Close Menu
TechCentralTechCentral

    Subscribe to the newsletter

    Get the best South African technology news and analysis delivered to your e-mail inbox every morning.

    Facebook X (Twitter) YouTube LinkedIn
    WhatsApp Facebook X (Twitter) LinkedIn YouTube
    TechCentralTechCentral
    • News
      Gaping holes in South African government cyber defences

      Gaping holes in South African government cyber defences

      2 April 2026
      EV charging start-up Charge bypasses JSE for token-based raise - Joubert Roux

      EV charging start-up Charge bypasses JSE for token-based raise

      2 April 2026
      Ring, reject, repeat: South Africa's spam call crisis

      Ring, reject, repeat: South Africa’s spam call crisis

      2 April 2026
      Four astronauts begin humanity's return to the moon - Artemis II

      Four astronauts begin humanity’s return to the moon

      2 April 2026
      Sars to give every taxpayer a digital identity in sweeping tech overhaul

      Sars to give every taxpayer a digital identity in sweeping tech overhaul

      1 April 2026
    • World
      Amazon in talks to buy satellite operator Globalstar

      Amazon in talks to buy satellite operator Globalstar

      2 April 2026

      Apple plans to open Siri to rival AI services

      27 March 2026
      It's official: ads are coming to ChatGPT

      It’s official: ads are coming to ChatGPT

      23 March 2026
      Mystery Chinese AI model revealed to be Xiaomi's

      Mystery Chinese AI model revealed to be Xiaomi’s

      19 March 2026
      A mystery AI model has developers buzzing

      A mystery AI model has developers buzzing

      18 March 2026
    • In-depth
      The R18-billion tech giant hiding in plain sight - Jens Montanana

      The R16-billion tech giant hiding in plain sight

      26 March 2026
      The last generation of coders

      The last generation of coders

      18 February 2026
      Sentech is in dire straits

      Sentech is in dire straits

      10 February 2026
      How liberalisation is rewiring South Africa's power sector

      How liberalisation is rewiring South Africa’s power sector

      21 January 2026
      The top-performing South African tech shares of 2025

      The top-performing South African tech shares of 2025

      12 January 2026
    • TCS
      TCS | MTN's Divysh Joshi on the strategy behind Pi - Divyesh Joshi

      TCS | MTN’s Divyesh Joshi on the strategy behind Pi

      1 April 2026
      Anoosh Rooplal

      TCS | Anoosh Rooplal on the Post Office’s last stand

      27 March 2026
      Meet the CIO | HealthBridge CTO Anton Fatti on the future of digital health

      Meet the CIO | Healthbridge CTO Anton Fatti on the future of digital health

      23 March 2026
      TCS+ | Arctic Wolf unpacks the evolving threat landscape for SA businesses - Clare Loveridge and Jason Oehley

      TCS+ | Arctic Wolf unpacks the evolving threat landscape for SA businesses

      19 March 2026
      TCS+ | Vox Kiwi: a wireless solution promising a fibre-like experience - Theo van Zyl

      TCS+ | Vox Kiwi: a wireless solution promising a fibre-like experience

      13 March 2026
    • Opinion
      The conflict of interest at the heart of PayShap's slow adoption - Cheslyn Jacobs

      The conflict of interest at the heart of PayShap’s slow adoption

      26 March 2026
      South Africa's energy future hinges on getting wheeling right - Aishah Gire

      South Africa’s energy future hinges on getting wheeling right

      10 March 2026
      Hold the doom: the case for a South African comeback - Duncan McLeod

      Apple just dropped a bomb on the Windows world

      5 March 2026
      VC's centre of gravity is shifting - and South Africa is in the frame - Alison Collier

      VC’s centre of gravity is shifting – and South Africa is in the frame

      3 March 2026
      Hold the doom: the case for a South African comeback - Duncan McLeod

      Hold the doom: the case for a South African comeback

      26 February 2026
    • Company Hubs
      • 1Stream
      • Africa Data Centres
      • AfriGIS
      • Altron Digital Business
      • Altron Document Solutions
      • Altron Group
      • Arctic Wolf
      • Ascent Technology
      • AvertITD
      • BBD
      • Braintree
      • CallMiner
      • CambriLearn
      • CYBER1 Solutions
      • Digicloud Africa
      • Digimune
      • Domains.co.za
      • ESET
      • Euphoria Telecom
      • HOSTAFRICA
      • Incredible Business
      • iONLINE
      • IQbusiness
      • Iris Network Systems
      • Kaspersky
      • LSD Open
      • Mitel
      • NEC XON
      • Netstar
      • Network Platforms
      • Next DLP
      • Ovations
      • Paracon
      • Paratus
      • Q-KON
      • SevenC
      • SkyWire
      • Solid8 Technologies
      • Telit Cinterion
      • Telviva
      • Tenable
      • Vertiv
      • Videri Digital
      • Vodacom Business
      • Wipro
      • Workday
      • XLink
    • Sections
      • AI and machine learning
      • Banking
      • Broadcasting and Media
      • Cloud services
      • Contact centres and CX
      • Cryptocurrencies
      • Education and skills
      • Electronics and hardware
      • Energy and sustainability
      • Enterprise software
      • Financial services
      • HealthTech
      • Information security
      • Internet and connectivity
      • Internet of Things
      • Investment
      • IT services
      • Lifestyle
      • Motoring
      • Policy and regulation
      • Public sector
      • Retail and e-commerce
      • Satellite communications
      • Science
      • SMEs and start-ups
      • Social media
      • Talent and leadership
      • Telecoms
    • Events
    • Advertise
    TechCentralTechCentral
    Home » Sections » Public sector » R1.5-billion IT tender: Home affairs to seek blacklisting, damages

    R1.5-billion IT tender: Home affairs to seek blacklisting, damages

    By SANews28 December 2021
    Twitter LinkedIn Facebook WhatsApp Email Telegram Copy Link
    News Alerts
    WhatsApp
    Home affairs minister Aaron Motsoaledi

    Home affairs minister Aaron Motsoaledi has welcomed a constitutional court judgment dismissing an application challenging the cancellation of a R1.5-billion electronic document management system contract.

    The minister has now instructed the department of home affairs to pursue legal costs against technology companies New Dawn and Valor IT, which date back to 2010 when the initial claim was filed. He said he also plans to write to national treasury to request that the two companies be blacklisted from doing business with the state.

    “This is not vindictiveness but is a warning to individuals and companies who believe that they can receive millions in public funds via spurious litigation,” said Motsoaledi.

    The department of home affairs said the matter started when it wanted to digitise its records.

    We believe it is sheer opportunism, bordering on theft and corruption…

    “In terms of the law, the State IT Agency (Sita) had to issue a tender looking for a service provider on behalf of the department,” it said. The tender had initially been awarded to three companies: New Dawn, Valor IT and Ideco.

    “But before any contract could be signed or service-level agreement could be finalised, national treasury warned that there was no money for such a huge tender. As a consequence, home affairs could not go ahead with this contract,” said the department.

    It said that Ideco understood the position of government and “let matters rest there”. However, said home affairs, “New Dawn and Valor IT somehow decided they were entitled to state money in this regard and litigated against the department for R602-million and R28-million respectively”.

    Dismissed

    The constitutional court last week dismissed the application after it found that the application “lacks reasonable prospects of success. Consequently, it has decided that the leave to appeal must be refused with costs.”

    “Because of litigation by these two companies, the department’s audited contingent liability shot up to R2.1-billion in the 2019/2020 financial year,” home affairs said. This, it said, was automatically flagged by the auditor-general as a risk.

    The department said if it had not successfully defended the litigation and the money had become payable, the budget of the department would have been severely impacted. However, the department said in this case it “vigorously defended the matter and contended that there was no contract signed”.

    The minister said: “It baffles the mind that the two companies could pursue the state for this huge amount of money, going right up to the constitutional court, despite knowing that they had never provided any service to the department.

    “We are aware that it is the constitutional right of individuals and companies to utilise the various courts of the country in pursuit of justice. However, we believe it is sheer opportunism, bordering on theft and corruption, for anybody to demand state money when they didn’t provide any services. We strongly discourage this kind of behaviour.”

    Follow TechCentral on Google News Add TechCentral as your preferred source on Google


    Aaron Motsoaledi Ideco New Dawn Valor IT
    WhatsApp YouTube
    Share. Facebook Twitter LinkedIn WhatsApp Telegram Email Copy Link
    Previous ArticleChina lays complaint at UN over Musk’s Starlink satellites
    Next Article China to build four mega data centre clusters

    Related Posts

    Biometrics boss slams home affairs over R10 ID query fee

    Biometrics boss slams home affairs over R10 ID query fee

    7 July 2025
    Visa chaos threatens investment in South Africa

    Visa chaos threatens investment in South Africa

    6 November 2023

    Home affairs fires IT chief for ‘gross negligence’

    24 August 2022
    Company News
    Synthesis helps financial enterprises transform with new Gemini Enterprise - Digicloud Africa

    Synthesis helps financial enterprises transform with new Gemini Enterprise

    2 April 2026
    The next churn wave is already in your contact centre conversations - CallMiner

    The next churn wave is already in your contact centre conversations

    2 April 2026
    Mining's problem isn't output, it's execution - Workday

    Mining’s problem isn’t output, it’s execution – Workday

    1 April 2026
    Opinion
    The conflict of interest at the heart of PayShap's slow adoption - Cheslyn Jacobs

    The conflict of interest at the heart of PayShap’s slow adoption

    26 March 2026
    South Africa's energy future hinges on getting wheeling right - Aishah Gire

    South Africa’s energy future hinges on getting wheeling right

    10 March 2026
    Hold the doom: the case for a South African comeback - Duncan McLeod

    Apple just dropped a bomb on the Windows world

    5 March 2026

    Subscribe to Updates

    Get the best South African technology news and analysis delivered to your e-mail inbox every morning.

    Latest Posts
    Gaping holes in South African government cyber defences

    Gaping holes in South African government cyber defences

    2 April 2026
    EV charging start-up Charge bypasses JSE for token-based raise - Joubert Roux

    EV charging start-up Charge bypasses JSE for token-based raise

    2 April 2026
    Ring, reject, repeat: South Africa's spam call crisis

    Ring, reject, repeat: South Africa’s spam call crisis

    2 April 2026
    Amazon in talks to buy satellite operator Globalstar

    Amazon in talks to buy satellite operator Globalstar

    2 April 2026
    © 2009 - 2026 NewsCentral Media
    • Cookie policy (ZA)
    • TechCentral – privacy and Popia

    Type above and press Enter to search. Press Esc to cancel.

    Manage consent

    TechCentral uses cookies to enhance its offerings. Consenting to these technologies allows us to serve you better. Not consenting or withdrawing consent may adversely affect certain features and functions of the website.

    Functional Always active
    The technical storage or access is strictly necessary for the legitimate purpose of enabling the use of a specific service explicitly requested by the subscriber or user, or for the sole purpose of carrying out the transmission of a communication over an electronic communications network.
    Preferences
    The technical storage or access is necessary for the legitimate purpose of storing preferences that are not requested by the subscriber or user.
    Statistics
    The technical storage or access that is used exclusively for statistical purposes. The technical storage or access that is used exclusively for anonymous statistical purposes. Without a subpoena, voluntary compliance on the part of your Internet Service Provider, or additional records from a third party, information stored or retrieved for this purpose alone cannot usually be used to identify you.
    Marketing
    The technical storage or access is required to create user profiles to send advertising, or to track the user on a website or across several websites for similar marketing purposes.
    • Manage options
    • Manage services
    • Manage {vendor_count} vendors
    • Read more about these purposes
    View preferences
    • {title}
    • {title}
    • {title}