MEDIA STATEMENT
Johannesburg, Tuesday, September 03, 2024 - Department of Transport's Decision to Award IDEMIA as Preferred Bidder for Driving Licence Cards Raises Serious Concerns
The recent announcement by the Department of Transport (DoT) to appoint IDEMIA, a French technology firm, as the preferred bidder for the contract to print new driving licence smart cards in South Africa, has raised significant concerns regarding transparency, rationality, and adherence to ethical procurement practices.
Transparency and Accountability in Question
The Department’s decision comes at a time when IDEMIA is embroiled in a series of controversies that question the firm's integrity and reliability. Just days prior to this announcement, IDEMIA’s contract with Airports Company South Africa (ACSA) was terminated due to alleged irregularities in the tender process. Furthermore, IDEMIA's history in South Africa is tainted by its involvement in a project with the Department of Home Affairs, where significant delays and non-performance led to the withholding of payments and the imposition of fines on the company. Despite these red flags, the Department of Transport has proceeded with the appointment, citing a "thorough and transparent process," which, given the circumstances, seems far from convincing.
Rationality and Economic Sense Abandoned
More critically, the decision to continue with a standalone driving licence card is irrational and uneconomical. The national identity smartcard, already in circulation, has the capability to incorporate multiple functionalities, including driving licences, firearm licences, and payment systems for public transportation fees, for instance. This integrated approach was initially promised to South Africans when the smartcard concept was introduced in the early 2000s. By opting for a separate driving licence card, the Department is not only squandering public resources but also undermining a more efficient and user-friendly solution that would serve the nation better.
Ignoring Public Outcry and Ethical Standards
It is deeply troubling that the Department of Transport has ignored public concerns about engaging with companies like IDEMIA, which carry a significant burden of past misconduct. Oberthur Technologies, which merged with Morpho in 2017 to form IDEMIA, was debarred by the World Bank for two and a half years due to "corrupt and collusive practices" during the installation of an identification system in Bangladesh. The fact that IDEMIA is not currently on the National Treasury's blacklist should not overshadow the ethical implications of partnering with a firm that has been involved in corrupt practices.
Call to Action
We urge the Department of Transport, a critical cog of the government of national unity, to immediately halt the current procurement process and reconsider its decision in favour of a more transparent, rational, and cost-effective solution that aligns with the government's original vision for a smartcard system. Persisting with IDEMIA, despite its tainted history, not only tarnishes the Department's credibility but also sends a damaging message that corrupt practices and unethical conduct will be tolerated in South Africa's public sector.
The public deserves better, and it is the Department’s duty to ensure that all procurement processes are conducted with the utmost integrity, transparency, and in the best interest of the nation.
Public Interest SA will explore all available avenues to prevent this apparent procurement malpractice and the blatant abuse of public trust and resources.
END
Image credit: News24
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