Special Tribunal cancels R85 million KwaZulu-Natal-Mozambique border wall tender due to fraud
via The Citizen2 min read
The Special Tribunal has nullified an R85 million tender awarded to ISF Shula Joint Venture for the construction of a concrete barrier wall along the KwaZulu-Natal-Mozambique border. The Special Investigating Unit SIU found that the contractor used fraudulent documents, failed to meet mandatory requirements, and abandoned the project after receiving R84 million. The KwaZulu-Natal department of transport commissioned the wall in response to community concerns about widespread cross-border crime, specifically the smuggling and trafficking of vehicles into Mozambique. The SIU's investigation, confirmed by the Tribunal, revealed that only 5.29km of the planned 8km wall was erected, and associated works were left unfinished. This necessitated an additional R62 million tender for another company to complete the wall. The SIU also exposed that ISF Shula Joint Venture used a fraudulent broad-based black economic empowerment certificate, submitted an expired letter of good standing, and failed to comply with financial capacity requirements. The Tribunal's ruling emphasizes the constitutional imperative for fair, transparent, competitive, and cost-effective government procurement. The SIU plans to recover the money paid and has directed ISF Shula Joint Venture to repay all profits derived from the contract, with an independent expert to determine the amount. The SIU will continue to investigate and protect the integrity of public procurement, as mandated by President Cyril Ramaphosa's
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