The KwaZulu-Natal transport officials who handled an R85-million Mozambique border wall tender now face disciplinary action after the Special Tribunal set aside the contract in an SIU-backed case involving an expired BEE certificate, stale compliance documents and incomplete delivery.
The ruling places fresh pressure on officials who served on the bid evaluation committee after the tribunal ordered the KwaZulu-Natal Department of Transport and its head of department to begin disciplinary processes within 30 days against those not yet sanctioned.
The tender had been awarded to the ISF Construction Services and Shula Construction joint venture for the construction of an 8km concrete barrier wall along the KwaZulu-Natal-Mozambique border.
Wall intended to tackle cross-border crime
The wall was intended to address community complaints over cross-border crime, including the smuggling and trafficking of stolen and hijacked vehicles into Mozambique.
Instead, the project has now become a symbol of failed procurement after the Special Investigating Unit (SIU) uncovered multiple flaws in the award process.
“This judgment validates the SIU’s investigation and sends a clear message that fraudulent certificates, misrepresentation, and incomplete delivery will not be rewarded,” said SIU spokesperson Selby Makgotho.
Procurement rules flouted
Judge Chantel Fortuin found that mandatory procurement rules were ignored when the tender was awarded.
Among the key defects identified were a defective B-BBEE certificate, an expired Letter of Good Standing and failure to meet financial capacity requirements. Fortuin said the empowerment flaw was fatal, ruling that “an invalid B-BBEE certificate amounts to no certificate being submitted,” adding that the requirement went to the heart of lawful procurement.
Fraudulent B-BBEE certificate
The court was equally scathing about the paperwork used to secure the contract, noting that “the fact that the JV certificate was falsified and fraudulently issued is not seriously contested by the respondents”.
Fortuin further criticised the contractors’ stance, saying: “It is astonishing how the first and second respondents fail to take responsibility for this fraudulent B-BBEE certificate.”
The tribunal also found that the compliance letter relied upon by the winning bidders had already expired.
“The letter was indeed stale and invalid for the purposes of the tender,” Fortuin ruled.
The contract traces back to bids invited on March 29, 2018. It was awarded on July 12, 2018 and later formalised in April 2019.
Project left hanging
But the project was never properly completed.
Evidence before the tribunal showed that only 5.29km of the planned 8km wall was built, leaving 2.71km unfinished together with related works.
That forced the department to issue another tender worth more than R62 million to complete the balance.
The SIU approached the tribunal seeking to review and set aside the award and to recover losses suffered by the state, alternatively seeking repayment of profits made from the contract.
The court found the procurement process unlawful and reviewable under the principle of legality.
It held that the award was based on material misrepresentation, ignored relevant considerations and was taken in fraud of the law.
Service providers mount defence
The respondents had argued that the department suffered no real prejudice because most of the work had been done, and that later completion costs were irrelevant.
The tribunal rejected that stance.
“Following proper procurement procedures is not a choice. It is a constitutional obligation,” the judge said.
Warning against relaxed standards in state contracting, Fortuin added that “allowing this would be to carve away at these cornerstones of our democracy.”
The final order reviewed and set aside both the tender award and the resulting contract.
ISF and Shula were further ordered to repay profits made from the deal. They must now submit statements of income, expenditure and profits within 30 days, failing which disputes may return to the tribunal.
They were also ordered to pay legal costs.
“The SIU will now pursue recovery of the monies paid, ensuring that public funds are restored to the state,” said Makgotho.
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- The KwaZulu-Natal transport officials face disciplinary action after the Special Tribunal set aside an R85-million tender for a Mozambique border wall due to expired BEE certificates, stale compliance documents, and incomplete delivery.
- The tender was awarded to ISF Construction Services and Shula Construction for an 8km wall intended to combat cross-border crime but was plagued by procurement flaws and incomplete construction.
- The tribunal found fraudulent B-BBEE certificates, expired compliance letters, and ignored mandatory procurement rules, ruling the contract award unlawful and based on material misrepresentation and fraud.
- Only 5.29km of the 8km wall was completed, leading to a new R62-million tender for the remaining work; the court ordered ISF and Shula to repay profits and pay legal costs.
- The SIU will seek recovery of state funds, emphasizing that following proper procurement procedures is a constitutional obligation and that fraudulent and incomplete contracts will not be tolerated.
Instead, the project has now become a symbol of failed procurement after the Special
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Judge Chantel Fortuin found that mandatory procurement rules were ignored when the tender was awarded.
Fortuin further criticised the contractors’ stance, saying: “It is astonishing how the first and second respondents fail to take responsibility for this fraudulent B-BBEE certificate.”
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But the project was never properly completed.
Evidence before the tribunal showed that only 5.29km of the planned 8km wall was built, leaving 2.71km unfinished together with related works.
It held that the award was based on material misrepresentation, ignored relevant considerations and was taken in fraud of the law.
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ISF and
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