ACSA Cancels Biometrics Deal Amidst Contractual Irregularities

Airports Company South Africa (ACSA) has officially terminated its contract with IDEMIA, a French technology firm, which had been managing an automated border control project. This decision comes in light of serious allegations of misconduct, sparking an independent investigation to ensure accountability.

ACSA Cancels Biometrics Deal

ACSA announced the termination in line with its service level agreement, which stipulates a 60-day notice period for the conclusion of ongoing tasks. IDEMIA will have until the end of this period to finalize any outstanding work related to the project. ACSA emphasized that despite ending the contract, the project’s goals remain a priority, as it is integral to the company’s long-term strategy.

Project’s Role in ACSA’s Strategy

The automated border control project, which includes biometric and digital identity technologies, was central to ACSA’s vision of enhancing airport efficiency and customer experience. It aimed to improve security and streamline passenger flow, offering faster, more efficient processing at South African airports.

The project was designed to support both short—and medium-term strategies by seamlessly connecting passengers to their next destinations. ACSA reassured stakeholders that while IDEMIA’s involvement has ended, the project will continue, possibly with a new partner, as it is critical to modernizing airport operations.

Commitment to Good Governance

ACSA reaffirmed its dedication to good corporate governance, transparency, and accountability, particularly in light of the serious nature of the allegations. An independent investigation has been launched to review the contract’s circumstances, ensuring that any misconduct is addressed appropriately. This commitment to integrity is also reflected in ACSA’s ongoing efforts to uphold public trust and maintain ethical business practices.

Suspension of IT Head

The contract termination follows the suspension of ACSA’s IT head on August 8, 2024, after preliminary evidence pointed to potential wrongdoing connected to the border control project. The suspension was a precautionary measure, allowing ACSA to thoroughly investigate the role of internal parties in the alleged misconduct. The IT head’s suspension signals ACSA’s proactive stance in dealing with internal governance issues and ensuring that all parties are held accountable.

Allegations Against IDEMIA

In February 2024, IDEMIA was accused of playing dual roles in its contract with ACSA, acting both as a “referee and player.” This alleged conflict of interest raised concerns, particularly regarding the implementation of biometric and facial recognition technologies and e-gate systems designed to control passenger movement at airports. The accusations suggested that IDEMIA may have had undue influence over the project, which has since led to intensified scrutiny of the contract and its awarding process.

Controversy Surrounding the Contract

The situation was made more complex by accusations that IDEMIA, potentially with internal assistance, obtained a multi-million rand, four-year agreement while disregarding its empowerment partner, InfoVerge Solutions.

InfoVerge, which was initially assumed a 30% share in the project as part of the B-BBEE (Broad-Based Black Economic Empowerment) framework, asserted that it was unfairly left out of the final deal. Both ACSA and IDEMIA refuted any misconduct, stating that the contract had been granted fairly and in accordance with all procedural requirements.

Legal Actions and Court Involvement

In response to these allegations, InfoVerge Solutions took legal action, seeking to have the contract voided. The company argued that it was an integral part of the original project and that its exclusion represented a breach of trust and fairness. This legal dispute has further complicated the situation, with courts now reviewing the contract’s legitimacy and the processes that led to its awarding.

ACSA’s Initial Defense and Procurement Process

In the wake of the controversy, ACSA initially stood by its procurement process, insisting that the contract for the border control project was awarded based on a thorough and transparent evaluation of all bids. The project, which involved the installation of automated e-gates and a single token system for passengers over 60 months, was claimed to have followed all necessary protocols outlined in the request for proposal (RFP) document.

ACSA maintained that every step of the process had been conducted in compliance with public procurement laws.

CIO’s Suspension and Further Investigation

Two days after these accounts emerged, ACSA suspended its Chief Information Officer (CIO) pending investigation. This decision followed a preliminary inquiry that uncovered initial indications of internal participation in the misconduct.

The suspension allows ACSA to conduct a deeper inquiry into the CIO’s actions and the broader issues related to the biometric and digital identity technology project. Once completed, ACSA has promised to release the investigation’s findings to the public.

IDEMIA’s Response to Allegations

In response to the accusations, IDEMIA’s head office in France issued a statement reiterating the company’s commitment to transparency and compliance. IDEMIA stressed that its operations, including the South African border control project, are conducted in accordance with the regulations of the countries it operates in. The company denied involvement in improper conduct and emphasized that it strictly adheres to global legal and ethical standards.

Implications for the Future

The termination of the contract with IDEMIA and the ongoing investigation reflect ACSA’s determination to uphold governance and transparency in its operations. This development also opens the possibility of new partnerships to continue the automated border control project, which remains critical to modernising South Africa’s airports.

With ongoing investigations and legal challenges, the situation continues to evolve, and ACSA’s actions in the coming months will likely shape the future of its border control and biometric technology initiatives.

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