The Administrative Adjudication of Road Traffic Offences (AARTO) Act officially came into force in 62 municipalities on 1 July, and will extend to a further 151 municipalities later this year. The demerit point system will follow in 2027.
For businesses operating vehicles in these areas, AARTO is no longer a future compliance concern, says Eugene Herbert, CEO of MasterDrive. “It is an active legal reality with immediate administrative and financial implications, and the businesses responding fastest will be the ones best protected.
“Every fine issued to a company vehicle is now linked directly to their official Business Registration Number (BRN) through eNaTIS. Fines can no longer be avoided or delayed through unclear driver accountability. Businesses need to appoint an individual or team to trace, verify and settle fines promptly, ideally within 30 days, when the discount still applies.”
Fleet operators that have not yet reviewed their internal processes, need to urgently do so. “Organisations need a system to track outstanding fines against company vehicles, verifying payments consistently, and ensuring drivers understand their role in reducing infringements.
“More importantly, businesses that already run structured driver training programmes are far better positioned to limit the effect. The number of offences that generate fines in the first place will be significantly lower with drivers who are aware of and actively avoid bad driving habits. It means rather than managing the paperwork after the fact, the offences often never happen,” says Herbert.
The consequences
The cost of inaction extends well beyond the fine itself. “Vehicles with unpaid fines cannot be licensed, renewed or transferred, effectively grounding them until the outstanding amount is settled. This can result in vehicles sitting idle, deliveries delayed, and operational disruptions that compound the longer an organisation takes to resolve it.
“Fortunately, the demerit point system is only due to begin during a later phase. Unresolved compliance gaps today, however, will only become more serious once individual drivers begin accumulating points that can lead to licence suspension or cancellation. The phased implementation provides yet another opportunity for businesses to take the threat that AARTO presents seriously,” says Herbert.
Historically, less than 20% of traffic fines accumulated in the previous system in South Africa were paid. AARTO is specifically designed to close that gap, which means businesses without formal compliance processes are now the most exposed as the rollout continues.