The Automobile Association (AA) has called for an urgent inquiry by parliament into the operational and financial affairs of the Road Traffic Management Corporation (RTMC).
The association said this was necessary and long overdue.
“Taxpayers have a right to understand why the RTMC is costing so much, yet delivering so little, especially in terms of road safety,” the association said in a statement.
“People in South Africa are struggling financially, and for many, a driving licence or PrDP to legally use a vehicle is essential to help them seek or maintain employment.
“Yet the RTMC, which is responsible for renewing these licences, is squandering taxpayers’ money, pays its executives exorbitant salaries which are unattainable in the private sector, and has millions of Rands in the bank.
“To now suggest it needs to increase these fees to keep on operating is an insult to every South African, and Parliament needs to step in for the sake of all citizens to put an immediate stop to it.
It said that the proposed inquiry was among several recommendations in its submission to the Department of Transport commenting on the proposed new fees for the RTMC which are contained in the Government Gazette seeking to amend the RTMC’s Regulations.
“Aside from an urgent inquiry into the operational financial affairs of the RTMC, Parliament must establish a committee to investigate and enforce performance standards with justifiable metrics for SOE executives with clear targets for performance bonuses,” reads the statement.
The association said that the RTMC had failed in its core function to enhance the overall quality of road traffic and, in particular, to promote safety, security, order, discipline and mobility on the roads.
“Road deaths in South Africa remain high despite the billions of Rands of revenue the RTMC has received to address the issue.
“The mandate of the RTMC is not being fulfilled, and the high remuneration of executives and Board members grossly exceeds private sector norms for companies of similar size. For instance, the CEO of the RTMC, Adv Makhosini Msibi’s total remuneration in 2020 was R9.8m, in spite of adverse findings by the Auditor-General in respect of the RTMC’s management,” the statement reads.