When will the roads agency admit that most of its e-tolls debt is unrecoverable?
This article first appeared in Moneyweb.
Organisation Undoing Tax Abuse (Outa) raised some interesting questions about the South African National Road Agency’s (Sanral) 2016 annual report which came out recently, specifically Sanral’s lack of enthusiasm for writing off unpaid e-tolls, which many suspect will never be recovered.
The balance sheet shows trade receivables of R7.66 billion, up from R4.96 billion in 2015 and R1.15 billion in 2014. Is Sanral continuing to count unrecoverable e-tolls as an asset on its balance sheet?
“Had Sanral accounted prudently and honestly as regards these unrecoverable amounts, it would have been forced to report a far greater loss than the R954 milllion reported for the 2016 financial year,” says Outa.