SIU loses electronic ankle bracelet appeal case
THE Special Investigations Unit (SIU) was dealt a blow when it could not show the Supreme Court of Appeal (SCA) how Engineered System Solutions (ESS) was in breach of contract, after it was awarded a tender for an ankle bracelet pilot project.
The SIU, representing the Department of Correctional Services, was unsuccessful in its appeal for a review application, brought from the North Gauteng High Court in Pretoria, which had to rule on the validity of the decisions taken by the department.
The project – which had to last for a year – eventually cost R14.6 million after three contract extensions, after the initial tender amount of R6.5m.
In August 2016, the department stopped paying ESS for its services, claiming breach of contract, while it nevertheless expected ESS to continue to render the services.
ESS was awarded a tender for the electronic management system (EMS) ankle bracelet system, which would monitor offenders who had been released on parole and/or remand detainees who had been placed under supervision.
The review application was brought in 2016, after the President issued a proclamation into certain allegations relating to irregularities in the procurement of an electronic monitoring system and payments relating thereto.
The SIU alleged that its investigation revealed a number of irregularities in the procurement processes relating to tenders awarded to ESS by the department, in relation to the EMS.
In her judgment, acting Justice Nolwazi Mabindla-Boqwana said: “The appellants have failed to show non-compliance with statutory prescripts, the tender specifications or misrepresentation, on all three challenges.
“Even if non-compliance were to be remotely shown in some instances, the degree is not so egregious as to invalidate the procurement process or the contracts concluded.
“Assessed in terms of the appellants' prospects of success in the review application, such prospects were bleak or poor…
“The prejudice that would be caused to ESS and other service providers goes without saying,” Judge MabindlaBoqwana said.