EOH faces R44m fine for delays in home affairs tender

The Department of Home Affairs (DHA) has moved to salvage the controversial multimillion-rand Automated Biometric Identification System (ABIS) tender and slapped technology services company EOH with a R44 million penalty over delays in the implementation of the project.

After months of wrangling and negotiations over the delays, the DHA has fined EOH over the R400 million contract and has recommended it be ceded to a suitable subcontractor.

The department has since approached National Treasury seeking guidance on the matter.

EOH is contesting this penalty and the amount is under dispute.

This is not the first time EOH has been hit with a fine in recent months. In July, the company was penalised R7.5 million by the Johannesburg Stock Exchange (JSE) for publishing false information in its 2017 and 2018 financial results.

The latest details of the fallout between EOH and the department were revealed in Parliament last week by home affairs minister Dr Aaron Motsoaledi, who presented a rescue plan for the ABIS to the portfolio committee on home affairs.

The contract was for EOH to migrate data on the current Home Affairs National Identification System, which only records photos and fingerprints of South African citizens, to the new ABIS.

The final implementation of the system would provide a single source of identification for citizens across state institutions and private sector entities.

The contract was processed and awarded by the State Information Technology Agency on behalf of the DHA.

However, the project was delayed after the missing of master files in the ABIS contract with EOH and a forensic audit is under way into the contract.

Delivery discrepancies

In his presentation to the portfolio committee, Motsoaledi revealed that out of the R400 million contract, R224 million had already been spent on services, infrastructure and software.

He also said in terms of the contract, if there are any delays in the implementation of the project, the DHA reserved the right to levy a penalty for every month of delay.

“In invoking this penalty clause, DHA levied a penalty of R43 973 141.80 against EOH because the project has already been delayed by two years. EOH is contesting this penalty and hence the amount is under dispute. The contract also stipulates that such disputes are to be mediated by a senior counsel appointed jointly by the DHA and EOH Mthombo,” he said.

The joint appointment has already been made and the mediation process is starting this week.

Furthermore, the minister said EOH has taken a decision to exit all government contracts and as part of its exit plan from the DHA contract, EOH is proposing to cede the work to a subcontractor.

“In the event of EOH exiting, the contract still needs to be salvaged because most plans of modernisation of DHA services revolves around ABIS,” Motsoaledi said.

The minister added that the legal opinion obtained by the DHA suggested that ceding is permissible, subject to certain requirements being met.

According to Motsoaledi, after meeting with officials from the Department of Communications and Digital Technologies, it was decided that the DHA proceed with the ceding, provided the cession is approved by National Treasury.

“The DHA has already approached National Treasury for guidance. It is recommended that the portfolio committee notes the decision to cede the ABIS contract to a suitable subcontractor, subject to the finalisation of the negotiations and approval by National Treasury.”

Discord continues

EOH, however, has denied it is quitting government contracts.

A spokesperson says the company has noted the minister’s presentation, adding: “EOH remains committed to the project insofar as the engagements under way present viable options which are commercially sustainable for both parties.

“EOH maintains and intends to maintain its ongoing strategic relationships and engagements with the government insofar as those relationships and engagements are commercially sustainable.”

Further, in terms of the contract, EOH said it is disputing that it is the cause of the delays.

“In this regard, EOH and the DHA are proactively and constructively engaging one another through their respective attorneys with a view to securing an amicable outcome to the difficulties encountered on the Automated Biometric Identification System project to date. There are presently no arrangements or agreements in place concerning the replacement of EOH on that project, whether by cession or otherwise.”

The JSE-listed company has been battling with a myriad challenges − operational and legal.

EOH’s problems surfaced after Microsoft in February last year terminated its contract with the IT services company after an anonymous whistle-blower filed a complaint with the US Securities and Exchange Commission about alleged malfeasance to do with a R120 million contract with the SA Department of Defence.

Ever since, the company has been trying to improve its image after corporate governance issues emerged following an investigation by ENSafrica, which unearthed suspicious transactions worth about R1.2 billion


Warning: new car theft scam in South Africa

Vehicle-tracking company Tracker says it has recently become aware of a car theft scam which is being used by a syndicate in South Africa

Customers are being contacted by the scamsters who are pretending to work for Tracker. They advise the customer that there is something wrong with their tracking device and that they need to come out to repair or replace the device.

Once on-site, the perpetrators will claim that they need to test the device by taking the car for a test drive or they will say that they can’t finalise the repairs on-site and need to take the vehicle back to the fitment centre.

Tracker said that the scamsters have targeted the customers of several vehicle tracking companies, and that this trend was not unique to its customers.

“If you are contacted about repairs to your tracking device by someone claiming to be from Tracker, please ask them to take you through the Tracker security verification questions associated with your account in order to verify the legitimacy of the call.

“If they are unable to do so, advise them that you will need to contact someone at Tracker to verify their claim. If you are still unsure or find the call suspicious please contact our call centre on 0860 60 50 40.”

Tracker said it is important to keep the following in mind:

  • A Tracker technician will never need to nor should they ask to test drive your vehicle;
  • Always check the email address the request is sent from – this is often an immediate give away as the criminals would not be using a tracker.co.za address;
  • You can always confirm the validity of an appointment by contacting our call centre on 0860 60 50 40.

www.vsoftsysyems.co.za


EOH faces R44m fine for delays in home affairs tender

The Department of Home Affairs (DHA) has moved to salvage the controversial multimillion-rand Automated Biometric Identification System (ABIS) tender and slapped technology services company EOH with a R44 million penalty over delays in the implementation of the project.

After months of wrangling and negotiations over the delays, the DHA has fined EOH over the R400 million contract and has recommended it be ceded to a suitable subcontractor.

The department has since approached National Treasury seeking guidance on the matter.

EOH is contesting this penalty and the amount is under dispute.

This is not the first time EOH has been hit with a fine in recent months. In July, the company was penalised R7.5 million by the Johannesburg Stock Exchange (JSE) for publishing false information in its 2017 and 2018 financial results.

The latest details of the fallout between EOH and the department were revealed in Parliament last week by home affairs minister Dr Aaron Motsoaledi, who presented a rescue plan for the ABIS to the portfolio committee on home affairs.

The contract was for EOH to migrate data on the current Home Affairs National Identification System, which only records photos and fingerprints of South African citizens, to the new ABIS.

The final implementation of the system would provide a single source of identification for citizens across state institutions and private sector entities.

The contract was processed and awarded by the State Information Technology Agency on behalf of the DHA.

However, the project was delayed after the missing of master files in the ABIS contract with EOH and a forensic audit is under way into the contract.

Delivery discrepancies

In his presentation to the portfolio committee, Motsoaledi revealed that out of the R400 million contract, R224 million had already been spent on services, infrastructure and software.

He also said in terms of the contract, if there are any delays in the implementation of the project, the DHA reserved the right to levy a penalty for every month of delay.

“In invoking this penalty clause, DHA levied a penalty of R43 973 141.80 against EOH because the project has already been delayed by two years. EOH is contesting this penalty and hence the amount is under dispute. The contract also stipulates that such disputes are to be mediated by a senior counsel appointed jointly by the DHA and EOH Mthombo,” he said.

The joint appointment has already been made and the mediation process is starting this week.

Furthermore, the minister said EOH has taken a decision to exit all government contracts and as part of its exit plan from the DHA contract, EOH is proposing to cede the work to a subcontractor.

“In the event of EOH exiting, the contract still needs to be salvaged because most plans of modernisation of DHA services revolves around ABIS,” Motsoaledi said.

The minister added that the legal opinion obtained by the DHA suggested that ceding is permissible, subject to certain requirements being met.

According to Motsoaledi, after meeting with officials from the Department of Communications and Digital Technologies, it was decided that the DHA proceed with the ceding, provided the cession is approved by National Treasury.

“The DHA has already approached National Treasury for guidance. It is recommended that the portfolio committee notes the decision to cede the ABIS contract to a suitable subcontractor, subject to the finalisation of the negotiations and approval by National Treasury.”

Discord continues

EOH, however, has denied it is quitting government contracts.

A spokesperson says the company has noted the minister’s presentation, adding: “EOH remains committed to the project insofar as the engagements under way present viable options which are commercially sustainable for both parties.

“EOH maintains and intends to maintain its ongoing strategic relationships and engagements with the government insofar as those relationships and engagements are commercially sustainable.”

Further, in terms of the contract, EOH said it is disputing that it is the cause of the delays.

“In this regard, EOH and the DHA are proactively and constructively engaging one another through their respective attorneys with a view to securing an amicable outcome to the difficulties encountered on the Automated Biometric Identification System project to date. There are presently no arrangements or agreements in place concerning the replacement of EOH on that project, whether by cession or otherwise.”

The JSE-listed company has been battling with a myriad challenges − operational and legal.

EOH’s problems surfaced after Microsoft in February last year terminated its contract with the IT services company after an anonymous whistle-blower filed a complaint with the US Securities and Exchange Commission about alleged malfeasance to do with a R120 million contract with the SA Department of Defence.

Ever since, the company has been trying to improve its image after corporate governance issues emerged following an investigation by ENSafrica, which unearthed suspicious transactions worth about R1.2 billion

www.samigration.com


Verification process for refugees under way, says Cape Town Home Affairs

CAPE TOWN - Home Affairs officials have embarked on a verification process of refugees and asylum seekers accommodated in a temporary camp in Bellville, set up for the group who had been protesting for several months in the Cape Town CBD, demanding to be moved to another country.

Home Affairs spokesperson David Hlabane said the operation at emergency shelter at Paint City was to identify and verify the status of the refugees living there.

The Standing Committee for Refugee Affairs and the Refugee Appeals Authority are providing oversight. A similar process was concluded at a facility called Wingfield in Kensington.

But he said refugees and asylum seekers at the camp, who were followers of JP Balous and his wife Aline Bukuru, refused to co-operate.

One of the leaders, Hafiz Mohammed, said the officials “raided” the camp on Thursday and took people to various police stations for the verification process. He said some were allegedly forced to sign forms for reintegration into local communities and after they refused were held in the police station.

“We would like the United Nations High Commissioner for Refugees (UNHCR) to help us move out of the country. They can decide where we can go as long as it is a safe and peaceful country where our children can have a future,” Mohammed said.

He said children had no access to education, even those who were to write matric exams could not do so as their “papers” were not processed.

In October 2019, hundreds of refugees began protest outside the UNHCR offices in St Georges Mall. After they were removed by police, they took refuge at the central Methodist Church where they remained until this year.

Chairperson of the Portfolio Committee on Home Affairs Bongani Bongo said the committee wanted to conclude the verification process as soon as possible so an exit plan that included reintegration into local society would be implemented.

“We are concerned about the condition of the refugees and asylum seekers. But it will be impossible to facilitate their deportation to Canada or any other country. Those who want to go to Canada will have to go back to their original countries”, Bongo said.

UNHCR spokesperson Kate Pond said refugees and asylum seekers had the right to choose if and when to return to their country of origin. She said the UNHCR was “ready to support reintegration into the communities, or repatriation for those who choose to do so and in a dignified manner


Home affairs committee unhappy about refugees’ living conditions at Cape Town temporary shelters

 

Parliament's portfolio committee on home affairs is not happy about living conditions at temporary shelters for refugees in Cape Town.

The committee visited the Wingfield and Paint City temporary sites on Saturday. The refugees spent months holed up in the Central Methodist Church in the CBD after a protracted protest at UN offices — in  a bid to be moved to other countries. They were moved to the sites to prevent the spread of Covid-19 when the pandemic reached SA’s shores.

“The conditions are abysmal, with no social distancing and no adherence to regulations prescribed by the declared state of national disaster. The conditions place the lives of the refugees in danger and do not conform to the generally accepted living standards for human beings,” Mosa Chabane, the acting chairperson of the committee, said in a statement.

The committee expressed concern about the increasing number of people at the sites, “which brings into question the bona fides of some of the members of the group”.

It felt the accommodation of refugees at the “sites is unsustainable especially in the context of the non-existence of encampment policy in SA”. It also expressed concern about the conditions women and children are exposed to at the sites and called for reintegration.  

“The committee re-emphasises its call for reintegration of the refugees into communities they were in before the protests. It also said a comprehensive exit plan that includes reintegration into society must be urgently implemented through co-operative stakeholder action,” Chabane said.

The committee re-emphasised its call for deportation of refugees back to their home countries after all proper provisions of the law have been followed in cases where integration is impossible, it said.

It also urged the department of home affairs to urgently complete individual refugee verification status of all the refugees housed at the temporary sites.

After the visit, the committee said it would invite the refugee appeal board to “ascertain impediments that stand in the way of processing appeals lodged as per the refugee appeal board rules”.       

Papy Sukami, chairperson of the refugees community in Western Cape, shared the committee’s sentiments. He described the conditions at the sites as a catastrophic.

“The conditions we are facing now are another xenophobic act,” said Sukami.

“Those marquees were just erected there, no mattresses and blankets were provided. Some NGOs and churches brought some blankets during winter but we have not been cared for by the authorities. There is no social distancing here. This is another form of xenophobia. We are calling on the UN to intervene and solve this situation. It is the UN’s responsibility. They cannot just leave us to the SA government. SA has got its own problems — problems of unemployment and housing.”