Authorities uncover multimillion-rand vehicle licensing cartel operating across provinces

A multimillion-rand vehicle licensing fraud syndicate manipulated South Africa's vehicle licensing system by using insiders' login credentials, bogus companies and even the identities of deceased people to evade licence fees, according to the Road Traffic Management Corporation (RTMC).

RTMC spokesperson Simon Zwane said the syndicate worked with vehicle fleet owners, including truck and bus operators, to avoid paying the correct licensing fees

Zwane said one of the syndicate's methods involved temporarily transferring ownership of vehicles to bogus companies or deceased people to avoid outstanding licence fees.

"So they would go to these people and these people would either dump all the fees onto a bogus company, in some instances into the name of deceased persons, so that the company does not have to pay anything."

He said ownership would then be transferred back to the original owner once the transaction had been completed.

Another method involved changing the classification of heavy vehicles so they attracted much lower licence fees.

"They would then reduce the tier of the truck to make it appear as if it's a normal bakkie, and then the fee applicable to a bakkie is paid."

According to Zwane, once the licensing transaction had been completed, the vehicle's correct classification would be restored, allowing the owner to obtain what appeared to be a legitimate licence disc despite paying significantly less than required.

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