THE delay in the implementation of the e-tolling system in Gauteng has led to a material loss of R26m for the Road Traffic Management Corporation (RTMC), the lead agency for road traffic management in South Africa.
The loss represents more than 60% of the corporation’s R41m deficit for the year to March 31.
The RTMC has an accumulated deficit of R203m, and according to the auditor-general’s report these conditions indicate the existence of a "material uncertainty that may cast significant doubt on the public entity’s ability to operate as a going concern".
Speaking at the release of the corporation’s annual report in Pretoria on Monday, acting CEO Collins Letsoalo said if the plea for further funding from the government was not heard, there was little prospect of the financial situation improving.
The corporation received an unqualified report from the auditor-general who emphasised three matters relating to the restatement of figures, its ability to continue as a going concern, and material losses of R34m.
Mr Letsoalo said the irregular procurement of an R8m information technology system that could not be used or maintained by the RTMC had been written off, along with the R26m that was not paid by the South African National Road Agency (Sanral) for the national traffic police unit.
The RTMC’s newly appointed chief financial officer, Portia Mngomezulu, said the agency had entered into an agreement with Sanral whereby it would pay the salaries of the national traffic police, established to assist with law enforcement on the e-toll system. Sanral had made payments of R53m.
Ms Mngomezulu said the grant income received from the government in the 2011-12 financial year amounted to R77m, and R84m in 2012-13. The agency had a shortfall of 110% with operating expenses totalling R178m.
The agency had asked for a budget of R240m.
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