Who is lying?

Drivers say they were set up by "baits" employed by traffic control authorities in a district of Shanghai - they reportedly picked up passengers who used pitiable excuses to ask for a lift, and were caught "on the spot" when the passenger offered to pay for the favor, and ended up being fined up to 20,000 yuan ($2,940).

The traffic authorities have already responded, claiming that their officers had everything done perfectly according to the book. They clarified that no such thing as "baits" were used in their campaign against illicit business operations by unlicensed drivers.

One thing is certain now - one party is lying. Who is it?