Mbalula: Corrupt licensing officials made off with R3-billion

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More than R3-billion was lost to the fiscus because of transport industry-related corruption linked to vehicle and licence registration graft involving traffic officials. 

A Special  Investigating Unit (SIU) inquiry unearthed R1.2-billion lost to the fiscus in Gauteng alone through fraudulently-issued vehicle licence discs, the chief executive of the Road Traffic Management Corporation, Makhosini Msibi, told a media briefing in Tshwane on Monday.

Msibi, who was accompanied by Transport Minister Fikile Mbalula, added that the system for applying for a learner’s licence would move from a written test to a computerised process “to remove the element of human failure” and to eliminate corruption in the issuance of permits. 

Mbalula echoed Msibi, saying graft in the transport sector was caused by “corrupt officials and criminal middlemen exploit systemic weaknesses, greed which drives irregular and criminal behaviour”, as well as “roadworthy certificates issued without vehicles [being] tested”. 

Mbalula said more than R3.8-million had been recovered from 99 “acknowledgement of debt” documents signed by people who had not renewed their licences, involving more than R45.7-million. The SIU had until next March to complete its work, the minister added.

“The actual value of cash recovered through the seizure of illegally imported vehicles during joint operations with the [Road Traffic Management Corporation], Hawks, Sars [South African Revenue Service] and SIU, in respect of 375 vehicles recovered in Eastern Cape, was R52 798 708,” Mbalula said, adding that 44 cases had been referred to the National Prosecuting Authority for criminal prosecution. 

“In July, six officials were arrested for 10 000 illicit transactions, which cost the state a combined loss of R60-million.”

Andy Mothibi, the head of the SIU, told Monday’s briefing that it was “time for consequence management” through disciplinary proceedings or criminal prosecutions so that “corrupt officials [can] be taken out of the system”. 

Mothibi added that there was a sophisticated corruption chain in state transport institutions that included driving schools, runners, licence officials, as well as willing participants from the public. 

“We would like to crack that criminal chain and we have the interventions that we will engage with the [Road Traffic Management Corporation] to ensure that we prevent that [corruption] from happening,” Mothibi said.