alli told the panel that “it is broke” is simply wrong and is not even supported by the report that follows,” protested SANRAL.

SANRAL clarified what CEO Alli meant when he said there was no new money.

“Mr Alli’s remarks that “there is no new money” were made during a question and answer session with the Panel and formed part of a broader exchange of views on how infrastructure – especially road infrastructure could be funded in future,” SANRAL added.

“Within this context he pointed to the limitations on the fiscus and the competing for funding especially for social infrastructure and services – education, healthcare, housing and social grants, among others.”

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SANRAL says Alli explained that the country has to find alternative solutions for the funding of physical infrastructure such as roads. SANRAL has responded to this challenge through the tolling of 15 per cent of the national road network of 21 000km.

The bulk of the highway system – 85 per cent - is still funded by the fiscus through the annual budget allocation.