April 2003

That the Administrative Adjudication of Road Traffic Offences Act AARTO Act of 1998 has a severe impact on the manner in which the Southern African Vehicle Rental and Leasing Association’s (SAVRALA) leasing and fleet management members conduct their business, has been well documented in the pages of Autonews as well as a host of other media.

“While it has been the hope of our members that certain changes may have been possible to the laws and systems, we have been advised that this will not be possible in the short term,” says SAVRALA president, John Broadway. “We have therefore been advised to recommend to our members that, with immediate effect, they make the necessary adaptations within their organisations to allow for their full compliance with AARTO, in letter and spirit.”

He goes on to say that in a last ditch attempt to ensure that the Act will not unreasonably disrupt their businesses – or cause excessive administrative systems to be put in place – a request for an amendment has been made to the National Department of Transport (NDoT) through transport legal consultant, Alta Swanepoel.

“SAVRALA members have traditionally registered themselves as the title holder of a motor vehicle and licensed themselves as the owner of the vehicle,” says Swanepoel. “The legislation, however, defines the owner of a motor vehicle as the person that uses and enjoys the motor vehicle. SAVRALA members are therefore technically not usually the owner of a motor vehicle.”

The likely plan of action will be to gradually transfer ownership from SAVRALA members to the company or person who actually uses the motor vehicle which will result in a change of ownership. In terms of regulation 138(1) of the National Road Traffic Regulations of 2000, however, roadworthiness certification will be required for each such transfer.

“SAVRALA members will have to carry the cost and, more importantly, have to manage the process,” explains Swanepoel. “And, as they do not have the vehicles in their possession, they will be reliant on their clients to take the motor vehicles for tests, a difficult process to control.

“The intention of the legislation is to require roadworthiness certification when a vehicle is transferred from one person to another. This is not de facto relevant in this scenario as the same person continues to drive the motor vehicle.”

In view of this, SAVRALA has asked the NDoT to consider an amendment to regulation 138(2), to exempt vehicles where ownership has been transferred, from the need for a roadworthy. A possible amendment is:

Regulation 138(2)(bA):

“(bA) a motor vehicle of which the ownership has changed due to a contractual agreement pertaining to the leasing of such vehicle in terms of which the user is licensed as the owner of the vehicle;”

SAVRALA hopes for a prompt response from the NDoT. Watch this space!