South Africa: High Court Rules That Multimillion-Rand Limpopo IT Tender Was Fraudulent

analysis

In what appears to be a repeat of the Cash Paymaster Services and South African Social Security Agency (Sassa) tender debacle, a high court has ruled that two tenders awarded to an IT company rendering services to the Limpopo Provincial Treasury were fraudulent.

A judgment handed down in the North Gauteng High Court last week details how officials in the Limpopo Provincial Treasury awarded fraudulent tenders to an IT consortium called Magnum Simplex International back in 2003.

The case was brought to court by then provincial finance MEC Sa'ad Cachalia in 2009, alongside head of department Rob Tooley.

According to court documents the MEC, on behalf of the department, sought repayment from Magnum Simplex of close to R98.5-million (with interest) and the cancellation of two fraudulently awarded tender contracts.

The court did not determine the total amount of money that was fraudulently obtained altogether.

Initially, a lawful contract to supply an automated procurement system for the Limpopo Treasury was awarded to Lechabile Information Technology Services. Lechabile later entered into a partnership with Magnum Simplex International. The system they developed was called FINEST Financial Management System.

The tender was lawfully extended on...

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