Huge licence fraud probed

THE Gauteng government has concluded a wide-ranging investigation of financial irregularities at 34 provincial licensing centres‚ identifying a syndicate that could involve hundreds of officials who have been accepting bribes in exchange for clearing unpaid fines.

In coming days, 19 officials at licensing and testing centres in the province would be suspended‚ and criminal charges could be instituted against the private individuals and businesses that participated in the scam.

This was revealed by Gauteng Roads and Transport MEC Ismail Vadi at a briefing in Johannesburg.

“The investigation shows a clear trend of syndicated crime that probably involves a further 394 officials from [the centres] in Tshwane‚ Ekurhuleni‚ Sedibeng and West Rand‚ who could possibly be charged for 2 791 fraudulent transactions.

“The total financial loss to the government is estimated to be R42-million‚” Vadi said.

The officials involved had been shifting unpaid fines or outstanding licence fees to other road users‚ usually deceased‚ with the province-wide crackdown following the arrest of 15 officials in the City of Johannesburg‚ and a further 71 suspensions.

The City of Johannesburg announced yesterday a further seven licensing officials had been arrested on fraud and corruption charges and appeared in the Johannesburg specialised commercial court.

New mayor Herman Mashaba has promised a crackdown on corruption in the city‚ appointing former Hawks boss Shadrack Sibiya to head an internal investigative unit.

Vadi, however, dismissed assertions his department or former city administrations had taken no substantive action against licence centre fraud‚ following criticism of the department due to the speed at which the new administration had begun making arrests.

The investigation follows the discovery in 2013 of “ghost users” created by two employees to defraud the licence fees fund. –