As a dealership in South Africa, being vigilant about the authenticity of vehicle licence discs is crucial, especially when purchasing pre-owned cars from customers. The Road Traffic Management Corporation (RTMC) is intensifying its crackdown on fraudulent vehicle licence discs, which have resulted in significant fiscal losses and road safety concerns.
Key Points for Dealerships
- Rampant Fraudulent Discs The RTMC reports over R2.1 billion in losses due to fraudulent licence discs. Mpumalanga alone accounts for R1.1 billion, with Gauteng contributing between R683 and R713 million. These forged discs often belong to unroadworthy vehicles, increasing the risk of road accidents and impacting the Road Accident Fund.
- Recent Raids and Implications A major operation in Mpumalanga uncovered a trucking company using fraudulent licence discs, with a value of R683,000. These trucks were found to have expired discs fraudulently extended to 2025, making them unroadworthy. The RTMC impounded these vehicles and issued a demand letter to the owner, requiring payment within seven days.
Broader Impact Fraudulent activities are not confined to one region but have been identified across the Free State, Gauteng, Mpumalanga, North West, and KwaZulu-Natal. The RTMC, in collaboration with the South African Police Service, continues to identify and address these fraudulent practices.
Action Points for Dealerships
- Rigorous Verification When purchasing pre-owned cars, ensure thorough verification of the vehicle’s licence discs. Cross-check the expiry dates and authenticity of the discs to avoid acquiring vehicles with fraudulent documentation.
- Road-Worthy Testing Conduct comprehensive road-worthy tests on all pre-owned vehicles before finalising purchases. This step ensures that the vehicles meet safety standards and are compliant with legal requirements.
- Stay Informed and Compliant Keep updated on the latest developments and enforcement actions by the RTMC. Awareness of these issues can help you avoid potential legal and financial repercussions associated with fraudulent licence discs.
- Educate Your Team Train your sales and procurement teams to recognize signs of fraudulent licence discs and understand the importance of compliance with road safety regulations.
By implementing these measures, your dealership can mitigate risks associated with fraudulent licence discs, ensuring that all vehicles in your inventory are legally compliant and roadworthy. Staying vigilant and informed will protect your business and maintain customer trust.
Sources: MyBroadband
