The Special Tribunal has set aside the R85 million tender for the construction of a concrete barrier wall along the KwaZulu‑Natal and Mozambique border.
According to the Special Investigating Unit which probed the contract, the tender was awarded to the ISF Shula Joint Venture and commissioned by the KZN Transport Department.
“The wall was commissioned…in response to community concerns about rampant cross-border crime, particularly the smuggling and trafficking of stolen and hijacked vehicles into Mozambique.
“Instead of delivering on this urgent public safety measure, the Joint Venture submitted fraudulent documents, failed to meet mandatory requirements and left the project incomplete despite receiving R84 million,” the SIU said in a statement.
The corruption busting unit investigated the tender and found:
- Only 5.29km of the planned 8km wall was erected, forcing the department to tender for another company to complete the wall at an additional cost of R62 million;
- A fraudulent B-BBEE certificate was used to secure the tender;
- An expired Letter of Good Standing;
- Non-compliance with financial capacity requirements.
“The Tribunal’s ruling underscores the constitutional imperative that government procurement must be fair, transparent, competitive, and cost‑effective. The SIU will now pursue recovery of the monies paid, ensuring that public funds are restored to the state.
“As part of the order, ISF Shula Joint Venture has been directed to repay all profits it derived from the contract to the SIU. An independent expert will be appointed by ISF Shula Joint Venture to determine the amount of these profits.
“The SIU will review the findings, and if there is a dispute, the matter will be referred back to the Tribunal for determination. Furthermore, ISF Shula Joint Venture has been ordered to pay the legal costs,” the SIU said.
The unit highlighted that the judgement sends a “clear message that fraudulent certificates, misrepresentation, and incomplete delivery will not be rewarded”.
“The SIU will continue to act decisively to protect the integrity of public procurement and restore public trust.
“The SIU was mandated by Proclamation R.16 of 2021 the President. It directed the SIU to investigate allegations relating to the KwaZulu-Natal Department of Transport between 13 July 2016 and 7 May 2021, including the lawfulness and validity of the border wall tender awarded to the ISF Shula Joint Venture.
“In line with the Special Investigating Units and Special Tribunals Act 74 of 1996 (SIU Act), the SIU will refer any evidence of criminal conduct uncovered during its investigation to the National Prosecuting Authority for further action,” the statement concluded. – SAnews.gov.za
