CCA, police raid Mogoditshane car dealers
Mbongeni Mguni - Sharon Mathala | Tuesday August 5, 2025 09:13
Grievances against used car dealers are the CCA’s most reported complaints from consumers, with many issues related to customers buying vehicles that then break down or suffer other previously undisclosed issues.
Mogoditshane is the hub of the used vehicle industry, particularly those of Asian origin, and many showrooms in the area contain vehicles priced at more than P1 million.
Jan Botswana, the biggest autodealer in Mogoditshane, together with Joe Class Motors and several others, had to pay fines for various violations this week, following the raids that caught them unawares.
The CCA handed down fines for traders who failed to offer the statutory six month minimum warranty on vehicles as well as those who did not display prices on vehicles in the showroom. Others were fined for failing to produce their trading licences.
The fines ranged from P5,000 to P1,000, but under the law, violations of the Consumer Protection Act can accrue penalties of up to P500,000.
A Mmegi news crew that witnessed the raids found that an alarming numbers of used car dealers in Mogoditshane offer vehicle warranties far below the minimum of six months required by law.
At Jan Botswana, a sign in the showroom indicated that the dealership offers a 15-day warranty which covers engines and engines and gearboxes, a situation CCA officials said was brazenly unacceptable.
Oageng Sekwababe, a commercial analyst under the CCA’s Investigation Consumer Protection Unit explained that the raids were part of enforcing the Consumer Protection Act.
“This has been based on the number of complaints we have been receiving at the Authority, particularly those that speak to warranty,” he said. “The Consumer Protection Act provides for a six months warranty on goods and services provided by suppliers. “We have realised that some businesses offer less than the described months for warranty and this is rampant across all industries in Botswana, hence this exercise with our key stakeholders and local law agencies.”
An unidentified Jan Motors director told the raiding team that it was difficult to offer six-month warranties on second hand vehicles as such provisions are not provided in the Asian markets where the vehicles are sourced from.
“We don’t get such warranties in Japan when we buy these vehicles and it’s difficult to then come and offer that here,” he said.
At Joe Class Motors, officers found receipt books showing that warranties offered could be as little as one day.
Sekwababe said there was no excuse for violating the law’s requirements for warranties.
“They say their suppliers do not give them the same warranty, but at the end of the day the law is the law and the law is meant to protect consumers. “We advise them to align and confirm the durability of the products they put out to the market. “What we are doing here is to sensitise the consumers as well as the business community on this Act, so as to safeguard the consumer interest in the sense that businesses will now make sure they offer goods that are durable and of good quality, and that they know that they are liable to repairs of any defective products within that six months,” Sekwababe said.
The CCA team also found numerous instances of autodealers failing to put price labels on vehicles in the showroom, a violation that effectively nullifies competition. Mmegi enquiries in the area found that many times, owners of dealerships prefer to remove prices from their vehicles so they can individually negotiate with customers, without the pressure of competing with other garages in the area.
“If we put prices, the customer will pass and go to the next place and check for a better price,” said a worker at one of the dealerships, on condition of anonymity. “The boss would rather talk to each customer and reach a negotiation. “Sometimes the price actually goes higher than what it would have been, but often its lower.”
Sekwababe said placing prices on vehicles in showrooms was the basis of competition.
“The majority of the businesses don’t display prices especially those who deal with second hand vehicles,” he said. “There is no information disclosure, and hence consumers are not informed well in time. “But this is not in alignment with the law as it states that the prices should be displayed, visibly and should be in pula currency.”
He said this to CCA is meant to induce competition amongst the different suppliers and give the consumer a choice.
The CCA has released several warnings to Batswana on their dealings in the used car market. In a previously cautionary published last month, the Authority said it continued to receive a high number of complaints relating to second-hand motor vehicles.
“Consumers are requested to be vigilant to ensure that they get value for money and are not swindled when buying second-hand vehicles,” the Authority said in a note accompanying 19 tips for buying second hand vehicles,
The tips include vehicle inspections, including checking for the presence of a catalytic converter, conducting a test drive and doing so with the radio off so that any noises can be picked up, as well as asking for a warranty.
The Authority also advises customers to refrain from paying in cash and instead using bank transfers, to ensure security and traceability.
Police and Mogoditshane Council by-law also encouraged Batswana to be vigilant when conducting any business deal, to ensure that they do not later have to call in law enforcement for assistance.
“If you walk into a dealership and get overexcited, you may have problems. “You have to do you research on prices, on vehicles, on the best dealerships and have someone advise you as well. “Many times, if something goes wrong, even if investigators come in, getting help will take time and can also cost you more,” an official said.
Meanwhile, the CCA says it is recording rising grievances involving the drilling of boreholes. While the Authority’s top cases continue to involve used vehicles and cellphones, borehole disputes are fast rising, particularly in terms of value.
Officials who spoke to Mmegi this week said disputes are being reported where unscrupulous contractors take large sums of money from their victims but fail to drill the boreholes. In many instances, the fraudsters disappear after securing the funds, or they perform hugely sub-standard work and then disappear.