A prominent Mpumalanga truck and bus owner has been arrested in connection with fraud and corruption charges, to the tune of R89 million, in relation to vehicle licence fees in Mpumalanga.
Morris Robert Shabalala (58), who owns a fleet of buses and semi-trailers registered under the trade name Lamavuso Family Trust, appeared in the Mbombela Magistrates Court on Tuesday on charges of fraud, theft and money laundering.
He was released on R15 000 bail.
Shabalala’s arrest is linked to the arrest of 17 other suspects, who include two businesspeople, five former Mpumalanga Department of Community Safety, Security and Liaison employees, and licensing officials based at the Mbombela, Piet Retief, Mashishing, KwaMhlushwa and Delmas registering authorities.
The arrests took place between December 2022 and April 2023.
All the suspects and Shabalala will appear in the Mbombela Commercial Crimes Court on 30 August. They are currently out on bail.
“It is alleged the Mpumalanga Department of Community Safety, Security and Liaison former staff members, who worked at the department’s helpdesk, 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 R60 million in lost revenue (unpaid vehicle licence fees and penalties). However, further investigations showed that more crimes were involved, and the scope of the investigation was extended to 2016 and this showed that R89 million is the amount of revenue lost in unpaid fees in the period 2016 to 2019,” the Road Traffic Management Corporation (RTMC) said.
A lengthy collaborative investigation by the RTMC’s National Anti-Corruption Unit, the Hawks and Special Investigative Unit established that corrupt businesspeople allegedly paid large sums of money into the accounts of departmental officials to have their licence fees and penalties dumped or cancelled for the businesspeople to 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 Nelspruit helpdesk with the intention to commit 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,” the RTMC said.
In the case of another accused businessperson, Demieties Pieter Botes (46), who owns a fleet of truck tractors and tippers trading under the name DP Botes Verwoer Beperk, it is alleged that the file for the renewal of his fleet was unlawfully moved from the Delmas registering authority to the Nelspruit provincial helpdesk with the intention to allegedly perpetrate crime.
“Preliminary investigations indicated the State lost R1 005 923 in unpaid vehicles 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,” the RTMC said.
With regards to businessperson Doctor Mpapane (59), he was accused of failing to pay R709 333 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 helpdesk in Nelspruit to perpetrate the alleged crime. It is alleged 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.
“Doc’s Construction and Plant Hire has also been positively linked to another vehicle licence fraudulent transaction that took place at the Sedibeng branch of the South African Post Office in 2021,” the RTMC said.
Investigations are continuing, with the possibility of more arrests.
The RTMC has welcomed the arrest and calls on citizens to report suspected acts of fraud, corruption and malfeasance to ntacu@rtmc.co.za or by WhatsApp to 083 293 7989. – SAnews.gov.za
