Does E-toll debt prescribe?

Introduction

With an estimated 3 million drivers defaulting on E-toll payments and an alleged 6 286 summonses prepared by SANRAL, this article examines whether any of the E-toll debt owed by the defaulting drivers may have prescribed, and whether non-payment of that prescribed debt could result in criminal prosecution by SANRAL.

Does E-toll debt prescribe?

E-toll debts are not considered levies or taxes and because SANRAL is merely a state-owned juristic entity as opposed to a fully-fledged state department, the debt is subject to the Prescription Act 68 of 1969. In terms of the Prescription Act, any debt which is not owned to the state itself, which does not arise from a dishonoured cheque, and is not secured by some or other instrument (like a mortgage bond) shall be extinguished after 3 years from its due date, unless the debtor is summoned to settle the debt or the debt is acknowledged or paid by the debtor.

Read the full article by Anja van Wijk, Associate and Chantelle Gladwin-Wood, Partner