The Constitutional Court has ruled in favour of the Home Affairs Department following its cancellation of a digital record capturing tender of R1.5 billion.
Minister Dr Aaron Motsoaledi says that the tender had been awarded to three companies, including New Dawn, Valor IT and Ideco.
But Treasury then alerted the department that it did not have the money to pay the service providers.
New Dawn and Valor IT had claimed that they were owed R 502 million and R28 million respectively despite not having a contract cementing the agreement.
The Constitutional Court had found the company’s application “lacks reasonable prospects of success.
Minister Motsoaledi intends recommending that Treasury blacklists these companies from doing any business with the State.