Key Takeaways
- The North Gauteng High Court has declared the tender for new driving licence card machines unlawful and ordered the Department of Transport to cancel and re-advertise it within 30 days.
- The court ruled that the appointment of Idemia as the preferred bidder was irregular, unlawful, and invalid due to multiple instances of non-compliance with the Public Finance Management Act (PFMA) and Treasury regulations.
- The Transport Minister has welcomed the ruling, stating that it vindicates the department’s decision to approach the court in the interest of transparency and clean governance.
- The court has allowed the department to temporarily outsource the printing and issuing of licence cards to the Department of Home Affairs while a new service provider is sought.
Introduction to the Court Ruling
The North Gauteng High Court has recently made a significant ruling regarding the tender for new driving licence card machines. The court declared the tender unlawful and ordered the Department of Transport to cancel and re-advertise it within 30 days. This decision comes after concerns were raised by the Auditor-General (AG) regarding the appointment of Idemia as the preferred bidder. The AG report identified multiple instances of non-compliance with the Public Finance Management Act (PFMA), Treasury regulations, and the department of licensing’s own processes.
Irregularities in the Tender Process
The court ruling highlighted several irregularities in the tender process. The bid evaluation committee was found to have deviated from the criteria specifications when awarding the tender to the French company, Idemia. This deviation, combined with the non-compliance with relevant laws and regulations, led the court to conclude that the appointment of Idemia as the preferred bidder was irregular, unlawful, and invalid. The court’s decision is a significant step towards ensuring transparency and clean governance in the Department of Transport’s procurement processes.
Reaction from the Transport Minister
Transport Minister Barbara Creecy has welcomed the court’s ruling, stating that it vindicates the department’s decision to approach the court in the interest of transparency and clean governance. The Minister’s statement suggests that the department is committed to upholding the principles of good governance and is willing to take steps to ensure that its procurement processes are fair, transparent, and compliant with relevant laws and regulations.
Temporary Solution to Prevent Disruptions
To prevent disruptions to the printing and issuing of licence cards, the court has allowed the Department of Transport to temporarily outsource these services to the Department of Home Affairs. This temporary arrangement will remain in place until a new service provider is sought and appointed. The department had previously experienced a backlog in the printing of licence cards due to a breakdown of the licence card printing machine early last year. The backlog was only cleared in December when 2.2 million cards were eventually printed.
Long-term Solution
The government has also approved a prototype licence card developed by the Government Printing Works. The Cabinet is expected to consider the proposal as part of a longer-term solution to the department’s licence card printing needs. This development suggests that the government is exploring alternative solutions to address the challenges faced by the Department of Transport in relation to licence card printing. The approval of the prototype licence card is a positive step towards finding a sustainable and efficient solution to the department’s needs.
Conclusion and Future Implications
The court’s ruling on the tender for new driving licence card machines has significant implications for the Department of Transport and its procurement processes. The department must now re-advertise the tender and ensure that the new procurement process is fair, transparent, and compliant with relevant laws and regulations. The temporary outsourcing of licence card printing services to the Department of Home Affairs will help prevent disruptions, while the government’s approval of the prototype licence card developed by the Government Printing Works provides a potential long-term solution. As the department moves forward, it is essential that it prioritizes transparency, clean governance, and compliance with relevant laws and regulations to ensure that its procurement processes are efficient, effective, and fair.