Johannesburg – A sweeping investigation into widespread fraud and maladministration within South Africa's Driving Licence Testing Centres (DLTCs) has led to the cancellation of over 190,000 licences. This drastic measure follows the discovery that these licences were fraudulently linked to deceased individuals, highlighting critical vulnerabilities within the national traffic information system.
The Special Investigating Unit (SIU) initiated the intervention as part of a series of steps taken after identifying significant weaknesses in the electronic national administration traffic information system (eNaTIS). These flaws have been exploited to facilitate a range of fraudulent activities, resulting in substantial financial losses and undermining the integrity of the country's transport sector.
One of the key vulnerabilities identified was the conversion of foreign licences using unverified documents. This was largely due to a lack of integration between eNaTIS and the Department of Home Affairs, making it difficult to authenticate the legitimacy of the documents presented.
Further investigations revealed that DLTC officials were manipulating eNaTIS to unjustly transfer outstanding fees and penalties to deceased individuals or unsuspecting citizens. This allowed some vehicle owners, particularly those operating heavy motor vehicles, to evade their state debts, effectively shifting the financial burden onto others.
Systemic flaws in cash management were also a significant concern. The SIU's investigation uncovered absent daily reconciliations, misreported cash records, and unverified revenue statements. These deficiencies collectively contributed to significant financial losses, as revenue leakage went unchecked and unaccounted for.
The presence of corrupt intermediaries, commonly referred to as "runners" and "agents," further exacerbated the problem. These individuals capitalised on delays in processing to facilitate fraudulent activities for a fee, preying on those seeking to expedite their transactions.
Finally, the SIU found that the safeguards within the eNaTIS system itself were insufficient. This allowed for the creation of duplicates, altered vehicle weights, and manipulated vehicle statuses, all contributing to the overall corruption and undermining the system's reliability.
In response to these findings, the SIU has taken decisive action. It has made 78 criminal referrals to the National Prosecuting Authority (NPA) for the prosecution of both officials and private individuals involved in corrupt practices. Additionally, 73 disciplinary referrals have been submitted to the Department of Transport for action against implicated officials.
Furthermore, the SIU has recommended substantial reforms to strengthen the systems and prevent future fraud. These recommendations include linking eNatis directly to the Home Affairs and the Companies and Intellectual Property Registration Office databases. This would enable real-time document verification, ensuring that only legitimate documents are used in the licensing process.
The SIU also argued for amendments to the National Road Traffic Act (NRTA) to clarify the responsibilities of company proxies and representatives. This is seen as crucial to preventing the manipulation of the system by those seeking to evade their financial obligations.
Alongside these legislative changes, the SIU has called for the implementation of standard operating procedures and stricter financial controls across all DLTCs. These measures are designed to mitigate revenue leakage and ensure that all financial transactions are properly accounted for.
In a separate but related investigation, the SIU has also recovered and returned millions of rand to six provincial transport departments. This money was irregularly diverted from the Nationwide Rolling Stock Fleet project, and its restitution is part of a comprehensive programme designed to enhance the value chain.
"The SIU investigated the diversion of project funds and identified irregular expenditures totalling R16.7 million," the unit stated. Of this amount, R14.7 million has been successfully recovered and is being returned to the six departments, with allocations as follows:
- Gauteng Transport — R4,710,561
- Mpumalanga Transport — R9,549,640
- Eastern Cape Transport — R306,000
- KwaZulu-Natal Transport — R65,500
- Free State Transport — R60,000
- Limpopo Transport — R17,000
Notably, R6.9 million of the R9.5 million recovered for the Mpumalanga Department of Transport came from Optimum Coal Mine near Emalahleni. This money represents outstanding motor licensing fees and penalties in respect of the trucks and smaller vehicles owned by Optimum for the period January 2018 to November 2022.
The history of Optimum Coal Mine is itself mired in controversy. In 2016, the mine was sold by Glencore to the Guptas under suspicious circumstances. The infamous family subsequently extracted R3 billion in cash from the mine, leading to significant financial difficulties. In 2024, the mine was transferred to Liberty Coal as part of a R461-million settlement with the National Prosecuting Authority.
The SIU's actions represent a significant step in the fight against corruption and maladministration within South Africa's transport sector. By identifying and addressing the vulnerabilities in the eNaTIS system, and by recovering and returning misappropriated funds, the SIU is working to restore integrity and accountability to this vital sector.
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