South Africa’s Directorate for Priority Crime Investigation, known as the Hawks, has launched an investigation into alleged corruption and fraud linked to Afrirent’s management of a multi-billion-rand government vehicle fleet maintenance contract.
The investigation follows a criminal complaint lodged by the Automotive Workshop Association of South Africa (Awasa) with the South African Police Service (SAPS), raising concerns about procurement practices, financial misconduct and the treatment of subcontractors under the National Treasury’s transversal RT46 fleet management contract.
The case was opened at Vereeniging police station on 20 October 2026 before being transferred to the Hawks, which confirmed that an investigation was under way.
Allegations Surrounding Government Fleet Maintenance
Afrirent was awarded Category A of the RT46 contract, valued at more than R8.5 billion and running until June 2031. The company assumed operational responsibility on 1 July 2026, taking charge of maintenance and repair services for government vehicles.
The fleet includes vehicles used by the South African Police Service, emergency medical services and scholar transport operations.
Awasa alleges that Afrirent imposed unfavourable agreements on subcontractors under significant time pressure and operated a non-transparent work allocation system that disadvantaged independent, historically disadvantaged and black-owned small businesses.
In an affidavit, Awasa chairperson Lorette Kgwadi called for an investigation into possible offences under the Prevention and Combating of Corrupt Activities Act and the Public Finance Management Act.
The association further alleged that the contractor’s practices had contributed to irregular expenditure and financial difficulties among small, medium and micro enterprises (SMMEs).
Workshop Operators Raise Payment and Allocation Concerns
Awasa secretary-general Brian Jacobs alleged that workshop allocations were influenced by favouritism, personal relationships and other improper considerations.
He also raised concerns about non-payment for completed work, partial payments, delays beyond the 30-day payment requirement under the PFMA and early-settlement deductions.
The Retail Automobile Aftermarket Federation (RAAF) has raised similar concerns, questioning the terms of Afrirent’s standard merchant agreements.
RAAF also alleged that some government vehicles were delivered to workshops without prior notification, procurement documentation or official job cards, potentially bypassing established supply chain management procedures.
These allegations have raised questions about transparency, subcontractor participation and payment practices within the government’s vehicle maintenance supply chain.
Afrirent Rejects Allegations
Afrirent has rejected allegations of corruption, fraud, financial misconduct and unlawful procurement.
Chief Executive Officer Thenjiwe Tsabedze said the company had prioritised addressing inherited backlogs, expanding its participating merchant network and strengthening compliance with National Treasury requirements since taking over the contract.
She said the concerns raised by Awasa largely related to merchant onboarding, verification, invoicing and authorisation processes designed to improve accountability and compliance.
Tsabedze added that Afrirent had requested details of the merchants represented by Awasa and the specific challenges they were experiencing, but said the association had not provided sufficient information to verify the claims.
The company maintained that it remained committed to engaging with industry stakeholders, resolving operational challenges and fulfilling its contractual obligations.
National Treasury Responds to Investigation
National Treasury said it was unaware of the criminal complaint and had not received formal notification of an investigation.
The department stated that concerns raised by merchants were being addressed through existing contract management and oversight structures involving Treasury, the National Department of Transport, participating institutions and Afrirent.
It also emphasised that Afrirent, as the appointed contractor, remained responsible for resolving contractual issues and implementing corrective measures.
Previous Fleet Management Contract Also Faced Scrutiny
The latest allegations follow earlier controversy involving the previous contractor, WesBank.
In March 2026, the KwaZulu-Natal Standing Committee on Public Accounts summoned WesBank and National Treasury over alleged shortcomings in provincial vehicle fleet management, including concerns involving ambulances, police vehicles and school buses.
The committee also questioned WesBank about an alleged corrupt arrangement involving a senior police brigadier and selected vehicle repair workshops.
WesBank said it had identified a scheme, initiated internal disciplinary action, referred the brigadier’s details to SAPS leadership and blacklisted implicated suppliers.
The Hawks’ investigation into the Afrirent contract now places renewed attention on oversight, procurement compliance and accountability in South Africa’s public-sector fleet management industry.
