Cellphone 'scam' to avoid Rica

The government has warned it will act harshly against cellphone retailers and users who hoard cellphone SIM cards, register them under one name then distribute them or sell them to different people.

A week after the deadline for all SIM cards to be registered under the Regulation of Interception of Communication Act passed, it emerged that some cellphone retailers were buying SIM cards in bulk and selling them without following Rica guidelines.

In terms of the new law, owners of SIM cards have to provide their names, ID numbers and proof of address to their mobile phone operators, who have to register those details on their databases.

Deputy Justice Minister André Nel said the government had taken note of reports of cellphone retailers who attempted to circumvent the law by buying SIM cards in bulk and then re-selling them without recording the personal details of those who buy cards.

Speaking at a joint press conference with the department of communications in Pretoria yesterday, Nel said they were also aware that some cellphone users were buying multiple SIM cards, registering them in their names and then distributing them to friends and family members.

He said this amounted to a breach of the law and that those engaged in such practices opened themselves up to prosecution.

"They undermine the legislation and jeopardise its aim and objectives. The SIM cards in question can be traced back to them and they have to face the consequences of their actions," he said.

Mobile phone operators who do not comply with the new law face a possible fine of R100000 for each day that they fail to comply, while individuals face either a fine of R60000 or 12 months in prison.

Nel said though cellphone retailers were allowed to buy SIM cards in bulk, they had an obligation to record the personal particulars of all those who purchase the SIM cards from them and to pass this information over to the relevant mobile phone operator.

He said individuals are also allowed to purchase SIM cards for their friends and family, but the recipients have to register their own particulars when they take receipt of the SIM cards.

By close of business on Friday, 99.9% of Cell C contract subscribers and 97% of their pre-paid customers had registered their SIM cards.

Vodacom had processed 98.9% of its contract customers and 95% of its prepaid subscribers; while 99% of MTN contract subscribers and 97% of its prepaid customers had complied with the new law.

Deputy Communications Minister Obed Bapela said about 40million SIM cards had been registered since the start of the campaign.