The Special Tribunal has set aside an R85.7 million KwaZulu-Natal tender for an 8km concrete barrier wall along the Mozambique border, after finding that the winning joint venture submitted a fraudulent broad-based black economic empowerment certificate and abandoned the project before completion. The ruling, handed down in April 2026, orders the companies to repay profits and compels the KZN Department of Transport to begin disciplinary action against implicated officials within 30 days.
The tender was awarded to ISF Shula Joint Venture, a partnership between ISF Construction Services and Shula Constructions, to address cross-border vehicle theft and the smuggling of stolen and hijacked vehicles between KwaZulu-Natal and Mozambique.
Despite receiving R84.3 million, the joint venture erected only 5.29km of the planned 8km wall before leaving the site. A second contractor was subsequently appointed at an additional cost of R62 million to complete the remaining 2.71km.
What the court found
The presiding judge found the companies guilty of a “flagrant disregard” of tender rules, citing the submission of a fraudulent B-BBEE certificate as a central element of the fraud.
The court set aside the original award and ordered ISF Shula Joint Venture to submit full income, expenditure and profit statements to the Special Investigating Unit so that the value of recoverable profits can be determined.
SIU responds to the ruling
SIU spokesperson Selby Makgotho said the outcome reflected exactly what the unit’s investigation had uncovered.
“Instead of delivering on this urgent public safety measure, the joint venture submitted fraudulent documents, failed to meet mandatory requirements, and left the project incomplete despite receiving R84m,” Makgotho said.
The total cost to the KZN Department of Transport now exceeds R146 million for a wall that was originally contracted at R85.7 million.
The department has been ordered to finalise disciplinary proceedings against the officials who approved and managed the tender within 30 days of the ruling.
The SIU may pursue further civil or criminal action against the implicated companies and individuals.
