The City of Cape Town has impounded several high-end vehicles during an operation targeting alleged fraudulent vehicle registrations in Parklands.
Among the vehicles was a luxury Mercedes-Benz GLE, valued at more than R2 million, which was allegedly registered as a white BMW.
Mayor Geordin Hill-Lewis and Mayco Member for Safety and Security JP Smith joined the operation on Tuesday night.
Hill-Lewis said several of the vehicle owners identified themselves as crypto or forex traders.
“In Cape Town, you will often find ‘crypto’ and ‘forex’ traders driving fancy cars with fake registrations or none at all,” Hill-Lewis said in a Facebook post.
He said a brand-new silver Mercedes-Benz GLE had been impounded for further criminal investigation after its registration allegedly did not match the vehicle.
Fraud claims under investigation
Hill-Lewis said South Africa needed stronger policing and repeated his call for a Cape Town Metro Police Detectives Unit.
He said the unit would allow the City to investigate crimes itself.
Smith said some drivers appeared to be using expensive vehicles without being able to explain the source of their money.
“You drive a R2.6 million vehicle, yet you’re supposedly ‘studying’ in South Africa. You paid cash. You can’t explain where the money came from or how you fund your lifestyle,” Smith said.
He said authorities would use existing legislation to investigate whether assets were linked to unlawful activity.
POCA powers highlighted
Smith said the Prevention of Organised Crime Act gives law enforcement tools to investigate offences such as money laundering, drug trafficking, tax fraud and organised crime.
He said the law also allows for the preservation and forfeiture of assets proven to be the proceeds of unlawful activity.
However, Smith said financial investigations require skilled investigators who can trace bank transactions, analyse records and identify beneficial ownership.
He argued that national police detectives were already overwhelmed by violent crime, gang cases, murder and firearm offences.
City wants more powers
Smith said municipalities should be empowered to investigate offences within their mandate and prepare court-ready dockets.
He said criminals should not be able to hide behind an overburdened justice system.
DA MP Nicholas Gotsell, who joined the operation, said the driver of the Mercedes-Benz told officials he was a crypto trader.
Gotsell said the vehicle’s selling price was R2 456 000, with estimated monthly repayments of R52 000 and insurance of R8 000.
Smith said the City would continue clamping down on vehicles with allegedly fraudulent licences.