The South African Bureau of Standards (SABS) has come under fire for numerous alleged regulatory failures and inconsistencies that have allowed corruption to seep into the number plate industry.
The Licence Plate Association of South Africa (Laza) alleged that SABS engaged in inconsistent enforcement in the conduct of its duties, thereby compromising the number plate manufacturing and embossing industry.
A detailed breakdown of complaints and evidence compiled by Laza outlines a pattern of non-compliance and monopolistic practices, as per an Engineering News report.
The report also highlights a breakdown in industry oversight mechanisms meant to ensure the integrity of South Africa’s licence plate identification systems.
The majority of complaints submitted by industry stakeholders involve the SABS’s alleged breaches of South Africa’s number plate industry governance standards.
This includes South African National Standards (SANS) 1116, which sets out the technical and quality requirements for number plates.
More specifically, these standards are in place to ensure the uniformity, durability, and traceability of the country’s plates.
They are also a crucial measure to prevent the circulation of fraudulent licence plates.
Laza claims that the SABS denied it public access to regulatory records, which it is entitled to under the Promotion of Access to Public Information Act (PAIA).
The association alleged that the the SABS failed to enforce its own standards by allowing or failing to act against a growing number of manufacturers and embossers whose practice do not prescribe to legal requirements.
Laza highlighted an incident from 2023, claiming that SABS had acknowledged a company was not recognized by industry standards, and that manufacturers were supplying embossers operating under this company’s name.
Despite this, SABS took no regulatory or legal action against the group.
The company, which is owned and managed by a former SABS employee, claims to issue certificates to number plate producers.
However, these certificates do not correspond to any officially recognised certification within the South African number plate manufacturing and embossing industry.
In another case from 2022, Laza identified a group of manufacturers acting as embossers that had installed embossing equipment at vehicle dealerships, disregarding a gazetted prohibition.
Laza argued that this practice enables manufacturers to bypass the independent embosser market, thereby marginalizing smaller businesses in South Africa.
Another point of concern is that the entity acquired a major competitor in 2017 to consolidate its market position, possibly breaching the country’s competition laws.
Laza’s report accused the SABS of failing to conduct regular audits of number plate manufacturers, and receiving monthly fees and application charges from embossers without conducting quality inspections.
It highlighted issues that have appeared in new number plates, such as watermark inconsistencies and poorly applied luminous backing tape, indicating a drop in quality control.
Another concern arose regarding the security of permit decals, which Laza said are too easy to replicate and remove, creating another vulnerability that criminals can exploit.
In November 2024, Laza submitted a PAIA request for access to registered and cancelled embossers in Gauteng, as well as the SABS inspectorate audit reports, but this request was allegedly denied.
All of these claims have raised questions about the SABS’s ability to function as an effective legal body responsible for the oversight of the number plate manufacturing and embossing industry.
SABS responds
The SABS responded to the allegations, telling Engineering News that it conducts the certification of number plates according to the standards applicable to number plates.
“The complaints against the SABS are oblivious to the fact that number plates are regulated by the Department of Transport (DoT) and that the SABS is providing certification services as mandated by regulations,” it said.
“The complaint is further convoluting issues of enforcement and competition without providing a factually correct context that is aligned to the mandate of the SABS, the DoT, and Competition authorities.”
The SABS is currently under investigation over corruption and mismanagement allegations submitted by industry whistleblowers.
The ongoing probe is spearheaded by TSU International – an investigative branch of the private contractor TSU Protective Services.
The investigation was initiated by the Minister of Trade, Industry, and Competition Parts Tau, and is scheduled to conclude at the end of May.
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