The Organisation Undoing Tax Abuse (OUTA) has raised concerns that South Africa’s plans to update driving licence cards may have hit a speed bump due to delays in the tender process.
Since the latest tender process started in February this year, the Department of Home Affairs has been producing licence cards for the Department of Transport to address the renewal backlog.
Despite the application process ending in March, the department has yet to announce the preferred bidders or provide any additional updates regarding its plans.
As a result, OUTA CEO Wayne Duvenage expressed his organisation’s concern that the tender application process may have “hit a snag”.
He added that OUTA believes the current tender is being handled by the Driving Licence Card Account (DLCA), with the Department of Transport pushed out after not awarding the tender by 31 July.
“This means they will have to get permission from the qualifying tenderers to hold their prices for a few more months,” the CEO explained.
“This suggests there is some inefficiency unfolding with the new card machine tender, which is a serious concern.”
Should this be the case and the procurement process has run into trouble, the department’s plans to issue new licence cards could be delayed even further.
According to Duvenage, the latest tender application process looked similar to previous processes, with the winning tender offers ultimately cancelled.
He warned that delays in implementing new driving licence card production may also affect the recent Cabinet-approved licence card validity extension.
While Duvenage remains hopeful that the extension could be fast-tracked, he explained that it may depend on the new licence card rollout.
Our sister publication, BusinessTech, has reached out to the department for updates on the driving licence card tender and the licence card extension.
No response was received by the time of publication, but it will be added once received.
Still no new driving licence cards
The current driving licence cards in use in South Africa have remained unchanged since 1998, with Provida, a joint venture, as the original printer.
While meant to last only five years, the agreement with Provida was extended illegally for years, until in 2015, the driving licence card printer was handed over to the DLCA.
The group has remained in control of producing driving licence cards in South Africa using the same machine it inherited in 2015.
This same machine has experienced several breakdowns over the years due to its age, causing frequent backlogs in licence renewals.
The former Transport Minister, Fikile Mbalula, announced plans in 2022 to issue a new driving licence card to motorists in South Africa, as well as new machinery that would produce them.
He said that the new card would feature advanced safety measures similar to the country’s smart ID, aligning it with global licence standards and making it easier for motorists to travel abroad and drive on foreign roads.
A prototype design for the licence was approved by Cabinet in the same year, allowing the Department of Transport to begin the procurement process to find a supplier.
Over the years, this process had several major issues, starting shortly after the French group Idemia won the tender for the cards.
OUTA was one of the entities that recognised irregularities in the tender, which was awarded in 2024, and presented its concerns to the current Minister of Transport, Barbara Creecy.
The irregularities included inflated costs from Idemia, with the High Court declaring the award invalid and setting it aside for re-publishing.
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