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Losing smart ID bidder could go to court

A losing bidder of the smart ID card tender could pursue legal steps, claiming the tender process was unfair.

Marin'e Jacobs
By Marin'e Jacobs
Johannesburg, 09 Sept 2013
The Competition Commission says it is in the final stages of finalising its investigation into the smart ID card tender process.
The Competition Commission says it is in the final stages of finalising its investigation into the smart ID card tender process.

A project management and consulting company, which has requested an investigation into the smart ID card tender process, after not being awarded the contract, says it will proceed with legal proceedings if the matter cannot be resolved internally.

Grant Son, CEO of Batho Phahameng Consulting, laid a complaint with the auditor-general, the Competition Commission and the presidency after his firm was disqualified from the R40 million tender to provide printing equipment for the new smart IDs, even though Son's company scored the same number of points as the winning bidder.

Competition Commission spokesperson Themba Mathebula says the complaint has "gone through a screening process" and the investigation, which commenced on 22 July, is currently being finalised. "The commission will comment on findings once the case is completed."

In May, the Department of Home Affairs awarded a R40 million contract to Altech Card Solutions, a division of listed communications giant Altech, to provide the Government Printing Works with card personalisation equipment. Meanwhile, a contract estimated to be worth R199 million was awarded to Gemalto Southern Africa to supply pre-printed polycarbonate cards, containing a contactless microchip.

Points probe

According to the bid documents, Altech and Batho Phahameng both scored 98 during the tender process - 90 for price points and eight for BEE points. However, the scorecard notes that Batho Phahameng's documents "were not completed in full".

Son says he is "stunned" as to how Altech scored the same BEE points as his company. "The calibration used to qualify and score us the same is worrisome. We are 100% B-BBEE, with 60% belonging to a black woman. All our directors and employees are black."

According to Altech Information Technologies' National Empowerment Rating Agency scorecard, the company has a Level 2 B-BBEE status. Altech spokesperson Chris van Zyl says the Altech board has a total of 13 members, of which two are black females and three are black males ? one of whom, Moss Leoka, is Altech chairman.

Son is also questioning how Altech's technical documents were accepted, as he claims it was exactly the same as Batho Phahameng's technical bid. Batho Phahameng was using Altech as its technical partner for the supply of the card personalisation equipment, and Son says the department and bid adjudicators were of this agreement.

"The adjudicator also knew and approved our previous submission for the technical document submitted. We are aggrieved that the adjudicator did not contact us during the final phase of submission to clarify the "three tick boxes" which were not ticked. That was basically the deciding factor for the adjudicator to disqualify us on 'incomplete technical submission'."

Son says he has received a letter from president Jacob Zuma, who has promised to personally look into the matter. "Once we've received his feedback and feedback from the NPA, auditor-general and Competition Commission, we will then be able to proceed with legal proceedings.

"It's rather unfortunate that Government Printing Works decided to go this route, as Altech as our technical partner would still have done the core work pertaining to this tender."

The smart ID card was officially launched in July with the issuing of former president Nelson Mandela's card. Rollout to the general public has started with first-time document applicants and senior citizens.

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