Place Gauteng’s new number plates on hold, demands AfriForum after Commission’s findings on price fixing

AfriForum today addressed a letter to the Gauteng MEC for Roads and Transport, Kedibone Diale-Tlabela, in which the organisation demands that the project to roll out new number plates be halted until the Competition Tribunal of South Africa has completed its prosecution of three number plate manufacturers. This follows the Competition Commission’s announcement last week that a cartel of blank number plate manufacturers had been illegally fixing prices since at least June 2023. The findings have been referred to the Competition Tribunal for prosecution.

AfriForum notes that the Gauteng government cannot expect motorists to purchase new number plates, while the Competition Commission’s findings indicate that number plates are being sold at prices above market value. The Gauteng government has been busy with a pilot project of the new number plates since June last year, which was set to be completed by the end of last year.

According to Louis Boshoff, Campaign Officer at AfriForum, the provincial government was unable to provide any indication when asked what the new number plates would cost and when vehicle owners would have to purchase them.

“On the one hand, the expectation is created that the new number plates will be rolled out at any moment, but on the other hand, we find out that we are paying exorbitant amounts for number plates,” says Boshoff. “If the so-called number plate cartel is already lining their pockets with high profits on the current number plates, then they are probably looking forward to making millions more through the mandatory sale of new plates in Gauteng.”

The Competition Commission stated that the dismantling of this cartel can benefit all vehicle owners and all other parties in the industry. Boshoff emphasises that this is already a major breakthrough.

“If the Commission’s findings are correct, then it means that the provincial government will be playing into the hands of a cartel by continuing with the rollout of new number plates. This is the last thing that they should do,” concludes Boshoff.