ACSA cancels multi-million-rand contract due to BEE partner issues
The Airports Company of South Africa (ACSA) has terminated a multi-million-rand tender with a French firm following findings in court …
Airports Company South Africa (ACSA) has been forced to cancel a multi-million-rand contract with a French company, according to IOL.
According to the report in which a legal letter was presented to IOL, the multi-million-rand tender had to be overturned following a court ruling.
The multi-million-rand tender amounts to R115 million with French company the Idemia Group. If you refer to ACSA’s Tender Bulletin page, you’ll see dozens of tenders proposed across all major South African airports. However, this contract was for an Automated Border Control (ABC) system. A project which would “establish biometric and digital identity technology systems” across all airports in South Africa.
MULTI-MILLION-RAND TENDER
According to reports, the French outfit that won the tender was sent a letter stating: “We refer to the Service Level Agreement signed on 31 August 2023. In accordance with clause 28.3 of the Agreement, ACSA hereby notifies you of the termination of the Agreement for convenience.” While there is a 60-day notice period to terminate the agreement, there is no reason provided for why the contract was indeed terminated.
However, it is understood that ACSA tender requirements include a local Black Economic Empowerment (BEE) element. The French firm therefore partnered with local company InfoVerge for the bid. But shortly after the tender was won, the BEE partner was suddenly excluded from the contract.
ACSA CHIEF SUSPENDED
InfoVerge took both the Idemia Group and ACSA to court. It requested that ACSA terminate the contract on the grounds that BEE criteria was not met. According to InfoVerge CEO Musawenkosi Mahlaba, “There is prima facie evidence of possible wrongdoing and they will be engaging in a detailed forensic exercise,” he told IOL.
ACSA has since suspended its Chief Information Officer once prima facie evidence of misconduct was found, and pending investigations. “We feel vindicated and that our struggle for justice was not in vain. We were wronged and it’s now confirmed. Our lawyers are still dealing with the matter at hand and will obviously be requesting compensation for legal costs incurred. Then we will decide how to proceed,” concluded Mahlaba.