12 Tshwane licensing officials suspended for alleged fraud

2017-02-13 22:40
(Picture: Tshwane municipality)

(Picture: Tshwane municipality)

Multimedia   ·   User Galleries   ·   News in Pictures Send us your pictures  ·  Send us your stories

Pretoria - The City of Tshwane has suspended 12 vehicle licensing department officials who allegedly defrauded the city of millions through their involvement in a “dumping” syndicate, it said on Monday.

 They were allegedly “dumping” outstanding licence fees and penalties from one motorist registered on the eNatis system to another, usually a dead person or an inactive record. The officials perpetrating the scam would get an agreed percentage of the “dumped” fee.

“This means that the city is unable to recover some of the monies owed to it from a multitude of traffic violations,” Mayor Solly Msimanga said.

He said the city had identified about 100 officials who were linked to the fraud and corruption. Investigations into the extent of their activities and what charges they would face were still underway.

Msimanga’s announcement came a week after he revealed that government departments and residents owed the city nearly R9bn for services, as at June 30, 2016. Of this amount an estimated R5.9bn, or 68%, was uncollectable, he said at the time.

Last month, Gauteng roads and transport MEC Ismail Vadi announced that an extensive investigation into financial irregularities at both municipal and provincial licensing centres had been concluded. Implicated officials would face disciplinary action and/or criminal charges.

The City of Johannesburg had suspended 71 officials.

Vadi said the investigation showed a clear trend of syndicated crime that probably involved a further 394 officials in Tshwane, Ekurhuleni, Sedibeng, and the West Rand. They were suspected of involvement in 2791 fraudulent transactions.

“The total financial loss to government is estimated to be R42m,” Vadi said at the time.

In 2013, when the investigation began, it emerged that two department employees had created “ghost users” on the eNatis system to defraud the licence fees fund. After a broader investigation into all the licensing centres, it became apparent that more officials were likely involved.

The eNatis system prevents the renewal of a motor vehicle licence if there are any outstanding fees or fines linked to a motorist’s identity number.

The “elaborate, syndicated scam” involved government employees, private individuals, transport companies, used car dealerships, vehicle registration companies, taxi operators, and businesses.

Nineteen officials from licensing centres in Kliptown in Soweto, Johannesburg, and Mabopane and Temba in Tshwane were suspended and were facing prosecution for 304 fraudulent transactions involving R6.2m, Vadi said.

The department would reinstate the “dumped” amounts onto the accounts of the motorists who had incurred them. 

Read more on:    pretoria  |  crime

Join the conversation!

24.com encourages commentary submitted via MyNews24. Contributions of 200 words or more will be considered for publication.

We reserve editorial discretion to decide what will be published.
Read our comments policy for guidelines on contributions.
NEXT ON NEWS24X

Inside News24

 
/News

Book flights

Compare, Book, Fly

Traffic Alerts
Traffic
There are new stories on the homepage. Click here to see them.
 
English
Afrikaans
isiZulu

Hello 

Create Profile

Creating your profile will enable you to submit photos and stories to get published on News24.


Please provide a username for your profile page:

This username must be unique, cannot be edited and will be used in the URL to your profile page across the entire 24.com network.

Settings

Location Settings

News24 allows you to edit the display of certain components based on a location. If you wish to personalise the page based on your preferences, please select a location for each component and click "Submit" in order for the changes to take affect.




Facebook Sign-In

Hi News addict,

Join the News24 Community to be involved in breaking the news.

Log in with Facebook to comment and personalise news, weather and listings.