The Special Investigating Unit (SIU) has welcomed the Constitutional Court’s dismissal of two appeals by Profteam CC and Magwa Construction, shutting down the companies’ final attempt to challenge findings that their R40 million Beitbridge border fence contracts – awarded during the COVID-19 National State of Disaster – were unlawful.
At the height of the COVID-19 pandemic, the two companies were contracted by the Department of Public Works and Infrastructure (DPWI) to construct the razor mesh fence between South Africa and Zimbabwe at a cost of some R40 million.
The fence fell apart soon after, prompting President Cyril Ramaphosa to sign a proclamation which authorised the SIU to probe the contracts.
“In both matters, the Constitutional Court concluded that the applications did not engage in its jurisdiction and refused leave to appeal with costs. These dismissals follow the earlier ruling of the Supreme Court of Appeal [SCA], which, in January 2026, rejected the contractors’ bid for reconsideration.
“Together, these outcomes close the door to further appeals and cement the findings of the Special Tribunal, High Court and SCA,” the SIU said.
The two companies’ legal problems began at the Special Tribunal where the initial ruling was handed down declaring the contracts invalid and stripping them of their profits.
Their appeal and special leave to appeal applications to both the High Court and the SCA were both dismissed, leaving them with only the apex court which gave the latest ruling against them.
The findings against the two companies by the South African courts include that:
- The R40 million Beitbridge border fence contracts were constitutionally invalid due to procurement irregularities.
- Contractors are not entitled to retain profits from unlawful conduct, but only to reimbursement of reasonable and proven expenses, which are subject to audited accounts.
- The contracts were awarded without a competitive bidding process, in violation of section 217 of the Constitution and Treasury Regulations. The contractors received large advance payments of approximately R21.8 million before any substantial work was performed.
“The SIU welcomes the Constitutional Court’s refusal of leave to appeal as a final affirmation of accountability in this matter. These judgments reinforce the principle that no party may profit from irregular and unlawful procurement, and they vindicate the SIU’s mandate to protect public resources.
“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 SIU said. – SAnews.gov.za
