SA's Beitbridge fence saga rages on

The Special Investigating Unit (SIU) has moved to enforce a January judgment of the Supreme Court of Appeal (SCA) that blocks contractors from retaining profits earned through the controversial R40 million Beitbridge border fence project, signalling renewed efforts to recover public funds lost through irregular Covid-19 procurement.

Although the ruling was delivered last month, the SIU on Friday outlined its implications and confirmed that consequence-management processes are now being activated to ensure full implementation.

SIU spokesperson Kaizer Kganyago said the judgment "vindicates the rule of law and protects public funds from unjust enrichment".

"This judgment reinforces the SIU's mandate to ensure consequence management and accountability in public procurement," Kganyago said.

The matter relates to unlawful contracts worth approximately R40 million awarded in March 2020 to Caledon River Properties (Pty) Ltd, trading as Magwa Construction, and Profteam CC by the National Department of Public Works and Infrastructure. The contracts were for the construction of a 40-kilometre razor-mesh fence along the South Africa–Zimbabwe border at Beitbridge during the Covid-19 National State of Disaster.

The contracts were awarded without a competitive bidding process, in violation of section 217 of the Constitution and Treasury Regulations. The contractors received advance payments of about R21.8 million before substantial work was completed. Public outrage later followed after sections of the fence collapsed shortly after construction.

Kganyago said the SCA had affirmed the principle that "no party should profit from unlawful conduct".

"The court upheld the position that contractors who were active participants in irregular procurement processes must be denied profit," he said.

In July 2020, President Cyril Ramaphosa authorised the SIU, through Proclamation R23 of 2020, to investigate Covid-19 procurement across government. The SIU's investigation uncovered serious procurement irregularities and led to litigation before the Special Tribunal.

In March 2022, the Tribunal declared the Beitbridge fence contracts constitutionally invalid and ordered that the contractors be stripped of any profits, limiting recovery to reasonable and proven expenses only. The High Court dismissed the contractors' appeal in December 2023, confirming the Tribunal's ruling.

The SCA refused special leave to appeal in April 2024 and, in January 2026, dismissed a further reconsideration application under section 17(2)(f) of the Superior Courts Act, effectively exhausting the contractors' avenues for appeal at that court.

Kganyago said the latest ruling "closes the door on any further appeal at the SCA".

"The order enforces the implementation of the SIU's investigation outcomes and consequence management to recover financial losses suffered by the State as a result of negligence or corruption," he said.

Under the order, the contractors have 30 days to submit audited financial statements and a debatement of accounts. The SIU and the Department of Public Works and Infrastructure will then appoint experts to assess the reasonableness of the claimed expenses, after which any identified profits must be repaid to the department.