News South Africa

SIU hails Constitutional Court ruling against R40m Beitbridge fence contractors

Hope Ntanzi|Published

The SIU says the Constitutional Court has dismissed final appeals by contractors linked to the unlawful R40 million Beitbridge border fence tender awarded during the Covid-19 state of disaster period.

Image: Henk Kruger

The Constitutional Court has dismissed applications for leave to appeal by two contractors seeking to overturn findings related to the unlawful R40 million Beitbridge border fence tender awarded during the Covid-19 State of Disaster.

The Special Investigating Unit (SIU) said the court found that the applications by Profteam CC and Caledon River Properties, trading as Magwa Construction, did not engage its jurisdiction and refused leave to appeal with costs.

SIU spokesperson Selby Makgatho said the ruling effectively brings the long-running legal battle to an end and confirms earlier findings against the contractors.

“The SIU welcomes the Constitutional Court’s refusal of leave to appeal as a final affirmation of accountability in this matter,” Makgatho said.

The court decisions follow a series of rulings, including a January 2026 judgment by the Supreme Court of Appeal, which also rejected attempts by the contractors to challenge earlier findings.

Makgatho said the outcome reinforces that the Beitbridge contracts were unconstitutional and marred by procurement irregularities. 

“These judgments reinforce the principle that no party may profit from irregular and unlawful procurement, and they vindicate the SIU’s mandate to protect public resources,” he said.

The SIU found that the contracts, worth about R40.4 million, were awarded without a competitive bidding process in contravention of section 217 of the Constitution and Treasury regulations.

The contractors were paid about R21.8 million upfront before substantial work was done, and the fence later deteriorated shortly after completion.

Makgatho also said the contracts were awarded in March 2020 by the Department of Public Works and Infrastructure for the construction of a 40km razor-wire fence along the Beitbridge border between South Africa and Zimbabwe.

Makgatho said President Cyril Ramaphosa authorised the SIU to investigate the Covid-19 procurement in July 2020, which uncovered irregularities and led to proceedings before the Special Tribunal.

''In March 2022, the tribunal declared the contracts invalid and ordered that the contractors be stripped of profits, allowing only the recovery of reasonable and proven expenses.

''The High Court upheld this ruling in December 2023, while the Supreme Court of Appeal refused leave to appeal in April 2024 and dismissed a reconsideration application in January 2026,'' he said.

Makgatho said the SIU would continue to pursue accountability.

“In line with the Special Investigating Units and Special Tribunals Act, the SIU will refer any evidence of criminal conduct uncovered during its investigation to the National Prosecuting Authority for further action,” he said.

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