AA welcomes investigation into smart driving licence procurement process

The Auditor-General's probe will address critical concerns raised over the appointment of IDEMIA for South Africa's new smart driving cards.

2 hours ago

Nelson Kgarose 2 minutes read

The Automobile Association (AA) has expressed its approval of the Minister of Transport’s decision to expand an investigation into the procurement process for South Africa’s smart driving licence cards. This audit will be conducted by the Auditor-General (AG) and aims to address numerous significant issues highlighted by the AA and other civic organisations.

Earlier this week, the Department of Transport (DoT) announced that French multi-national technology firm IDEMIA Identity and Security had been appointed as the preferred bidder for producing the new smart driving cards. However, this announcement sparked concerns surrounding IDEMIA’s involvement, particularly in light of the recent cancellation of a contract the company held with the Airports Company of South Africa (ACSA) just days prior to the DoT’s confirmation.

In response to these concerns, Transport Minister Barbara Creecy requested that the AG broaden the scope of the ongoing audit to include an examination of the following key matters:

1. Whether supply chain management prescripts were meticulously adhered to.
2. Whether the project specifications adequately safeguarded personal data, given the sensitive nature of the information involved.
3. The implications of ACSA’s contract cancellation with IDEMIA due to a dispute with its BBBEE partner, InfoVerge.
4. Whether IDEMIA’s technical capacity and ability to deliver on time were thoroughly evaluated, following allegations of difficulties experienced at three airports where IDEMIA’s biometric system was employed by the Border Management Authority.
5. Whether other South African service providers participated in the tender process, including those connected with the Government Printing Works, and the reasoning behind their non-selection.
6. Whether the chosen bidder represented the most cost-effective option.

Also read: Automobile Association questions Department of Transport’s choice of IDEMIA for smart driving licences

“This is, naturally, a positive development and highlights the important role organisations such as the AA and others have in holding government departments accountable,” stated the AA. “Huge amounts of public funds are at stake, and it is critical that the public has complete trust in the process and its outcomes. The DoT and other government departments have a duty to justify the selection of specific entities, not only in terms of the expenditure involved but also regarding how these entities are better suited than local suppliers to provide products and services.”

The Department of Transport appointment of French technology company IDEMIA Identity and Security as the preferred bidder to produce new smart driving licence cards for the country, has raised more questions than answers. Read full article here: https://t.co/U4tX31E0Nq pic.twitter.com/grnQIPesDe

— AA South Africa (@AASouthAfrica) September 4, 2024

The AA also acknowledged concerns raised by the Organisation Undoing Tax Abuse (OUTA), which indicated that the Driving Licence Card Account (DLCA) – responsible for managing the new smart driving licence procurement – had been informed that its allocated budget of R468 million was insufficient to accommodate IDEMIA’s initial bid of R762 million, which has reportedly escalated to approximately R898 million. OUTA noted that the DLCA’s response suggested the budget was established, ‘without the knowledge of the actual costs of the equipment’.

“This is yet another red flag in a growing list of problems with this process. We therefore welcome the Minister’s request for the AG to prioritise its audit and investigation and await with keen interest the AG’s findings,” the AA concluded.