The Minister of Home Affairs, Dr Leon Schreiber, has welcomed the decision by the Association of Comms and Technology (ACT) to withdraw its court application challenging fee corrections related to the department’s Online Verification Service (OVS).
ACT had filed legal papers in December 2025 in the Gauteng High Court, opposing the revised fee structure introduced for private companies using the OVS to verify client identities against the Population Register.
The corrected fees were implemented on 1 July 2025 following a period of public consultation and with the concurrence of the Minister of Finance, in compliance with the Identification Act.
On 8 April 2026, ACT’s attorneys formally notified the court of the withdrawal of the application.
At the same time, several mobile network operators affiliated with ACT have initiated engagement with the department to support government’s digital transformation agenda, including the development of a Digital Identity system aimed at improving access, efficiency and security.
The department has provided the OVS since 2013, but prior to July 2025 there had been no fee adjustment for 12 years.
The low cost of 15 cents per real-time verification limited the department’s ability to maintain and upgrade the system and contributed to excessive usage, which led to system downtimes. By 2025, more than half of all verification attempts were failing, and even successful verifications often took hours to process.
Following the introduction of a new fee of R10 per real-time verification and a R1 off-peak batch option for private sector users, the department implemented significant upgrades to the system.
These improvements have increased uptime to 99% and reduced response times to seconds.
Public sector users continue to access the service at no cost.
Schreiber said the upgrades and fee corrections had enabled the department to replace a system on the verge of collapse with a world-class verification service.
He added that the reform is central to a new digital partnership with the banking sector, which has already expanded Smart ID services to 110 bank branches within a month of implementation, with further expansion planned.
He expressed optimism about collaboration with mobile network operators to address challenges and opportunities in identity verification, including SIM card registration and the rollout of Digital ID.
Schreiber said the withdrawal of the court challenge creates an opportunity for telecommunications companies to play a meaningful role in the country’s digital transformation, which is already delivering tangible benefits. – SAnews.gov.za
