'Mind-boggling' delay in R898 million driver’s licence contract case

Six months after the Department of Transport announced plans to approach the courts for a declaratory order on a controversial contract with French tech firm IDEMIA, the matter has yet to be heard.

The R898 million contract, awarded to IDEMIA to supply equipment for printing South Africa’s driver's licences, is in limbo. The deal came under scrutiny after a separate IDEMIA contract with Airports Company South Africa (ACSA) was cancelled following a dispute with its BEE partner, Infoverge.

The fallout prompted Transport Minister Barbara Creecy to review the IDEMIA deal. The Auditor-General was called in, and the findings flagged significant procurement irregularities and non-compliance with key tender requirements. In response, Creecy halted IDEMIA’s work pending the outcome of a legal challenge.

“It’s mind-boggling that six months later, nothing has been done and the country is left to suffer,” said Organisation Undoing Tax Abuse (OUTA) CEO Wayne Duvenage. “If the minister hadn’t announced plans to go to court, we would have filed papers to have the IDEMIA contract overturned.”

Transport spokesperson Collen Msibi confirmed the legal process is now moving forward. “We finalised our court papers in the past two weeks and are ready to apply for a declaratory order,” said Msibi. A declaratory order is a legal ruling that clarifies the rights and obligations of parties in a dispute.

This follows IDEMIA’s warning that it would contest any attempt to cancel the contract.

Asked what would happen if the court rules against IDEMIA, Msibi said contingency plans are 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, said the company 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.

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