DESPITE the Road Traffic Infringement Agency's (RTIA's) dire financial state, the agency entered into a five-year lease agreement worth R52.6 million and spent R5.5 million on furniture, R6.9 million on computers, and R5 million on a lift and a server room.
The annual financial statements for the year ended March 31 revealed the RTIA, responsible for delivering fines issued under the Administrative Adjudication of Road Traffic Offences (Aarto) Act, was spending big amid serious challenges faced by the institution.
Through its Media Liaison Officer, Emmanuel Tshehla, the agency said it was paying 22.7% more for the new three-storey building in New Road Office Park in Midrand, which he said was double the size of the previous building.
Tshehla stated that the agency added Access Control, CCTV cameras, and a Visitor Management solution with face recognition and fingerprint worth R1.4 million, Sick Bay for R140 000, and secure
Cleaning services for R4 million over 36 Months.
According to Tshehla, the company spent R900 000 on an X-ray machine and metal detectors, plus R200 000 on branding the new building.
Asked whether there were any deviations from standard procedures when acquiring the new premises, he said the deviations that were identified and reported emanated from the tenant installation process.
“They include acquiring extra space, which consists of the second set of lifts to reduce congestion. This was also to accommodate server room equipment that was procured from the landlord, the additional electrical work, and the establishment of the service outlet.
“The expenditure was estimated at R5 million, which would be amortised over five years. The deviation was reported to the National Treasury and AGSA as prescribed by the regulations,” Tshehla said.
Some staff employees complained that VW vehicles were kept in the building and that there was no explanation for why vehicles belonging to a private company were kept in a government agency.
When asked about the vehicles, the RTIA chief executive said the matter would be addressed, but the communications unit did not respond by publication.
It was reported in June that the agency’s financial woes appeared to be far from over after it incurred a substantial debt to the SA Post Office (SAPO) to deliver payment demands for invalid fines, which caused cashflow problems.
RTIA told the publication that it had upgraded its systems as part of the strategies intended to enhance revenue generation.
“Financial performance was impacted by the notices served by the Issuing authorities outside the regulated timelines. The agency has managed to address the challenge, and as a result, its financial performance has improved.
“The agency's performance has improved significantly from 50% in the previous financial year to 76% in the reported period. The Board and management have taken steps to improve performance by monitoring the attainment of monthly and quarterly targets in the Approved Annual Performance Plan 2024/2025,” said Tshehla.
In September, the Sunday Independent reported that after the former CEO Japh Chuwe left the agency, RTIA had a surplus of more than R200 million. However, the agency was now teetering on the brink of bankruptcy, with a deficit of more than R63 million.
According to the report, under Chuwe, RTIA achieved a performance rating of 87.5% and two consecutive 100% achievement of their annual targets.
Since his dismissal, the RTIA has only managed 71%, 53%, and 50% for the last three years, a clear sign of its deterioration, showing its lack of direction since Chuwe’s dismissal.
Meanwhile, the agency has struggled to implement the rollout of the AARTO Act in all 245 municipalities and metros; the act introduces a points demerit system for violations of traffic law.
The system was meant to start in September this year but was delayed because the government was behind in its rollout process.
The agency said: “RTIA and the Department of Transport are working on the necessary documentation to advance to the Presidency for the proclamation of the AARTO Amendment Act, which will lead to the national implementation of AARTO.”
However, the Organisation Undoing Tax Abuse (Outa) felt that the system would fail in its aim to reduce the carnage on South Africa’s roads.
Outa executive director Stefanie Fick said the Aarto Amendment Act introduced tedious and expensive procedures with higher penalties than visible policing and proper enforcement.
Fick said if the RTIA couldn’t issue fines correctly in Johannesburg and Pretoria, Aarto would be a mess when rolled out nationwide.
thabo.makwakwa@inl.co.za