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A vehicle licensing fraud syndicate whose leader was arrested in the Free State this week following a three-year investigation is believed to have cost the state an estimated R1.4bn.
The 45-year-old man was arrested during a joint intelligence-led operation involving the national anti-corruption unit of the Road Traffic Management Corporation (RTMC), the Hawks, the police’s crime intelligence tactical and special operations units, and cybercrime investigators.
They would ... renew the licences illegally while charging about half of what the legitimate renewal fee would have been.
— Simon Zwane, spokesperson for the Road Traffic Management Corporation
Authorities believe the suspect is part of a nationwide cartel that fraudulently renewed vehicle licences by illegally accessing the National Traffic Information System (NaTIS).
RTMC spokesperson Simon Zwane said the man’s arrest marked a significant breakthrough in dismantling the sophisticated syndicate that had infiltrated SA’s vehicle licensing system.
“These are not easy investigations. The people involved do everything they can to hide their activities, so it does take time,” Zwane said.
While authorities estimate the syndicate may have cost the state about R1.4bn, the amount remains an estimate as investigations are continuing.
Zwane said the syndicate primarily targeted fleet owners, including trucking companies, bus operators and taxi owners.
“They would ask clients to send vehicle details, registration numbers and licence information. They would then access the system and renew the licences illegally while charging about half of what the legitimate renewal fee would have been,” he said.
“If you were supposed to pay R5,000, they would offer to do it for R2,500.”
“During the raid, officers allegedly found a computer already logged into the NaTIS system, together with user credentials, vehicle registration records, identity numbers, computers and documents linked to licensing transactions,” Zwane said.
He said the suspect is an IT specialist and used NaTIS login credentials obtained from corrupt officials.
The suspect allegedly told investigators that the syndicate operates in Gauteng and the Free State and has contacts in every province, enabling members to access NaTIS through compromised official accounts.
Authorities allege the group also targeted driving licence testing centres where biometric verification systems had not yet been introduced and fraudulently declared vehicles roadworthy using compromised credentials from private vehicle testing stations.
Zwane said that investigations had already led to raids on transport companies suspected of benefiting from the fraudulent scheme.
“In 2024 we raided a bus company in Gauteng. We also raided a truck company in Mpumalanga, and several other companies have been issued with summonses to repay money. Some have already repaid, but investigations are continuing.”
Zwane added that investigators believe some syndicate members had used proceeds from the alleged fraud to acquire luxury assets.
“We are aware that some have bought houses and cars, and some are operating taverns or lounges. But I don’t want to reveal too much because it may jeopardise the investigation.”
The suspect is expected to appear in the Parys magistrate’s court on Thursday.
Police said further arrests were expected as the investigation continues.
Sowetan
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