MEC Diale-Tlabela clarifies Johannesburg Roads Agency traffic lights debt issue

MEC for Transport and Logistics Ms Kedibone Diale-Tlabela has called on the Johannesburg Roads Agency (JRA), the roads utility of the City of Johannesburg Metropolitan Municipality, to cooperate with the Department in bringing the matter of the payment of its debt owed to the agency to finality.

The Gauteng Department of Roads and Transport (DRT) has made several attempts to ensure that the R16 million traffic signals-related debt is settled once and for all. However, due to the JRA’s own tax compliance issues, the Department has been unable to pay the debt. The DRT entered into a Service Level Agreement (SLA) with JRA on the 4th of October 2018 for the agency to design, install, and maintain traffic control equipment.

However, the Department could not pay the agency for work done due to JRA’s failure to produce a tax clearance certificate.

“The non-payment is not the fault of our Department, but the JRA’s. Our department is precluded from making payments to service providers whose tax affairs are not proven to be in order,” said MEC DialeTlabela.

Despite many attempts and express will to resolve the matter, the DRT is yet to be provided with a tax clearance certificate, which makes it illegal for the Department to pay the agency.

“We urge the City to work with us to resolve this issue as we have acknowledged the debt and we stand ready to pay what we owe for the services rendered, on our behalf, by JRA as part of our SLA," the MEC said.

Ends!

Issued by the Gauteng Department of Roads and Transport.

For more information please contact Head of Communications Ms Melitah Madiba on 073 644 9935 or MEC's Spokesperson Mr Lesiba Mpya on 078 314 7987. Email: PressOffice.gpdrt@gauteng.gov.za

Facebook: www.facebook.com/gpdrt

Twitter: www.twitter.com/gpdrt_