South Africa’s CETA Loses R13M to Failed Biometric System Contracts

South Africa’s Construction Education and Training Authority (CETA) has lost at least R13 million through contracts tied to a failed biometric verification project, according to an investigation by the Sunday Times. The contracts were intended to deliver a biometric system for verifying learners and service providers, but no functional technology was ever delivered despite substantial monthly payments.Photo by Jesús Rocha on Unsplash

Allegations of procurement failures

The biometric system was meant to prevent fraud and ensure that CETA funds were directed to legitimate beneficiaries. Instead, the project reportedly failed to produce working software or hardware. CETA has referred the matter to law enforcement, and officials say they are cooperating fully with the investigation.

One senior official, speaking to the Sunday Times, expressed concern over how the contracts were awarded and the lack of oversight that allowed the losses to occur. Procurement experts have pointed to the case as an example of broader weaknesses in public sector contracting and controls within South Africa’s network of Skills Education Training Authorities (SETAs).

Broader concerns in biometric contracting

The case adds to a growing list of procurement controversies involving biometric technology in South Africa. For instance, Airports Company South Africa’s R380 million contract with Idemia is currently facing a legal challenge and audit review. That contract was intended to deliver biometric passenger processing systems at major airports but has drawn scrutiny after operational failures at OR Tambo International.

Observers say the CETA case underscores the need for stricter procurement oversight and greater transparency, especially for technology projects involving public funds. While biometric systems can offer strong protections against fraud when properly deployed, failed implementations risk wasting money and eroding public trust.

Source: Sunday Times

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By Cass Kennedy