# Ramaphosa has just signed 3 new major laws – here’s everything you need to know

- Link: https://dearsouthafrica.co.za/2019/08/18/ramaphosa-has-just-signed-3-new-major-laws-heres-everything-you-need-to-know/
- Published: 2019-08-18T13:46:12+02:00
- Author: dearSA

![](https://cdn.dearsouthafrica.co.za/wp-content/uploads/2019/08/20191301/Screenshot-
2019-08-18T133941.998.png "Ramaphosa has just signed 3 new major laws – here’s everything
you need to know")

Following a long period of downtime due to the national elections and the reconvening
of parliament, President Cyril Ramaphosa has signed off a number of new pieces of
legislation this week.

The legislation – some of which have been mooted for over a decade – will bring 
a number of major changes to South African workplaces, roads, and households.

BusinessTech looked at three of the biggest new laws below:

Demerit system

The president has signed the controversial Administrative Adjudication of Road Traffic
Offences (Aarto) Bill into law.

The amendment act is expected to fundamentally change driving in South Africa, with
some of the biggest changes including:

Failing to pay traffic fines can lead to a block on obtaining driving and vehicle
licences and an administrative fee – in addition to other penalties;
 Where documents
previously had to be delivered by registered mail through the post office, in terms
of the amendment, authorities will now also be able to serve documents electronically
and can send reminders via WhatsApp and SMS; A new demerit system will be introduced.
Depending on the severity of the offence, 1-6 points are allocated for offences.
If an infringer has more than 12 points, it will result in the disqualification 
of the driving licence and three suspensions result in its cancellation; The establishment
of a new Appeals Tribunal which will preside over issues that are raised under the
new act.

Arguably the biggest change in the laws is the demerit system which aims to make
South Africa’s roads safer by coming down harder on violators.

Depending on the severity of an offence, 1-6 points are allocated. If an infringer
has more than 12 points, it will result in the disqualification of the driving licence
and three suspensions result in its cancellation.

While the demerit system has been supported in theory, many organisations have argued
that the lack of enforcement of current laws and capacity by traffic authorities
means the new system will likely be ineffective in its goals.

Instead, the focus appears to be on revenue collection, the Automobile Association
said, with other provisions in the act suited to making it easier for authorities
to deliver fines and hold vehicle licence renewals to ransom over unpaid fines.

Civil action group Outa has said it will challenge the constitutionality of the 
act, adding that it fears it will be used to force motorists to pay e-toll fees 
in Gauteng through ‘fine print’ details like making it an offence to ignore road
signs – which could include e-toll fees listed next to highways.

[AARTO Bill](https://www.scribd.com/document/422059797/AARTO-Bill#from_embed) by
[BusinessTech](https://www.scribd.com/user/413742166/BusinessTech#from_embed) on
Scribd

Debt relief

The new National Credit Amendment Act aims to provide relief to over-indebted South
Africans who have no other means of extracting themselves from over-indebtedness.

Specifically, the act will allow certain applicants to have their debt suspended
in part or in full for up to 24 months.

This debt may then be extinguished altogether if the financial circumstances of 
the applicant do not improve.

The criteria for meeting this debt write-off include:

Where the unsecured debt is not more than R50,000;
 Where the unsecured debt was
accrued through unsecured credit agreements, unsecured short term credit transactions
or unsecured credit facilities only; Where the person earned no more than R7,500
a month over the last six months; The act also introduces a number of new offences
related to debt intervention.

Under the act, it will now be an offence for a person who intentionally submits 
false information related to debt intervention.

Any person who intentionally alters his or her financial circumstances, or persons
who intentionally alter their joint financial circumstances, to qualify for debt
intervention, will also be guilty of an offence.

The Banking Association of South Africa (Basa) made it clear that it does not support
the principle of debt forgiveness – for very obvious financial reasons, but also
for what it would do to the lending and credit industry.

Aside from the costs banks would incur writing off the debt, the most likely reaction
from banks would be to make lending conditions much tighter which would make it 
more difficult for the poor to secure credit, Basa said.

Responding to the act, South African banks said they are concerned that some of 
their customers will get away with not having to repay their debt as a result of
the new laws, with National Treasury estimating that it could result in the write-
off of R13.2 billion to R20 billion of debt.

[National Credit Amendment Bill](https://www.scribd.com/document/422052893/National-Credit-Amendment-Bill#from_embed)
by [BusinessTech](https://www.scribd.com/user/413742166/BusinessTech#from_embed)
on Scribd

CV fraud

The new National Qualifications Framework Amendment Act aims to prevent South African
individuals from misrepresenting their qualifications by allowing for the South 
African Qualifications Authority (SAQA) to establish and maintain separate registers
for professional designations, misrepresented qualifications and fraudulent qualifications.

In addition to these new registers which will effectively ‘name and shame’ individuals
who had been found to be holding fraudulent qualifications, the act also introduces
harsh consequences for those who are caught lying about their achievements.

Under the new act, any person convicted of an offence is liable to a fine and/or
to imprisonment for a period not exceeding five years.

[NQF Bill](https://www.scribd.com/document/422075874/NQF-Bill#from_embed) by [BusinessTech](https://www.scribd.com/user/413742166/BusinessTech#from_embed)
on Scribd