Bail for truck and bus owner arrested for alleged R89m licence corruption

The owner of a fleet of buses and semi-trailers registered under the trade name Lamavuso Family Trust, Morris Robert Shabalala, was arrested in connection with R89m fraud and corruption related to vehicle licence fees in Mpumalanga.

The 58-year-old appeared in the Mbombela magistrate's court on Tuesday, charged with fraud, theft and money-laundering. He was released on R15,000 bail.

His arrest is linked to the arrests of 17 other suspects, including businesspeople, five former Mpumalanga department of community safety, security and liaison employees and licensing officials based at Mbombela, Piet Retief, Mashishing, KwaMhlushwa and Delmas registering authorities. 

The other suspects were arrested between December last year and April this year. Road Traffic Management Corporation (RTMC) spokesperson Simon Zwane said all the suspects, including Shabalala, will appear in the Mbombela commercial crimes court on August 30.

He said all other suspects were out on bail.

It is alleged that former staff members who worked at the department of community safety, security and liaison’s help desk colluded with the licensing officials to fraudulently issue vehicle licence discs to corrupt fleet owners and company representatives.

“Initially it was thought that the scheme was operated between 2018 and 2019 and cost the state R60m  in lost revenue from unpaid vehicle licences fees and penalties.

“However, further investigations showed that more crimes were involved, and the scope of the investigation was extended to 2016. This showed that R89m was  lost in unpaid fees in the period 2016 to 2019,” he said.

Zwane said a lengthy collaborative investigation by RTMC’s national anti-corruption unit, the Hawks and Special Investigating Unit established that corrupt businesspeople allegedly paid large sums of money into the accounts of departmental officials.

Businesspeople allegedly paid money to have their licence fees and penalties cancelled and receive vehicle licence discs as if they owed nothing to the state. 

“In the case of Shabalala, it is alleged that the file for the renewal of his fleet was unlawfully moved from the Standerton registering authority to the Nelspruit help desk with the intention to commit a crime.

“Preliminary investigations showed that the state lost R343,332 in vehicle licence fees and penalties that were not paid. A lump sum of money was made into the account of one of the suspected officials on the day that the illicit transaction was concluded,” he said.

In another case, it is alleged that a file for the renewal of the fleet of another businessman, Demieties Pieter Botes, 46, was unlawfully moved from the Delmas registering authority to Nelspruit provincial help desk with the intention to allegedly commit the crime. 

Zwane said Botes owns a fleet of truck tractors and tippers trading under the name DP Botes Verwoer Beperk.

“Preliminary investigation indicated the state lost R1,005,923.40 in unpaid vehicle fees and penalties as a result. A large sum of money was allegedly paid into the bank account of one of the suspected officials on the day the illicit transaction was concluded,” he said.

A third businessman, Magidi Doctor Mpapane, 59, is accused of failing to pay R709,333.60 in vehicle licence fees.

“Mpapane is the registered owner of Doc’s Construction and Plant Hire. He owns a fleet of vehicles such as tankers and loader pump lifters. His business file was moved from KwaMhlushwa registering authority to the help desk in Nelspruit to perpetrate the alleged crime,” Zwane said.

He added that a large sum of money was paid into the bank account of one of the suspected officials on the day the illicit transaction was concluded. 

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