OUTA CEO Wayne Duvenage
OUTA CEO Wayne Duvenage urges swift resolution in South Africa’s driver’s licence card machine tender scandal.
In a sharp critique of government procurement processes, Organisation Undoing Tax Abuse (OUTA) CEO Wayne Duvenage has slammed the tender for South Africa’s new driver’s licence card printing machine as being plagued by inefficiencies, manipulation, and outright irregularities. This comes amid revelations that a Department of Transport (DoT) delegation inspected the wrong equipment in the wrong countries—France and the Netherlands instead of the Czech Republic and Greece—before awarding a nearly R900 million contract to French firm IDEMIA. The DoT is now in court seeking to invalidate the deal following damning findings by the Auditor-General of South Africa (AGSA), while a massive backlog of over half a million unprocessed licence applications continues to frustrate motorists nationwide. Duvenage stressed the need for quick action, noting that stability in the system is crucial for millions of drivers facing ongoing delays and disruptions.
The Controversial Tender Award: From Promise to Scandal
The saga began in September 2024 when the Driving Licence Card Account (DLCA), an entity under the DoT, awarded the R898.597 million tender to IDEMIA for a new high-tech printing machine aimed at modernising South Africa’s outdated driver’s licence system. The contract was intended to replace the ageing single printer, over 25 years old and prone to frequent breakdowns—recording at least 160 failures in its lifespan—leading to persistent backlogs and public outcry. However, OUTA quickly flagged serious issues, submitting a detailed report to Transport Minister Barbara Creecy on 5 September 2024, highlighting cost inflation from an initial Cabinet-approved budget of R486.385 million to nearly double that amount, omission of printing material costs, and reliance on outdated pricing.
Creecy referred the matter to the AGSA, which expanded its audit and released an interim report in March 2025 confirming multiple procurement flaws. Key irregularities included the Bid Evaluation Committee (BEC) inspecting the wrong model of machine—the MX8100 instead of the specified MX8100 variant—in incorrect locations (Netherlands and France, rather than Greece and the Czech Republic). The AGSA noted that the BEC was informed it could view personalisation processes in Morocco or Burkina Faso, but no evidence showed this occurred. Bids were not evaluated per criteria, with non-compliance overlooked, and all submissions exceeded the budget—yet IDEMIA, which scored zero on a key criterion, was still selected.
Duvenage described the process as “riddled with inefficiencies and manipulation,” emphasising how the delegation’s misguided inspections exposed fundamental flaws. “The tender process for South Africa’s driver’s licence card machine was riddled with inefficiencies and manipulation,” he said, urging resolution as “stability in the system is vital for millions of motorists.”
Court Action to Set Aside the Contract: DoT’s Bid for Accountability
In response to the AGSA findings, Creecy announced in March 2025 that the DoT would seek a high court declaratory order to review and set aside the tender. The department filed its founding affidavit in the Pretoria High Court in July 2025, arguing that irregularities invalidated the award to IDEMIA. The application seeks guidance on legal interpretations and proposes outsourcing printing to the Government Printing Works (GPW) under the Department of Home Affairs as an interim measure until a new tender is advertised.
DoT spokesperson Collen Msibi affirmed readiness: “We finalised our court papers in the past two weeks and are ready to apply for a declaratory order.” IDEMIA, however, defends the award, with spokesperson Friederike Lyon stating: “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.”
OUTA has praised Creecy for acting but criticised delays, with Duvenage noting in May 2025: “It’s mind-boggling that six months later, nothing has been done and the country is left to suffer.” Public Interest SA and others support the legal move, seeing it as essential for restoring trust in procurement.
The Ongoing Crisis: Massive Backlogs and Interim Fixes
The tender debacle has exacerbated South Africa’s driver’s licence woes. As of 11 August 2025, the backlog stood at 539,947 unprocessed applications, a figure that has ballooned due to the old printer’s unreliability. Motorists face long waits, with some licences expiring amid delays, leading to fines and safety concerns on roads.
In July 2025, the DoT signed a memorandum of understanding with GPW to produce licences temporarily, expected to start within three months. GPW, which handles passports and IDs, is seen as a logical bridge, though its own capacity issues could pose challenges.
Creecy has also expanded AGSA probes to include Airports Company South Africa’s (ACSA) cancelled deal with IDEMIA for digital boarding gates, signalling broader scrutiny of the company’s contracts.
OUTA’s Pivotal Role: Exposing Flaws and Demanding Change
OUTA has been at the forefront, with its September 2024 report triggering the AGSA investigation and court action. Duvenage commended Creecy in July 2025 for scrapping the tender but urged full accountability: “The Auditor-General took our concerns seriously, and we commend Minister Creecy for acting on them.” In January 2025, he stated there was “enough evidence to cancel,” frustrated by delays as the backlog grew.
OUTA’s involvement underscores its watchdog role, having exposed similar issues in e-tolls and other tenders. Duvenage’s recent interviews, like on Newzroom Afrika, emphasise the need for transparency to prevent such fiascos.
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