By Lehlohonolo Lehana.
Airports Company South Africa (ACSA) has cancelled a R115 million contract awarded to a French technology company, IDEMIA after being hauled to court over its tender process.
The contract was awarded to IDEMIA in 2022, with a requirement that at least 30% of the value be subcontracted to a South African, Black-owned enterprise.
IDEMIA partnered with the local company InfoVerge, but the relationship eventually deteriorated.
ACSA said it became aware of an impasse between the partners and engaged with both to try to reach an amicable resolution to the contract’s delivery.
ACSA was satisfied that the two business partners would work together in the delivery of the required services,” it said.
However, the two partners were unable to resolve the impasse amicably.
“This resulted in InfoVerge approaching the High Court Gauteng Local Division (High Court), seeking relief to set aside ACSA’s decision to award the tender for the provision of Automated Border Control project to Idemia. In the court papers, ACSA was cited as a second respondent.
As a result of the ongoing court case, the contract has been terminated in line with the conditions of the Service Level Agreement which allows for a 60-day notice period.
ACSA spokesperson Ernest Mulibana says the company intends to pursue the project in the near future.
“The biometric and digital identity technology project remains key to access short to medium term strategy to ensure a seamless and efficient customer experience, connecting passengers to their next destinations, opportunities, and goals.
“ACSA remains committed to the best interests of good corporate governance, transparency and fairness as we continue with an independent investigation into the matter”.
Earlier this month ACSA announced the suspension of its chief information officer Mthokozisi Mncwabe over allegations of wrongdoing related to the biometric and digital identity technology project which was awarded to IDEMIA.
Mncwabe suspension took effect on Thursday, 8 August 2024. ACSA said a preliminary investigation unearthed indications of malfeasance surrounding the project.