The Special Tribunal has set aside an R85 million Mozambique border wall tender, finding that the contractor used fraudulent documents and abandoned the work after receiving R84 million for the project.
The tribunal set aside the tender awarded to ISF Shula Joint Venture for the construction of a concrete barrier wall along the KwaZulu-Natal-Mozambique border.
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Special Tribunal sets aside KZN-Mozambique border wall contract
The KwaZulu-Natal department of transport commissioned the wall in response to community concerns about widespread cross-border crime. The community was concerned about the smuggling and trafficking of vehicles into Mozambique.
“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 R84 million,” the Special Investigating Unit (SIU) spokesperson, Selby Makgotho, said.
The Special Tribunal confirmed the SIU’s investigation findings. The findings exposed that contractors erected only 5.29km of the planned 8km wall and left associated works unfinished.
This forced the department to tender at an additional cost of R62 million for another company to complete the wall.
The SIU also exposed that the company used a fraudulent broad-based black economic empowerment
(B-BBEE) certificate to secure the tender. It also submitted an expired letter of good standing and failed to comply with financial capacity requirements.
Fake B-BBEE certificate and expired letter
#SIUWorkingForYou| SIU WELCOMES TRIBUNAL RULING TO SET ASIDE MOZAMBIQUE BORDER WALL TENDER
– Special Investigating Unit (SIU) (@RSASIU) April 24, 2026
The Special Investigating Unit (SIU) welcomes the Special Tribunal’s ruling that has set aside the R85 million tender awarded to the ISF Shula Joint Venture for the construction of a… pic.twitter.com/HyPESBMCl9
“The tribunal’s ruling underscores the constitutional imperative that government procurement must be fair, transparent, competitive, and cost‑effective,” Makgotho said.
The SIU said it will work to recover the money it paid to ensure the state gets public funds back.
As part of the order, the tribunal issued a directive to ISF Shula Joint Venture. It must repay all profits it derived from the contract to the SIU. ISF Shula Joint Venture will appoint an independent expert to determine the amount of these profits.
The SIU will also review the findings from this matter. If there is a dispute, the unit will return the case to the tribunal for determination. In addition, the tribunal ordered ISF Shula Joint Venture to pay the legal costs.
“This judgment validates the SIU’s investigation and sends a clear message that fraudulent certificates, misrepresentation, and incomplete delivery will not be rewarded,” Makgotho said.
SIU investigating department of transport
“The SIU will continue to act decisively to protect the integrity of public procurement and restore public trust.”
The SIU was mandated by Proclamation R.16 of 2021, signed by President Cyril Ramaphosa.
It directed the SIU to investigate allegations relating to the KwaZulu-Natal department of transport between 13 July 2016 and 7 May 2021. This included the lawfulness and validity of the border wall tender awarded to the ISF Shula Joint Venture.