Aarto act could hit car dealers’ pockets when launched

The second phase of the Administrative Adjudication of Road Traffic Offences (Aarto) Act of linking more municipalities to the Natis database is meant to start on July 1, as announced by transport minister Sindisiwe Chikunga.

The final stage is planned for mid-2025 when the demerit system kicks in, according to Brandon Cohen, chair of the national automobile dealers’ association (Nada), the organisation that looks after the interests of franchised automotive dealers.

Efforts to ascertain whether all was on track to meet the deadline drew blanks from the Road Traffic Infringement Agency, but many employers have highlighted its far-reaching implications on relationships. Cohen takes us through some of the Aarto act consequences for his associate members. 

Cohen acknowledges the demerit system’s positive attributes, notably in how it will assist with streamlining existing court delays. According to the “Aarto charge book,” there’s a categorisation of violations of road traffic law into “infringements” and “offences” assigned to a monetary penalty, plus the associated demerit-points to each charge.

Where a violation is categorised as an “infringement” it is “decriminalised” and is subject to the administrative processes of the Aarto Act. Violations which are categorised as “offences” are not subject to the administrative processes of the Aarto Act and are prosecuted by the criminal procedure act, in real courts. 

Cohen says Aarto is a brilliant concept that will go a long way to addressing behaviour on the roads. If a driver accumulates more than 15 demerits their licence is suspended. Three suspensions will result in the deletion of the document from the system. Cohen believes this will be a disincentive to traffic law breakers than simply paying a fine. 

Perks for Nada members include direct access to the National Traffic Information System (Natis,) smoothing out and quickening vehicle registration processes, but there are clauses that will force a rethink in operations at dealerships.

The suspension of an employer’s operator permit while on duty and/or in their personal capacity is going to create glaring challenges not only for dealerships, but for many companies with fleets. The demerit system places an obligation on employers to account for their own conduct as well as that of their employees, with a construct that says a juristic entity that fails to nominate the driver of a vehicle it owns accumulates demerit points against the relevant vehicle’s licence disc.

In the case of a company vehicle operated by many drivers such as the many demo units used at dealerships, Cohen says dealers will have to verify demerits on any car presale, launching what he describes could be a long and painful process to locate the perpetrator/s.

Meanwhile, a dealer will be unable to make a sale or re-register any car with demerits on its licence, this in a sector in virtual free fall, signalled through the May 2024 new car sales dropping to 37,105 units, a decrease of 6,137 units, or a loss of 14.2% compared to the 43,242 vehicles sold in May 2023. 

mpyanep@businesslive.co.za