AfriForum has demanded that the Gauteng Provincial Government stop the rollout of the new number plates in the province.
It stated that it will launch legal proceedings if the rollout isn’t paused until the Competition Tribunal has concluded its prosecution of South Africa’s number plate manufacturers over alleged price-fixing.
AfriForum noted that it has sent letters of demand to the Department of Transport in Gauteng and to Premier Panyaza Lesufi.
“AfriForum’s letter of demand follows renewed rumours that the provincial government intends to require all vehicle owners in Gauteng to purchase new number plates for their vehicles,” it said.
“This comes after the Competition Commission found in March that the country’s only three manufacturers of blank number plates had formed a cartel and colluded to fix higher prices.”
The commission accused three companies in KwaZulu-Natal of collusion and price-fixing in March: Uniplate, New Number Plate Requisites (NNPR), and Unique Number Plate.
These three companies manufacture aluminium or perspex number plate blanks in South Africa, which are used to produce full vehicle number plates.
The investigation into the alleged number plate cartel found that from at least June 2023, the three companies fixed prices for number plate blanks supplied to customers nationwide.
If these allegations are found to be true, it would mean that South African drivers have been paying artificially inflated prices for their plates for at least three years.
This is also due to the three companies accounting for the majority of South Africa’s plate blanks.
“The companies further agreed to impose a surcharge of R10 on all number plate blanks sold in KwaZulu-Natal,” the commission said at the time.
Forced number plate change
The Gauteng Provincial Government launched an initiative last year to attach its newly designed number plates to all provincial fleet vehicles.
“According to the original plan, the project was to be extended to all private vehicles in the province after six months,” said AfriForum.
“After it emerged that the price of number plates was excessively high due to collusion within the industry, AfriForum sought clarity.”
Along with this, AfriForum contacted the government to enquire whether it would postpone this plan due to the price-fixing allegations.
However, it was unable to acquire any confirmation from the Department of Transport and was therefore compelled to send the letter of demand.
“It stands to reason that the Department should not proceed with requiring vehicle owners to purchase new number plates,” said AfriForum spokesperson Louis Boshoff.
“At least not while it is known that the plates are being sold at prices above market value.”
Boshoff also noted that Gauteng’s new number plate project had been shrouded in controversy from the outset.
This includes the government having thus far failed to provide any cost estimates for the new plates.
“It is disappointing that AfriForum has to threaten legal action because the Department is unwilling to make a simple undertaking,” he said.
Additionally, the department has failed to indicate how long vehicle owners in Gauteng would have to wait to acquire the new number plates.
Boshoff indicated that, based on all present evidence, it would be better to place the project on hold.
“AfriForum will pull out all the stops to prevent Gauteng vehicle owners from having to spend thousands of rand each on unreasonably expensive number plates,” said Boshoff.
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