ACSA cancels R115 million tender

Airports Company South Africa (ACSA) has been forced to cancel a R115 million tender after being hauled to court over its tender process.

In a letter seen by IOL sent by ACSA to IDEMIA, the French company which won the tender, ACSA states: "We refer to the Service Level Agreement signed on 31August 2023. In accordance with clause 28.3 of the Agreement, ACSA hereby notifies you of the termination of the Agreement for convenience."

The clause outlines a 60-day notice period to terminate the agreement. The letter does not provide any reasons for termination.

IOL understands IDEMIA is set to oppose the cancellation of the contract by ACSA.

The contract involves a R115 million tender for the establishment of a biometric and digital identity technology system across airports in South Africa.

The tender was awarded to IDEMIA, with the requirement to include a local Black Economic Empowerment (BEE) company. In this case, IDEMIA partnered with INFOVERGE, which collaborated with them in the bid.

However, according to INFOVERGE CEO Musa Mbhele, shortly after the tender was won, INFOVERGE was excluded from the contract by IDEMIA.

INFOVERGE challenged this decision, taking both IDEMIA and ACSA to court and requesting that ACSA terminate the contract on the grounds that the BEE criteria were not fulfilled. The case is currently before the courts, but the situation could change given the latest developments.

"I can confirm we have received communication from ACSA of their intention to cancel the contract, on the basis of prima facie evidence of possible wrongdoing and they will be engaging in a detailed forensic exercise," CEO of INFOVERGE, Musa Mbhele, told IOL.

ACSA initially denied any wrongdoing in its tender process but later announced that a further investigation had revealed prima facie evidence of misconduct related to the contract.

ACSA suspended its Chief Information Officer pending its investigations.

In documents seen by IOL, ACSA called on INFOVERGE to consider a withdrawal of their court action given the termination of the controversial contract.

But, whilst welcoming the decision by ACSA to cancel the contract, Mbhele said he was awaiting the final outcome.

"We feel vindicated and that our struggle for justice was not in vain. We were wronged in this whole matter and it's now being confirmed. Our lawyers are still dealing with the matter at hand and will obviously be requesting compensation for our legal costs and any other costs we have incurred and then decide how to proceed," added Mbhele.

ACSA and IDEMIA did not respond to queries and the story will be updated once received.