Airports Company South Africa (ACSA) is under fire following the suspension of its Chief Information Officer (CIO) amid a scandal involving a R115 million tender for digital systems at South African airports.
Story Summary:
- Airports Company South Africa (ACSA) suspended its Chief Information Officer over a R115 million tender scandal.
- The suspension is linked to irregularities in the procurement process for the Automated Border Control (ABC) project.
- Issues with digital systems at South African airports have been attributed to delays in the ABC project.
ACSA suspends Chief Info Officer over R115 Million tender scandal
The decision, ACSA explained in a statement released on Women’s Day, follows the discovery of “prima facie evidence of wrongdoing” related to a biometric and digital identity technology project.
The project, which was initiated in May 2022, involved the procurement of Automated Border Control (ABC) systems, e-Gates, and single-token technology.
The contract, valued at R115 million, was awarded to the French multinational technology company IDEMIA, with a condition that 30% of the contract value be subcontracted to a South African black-owned Exempted Micro Enterprise (EME)1 or Qualified Small Enterprise (QSE)2.
However, a dispute between IDEMIA and its local partner, InfoVerge, led to InfoVerge approaching the High Court for relief, seeking to set aside ACSA’s decision to award the tender to IDEMIA.
As the situation escalated, ACSA found itself embroiled in a legal battle, being cited as a second respondent in the court case.
In light of these developments, ACSA stated:
“We have since undertaken a preliminary investigation and have now found that there is prima facie evidence of wrongdoing in relation to the biometric and digital identity technology project.”
The suspension of the CIO is aimed at allowing ACSA to conduct a more thorough investigation without interference.
“The precautionary suspension is to allow ACSA to conduct further investigation and report back to the public on our findings,” the company explained.
ACSA explains why digital systems at SA airports not up to standard
The ongoing issues surrounding the tender have raised concerns about the operational standards of digital systems at South African airports.
Despite the high stakes and the significant investment involved, the project has been mired in disputes and delays.
According to ACSA, the disagreement between IDEMIA and InfoVerge significantly hampered progress.
The company had initially intervened to try and mediate between the two parties but was ultimately unsuccessful.
“Despite ACSA’s efforts, the two business partners could not reach an amicable resolution,” the statement noted.
As a result, the digital systems that were supposed to streamline border control processes at South African airports have not been fully implemented, leading to operational inefficiencies.
ACSA is now reviewing its options regarding the contract with IDEMIA as the investigation continues.
- An Exempted Micro Enterprise (EME) is a small business in South Africa with an annual turnover of up to R10 million. It is automatically granted a high level of B-BBEE (Broad-Based Black Economic Empowerment) compliance. ↩︎
- A Qualified Small Enterprise (QSE) is a slightly larger business with an annual turnover between R10 million and R50 million. It also qualifies for B-BBEE compliance, but its rating is based on meeting certain criteria or scoring points on a B-BBEE scorecard. ↩︎
