{"id":10880,"date":"2026-07-06T20:02:55","date_gmt":"2026-07-06T20:02:55","guid":{"rendered":"https:\/\/www.fintechpulse8.com\/?p=10880"},"modified":"2026-07-06T20:02:55","modified_gmt":"2026-07-06T20:02:55","slug":"aarto-rollout-very-precarious-at-this-point","status":"publish","type":"post","link":"https:\/\/www.fintechpulse8.com\/?p=10880","title":{"rendered":"Aarto rollout \u2018very precarious\u2019 at this point"},"content":{"rendered":"<p><\/p>\n<div id=\"textFreeArticle\">\n<p><iframe loading=\"lazy\" src=\"https:\/\/iframe.iono.fm\/e\/1692894?layout=modern\" width=\"100%\" height=\"170\" frameborder=\"0\" data-mce-fragment=\"1\"><\/iframe><\/p>\n<p>You can also listen to this podcast on iono.fm here.<\/p>\n<p><strong>JIMMY MOYAHA:<\/strong> Now, alongside the announcement we got from Prasa [Passenger Rail Agency of South Africa], we also know that effective from 1st of July 2026, just last week, we got the implementation of the Aarto system.<\/p>\n<p>This has been something that has been in the works and delayed on several occasions. We finally have the administrative junction of [the] Road Traffic Offences Act [and] the Road Traffic Infringement Agency [RTIA] coming into effect \u2013 the updated version of that.<\/p>\n<p>We\u2019re going to be taking a look at this and potentially looking at how the rollout could affect consumers.<\/p>\n<p>I\u2019m joined on the line by the chief executive officer of the Organisation Undoing Tax Abuse [Outa], Wayne Duvenage, to look at this and see what we make of it.<\/p>\n<p>Wayne, lovely having you on our show, as always. Thanks so much for taking the time. The rollout is seemingly something that was on the cards, off the cards. You and I caught up about it when it was on the cards for December. Then it came off the table.<\/p>\n<p>We finally see some of it coming to market in various shapes and forms. What do you make of how it has been implemented?<\/p>\n<p><strong>WAYNE DUVENAGE: <\/strong>Look, it\u2019s very problematic. A number of the municipalities are still using the wrong forms. They don\u2019t have everything in place.<\/p>\n<p>The system has, we believe, not been stress-tested, so there are going to be problems.<\/p>\n<p>But yes, let\u2019s start at the beginning very briefly.<\/p>\n<blockquote>\n<p>This is a process that\u2019s been on and off, on and off, for actually 20 years.<\/p>\n<\/blockquote>\n<p>We think they\u2019re chasing a launch-day deadline as opposed to a readiness deadline or readiness capacity issue. So it is seriously problematic.<\/p>\n<p>The people aren\u2019t aware that the regulations were put out. There was no time given for any public commentary, which they have to do. And the law is also quite clear \u2013 the Appeals Tribunal needs to be in place when they launch, and it is not, even though the demerit points system has not been launched yet.<\/p>\n<div class=\"visible-sm-block visible-xs-block m1010\">\n<div class=\"ad-container-wrapper\">\n<p>ADVERTISEMENT<\/p>\n<p>CONTINUE READING BELOW<\/p>\n<\/div>\n<\/div>\n<p>So lots of problems. We still think this is going to face some legal challenges, and we think it\u2019s going to face more than that \u2013 administrative challenges \u2013 which makes it unworkable. So it\u2019s in a very precarious position at the moment.<\/p>\n<p><strong>JIMMY MOYAHA:<\/strong> Wayne, you mentioned readiness versus launch in terms of implementation. I want to get your thoughts on perhaps what that does to taking us forward. Are we not saying we\u2019re going one step forward and potentially two steps back because we might have to correct some of the things that we rushed to implement if those legal challenges do go that way?<\/p>\n<p><strong>WAYNE DUVENAGE: <\/strong>Yes. We know that Salga [South African Local Government Association] is challenging it legally. They didn\u2019t get the urgency [application granted], but that doesn\u2019t mean to say the merits of their case are not correct.<\/p>\n<p>We\u2019ve already seen some municipalities, like the City of Cape Town and DA-run municipalities who control their own revenue, and they are doing a good job of it, saying \u2018We\u2019re not prepared to give up half our revenue to the RTA [Roads and Transport Authority]\u2019.<\/p>\n<p>They\u2019re entitled, by the way, to say that. This is something we raised right at the beginning of our Constitutional Court challenge, where the Constitutional Court, we believe, got it wrong. But we said, okay, \u2018Fine, let it play out\u2019 \u2013 and exactly what we called for is happening.<\/p>\n<p>So some municipalities are saying: \u2018Sorry, we\u2019ll upload the information for your point-demerit system when that comes, but for now we are not handing over our collection process to RTA. We\u2019re doing it well, we\u2019re in control of it, we have our executive authorities in that regard to do so, and we will not be forced to comply or split in with your system.\u2019<\/p>\n<p>So again, all of these things are starting to happen. They are not ready.<\/p>\n<blockquote>\n<p>Sixty-two municipalities out of 247 are in the first phase, and we\u2019re already seeing problems.<\/p>\n<\/blockquote>\n<p>And again, we\u2019ve said to the minister, we said to the RTIA right in the beginning, that we have so many issues with this. We are not opposed to good administration and systems. But if they can\u2019t work, if they\u2019re unenforceable, if they can\u2019t be implemented, don\u2019t rush ahead.<\/p>\n<blockquote>\n<p>Get it right, get it fixed, and then implement it because you will lose the public, you\u2019ll lose trust.<\/p>\n<\/blockquote>\n<p>Government just doesn\u2019t need this loss\u00a0in trust from the public. Then these things collapse again.<\/p>\n<p>Same thing with e-tolls. It\u2019s just a rehashing of this attitude that if we just legislate something, it\u2019ll fall into place.<\/p>\n<p><strong>JIMMY MOYAHA:<\/strong> Wayne, speaking of e-tolls, surely the e-toll saga taught us important lessons around how costly this becomes for South Africans because, at the end of the day, the taxpayer foots the bill for anything that the government needs to pay for.<\/p>\n<p>If we\u2019re looking at this implementation \u2013 again, as you said, nobody\u2019s going against the implementation of Aarto; it is merely around whether or not the rushed aspects of it have all been considered ahead of rushing the implementation.<\/p>\n<p>How do we avoid making those same mistakes? How do we avoid learning from the past if this is the viewpoint to say \u2018Let\u2019s promulgate and figure it out later\u2019?<\/p>\n<div class=\"visible-sm-block visible-xs-block m1010\">\n<div class=\"ad-container-wrapper\">\n<p>ADVERTISEMENT:<\/p>\n<p>CONTINUE READING BELOW<\/p>\n<\/div>\n<\/div>\n<p><strong>WAYNE DUVENAGE:<\/strong> What is sad, Jimmy, is that you\u2019re quite right. The government should be learning from its mistakes, but it doesn\u2019t. For some strange reason it forgets; it says basically to itself \u2018Look, we\u2019re in charge, we know what we\u2019re doing \u2013 that\u2019s [e-tolls] a totally different matter\u2019.<\/p>\n<p>But it\u2019s very similar.<\/p>\n<p>They haven\u2019t done public consultation properly, they haven\u2019t done administration, [getting] all the ducks in a row and compliance processes properly. So unfortunately it\u2019s going to suffer the same fate.<\/p>\n<blockquote>\n<p>Again, government thinks this is their money. It\u2019s <em>our<\/em> money that they\u2019re spending, and they need to be cognisant of civil society\u2019s viewpoints.<\/p>\n<\/blockquote>\n<p>When we did an engagement, by the way, with stakeholders, it wasn\u2019t just us and a few people. We engaged with fleet owners, with big businesses. We even had the metro police at a summit that we had on this discussion. They agreed with us there are challenges and it wasn\u2019t ready. This was some time ago.<\/p>\n<p>We invited the RTA and RTMC [Road Traffic Management Corporation]. Initially, they agreed to come; the day before they pulled out. This is the type of attitude \u2013 head in the sand, ostrich mentality. \u2018No, we don\u2019t need any feedback from civil society.\u2019<\/p>\n<p>Well then don\u2019t [come], but then suffer the consequences of the system failing \u2013 and ask yourself why you don\u2019t have the backing of society? It\u2019s precisely this arrogant approach that they take.<\/p>\n<p><strong>JIMMY MOYAHA:<\/strong> Speaking of consequences, Wayne, I want to take a look at the potential impact that this implementation would have on consumers. As it currently stands, we know that in some areas like Johannesburg and Pretoria, Aarto has effectively been in effect in some way, shape or form for a very long time.<\/p>\n<p>I want to take a look at the potential impact of going into this with half measures, and what that opens the consumers up for in terms of what they might be liable for, but also what protections they might have if they are wronged \u2013 and wronged because of something that was just not implemented properly.<\/p>\n<p><strong>WAYNE DUVENAGE: <\/strong>Look, this is where it\u2019s going to get messy and a lot of anxiety starts to rise and the public isn\u2019t sure of how to deal with things.<\/p>\n<p>This is where RTIA has to be very, very clear on its website. For instance, if you have an inquiry or if you want to redirect this fine, or it\u2019s not yours because it\u2019s a totally different vehicle in another part of the country, and someone\u2019s cloned your number plate, they have to have all of those processes in place.<\/p>\n<p>We will do our best, as will others, to enlighten and empower the citizens with a knowledge of their rights on this. That\u2019s what\u2019s going to happen. The scheme will collapse under its own weight and they\u2019re going to have to go back to the drawing board.<\/p>\n<p>But here is, for instance, one thing that you need to know as a family owner and certainly in businesses.\u00a0That is that a lot of businesses say \u2018Look, when we get the fine, we pay it and then we deal with the individual in our company who transgressed.\u2019<\/p>\n<p>Let\u2019s say you are a driver in a company that has a fleet of vehicles. Well, you can\u2019t do that anymore as a business.<\/p>\n<div class=\"visible-sm-block visible-xs-block m1010\">\n<div class=\"ad-container-wrapper\">\n<p>ADVERTISEMENT:<\/p>\n<p>CONTINUE READING BELOW<\/p>\n<\/p><\/div>\n<\/div>\n<blockquote>\n<p>For instance, if you have bought your daughter a vehicle or if you have cars in your name \u2013 if you don\u2019t redirect those funds to the person who has transgressed, you might pay the fine but there are demerit points that come to <em>you<\/em> as the vehicle owner.<\/p>\n<\/blockquote>\n<p>So you now need to not just say \u2018Okay, I\u2019ll pay the fine\u2019.<\/p>\n<p>You need to redirect, in the system, that fine to the actual driver so that <em>they<\/em> pick up the demerit points on <em>their<\/em> licence and not you.<\/p>\n<p>This applies to businesses and if the businesses don\u2019t do that, they will rack up the points and be blocked from licensing their vehicles or their fleets across the country. These are the practicalities that people aren\u2019t aware of yet.<\/p>\n<p>Now that only kicks in when the demerit points system kicks in, by the way. But you\u2019ve got to get into the habit of doing that now rather than wait for the last moment to do so.<\/p>\n<p><strong>JIMMY MOYAHA:<\/strong> Wayne, do we have any indication on when the full system would kick into effect with the demerit system or structure?<\/p>\n<p><strong>WAYNE DUVENAGE: <\/strong>Look, you have to have all municipalities on board before you can put that in.<\/p>\n<p>They\u2019ve got the first 62 on board, or say they have. We don\u2019t believe they have. They are a long way off from getting all of them.<\/p>\n<p>Well, I\u2019ve got a feeling that this is not going to get 257, all municipalities, on board before they realise how serious the problems are.<\/p>\n<blockquote>\n<p>I don\u2019t think that the demerit points system is going to be in place for the next two years, minimum.<\/p>\n<\/blockquote>\n<p><strong>JIMMY MOYAHA:<\/strong> Well, until then consumers are going to be caught in a weird sort of limbo, not understanding what parts of the Aarto legislation apply, what parts do not and, most importantly, how it is that we navigate that.<\/p>\n<p>We\u2019ll see how this shapes up. We\u2019ll keep an eye on it and bring you all of the latest from that of course. For now we\u2019ll leave the conversation on that note.<\/p>\n<p>The Organisation for Undoing Tax Abuse\u2019s chief executive officer, Wayne Duvenage, joined us to take a look at the implementation and rollout of Aarto and what we make of it.<\/p>\n<\/p><\/div>\n<p>#Aarto #rollout #precarious #point<\/p>\n","protected":false},"excerpt":{"rendered":"<p>You can also listen to this podcast on iono.fm here. JIMMY MOYAHA: Now, alongside the announcement we got from Prasa [Passenger Rail Agency of South Africa], we also know that&hellip; <\/p>\n","protected":false},"author":1,"featured_media":10881,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[6355,160,12570,9015],"class_list":["post-10880","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-investing","tag-aarto","tag-point","tag-precarious","tag-rollout"],"_links":{"self":[{"href":"https:\/\/www.fintechpulse8.com\/index.php?rest_route=\/wp\/v2\/posts\/10880","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.fintechpulse8.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.fintechpulse8.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.fintechpulse8.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.fintechpulse8.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=10880"}],"version-history":[{"count":0,"href":"https:\/\/www.fintechpulse8.com\/index.php?rest_route=\/wp\/v2\/posts\/10880\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.fintechpulse8.com\/index.php?rest_route=\/wp\/v2\/media\/10881"}],"wp:attachment":[{"href":"https:\/\/www.fintechpulse8.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=10880"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.fintechpulse8.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=10880"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.fintechpulse8.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=10880"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}