Special Tribunal sets aside R257m DoD contract

The Special Investigating Unit said in a statement on Wednesday.

The Tribunal’s order, dated 30 April 2025, declared that awarding the contract was unconstitutional, unlawful and invalid.

Tribunal also issued an order stating that the department's 2018 award of a Microsoft licensing contract to SoftwareOne should be reviewed and annulled.

"The SIU's investigation found that in 2018, the department procured Microsoft licences from SoftwareOne valued at over R257 million without following a competitive bidding process.

"The procurement was conducted in violation of applicable laws, no budgetary provision had been made for the purchase, and the licences were ultimately not utilised by the department."

The SIU recommended that the department take disciplinary action against officials responsible for the irregular expenditure.

The investigation also uncovered suspicious payments to third parties.

"Evidence pointing to criminal contact as well as potential fraud and/or corruption has been referred to the relevant prosecuting authority,

"As part of the order, SoftwareOne has been directed to repay all profits it derived from the contract to the SIU," the statement read.

The SIU was also authorised to investigate the procurement of Microsoft software licences by the Department of Defence and Military Veterans between 1 February 2016 and 12 July 2019.

The SIU said it will refer any evidence of criminal conduct uncovered during its investigation to the National Prosecuting Authority.

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