Monday, December 30, 2013

Fleet firms boycott e-tag contracts

Fleet firms boycott e-tag contracts
Dec 30 2013 14:52 Fin24

(Photo: file, Sapa)

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Cape Town - A number of business people have reported extremely prejudicial treatment for not contracting to fit e-tags, according to the Opposition to Urban Tolling Alliance (Outa).

It said in a statement on Monday that it received numerous messages from business operators with vehicle fleets who have opted not to contract e-tags with the Electronic Tolling Company (ETC), which runs the multi-billion e-tolls project in Gauteng.

"Many of these businesses are smaller to medium in size and are communicating collectively through local business associations, forming agreement pacts amongst themselves to defy the system."

Outa said that business operators’ compliance with VAT regulations necessitates the issue of tax invoices for VAT computations.

"But the ETC’s Violations Processing Centre (VPC) is not obliging and insists that fleet operators can only obtain such documentation if they contract to buy e-tags."

Earlier in December, Outa accused the SA National Roads Agency Limited (Sanral) of fabricating the number of e-tags sold when it said that nearly 900 000 e-tags have been issued to motorists in Gauteng.

However, Sanral spokesperson Vusi Mona dismissed the allegations.

"As a state-owned entity, everything we do is subject to audit processes by both the auditor general and our external auditors," Mona told Fin24 at the time.

Outa chairperson Wayne Duvenage challenged Sanral to make available its information.

"Where is the transparency, and what do they have to lose if they grant this request?", he told Fin24 at the time.

"They are a state-owned entity using taxpayers' money to issue information which we have the right to know," he said.

In October Fin24 reported that ETC CEO Salahdin Yacoubi surprisingly quit his job. James Surkont took over at the helm.

ETC is a single purpose company established in late 2009 to deliver the services contracted by Sanral to a joint venture of companies.

The joint venture consists of South African black empowered company Traffic Management Technologies (TMT) and Austrian e-tolling company Kapsch TrafficCom.

- Fin24

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