Ongoing Legal Battle Over Controversial Contract with IDEMIA
Six months after the Department of Transport announced its intention to seek a declaratory order regarding a contentious contract with French technology firm IDEMIA, the matter remains unresolved. The R898 million deal, aimed at supplying equipment for printing South Africa’s driver’s licenses, is still in legal limbo. This situation has sparked concerns over the delays and the impact on public services.
The contract came under intense scrutiny following the cancellation of another IDEMIA deal with the Airports Company South Africa (ACSA). That agreement was terminated due to a dispute with its Broad-Based Black Economic Empowerment (BEE) partner, Infoverge. This event prompted Transport Minister Barbara Creecy to conduct a thorough review of the IDEMIA contract. The Auditor-General was brought in to assess the situation, and their findings revealed significant procurement irregularities and non-compliance with key tender requirements.
In response to these findings, Creecy decided to halt IDEMIA’s work until the outcome of the legal challenge was determined. Wayne Duvenage, CEO of the Organisation Undoing Tax Abuse (OUTA), expressed frustration over the prolonged delay. “It’s mind-boggling that six months later, nothing has been done and the country is left to suffer,” he said. Duvenage added that if the minister had not announced plans to take legal action, OUTA would have taken matters into their own hands by filing papers to overturn the IDEMIA contract.
Transport spokesperson Collen Msibi confirmed that the legal process is now progressing. “We finalised our court papers in the past two weeks and are ready to apply for a declaratory order,” she stated. A declaratory order is a legal ruling that clarifies the rights and obligations of parties involved in a dispute.
This development comes after IDEMIA warned that it would contest any attempt to cancel the contract. When asked what would happen if the court ruled against IDEMIA, Msibi explained that contingency plans are already in place. “We have other service providers, and the Department of Home Affairs already has a printing facility we can use,” she said.
Friederike Lyon, a France-based spokesperson for IDEMIA, emphasized the company’s position. She stated that IDEMIA maintains it “legitimately and lawfully” secured the tender and is willing to address concerns raised by the Auditor-General. “IDEMIA has noted the Department of Transport’s decision to seek a declaratory order. While some findings fall outside our scope, those relating to IDEMIA do not reflect the reality of our operations. We remain fully committed to working with the government to clarify any issues and ensure South Africans benefit from secure, advanced driver’s licence solutions,” Lyon said.
As the legal battle continues, the situation highlights the complexities of large-scale procurement contracts and the importance of transparency and accountability in public sector dealings. The outcome of this case will likely set a precedent for future contracts involving international firms and local government entities.
