DoT seeks to scrap R898m driving licence tender over irregularities exposed by AGSA, with the Department of Transport filing a high court application in July to set aside the controversial contract awarded to French firm IDEMIA for a new printing machine, following findings of procurement flaws including inspections of the wrong equipment in the wrong countries.
The move comes amid ongoing woes in South Africa’s driving licence system, where the ageing current printer has broken down at least 160 times in its over 25-year lifespan, leading to massive backlogs and public frustration. The Auditor-General of South Africa (AGSA) flagged multiple issues in the tender process, prompting Transport Minister Barbara Creecy to act decisively in a bid to restore integrity and efficiency to the Driving Licence Card Account (DLCA). As of 11 August 2025, the backlog stood at 539,947 unprocessed licence applications, highlighting the urgency for a reliable solution while the legal battle unfolds.
In September 2024, French multinational IDEMIA was announced as the preferred bidder for the R898 million tender to procure a new driving licence card printer, aimed at modernising South Africa’s outdated system. The DLCA, an entity under the DoT responsible for printing driving licence cards, led the procurement. However, the award sparked instant controversy, with civil society group Organisation Undoing Tax Abuse (OUTA) raising alarms over alleged irregularities. OUTA’s detailed report, submitted to Creecy on 5 September 2024, highlighted discrepancies such as a cost inflation from an initial Cabinet-approved budget of R486.385 million to R898.597 million, omission of printing material costs, and use of outdated pricing.
Creecy swiftly referred the matter to the AGSA for investigation, which expanded an ongoing audit. The AGSA’s interim report, released in March 2025, confirmed serious flaws: the bid evaluation committee (BEC) inspected the wrong model of machine (MX8100 instead of the tender-specified MX8100 variant) in the wrong countries (Netherlands and France, while specifications pointed to Greece and the Czech Republic). The report noted that the BEC was told it could inspect personalisation processes in Morocco or Burkina Faso, but filings do not indicate this was done. Furthermore, bids were not evaluated according to criteria, with insufficient scoring and non-compliance overlooked.
The AGSA also criticised the DLCA for expanding its inspection to unrelated hardware and failing to justify proceeding with the incorrect model. All received bids exceeded the budget, yet IDEMIA scored zero on a key criterion but was still awarded the contract.
High Court Application and Declaratory Order
In March 2025, Creecy released a summary of the AGSA report and instructed the DoT to lodge a high court application for a declaratory order to review and set aside the tender. The department finally filed its founding affidavit in the Pretoria High Court last month (July 2025), detailing the bungled process. The application seeks guidance on the legal interpretation of facts and asks to outsource printing to the Department of Home Affairs’ Government Printing Works (GPW) until the tender is re-advertised or resolved.
As of August 2025, neither the DoT nor IDEMIA has provided updates on the case since the filing. OUTA’s Wayne Duvenage expressed frustration over the delay: “It’s mind-boggling that six months later, nothing has been done and the country is left to suffer.” DoT spokesperson Collen Msibi confirmed readiness: “We finalised our court papers in the past two weeks and are ready to apply for a declaratory order.”
IDEMIA maintains it won legitimately and is open to dialogue. Spokesperson Friederike Lyon stated: “While some of the findings pertain to matters beyond our scope, others directly concerning Idemia Smart Identity do not reflect the reality of our operations. We remain fully committed to working with the government to clarify any issues.”
Current Printer Crisis and Interim Measures
The urgency stems from the decrepit state of the existing printer, over 25 years old and prone to breakdowns – at least 160 incidents recorded. This has caused a backlog of 539,947 applications by 11 August 2025, per a Sunday Times report. In July 2025, the DoT signed a memorandum of understanding with GPW to produce licences as an interim fix, expected to take effect within three months. GPW, under Home Affairs, already handles passports and smart IDs, making it a logical stopgap.
Creecy has also broadened AGSA probes to include ACSA’s cancelled deal with IDEMIA for digital boarding gates at nine airports.
Broader Implications and OUTA’s Role
OUTA has been instrumental, praising Creecy for scrapping the tender but urging full accountability. The group exposed how IDEMIA got zero points on a criterion yet won, and the cost hike. Duvenage said: “The Auditor-General took our concerns seriously, and we commend Minister Creecy for acting on them.”
This scandal reflects systemic procurement issues in South Africa, where tenders often face delays and corruption allegations, eroding public trust. If set aside, the tender will be re-advertised, potentially delaying a new printer further. Motorists continue to suffer, with licence renewals backlog exacerbating road safety concerns. The court outcome could set precedents for handling flawed tenders, emphasising transparency in public spending.
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