South African Special Tribunal Sets Aside 86 Million Rand Mozambique Border Wall Tender Over Fraudulent Joint Venture

South Africa's Special Tribunal nullifies a 2026 border wall contract over fraud. Contractors ordered to repay profits from the "sham" joint venture.

By: AXL Media

Published: Apr 16, 2026, 9:08 AM EDT

Source: Information for this report was sourced from Club of Mozambique

The Collapse Of The Border Wall Procurement

The Special Tribunal delivered a significant blow to procurement corruption on April 13, 2026, by setting aside a major tender for an 8km concrete wall on the South Africa–Mozambique border. The contract, valued at 85.7 million rand, was awarded in 2018 to a joint venture between ISF Construction Services and Shula Constructions. Despite receiving 84.3 million rand in payments, the companies failed to complete the wall, forcing the KwaZulu-Natal Department of Transport to issue a secondary 62.2 million rand tender to finish the project. Judge Chantel Fortuin ruled that the original award was "flagrantly unlawful" and represented a total disregard for constitutional procurement standards.

Evidence Of Fraudulent Documentation

The Special Investigating Unit presented evidence that the successful bid relied on forged and expired documents. The tribunal found that the joint venture's B-BBEE certificate—a mandatory requirement for South African state contracts—was false and fraudulently issued. Additionally, the companies submitted an expired letter of Good Standing from the Compensation Commissioner. While the contractors attempted to shift blame to the department’s evaluation committees for failing to catch these discrepancies, Judge Fortuin rejected this defense, stating that the submission of an invalid certificate effectively meant no certificate was submitted at all.

Exposure Of A "Sham" Joint Venture

One of the most critical findings in the case was that the partnership between ISF and Shula was a "sham" designed solely to inflate their Construction Industry Development Board (CIDB) rating. Under South African law, companies can combine their ratings to qualify for higher-value projects. However, Shula Constructions admitted in court papers that it was part of the joint venture "in name only." The companies allegedly intended to secure the large-scale project and then simply divide the work between them rather than operating as a cohesive, high-capacity entity. This admission confirmed the SIU’s allegations of material misrepresentation regarding the joint venture’s actual workings.