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A senior transport official told Rapport, sister publication of Finance24, that about 3.5 million motorists, who obtained their driver's licences illegally, might escape prosecution if they provide information about corrupt officials and practices at the country's 360 testing centres.
According to the official licence fraud was so extensive that it would take Willie Hofmeyr's special investigating unit six years to unravel the fraud networks and identify the guilty persons.
He said names of motorists with invalid licences would be supplied to financial institutions, short-term insurers and the Road Accident Fund as the investigation progressed.
"These people have been driving around on invalid licences for years. They submitted thousands of claims at insurance companies and the RAF."
Sarita Cronje, chief executive of the RAF, said a motorist with an invalid driver's licence would have to pay back the paid-out claims.
"The RAF will definitely claim compensation if there is proof of an invalid driver's licence.
"The law makes provision for compensation if claimants knowingly provide the fund with false information."
Barry Scott, executive chief of the South African Insurance Association, said short-term insurers were allowed to claim compensation from members whose claims were paid out on the grounds of false information, such as an invalid drivers licence.
"Insurers can lay a charge of fraud against such a person."
Scott warned that a claim by a motorist driving around with a false driver's licence would not be paid out.
Amnesty
The department official meanwhile said they are looking at the possibility of giving amnesty (for motorists with invalid licences) in return for information about where they obtained their licences.
The official said the unit, which is paid R16.8m a year to do the investigation, will thus obtain essential information.
Dr Wendy Watson, chief director of the transport department's road transfer regulations, confirmed the possibility of amnesty.
President Thabo Mbeki ordered Hofmeyr's unit in February to investigate the large-scale licence fraud after preliminary information indicated about 50 percent of driver's licences in the country were invalid.
A team of 75 of the unit's detectives will work at this task for the next three years, after which the period will be extended for another three years.
The unit arrested 45 officials on charges of fraud and corruption at test centres during the first three months. Another six examiners - two from Welkom and four from Bloemfontein - were arrested on Saturday morning.