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Outa accuses RTMC of keeping a billion-rand secret

Civil action organisation in court battle to know how licence fees are set

Outa wants a detailed breakdown of how RTMC sets fees for transactions such as renewing driving licences. File photo.
Outa wants a detailed breakdown of how RTMC sets fees for transactions such as renewing driving licences. File photo. (DENIS DROPPA)

The Organisation Undoing Tax Abuse (Outa) has again criticised the Road Traffic Management Corporation (RTMC) for hiding information from the public.

In 2021 RTMC and Outa were at loggerheads over what the latter called confusing new regulations concerning fees for driving licences.

The civil action organisation criticised an apparently new fee of R250 for booking a driving licence online, proposed in the draft RTMC Regulations 2021, which amended the 2007 regulations. The announcement caused anger among motorists who believed they were being charged more.

However, the RTMC confirmed the R250 was an existing fee. The only difference was that motorists would be able to pay it online, if they chose to, rather than queuing at a driving licence testing centre (DLTC). Outa hit back, calling it a “poorly worded” notice that should be rewritten.

This week Outa said it had battled for more than two years to find out how the RTMC determined its transaction fees for motorists, yet the RTMC remained determined to keep this information from the public, and was even willing to go to court to do so.

Outa said transaction fees were charged every time South Africans applied for essential road-related services such as renewing driving licences, car licence discs and vehicle registration certificates (listed below).

“However, how these fees are calculated and justified remains a mystery. The RTMC collects these fees in addition to those charged by provinces for the same services, yet refuses to provide clarity on the process behind them,” said Stefanie Fick, executive director of Outa’s accountability division.

“Outa has consistently pushed for transparency, demanding the RTMC disclose the basis of these charges. But instead of providing answers, the RTMC has opted for secrecy and legal delays.

“The RTMC, a state-owned entity under the department of transport, is mandated to improve road safety. However, its records reveal a massive accumulation of funds from these fees. In 2023/24, the RTMC collected R948.7m in transaction fees, according to the RTMC annual report. That’s nearly R1bn. That year, the government grant to RTMC was R220.1m, and the RTMC ended the year with a surplus of R141.9m, bringing its accumulated surplus to R1.1bn,” said Fick.

If RTMC has a history of claiming documents exist when they do not, how can the public trust them now? The refusal to disclose transaction fee calculations follows a worrying trend of avoiding transparency and accountability

—  Stefanie Fick, executive director of Outa’s accountability division

In November 2022 Outa submitted a Promotion of Access to Information Act (PAIA) request to RTMC, asking for the RTMC’s internal documents detailing how the fees were calculated, and how the collected fees were distributed.

The corporation refused to provide it, saying this was internal documentation. Outa escalated the matter to the Information Regulator, saying access to the information was in the public interest.

In April 2024 the Information Regulator ruled in Outa’s favour, but the report was challenged by the RTMC. Last month the regulator issued an enforcement order compelling the RTMC to release the information within 30 days, but the RTMC refused and will challenge the order in court.

This was not the first time the RTMC had refused to provide key documents, said Outa.

“Outa’s November 2022 PAIA request to the RTMC included a request for the RTMC’s research on the extension of driver’s licence validity periods. The RTMC initially claimed that such research existed but later admitted that the documents did not exist. This raised serious concerns about the legitimacy of their claims and decision-making processes,” said Fick.

“If RTMC has a history of claiming documents exist when they do not, how can the public trust them now? The refusal to disclose transaction fee calculations follows a worrying trend of avoiding transparency and accountability. The public deserves full transparency regarding the costs they are required to pay for essential services.”

The RTMC did not respond to requests for comment on this article.

RTMC service fees

  • Online application, issuing and delivery of a motor vehicle licence and disc via ordinary mail — R28;
  • Online application, issuing and delivery of a motor vehicle licence and disc via registered mail — R72;
  • Online application, issuing and delivery of a motor vehicle licence and disc via courier service — R99;
  • Online application, issuing and delivery of a registration certificate for a motor vehicle by a title holder — R330;
  • Online notification of change of ownership of motor vehicle by the current title holder — R330;
  • Online application for booking for renewal of driving licence card — R22;
  • Delivery of a driving licence card — R99; and
  • Request for an electronic copy of the Accident Report — R60.

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