The Organisation Undoing Tax Abuse (Outa) has called on the Department of Transport (DoT) and its related entities, the Road Traffic Management Corporation (RTMC) and the Driving Licence Card Account (DLCA), to provide more clarity on pressing issues currently plaguing the country’s transport sector.
Outa said it wants answers on the following matters:
- Why has the procurement of the new driving licence card machine been delayed for more than a year?
- Why has the department decided not to extend the validity of driving licences despite the cumbersome system?
- Does the card machine procurement plan rely on retaining the five-year validity period for the cards?
- Why won’t the department explain how it calculates the fees it charges for licences and how these funds are distributed?
“OUTA has for the past few years tried to engage meaningfully with these transport entities on various issues, but to no avail,” says Outa executive director, advocate Stefanie Fick.
“We are concerned that the secrecy is hiding problematic activities.”
Driver’s licence validity period
Outa argues that the driver’s licence card validity period in South Africa must be extended from five to 10 years, given that it is not the licences that expire, only the cards.
In February 2022, then-Transport Minister Fikile Mbalula said he had commissioned the RTMC to research the extension and, later that year, said the cards would be extended to eight years.
In November 2022, OUTA filed a Promotion of Access to Information Act (PAIA) request to the RTMC, asking for a copy of the research report on the validity period. The RTMC refused, saying the research could not be prematurely disclosed.
This year, RTMC CEO Makhosini Msibi said the validity period would remain at five years, citing that drivers must be given regular health exams to ensure they are still fit to operate a vehicle, with five years being the ideal period for these checks.
Outa has therefore submitted another PAIA request to both the DoT and the RTMC, asking for copies of the RTMC’s research on the viability of extending the validity period.
Lengthening the renewal period requires only a change in regulations, which the Minister of Transport can do by publishing updated regulations in the Government Gazette.
“Outa believes that extending the card validity will save the public money and reduce time wasted by a bureaucracy which is inefficient and riddled with corruption,” said Fick.
“Outa questions the motives of the RTMC as the ultimate decision to extend the validity period lies with the Minister of Transport and the Minister should not be influences by an entity with vested financial interests in the decision. In simple terms, we find these reasons advanced by the RTMC to be ludicrous.”
Outa has called for this extension since September 2020, and based its on research on international best practices in 32 countries, which was duly provided to then-Minister Mbalula.
Driver’s licence printing machine
Outa has asked for more clarity on the delay behind the procurement of a new driver’s licence card printing machine, which is a necessity given that the current printer used by the DLCA is the only one of its kind left in the world and is prone to breakdowns.
The tender has been advertised and withdrawn repeatedly in recent years. The most recent tender was issued on 8 March 2023 – more than a year ago – but the award is still awaited.
This June, the DoT said it has completed the evaluation and adjudication of bids for service providers for the new driver’s licence cards and printing machines, and the last step remaining before the tender can be awarded is the audit process of the five shortlisted bidders.
The March 2023 tender document calls for the “Provision of a Turnkey Solution for Personalization of Smart Driving Licence Cards”, including the provision, installation and maintenance of the machine and raw materials for the cards, with a five-year contract.
Both the cards and printing machine must therefore have a life expectancy of at least 10 years.
“The tender sets out a timeline of nine months for manufacturing the machine (four months), shipping, commissioning and training (two months) and testing, piloting and handover (three months), but ran that timeline over a year, from April 2023 to April 2024,” said Outa.
“The machine is thus unlikely to be in operation before May 2025 at the earliest.”
The DCLA annual report for 2022/23 says it expects to spend R819 million over two years on the new card production machine and smart enrolment units. The National Treasury has allowed it to retain R280 million of its annual surplus in 2022/23 towards this.
ex-Transport Minister Fikile Mbalula with the ageing licence card printing machine still in use
Composition of licence fees
Finally, Outa implores the RTMC to explain how the transaction fees it charges on various types of licences are calculated and how the revenue is distributed.
In November 2022, Outa submitted a PAIA request to the RTMC asking for information on the composition of the fees, but the RTMC refused this request and the subsequent internal appeal.
The organisation subsequently filed a complaint with the Information Regulator over the RTMC’s refusal, who in April 2024, told Outa its preliminary findings were that the RTMC “incorrectly refused” access.
However, a final decision is still being awaited.
“The public has a right to clarity on these fees. When government entities generate excessive revenue, it encourages corruption and maladministration,” said Fick.
“When public bodies are accountable and transparent on how they collect and use public money, it creates a culture of confidence in government. Unfortunately, the opposite is also true that when government is not transparent and accountable to its citizens it starts to suffer from a legitimacy crisis.”
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