
The Special Tribunal has set aside a R257 million Microsoft tender that was unlawfully awarded to Softwareone Experts South Africa (Pty) Ltd (SoftwareOne) by the Department of Defence in 2018.
The ruling follows an investigation by the Special Investigating Unit (SIU), which found that the Department procured Microsoft licences from SoftwareOne, valued at over R257 million, without following a competitive bidding process.
The procurement process was found to have violated all applicable laws, as no budgetary provision had been made for the purchase, and the costly licences were ultimately not utilised by the Department.
As a result of these findings, the SIU has recommended that the Department take disciplinary action against officials responsible for the irregular expenditure. The investigation also uncovered suspicious payments to third parties, and evidence pointing to criminal conduct, as well as potential fraud and corruption, has been referred to the relevant prosecuting authority.
According to a statement from the SIU, as part of the order, SoftwareOne has been directed to repay all profits it derived from the contract to the SIU.
“An independent expert will be appointed by SoftwareOne to determine the amount of these profits. The SIU will review the findings, and if there is a dispute, the matter will be referred back to the Tribunal for determination. The issue of legal costs will be decided once this process is complete,” the SIU said in the statement.
The SIU was authorised, under Proclamation R41 of 2019, to investigate the procurement of Microsoft software licences by the Department of Defence and Military Veterans between 1 February 2016 and 12 July 2019.