Traffic fine warning for South African business owners

Fleet operators in South Africa have been warned to be aware of the risks associated with receiving traffic fines.

If left unresolved, traffic fines can escalate into warrants, block licence disc renewals, and potentially take vehicles off the road.

This is a warning from Fines SA CEO Barry Berman, who said many local business owners underestimate the impact of unpaid and accumulated traffic fines on their bottom lines.

Berman said it is important for business owners to realise that, under South Africa’s traffic legislation, fines issued to fleet vehicles are typically linked to the business through its Business Register Number (BRN).

“This means the legal and financial responsibility sits with the owner of the vehicle, not the individual driver,” he explained.

In other words, the company – not the driver – is responsible for settling the fine. Therefore, the company cannot assume that fines are the driver’s responsibility.

“Without proper oversight, fines can accumulate across fleets, escalate into enforcement action, and create both financial and operational pressure,” Berman warned. 

“Poorly managed fines also increase administrative complexity, particularly when fines build up and need to be settled in bulk.”

He said this problem is becoming particularly pronounced as traffic enforcement becomes increasingly digitised.

This has seen businesses face growing volumes of fines, with industry estimates placing the figure at millions of rands annually.

“Many companies focus on the face value of a fine, but the real cost sits in what happens when those fines are not paid or managed properly,” Berman said. 

“Unpaid fines can escalate into warrants, prevent licence disc renewals, and ultimately take vehicles off the road.”

Berman said this is particularly pertinent for businesses that rely on fleet uptime, as unpaid fines could mean their vehicles cannot be legally operated, thereby leading to disrupted delivery schedules or delayed services.

“In a fleet environment, one vehicle off the road is lost productivity and lost income. Multiply that across multiple vehicles, and the financial impact becomes significant very quickly,” he warned.

Traffic fines under scrutiny in South Africa

Berman’s warning comes as South Africa’s traffic fine regulatory framework, the Administrative Adjudication of Road Traffic Offences Act (AARTO), is under increased scrutiny.

The Organisation Undoing Tax Abuse (OUTA) recently wrote to Transport Minister Barbara Creecy about its concerns regarding a public–private partnership tender linked to AARTO.

Among OUTA’s concerns was that the tender appears to outsource core administrative and enforcement-support functions that already exist within government. 

The organisation explained that the Road Traffic Management Corporation (RTMC) already manages national traffic administration systems that interface directly with AARTO processes.

“Duplicating this capacity through a private contractor risks higher costs, operational complexity, and weakened institutional capability,” OUTA warned.

“Traffic enforcement is not meant to operate as a profit-driven exercise,” OUTA CEO Wayne Duvenage said. 

“When private entities stand to benefit from administrative processes linked to fines, it creates perverse incentives and erodes public trust. That is exactly what AARTO does not need.”

OUTA said AARTO is already under pressure from a credibility deficit, and pushing through a complex outsourcing deal will only deepen public suspicion of the framework.

“If this system is to be lawful, trusted, and effective, the procurement process must be beyond reproach,” the organisation said.

MyBroadband has reported that the AARTO system will introduce sweeping changes to the way in which traffic fines are handled in South Africa.

Some of the changes include dividing violations into less serious infringements and more serious offences, which will be subject to criminal procedure.

The publication explained that the legislation will also provide for a “demerit points system”, which will aim to punish repeat and serious offenders by suspending their licences.