R14.7m reclaimed in eNaTIS fraud probe, SIU confirms

The Special Investigating Unit (SIU) has successfully recovered R14.7 million, which was diverted from the Nationwide Rolling Stock Fleet (NRSF) project, and returned it to six provincial departments of transport.

This is part of an ongoing investigation under Proclamation R37 of 2017, which grants the SIU the power to tackle corruption and maladministration within South Africa's transport sector, with a particular focus on vehicle registration, driver licensing, and the eNaTIS system.

In a statement, SIU spokesperson Kaizer Kganyago confirmed the funds’ return, noting that the recovery forms part of an effort to "restore accountability and protect public resources."

Kganyago explained that the total irregular expenditure uncovered during the investigation amounted to R16.7 million, of which R14.7 million was successfully reclaimed and returned to the following departments: Gauteng (R4.7 million), Mpumalanga (R9.5 million), Eastern Cape (R306,000), KwaZulu-Natal (R65,500), Free State (R60,000), and Limpopo (R17,000).

A significant portion of the funds recovered from Mpumalanga, approximately R6.9 million, was traced to Optimum Coal Mine, which owed outstanding motor licensing fees and penalties for vehicles owned by the company from January 2018 to November 2022.

“The investigation revealed deep systemic vulnerabilities, including the manipulation of the eNaTIS system by some officials,” Kganyago said.

“These weaknesses allowed for fraudulent activities such as the conversion of foreign licenses using unverified documents, and the illegal transfer of fees and penalties to deceased individuals or unsuspecting citizens.”

The SIU’s investigation also revealed extensive fraud involving intermediaries known as "runners" and "agents," who exploited delays in processing to facilitate illegal activities for a fee.

Additionally, Kganyago said systemic issues were identified, including poor cash management practices such as the absence of daily reconciliations, misreported cash records, and unverified revenue statements, all contributing to substantial financial losses.

To address these issues, the SIU has already implemented significant corrective measures. In the first phase of its investigation, the SIU identified and cancelled 190,503 licenses that were fraudulently linked to deceased individuals in the eNaTIS system, he said. 

These cancellations have since been verified. The investigation also led to 73 disciplinary referrals to the Department of Transport and 78 criminal referrals to the National Prosecuting Authority (NPA), aimed at holding both public officials and private individuals accountable for their involvement in these corrupt activities.

Kganyago added that, in addition to these punitive measures, the SIU has made recommendations for sweeping reforms to prevent future corruption.

"We have recommended linking the eNaTIS system directly to the Department of Home Affairs and the Companies and Intellectual Property Registration Office (CIPRO) database for real-time document verification," he said.

“The SIU also calls for amendments to the National Road Traffic Act to clarify the roles of company proxies and representatives and urges stronger financial controls and standard operating procedures across all Driving License Testing Centres (DLTCs) to combat revenue leakage.”

Kganyago noted that Proclamation R37 of 2017 gives the SIU the power to investigate and take corrective action in cases of corruption, fraud, or maladministration. 

“The SIU is empowered to institute civil action in the High Court or a Special Tribunal to rectify any wrongdoing uncovered during investigations,” he said.

“Any evidence pointing to criminal conduct is referred to the National Prosecuting Authority (NPA) for further action,'' he said. 

hope.ntanzi@iol.co.za 

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