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AARTO Revenue Collection Analysis and Recommendations

Learn about AARTO revenue trends, factors affecting collection, unintended consequences, and risks post-national rollout. Recommendations for system improvements and risk mitigation strategies provided.

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AARTO Revenue Collection Analysis and Recommendations

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  1. AARTO PRESENTATION MMC: SAFETY & SECURITYALDERMAN DERRICK KISSOONDUTH

  2. BACKGROUND INFO ON AARTO • AARTO ACT, 1998 (Act No. 46 of 1998) promulgated by Parliament • AARTO piloted in Tshwane On 1 July 2008 following Mayoral Committee approval on 16 January 2008 and publication of Government Gazette No 31198. • Pilot phase ended on 31 March 2010 • Proclamation in Government Gazette No 33084 on 1 April 2010, compels AARTO as the enforcement framework within the City of Tshwane and the City of Johannesburg • Road Traffic Infringement Agency (RTIA) the principal administration “compliance enforcer agency” • National roll-out awaited (18 years after promulgation and 8 years after pilot in City of Tshwane)

  3. COLLECTION OF AARTO REVENUE: TMPD STATUS AARTO REVENUE

  4. COLLECTION OF AARTO REVENUE: TMPD(Prior to Disbursement)

  5. COLLECTION OF AARTO REVENUE: TMPD Marked and sustained increase in revenue rate from March 2015 • Revenue collection amounted to R91.427 million for 2015/16 • Hence, 2014/15 vis-à-vis 2015/16 a collection improvement of 183.55% was realised • The months January 2015 to June 2015 showed a steady decline again • Projected revenue for 2016/17 is R68.955 million • Therefore, 2015/16 vis-à-vis 2016/17 revenue shows an expected decrease of 25%

  6. COLLECTION OF AARTO REVENUE: TMPD Main reasons for revenue increase/decrease: * “Enforcement Order” status activated * Fraudulent deferral to “Elect to go to Court” detected and rectified * e-NaTIS block effects on “Enforcement Order” status * Focused speed camera enforcement operations * Courtesy letters and Enforcement Orders de-activated Latest understanding is: * RTIA instructed the re-instatement of Courtesy Letters (awaited) * Enforcement Orders to be re-instated for AARTO 01 infringements only!! * Therefore, camera speed law enforcement (AARTO 03) ineffective * Therefore, postage costs of AARTO 03 by municipality (Issuing Authority) wasteful expenditure

  7. COLLECTION OF AARTO REVENUE: TMPD • Inhibiting factors * Municipal Courts do not have a service provider to serve Section 54 * AARTO offenders not brought before court * Culture of “Elect to go to Court” has established- self destructive cycle for AARTO * National roll-out periodically postponed * SAPO service not as reliable as expected (late postage justifies admissible Representations or revoking Enforcement Orders) * Diverse pay options not integrated seamlessly (revenue disbursement remains problematic) * Corrupt enforcement modus operandi * Finally, on national roll-out “back-dated write-off” might be implemented to even playing field for all

  8. UNINTENDED CONSEQUENCES Consequences of e-NaTIS block • Increase in unlicensed vehicles in Gauteng Province • Increase in non-renewal of driving licenses (all affected nationally) • Increase in non-renewal of PrDP’s (all affected nationally. 50%+ non-renewal rate in Gauteng Province) • Increase in non-assured vehicle population • Increase in non-compliance within the professional driving /transport fraternity Foreseen Risks following National Roll-out • Civil protest similar to that seen with regards to SANRAL e-tags • Possible violent industry protest from certain sectors within the professional driving/transport fraternity • Main indicators for risk analysis: Considered view that inadequate public/participatory consultation was afforded • Comprehensive national media/educational campaigns remain absent

  9. RECOMMENDED - Either expedite completion and integration of all AARTO support systems in respect of: * e-NaTIS functionality * Implement complete AARTO cycle (Demerit points) * SAPO support services * Inter-municipal service level agreements (revenue disbursement) * Representations, Applications for revoking of Enforcement Orders etc * Efficient Elect to go to Court functionality * Road policing support technology * Comprehensive national consultation and communication campaigns with specific emphasis on: - Labour and job security/HR implications (suspended and cancelled driving licenses)

  10. RECOMMENDED • Alternatively: * Return to the Criminal Procedure Act System until AARTO readiness is complete!! Done Deal – KlaarGelag– Kealeboga QUESTIONS

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