Johannesburg - A company which has lost two Constitutional Court battles to administer the licensing of all vehicles, and learners’ and driving licences through the eNatis system is accused of defying those orders.
Four months ago, the Constitutional Court ordered Tasima to hand over the services and the electronic National Traffic Information System (eNatis) to the Road Traffic Management Corporation, an entity of the Department of Transport.
The Constitutional Court ruling on 9 November ordered that the parties should agree on an alternative transfer management system within 10 days of the ruling, or the eNatis system must be transferred in accordance with the original contract within 30 days.
The ruling came after the court found that the extension of Tasima’s contract from May 2010 to April 2015, which cost the government more than R2.5-billion, had been illegally awarded and was in contravention of Section 217 of the Constitution and the Public Finance Management Act.
The matter in dispute was the eNatis system which linked the Department of Transport with all licensing institutions in the country, the South African Police Service, manufacturers of vehicles and various institutions, including banks.
The system enables the department to regulate and administer the licensing of all vehicles in the country, learners’ and drivers’ licences, vehicle roadworthiness tests and the general implementation of road traffic legislation.
Contract expired
The two parties initially agreed on a valid contract on June 1, 2002, in which Tasima operated the eNatis of behalf of government for a fee of R355 million over a period of five years. That contract expired in May 2007.
The two parties also agreed that upon termination of the 2002 contract, Tasima would transfer operation of the eNatis to the government.
Instead, no transfer negotiations took place, but Tasima entered into a month-to-month agreement which continued until April 2010.
During March 2010, Tasima asked for the extension of the contract, while former transport director-general George Mahlalela was at the helm, following the resignation of Mpumi Mpofu in October 2009.
Mahlalela is due to appear in the Pretoria Specialised Commercial Crimes Court on March 30, along with former transport minister and ambassador to Australia S’bu Ndebele and three others on charges of corruption and fraud.
Irregular extension
Tasima’s contract was extended from May 2010 to April 2015 at a cost of R2.5 billion over a period of five years. This was due to the fact that Tasima was now charging the department R50 million per month, earning more than R2.5 billion from a contract whose original price was R355 million.
The Constitional Court found that the extension of the contract was done without following proper procurement processes in accordance to the Public Finance Management Act.
The court also found that the contract extension was in breach of Section 217 of the constitution. Based on this irregularity, it ruled against Tasima.
However, The Sunday Independent understands that Tasima, despite the Constitional Court ruling, then demanded a collective payment of R120 milion from the government before it would comply with the order.
Some of the amounts allegedly claimed were for services rendered after the illegal contract had expired in 2015.
Favourable order
In a bid to recover the funds allegedly owed to it, sources said Tasima initially approached the Constitutional Court for the settlement of the alleged debt, but the court dismissed its urgent application.
In the order dated 8 February an unanimous Constitutional Court judgment ruled: “The Constitutional Court has considered this urgent application for direct access. It has concluded that the application should be dismissed as it bears no prospects of success.”
The next day, 9 February, Tasima won a favourable order in the high court, which ordered the Department of Transport to pay Tasima R30 million within two days.
The department then appealed against the high court ruling.
The Sunday Independent understands that on 26 February Tasima wrote another letter to the government stating it would only agree to a migration plan or transfer of eNatis if all technical aspects and payments owed to it were settled.
Tasima spokesman Trevor James denied allegations of wrongdoing on the part of the company, saying: “It is the state and its officials that have, repeatedly, been found to be in contempt of court and have acted unlawfully in this matter.
“All these issues may have to be addressed in court proceedings in due course and it is important not to subvert any legal process.”
Engaged in talks
RTMC spokesperson Simon Zwane said the government entity was still engaged in talks with Tasima with the hope of finding a solution.
Gauteng MEC for Roads and Transport MEC Ismail Vadi’s office confirmed some of the licensing centres in Gauteng were affected by the shutdown in February.
While the government and Tasima were involved in a legal wrangle various parts of the country, especially in Gauteng, experienced a shutdown of eNatis services.
All the other provinces were also affected.
However, things returned to normal this week.
One of the sources said the legal wrangle between the two parties and the collapse of the eNatis system could affect the registration of new cars by banks and it could also lead to the flourishing of unroadworthy vehicles on the road.
“The biggest risk was that the personal information of more than 12 million motorists could end up in wrong hands,” the source said.