Tunisia suspends major ride-hailing companies over alleged money laundering and tax evasion

The government of Tunisia has suspended major ride-hailing companies operating within its borders as part of the country’s investigations into several infractions bordering on fraud. This was disclosed in a statement by the country’s interior ministry.

According to the statement, the investigations were necessary after the financial division of the country’s National Guard discovered suspicious activities by several ride-hailing apps. These activities include money laundering and tax evasion.

“The financial division of the National Guard has uncovered suspicions of money laundering and tax evasion among operators of private taxi ride-hailing apps,” the interior ministry’s statement reads.

While the statement did not name the apps, AFP said a source familiar with the matter told them that the Estonia-based Bolt was the leading suspect and main company under government scrutiny. Bolt and other suspicious apps have been shut down in the country.

See also: Bolt at 10: Small beginnings, big wins and global problems

This development comes after repeated calls by President Kais Saied for investigations into the public transport sector. President Saied, who retained his seat in last year’s election on an anti-corruption campaign, continuously targeted the transport system as a hotbed for corruption, which explains the collapse of infrastructure.

The president is known to pay unscheduled and unannounced visits to transit hubs around the capital of Tunis to evaluate and decry their deteriorating conditions. He sacked the former minister of transportation after one such visit to two train stations in the capital.

Shortly afterwards, four officials of the Tunis Transport Society (TRANSTU), the state-operated mass transit authority responsible for bus, metro, and light rail operations in the Grand Tunis metropolitan area, were arrested for financial mismanagement.

They were accused of mismanaging the acquisition of a central air-conditioning system for a TRANSTU facility, ultimately leading to malfunctions and financial losses.

While the government’s anti-corruption crusade in the transport sector has largely focused on public transportation, this investigation marks the first time it has delved into the private transport sector.

Bolt might be facing new challenge in Tunisia

Bolt has emerged as a leading player in the Tunisian transport scene owing to years of collapse of public transport infrastructure. The inadequacies of these infrastructures led citizens to trust private taxi-hailing companies to fulfil their mobility needs. This, in turn, led to an influx of multiple apps as the market is quite lucrative.

However, the greater number of players ought to mean greater scrutiny, something the Tunisian authorities appear to be investing their efforts into. According to reports, they have confiscated about $3.8 million (12 million dinars) from accounts linked to the ride-hailing apps under investigation.

The apps were further accused of illegally repatriating funds abroad using dubious bank accounts.

They were also accused of operating without proper licences while employing fraudulent authorisations. As part of the investigations, the suspicious companies have been removed from the country’s commercial registry and their offices have been shut down across the country.

This is not the first time Bolt will be embroiled in regulatory issues across the African continent. However, these issues have always centred around licensing, commission, safety and security, unfair remunerations and the like. The company hasn’t faced anything of this magnitude in a market it mostly controls. It will be interesting to see how it navigates this.

Technext has reached out to Bolt with inquiries into the matter but has yet to get a response as of press time. We will update readers with their responses once they come in.