Transport scandal uncovered: SIU recovers stolen public funds

The Special Investigating Unit has recovered and returned more than R14.7 million to six provincial transport departments after uncovering widespread fraud and maladministration linked to the Nationwide Rolling Stock Fleet project.

The recovery forms part of an ongoing investigation authorised under Proclamation R37 of 2017, which mandates the SIU to probe corruption in the transport sector, including vehicle registration, driver licensing, and weaknesses in the eNaTIS system.

The SIU found that R16.7 million had been irregularly diverted from the project. After a series of investigations and recovery processes, R14.7 million has been returned to provincial departments. Gauteng received R4.7 million, Mpumalanga R9.5 million, Eastern Cape R306 000, KwaZulu Natal R65 500, Free State R60 000, and Limpopo R17 000. The total amount returned stands at R14 708 701.

Of the funds recovered for Mpumalanga, R6.9 million came from Optimum Coal Mine. This amount covered outstanding motor licensing fees and penalties for trucks and smaller vehicles owned by the company between January 2018 and November 2022.

The first phase of the investigation exposed large scale fraud within Driving License Testing Centres and the eNaTIS system. The SIU uncovered the manipulation of foreign license conversions through unverified documents, which resulted from a lack of integration between eNaTIS and the Department of Home Affairs. This led to the cancellation of thousands of invalid licenses.

The SIU also found that some officials were transferring outstanding vehicle fees and penalties to deceased or unsuspecting citizens, enabling owners of heavy vehicles to evade state debts. Weaknesses in cash management at testing centres contributed to further losses, with missing reconciliations, misreported cash records, and unverified revenue statements. Runners and agents were also found to be facilitating fraudulent transactions for a fee by exploiting delays in processing.

Following the investigation, the SIU initiated enforcement measures including the cancellation of 190 503 licenses linked to deceased individuals. Seventy three disciplinary referrals were submitted to the Department of Transport, and seventy eight criminal referrals were made to the National Prosecuting Authority for prosecution of implicated officials and private individuals.

The SIU has proposed a series of reforms aimed at closing systemic gaps. These include linking eNaTIS to the Department of Home Affairs and the Companies and Intellectual Property Registration Office to enable real time verification of documents. The SIU also recommends amendments to the National Road Traffic Act to clarify responsibilities of company representatives and new financial controls for all testing centres.

SIU spokesperson Kaizer Kganyago said the recovery demonstrates the effectiveness of combining investigation, enforcement, and systemic reform. Kganyago said, “This recovery shows that the SIU is closing the corruption value chain by identifying weaknesses, holding individuals accountable, and ensuring that funds are returned to the state.”

The SIU will continue civil litigation and referrals as allowed under the Special Investigating Units and Special Tribunals Act to correct wrongdoing and restore integrity within the transport system.