- A R257 million defence contract was unlawfully awarded without bidding, budget, or use.
- The SIU found evidence of fraud and has referred the matter for criminal prosecution.
- The DA demands urgent accountability, including suspensions, prosecutions, and a full parliamentary explanation.
The Democratic Alliance (DA) is appalled by the staggering revelations emerging from the Special Investigating Unit and the Special Tribunal regarding a R257 million contract unlawfully awarded by the Department of Defence to SoftwareONE Experts South Africa (Pty) Ltd.
This is not mere maladministration, it is wholesale financial misconduct, unlawful procurement, and a dereliction of public duty at the highest level.
On 30 April 2025, the Special Tribunal declared that the 2018 award of a Microsoft licensing contract, valued at R257 536 303.41, was unconstitutional, unlawful, invalid, and without legal force. The contract was awarded without competitive bidding, without budgetary provision, and for licences that were ultimately never used.
The SIU found that the contract was concluded in flagrant violation of procurement legislation, with no planning or budgeting conducted for the expenditure. Licences were paid for but never utilised. Suspicious payments were made to third parties. Evidence pointing to possible fraud and criminal conduct has now been referred to the National Prosecuting Authority.
As part of the Tribunal’s order, SoftwareONE must repay all profits earned from this corrupt contract to be determined by an independent expert, subject to SIU review, and possibly further adjudication.
This is a shocking abuse of public money and yet another scandal confirming the deep rot in the Department of Defence. It follows closely on the heels of the President’s recent SIU proclamation into widespread corruption in defence tenders and PPE procurement, and the DPP’s decision to prosecute the SANDF for the grotesque neglect and starvation of military horses in Potchefstroom.
Together, the three latest cases confirm a complete collapse of procurement integrity, internal oversight, and ethical leadership within the Department.
The DA demands that the full legal regime of consequence management now be implemented, including the suspension, disciplinary proceedings, and prosecution of every official implicated in the SoftwareONE debacle.
The Minister of Defence, Angie Motshekga, the Secretary of Defence, the Chief of the SANDF, and the Department’s Accounting Officer must urgently appear before Parliament to explain how such a reckless contract was approved, why no one was held accountable until now, and what corrective procedures are now in place to prevent a recurrence.
This scandal is not just about software, it is about systemic rot. R257 million was flushed down the drain for licences that were not needed, not used, and not legally procured. That is theft by another name.
If the Minister cannot act decisively to clean house, she must step aside. South Africa’s defence readiness cannot continue to be sabotaged by corruption, incompetence, and impunity.