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Authorities Uncover Multimillion-rand Vehicle Licensing Cartel

Posted on July 31, 2026July 31, 2026 By The Editor
National News

 Operating Across Provinces

CCN Editor – George April

A multimillion-rand vehicle licensing fraud syndicate used insiders’ login details, bogus companies and deceased people’s identities to evade fees and issue roadworthy certificates, the Road Traffic Management Corporation (RTMC) has revealed.The syndicate manipulated South Africa’s National Traffic Information System (NaTIS) by exploiting compromised credentials belonging to transport officials and authorised users. It worked with vehicle fleet owners — particularly truck and bus operators – to avoid paying the correct licensing fees, according to RTMC spokesperson Simon Zwane.

One method involved temporarily transferring ownership of vehicles to shell companies or the identities of deceased persons so that outstanding licence fees could be dumped onto those entities. Once the transaction was complete, ownership was transferred back to the original owner.  Another tactic saw the classification of heavy vehicles altered on the system so that a truck would appear as a bakkie, attracting far lower fees.

After the reduced fee was paid and a licence disc obtained, the vehicle’s correct classification was restored.

The syndicate’s activities extended beyond licence fee evasion. Members used login credentials linked to private vehicle testing stations to declare vehicles roadworthy without the required inspections taking place.

“They’re using the login details of people who are working inside different departments of transport or who are operating on the NaTIS system,” Zwane said. “Massive amounts of money are lost by the provincial transport departments and the national department through the use of this.”

The latest breakthrough came with the arrest of a suspected key member of the cartel in Parys, Free State, on the evening of 28 July 2026. The 45-year-old man, described as an IT specialist, was taken into custody during a joint intelligence-led operation involving the RTMC’s National Anti-Corruption Unit, the South African Police Service’s Crime Intelligence Tactical and Special Operations, the Directorate for Priority Crime Investigation (Hawks), and cyber units from both Crime Intelligence and the Hawks.

Investigators had received information that the suspect was operating NaTIS from a private residence and fraudulently assisting vehicle owners with licence renewals.  On arrival, officers found a computer displaying the NaTIS log-on screen with a user number and password already entered and ready for use.

They also recovered NaTIS printouts and reports from multiple provinces, notebooks containing vehicle registration numbers, login credentials and identity numbers, an HP laptop, desktop computers, and a black cooler bag filled with documents.

The suspect allegedly told investigators that NaTIS user numbers were bought from officials and transferred via memory sticks.  He claimed the group was a large team operating primarily in southern Gauteng and the Free State but had infiltrated all provinces through official contacts who supplied credentials.  The syndicate reportedly targeted driving licence testing centres (DLTCs) where biometric systems had not yet been installed and possessed credentials that allowed it to capture and declare vehicles roadworthy on the system.

The arrest marks a breakthrough in a three-year investigation. “The RTMC and the police have been investigating this for the past three years and believe that more arrests are imminent,” Zwane said. Earlier raids have already targeted transport companies suspected of benefiting from the scheme, including a bus company in Gauteng and a truck company in Mpumalanga. Some companies have been issued summonses to repay money, with a portion already recovered.

Some reports have estimated the financial loss to the state at around R1.4 billion, though investigations into the full scale of the fraud continue.  The RTMC has linked the case to broader organised corruption previously uncovered in partnership with the Department of Home Affairs involving compromised vehicle registration and licensing processes.

RTMC chief executive Advocate Makhosini Msibi described the arrest as an important achievement in the fight against corruption and fraud within the vehicle licensing system.

Authorities expect further arrests as the probe expands.

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