The SIU secured a Special Tribunal order to cancel a R257m Defence contract with SoftwareOne due to procurement irregularities. The order, dated 30 April 2025, declared the 2018 Microsoft licensing contract, along with all related agreements, unconstitutional and invalid. The Tribunal ruled that the contract had no legal standing and was awarded without a competitive bidding process, breaching procurement laws.
The SIU found that the Department of Defence procured Microsoft licences without budgetary provision and that the licences were never used. As a result, the Department has been advised to initiate disciplinary action against the officials responsible for the irregular expenditure.
Additionally, the investigation revealed suspicious payments to third parties, raising concerns of possible fraud and corruption. Relevant evidence has been referred to prosecuting authorities.
As part of the Tribunal’s order, SoftwareOne must repay all profits earned from the deal. An independent expert will assess the amount, subject to SIU review and possible Tribunal arbitration if disputes arise. A decision on legal costs will follow the completion of this process.
The investigation, authorised under Proclamation R41 of 2019, focused on software licence acquisitions made by the Department of Defence and Military Veterans between February 2016 and July 2019. The SIU was mandated to probe any unlawful conduct by departmental officials or service providers.
The SIU continues to use its legal mandate under the Special Investigating Units and Special Tribunals Act to address wrongdoing in public procurement and refer evidence of criminal conduct to the National Prosecuting Authority.
