Idemia Smart Identity, the French multinational awarded the controversial driver’s license card machine tender, has responded to the South African government’s decision to launch a legal review of the procurement process.
Idemia speaks out amid probe into driver’s license machine tender
The company maintains that it won the contract lawfully and fairly and is prepared to take legal action if necessary.
In a statement to Swisher Post, Idemia defended its selection, insisting that its expertise in secure identification solutions makes it the best-qualified company for the job.
“IDEMIA Smart Identity legitimately and lawfully won this tender, as we firmly believe we are the best in this field. We are fully committed to working hand in hand with the South African government to ensure that South Africans benefit from the most secure, reliable, and advanced driver’s license solutions.”
Idemia also acknowledged concerns raised in an audit by the Auditor-General of South Africa (AGSA) but disputed claims that irregularities in the tender process were linked to its operations.
“The results of the audit highlight irregularities that we take very seriously. While some of the findings pertain to matters beyond our scope, others directly concerning IDEMIA Smart Identity do not reflect the reality of our operations. We are actively working to clarify these points and ensure a full understanding of the situation.”
The company added that it remains open to engaging with stakeholders to resolve concerns but will also explore legal options to ensure a fair resolution of the issue.
Minister orders legal review following AGSA report
Transport Minister Barbara Creecy has instructed her department to seek a high court declaratory order to determine the legality of the tender process after the AGSA flagged multiple violations of procurement laws.
The AGSA report found that the bid evaluation process lacked transparency, with irregular scoring and ambiguous specifications allowing the selection committee to exercise its own judgment.
These findings led to the contract being classified as irregular under the Public Finance Management Act (PFMA) and Treasury regulations.
Creecy, in a statement, confirmed that legal steps will be taken to address any potential wrongdoing.
“Given the Auditor-General’s findings, we are committed to ensuring accountability and will take all necessary legal steps to address any irregularities.”
The tender in question, awarded to Idemia Identity and Security South Africa, is worth R898 million, nearly double the initial R468 million budget allocated by the Driving License Card Account (DLCA).
Civil society organisations have called for full transparency in the procurement process. The Organisation Undoing Tax Abuse (OUTA) has been one of the most vocal critics, arguing that tender manipulation and last-minute changes cast doubt on the fairness of the selection process.
“The way the DLCA handled this tender raises big red flags. We have seen tender manipulation, repeated cancellations, and last-minute changes that appear to favour a specific bidder.” – OUTA CEO Wayne Duvenage said.
In September 2024, OUTA formally requested that Minister Creecy halt the tender until a full investigation is completed.
The Automobile Association (AA) has also questioned why Idemia was chosen over four other bidders, demanding public disclosure of the selection process.
“The DoT must provide clarity on why Idemia was selected over the other four bidders. Without transparency, public trust in this process is severely undermined.” – AA spokesperson Layton Beard
The Department of Transport (DoT) has defended the procurement process, with spokesperson Collen Msibi insisting that the tender followed the correct procedures and was subject to audit compliance.
However, the Minister’s decision to seek legal clarity suggests that the government is taking the AGSA findings seriously and may consider action against those involved in irregularities.
