South Africa faces R2.1-billion loss due to licence disc fraud

Licence disc fraud in South Africa is resulting in a revenue loss of R2.1 billion for the government.

And it’s not just average Joe drivers who are the culprits, but rather large commercial transport companies, reports TopAuto. Now, the Road Traffic Management Corporation (RTMC) has them in their crosshairs. And it hopes to recoup billions in losses through licence disc fraud in South Africa.

Specifically, the RTMC has launched a new operation to clamp down on licence fraud in South Africa through corrupt haulage firms. Ever since the South African railway network collapsed and the majority of goods needed to be transported via road, the industry has been plagued by unscrupulous operators.

LICENCE DISC FRAUD IN SOUTH AFRICA  

In the past year, the RTMC has raided 23 transport companies. These firms have a combined fleet of over 1 700 vehicles. And all are suspected of perpetrating car licence disc fraud in South Africa. Allegedly, the operators obtain licence discs for trucks, van and minibus taxis through illegal means. Moreover, many of these same companies/individuals has existing wrap sheets. These are for crimes such as money laundering, racketeering, and impersonating police officers.

It is understood that the majority of these investigations are taking place up country in Mpumalanga and Gauteng. The Free State and KwaZulu-Natal have also been marked as hotspots for these syndicates. Upwards of R2.1 billion in missing licence fees needs to be recouped in these provinces. The new Government of National Unity (GNU) needs all the money it can get to fund increases in social welfare projects from 2025 onwards.

UP COUNTRY

As a result, the first step will be to serve companies a letter of demand asking for full payment of monies for fraudulently activities. Failing this, law enforcement agencies like the Hawks will step in and carry out the arrests of guilty individuals.

According to RTMC CEO Adv. Makhosini Msibi, accidents involving fraudulently licenced vehicles are a major contributor to the carnage on South African roads. In turn, this places a massive burden on the Road Accident Fund (RAF) which is in its own seemingly never-ending battle against fraudsters. These bogus and unnecessary claims are taking money away from those who desperately need it, like the country’s growing pensioner population.

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In its fight against licence disc fraud in South Africa, the agency is not only targeting owners of nefarious trucking companies. It’s eyed-out accomplices like traffic officials and the ‘runners’ who do all the legwork in these scenarios. “Those employed by government in the registration authorities will also be pursued, apprehended and charged. We will also take away their pension fund, so that even if they’re found guilty they can’t just resign and walk away with a pension,” concluded Msibi.