SAPS ordered to pay R764m to service providers for intellectual property

The SA Police Service (SAPS) has been ordered to pay R764 million to three service providers who sold intellectual property in the form of computer programmes to it.

The computer programmes have been identified as the Firearm Permit System, the Property Control and Exhibit Management System and the Visual Analysis Anacapa Matrix Intelligence Solution System.

According to papers filed at the Gauteng High Court, Pretoria, the companies, Forensic Data Analysts (FDA), Investigative Software Solutions (Pty) (Ltd) and Solve Forensics were claiming R644m from the SAPS following an oral agreement concluded on January 31, 2020 at the Sefako Makgatho Presidential Guesthouse in the capital city.

In terms of the agreement FDA sold the intellectual property in the three computer programmes to the SAPS. In addition, the deal was that FDA would provide maintenance and support to the SAPS for the computer programmes for a period of two years for a price of R120m inclusive of VAT (value-added tax).

They also agreed that the oral contract would be recorded in writing and that payment would be made upon the signature of the last party to the written version.

On February 3, 2020 the oral agreement was orally amended pertaining to the purchase price for the intellectual property in the computer programmes in that the price would be determined by a fair value process that was to be facilitated by the National Treasury, according to the judgment handed down by Judge Sulet Potterill last month.

In May 2020 the fair value of the intellectual property in the computer programs was facilitated and determined by the National Treasury.

Later that month, the SAPS requested FDA to furnish deputy national commissioner responsible for support services Lieutenant-General Francina Vuma with an invoice for the purchase price of the intellectual property in the computer programmes in the amount of R644m (VAT inclusive) which FDA, with the invoice attached to its particulars of claim.

The FDA claimed specific performance of the contract alternatively it terminated the oral agreement due to the SAPS repudiating or breaching the agreement and wanted the amount as damages suffered.

Judge Potterill granted an order directing the SAPS to fulfill any unfulfilled requirements imposed by law for the lawfulness of the procurement, insofar as there may be such requirements and its obligations in terms of the oral contract (as amended) by paying the companies, upon the signature of the last party to the written version of the oral contract (as amended)

Additionally, the purchase price for the intellectual property in the computer programs in the amount of R644m (VAT inclusive) including interest at the prevailing prescribed mora interest rate in terms of the applicable provisions of the Prescribed Rate of Interest Act per annum (a tempore morae) to date of final payment.

The SAPS is also required to pay the price for maintenance and support in the amount of R120m (VAT inclusive) as well as interest. Police are yet to respond to questions sent on Wednesday.

loyiso.sidimba@inl.co.za