Tip-off prevents rip-off of motor dealership

A RICHARDS Bay car dealership narrowly escaped losing millions in a scam, thanks to a helpful tip-off from a fellow dealership in Vryheid.

The scam, which has reportedly already caught out about eight dealerships nationwide, appears to be run by a sophisticated syndicate.

On official Department of Water and Sanitation (DWS) letterheads, car dealerships are contacted, requesting a quote for a fleet of vehicles to be used for government business.

Through what appear completely legitimate channels, negotiations are entered into between the ‘Department’ and dealership, which is when the finer points of the contract are discussed.

The fraudsters even go so far as to send the dealership a copy of government tender regulations.

A location for the delivery of the vehicles, usually outside the dealership’s area of operation, is agreed upon.

The scammers take delivery, but the bill is never paid.

‘We were very lucky to not have been caught out, although it was very close,’ said a spokesperson of the Richards

Bay dealership that wished to remain anonymous.

‘We supplied eight vehicles for this ‘deal’, four of which we managed to get back while the other four never left our premises.’

But this was not before the dealership paid about R20 000 to register the vehicles.

‘We just want to warn other Zululand dealerships of this scam so no others fall victim.

‘We would have lost about R4-million had we not been tipped off, so we feel it is our duty to pass on the tip-off to other dealerships which may find themselves in the same situation.’

He said that, while he had given the scammers seven days to settle the account, by the time the seven days had come and gone, and no payment had been received, the vehicles would have been long gone, potentially across the border.

The company has since initiated proceedings to de-register the vehicles, a process which has to go through the High Court owing to the value of the fleet.

According to the Richards Bay dealership, a police investigation is well underway, but neither SAPS nor Hawks spokespersons were able to confirm this.

This is not the first time fraudsters have attempted to scam businesses by purporting to be the DWS.

In 2015, KZN businesses were scammed into tendering for equipment allegedly required by both the Department of Transport and DWS.

In 2016 alone, the DWS received no fewer than 15 complaints from companies that had been scammed into tendering for the department.

At the time, DWS spokesperson,

Sputnik Ratau, advised companies wishing to supply government to be vigilant and verify the authenticity of the entire process.

Through what appear completely legitimate channels, negotiations are entered into between the ‘Department’ and dealership, which is when the finer points of the contract are discussed