Almost every South Africa with a driving licence has been part of the sometimes monumental chaos and inefficiency involved in the process of making their 5-year renewal – and moves are underway to change the system again, but this is already fraught with controversy.
The Automobile Association (AA) has welcomed news the Auditor-General (AG) will expand its audit of the procurement process for South Africa's new smart driving licence cards. The audit will now include an investigation into several key issues flagged by the AA and other civil society organisations.
This development follows the Department of Transport’s (DoT) recent announcement French multinational technology firm, IDEMIA Identity and Security, has been selected as the preferred bidder to produce the new smart driving cards.
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However, this appointment has raised a number of concerns, particularly surrounding IDEMIA’s recent history. Just days before the DoT's decision, Airports Company South Africa (ACSA) cancelled a contract with IDEMIA due to a contractual dispute. This, along with questions regarding the role of Government Printing Works (GPW) in the procurement process and why other bidders were overlooked, has sparked widespread debate.
In response to these concerns, the DoT issued a statement confirming Transport Minister Barbara Creecy has requested the AG to broaden the scope of its audit to address several key issues.
The AG’s investigation will focus on:
- Whether the procurement process adhered to supply chain management regulations;
- Whether the project specifications included adequate measures to safeguard personal data, given the sensitive nature of the information involved;
- The potential impact of the recent cancellation of IDEMIA's ACSA contract due to a dispute with its BBBEE partner, InfoVerge;
- Whether IDEMIA's technical capabilities and ability to deliver on time were properly evaluated, especially in light of issues surrounding IDEMIA’s biometric system at three airports, as contracted by the Border Management Authority;
- Whether South African service providers, including those working with the GPW, participated in the tender process and why they were not selected;
- Whether the chosen bidder was the most cost-effective option.
The AA described the AG’s expanded investigation as a positive development.
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"This highlights the crucial role organisations such as the AA and others play in holding government departments accountable. With significant public funds at stake, it is vital the public has complete confidence in both the process and its outcome. Government departments must not only justify the financial decisions they make but also explain why foreign entities are chosen over local suppliers," the AA said in a statement.
The AA also noted concerns raised by the Organisation Undoing Tax Abuse (OUTA), which pointed out discrepancies in the budget for the new driving licence cards. According to OUTA, the Driving Licence Card Account (DLCA), the DoT entity overseeing the procurement, was informed that its initial budget of R468-million was insufficient to cover IDEMIA’s bid of R762-million, which has since ballooned to nearly R900-million.
OUTA claims the DLCA admitted it had budgeted for the project without fully understanding the actual costs involved.
"This is another alarming sign in an increasingly problematic process, and we therefore welcome the Minister’s request for the AG to prioritise its audit and investigation. We look forward to the AG’s findings with great interest," the AA concluded.
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