Home Affairs: Two companies to be BARRED from working with govt

Home Affairs Minister Dr Aaron Motsoaledi says he intends writing to National Treasury to request that two companies which recently lost a ten year court battle against his department, be blacklisted from doing any work with government.

Three companies – New Dawn, Valor IT and Ideco were awarded a R1.5 billion tender with the Department of Home Affairs, but the department could not go ahead with the contract as National Treasury said it did not have the money.

New Dawn and Valor IT then took the matter to court in 2010 demanding R602 million and R28 million from government respectively, but their bids were not successful and eventually landed at the Constitutional Court. In another blow, the highest court in the land dismissed the application after it found that the application “lacks reasonable prospects of success. Consequently, it has decided that the leave to appeal must be refused with costs.

HOME AFFAIRS MINISTER WELCOMES CONSTITUTIONAL COURT RULING

Dr Aaron Motsoaledi has welcomed the Constitutional Court ruling and also slammed both New Dawn and Valor IT for pursuing the matter, despite having not signed any contract with the Department of Home Affairs.

“It baffles the mind that the two companies could pursue the State for this huge amount of money, going right up to the Constitutional Court, despite knowing that they had never provided any service to the department,” Motsoaledi said.

But the matter isn’t exactly over – the minister has instructed the department to pursue legal costs against the companies.

“We are aware that it is the Constitutional right of individuals and companies to utilise the various courts of the country in pursuit of justice. However, we believe it is sheer opportunism, bordering on theft and corruption, for anybody to demand State money when they didn’t provide any services. We strongly discourage this kind of behaviour.”

Home Affairs Minister Aaron Motsoaledi