Tag: corruption

Case alleging corruption in parliament’s chamber automation project forwarded to ACC

A case submitted by the Auditor General alleging corruption in the Parliament Chamber Automation Project has been forwarded to the Anti Corruption Commission (ACC).

The audit report of the parliament for 2010 highlighted issues with the MVR 2.1 million (US$136,000) project to install touch screens on every desk inside the parliament chamber.

The case was forwarded to the ACC by parliament after Speaker Abdulla Shahid had informed the parliament secretariat to comply with the request of the Auditor General, a statement by parliament revealed.

The audit report alleges that sufficient assessment was not carried out for the project, despite it being required to have gone through the tender evaluation board.

This resulted in the company awarded the contract to allegedly reap excessive profits due to the oversight.

The project was installed to facilitate viewing documents and to create an almost ‘paperless environment’.

The audit report noted that the project was awarded to a Maldivian company for MVR 1.3 million (US$84,300) on March 25 2010.

Despite being given 37 days to complete the project, the company took a total of 81 days, costing an additional MVR 720,425 (US$46,720) to complete the work.

The report added that additional funds had to be spent on the project because the software requested by the Parliament Secretariat turned out to be incompatible with the hardware used in parliament.

The software, called Thin Client, also turned out to be incompatible with the touch screens and touch keyboards used in the project.

Despite MVR 24,000 (US$1550) being spent on obtaining expert advice, the consultant was not held responsible for the additional money spend on the project.

The mistake led to the 100 Thin Client touch pads being removed and replaced by Nettops.

A company was awarded MVR 830,000 (US$53,617) to provide Nettops after winning a bid to supply the hardware.

MVR 1.3 million (US$84,300) was then paid to the new company for the installation of six servers, eight server switches and 100 touch screens.

The audit report noted that the parliament secretariat had conferred undue advantage to the contractor.

The secretariat did not deduct liquidated damages following the contractor failing to complete the project before the agreed deadline, as required by the Finance Act.

It was instead stated in the contract that the secretariat can decide whether to deduct liquidated damages or not.

Several opinions were included in the report indicating that the project was undertaken without proper studies, and in a manner that was not beneficial to the parliament.

Despite one aim of the project being to create a ‘paperless environment’, the report noted that parliament expenditure on photocopying and toner cartridges had not gone down.

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JP backs hiding of votes during no-confidence motion against President and Home Minister

Jumhoree Party (JP) MP Alhan Fahmy has said that the party supports the motion submitted to the parliament committee by Maldivian Democratic Party (MDP) proposing that votes during the upcoming no-confidence vote filed at the parliament against President and Home Minister be hidden.

Speaking to local press in the Villa TV conference hall, Alhan Fahmy said that his party’s parliamentary group was following instructions from the party’s leader and MP, Gasim Ibrahim.

Alhan said it would be difficult to cooperate with the government unless it gave a fair reason as to why Transport Minister Dr Ahmed Shahmheed was this week dismissed from his position, after he awarded a 99 year lease to Gasim’s Maamagili airport.

Alleging that Dr Shahmheed was dismissed because he did not support every decision made by the President, Alhan questioned why President Waheed had failed to take action against the Nexbis project, and alleged corruption in the recent sale of a 30 percent stake of the Addu International Airport Company Pvt Ltd (AIA) to business magnate ‘Champa’ Hussain Afeef’s Kasa Holdings.

He also alleged that President Waheed was not fair in taking action against those accused of corruption, and noted that Thilafushi Corporation’s Managing Director Mohamed Latheef was dismissed from the position on allegations of corruption but later appointed to another position.

Alhan likewise noted that Felivaru Chairman Mohamed Imthiyaz – a member of the JP – was dismissed on allegations of corruption but said Waheed did not appoint him to another position.

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Former Managing Director of Felivaru faces corruption charges

The Anti-Corruption Commission (ACC) has requested the Prosecutor General’s Office (PGO) press corruption charges against the former Managing Director of Felivaru Fisheries, Hamid Ahmed.

Newspaper Haveeru reported yesterday that Hamid was accused of abuse of authority in selling scrap material from the fish cannery without a bidding process in January this year.

While the agreement stipulated that the transaction should be made in US dollars, the ACC noted that payment was made in local currency.

Following the transfer of presidential power on February 7, Hamid was replaced by an appointee by President Dr Mohamed Waheed.

However, former Secretary General of the Dhivehi Rayyithunge Party (DRP), Hassan Rasheed of G. Sherenade, was appointed Managing Director of Felivaru last week to replace former MD Ali Ahmed, who was sacked from the post after the ACC forwarded a corruption case against the senior official for prosecution.

Former Chairman of Felivaru, Mohamed Imthiyaz, a member of the government-aligned Jumhooree Party (JP), was also dismissed from his post on September 25 following allegations of corruption and misappropriation of funds.

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“We should all party sometime”: young people allege inducements offered to join President’s party

President Mohamed Waheed’s Gaumee Ithihaad Party (GIP) has denied claims the party has been trying to induce people to join through illegitimate means, in a bid to shore up the party’s membership base ahead of a bill that could see smaller parties dissolved.

According to the latest statistics from the Elections Commission (EC), GIP’s current membership base stands at 2,538 members. The draft bill on Political Parties currently in parliament stipulates that parties with membership less than 5000 members after six months of the bill’s passage shall be dissolved by the EC.

A number of young people have come forward and alleged to Minivan News that they were offered government positions, promotions, jobs with salaries of more than MVR 10,000 (US$650) a month, music equipment and even hosted parties to join GIP.

GIP Secretary General Ahmed Mushrif has dismissed the allegations as an “outright lie”, and said that the party from its formation had never attempted to add members illegally.

Allegations of offers

A young Maldivian working in the tourism sector told Minivan News on condition of anonymity that a parliament member and prominent figure in the industry had called him and asked him to sign with GIP “as a favor”.

“He told me that in return for me joining the party, I would be rewarded with a position in the current government that I could never have even imagined. He further tried to convince me that all I needed to do was join the party – I could vote for anybody I wanted,” he said.

Another person who has worked in the civil service for the last 15 years told Minivan News that he was contacted by GIP with a promise that he would “easily be promoted” to a supervisor level job if he joined the party.

“A GIP member called me and told me that I could easily get promoted to supervisor level if I left my current party and joined GIP. Even though I am not an active MDP member I said I would think about it, but later did not respond to his calls,” the civil servant said.

According to the law, it is unlawful for any authority to influence civil servants for political reasons by threatening or offering them employment opportunities.

“We should all party sometime” – Deputy President of GIP

A third person – aged 20 – claimed that he and his group of friends aged around 18 to 22 were approached by GIP through a friend and were invited to the party’s office where they were received by the party’s Deputy Leader  and the Maldives High Commissioner to Malaysia, Mohamed ‘Nazaki’ Zaki.

“When we arrived we were received by ‘Nazaki’ Zaki and treated with pizza. He said that in return for joining GIP, he would offer each of us a job with a salary not less than MVR 10,000, but asked us not to question where the jobs would be allocated from,” the youngster claimed.

Apart from the job, the source alleged that Zaki had offered him and his friends “music equipment and a place to play for free” to those among them who wished to play music. He added that the group were also promised various entertainment activities such as “hosting shows and parties”.

“They asked us to join the party and work in the party’s youth wing,” the source said.

When they asked what they were supposed to do as members of the party’s youth wing, the source said Zaki had told them that their main task  would be to increase the party’s membership as it was “currently very low”.

At the end of the meeting, the high commissioner reportedly suggested the holding of a party event that would be fully funded by GIP.

“They said we should all party sometime. Maybe they said that because we had long hair and looked stylish,” the source suggested.

Zaki was one of the founding members of the opposition Maldivian Democratic Party (MDP). However he resigned from the party in April claiming that the MDP was now focused around former President Mohamed Nasheed and had become a personality-based party.

He later joined GIP and was appointed as its deputy leader.

The opposition MDP had accused Zaki of being involved in corruption in the controversial installation of border control system by Malaysian IT firm Nexbis.

However, Zaki denied the claims, stating that he had only helped facilitate the deal from taking place in his capacity as the High Commissioner to Malaysia.

Minivan News was unable to contact Zaki as he was out of the country at time of press, while President’s Office Media Secretary Masood Imad was not responding to calls.

GIP member Illyas Hussein Ibrahim, the former Immigration Controller and brother-in-law of President Waheed, referred Minivan News to Secretary General Ahmed Mushrif.

Similar remarks

In a leaked audio clip released in August, former CEO of Maldives Ports Limited (MPL) and senior member of GIP Ahmed Faiz was recorded discussing the hiring of individuals to loudly promote President Waheed in local cafes.

Faiz in the audio claimed that he was a “close confidante” of President Waheed, and that he had been given many assignments to help his presidency.

“Not necessarily going out into the streets with huge knives and attacking people, okay? What I want is, for example, when the key people who are involved in this are in a certain place… for example, four or five of these people might be in a coffee-shop.

“You go in there, do you understand? You go and barge in right into the middle, and say, no need to be discreet at all, just say it out loud openly, ‘Hey you (expletive) dogs, this country is being destroyed because of you (expletive). Don’t even think you can do what you please with this country,” he explained in the audio clip.

Similar to Zaki, Faiz also spoke about offering jobs and other benefits at the expense of the state to his audience.

“What I’m saying is, this government is now appointing people to different posts and it’s getting structured in the manner we want. Now there is a lot of things that I can do. Material benefits can be gained, and lots of other things. Credit from STO (State Trading Organisation) worth millions of rufiya, that’s absolutely welcome. Do you get it?

“Then maybe funds are needed for some activity, for example, ‘Please arrange this amount of cash needed for something’. I will get that done. Or perhaps, ‘From this project, give us this amount of money’. Now when it’s put like that, it seems somewhat twisted to me. I tend to see that like cutting a ‘deal’,” Faiz stated.

Following the release of the audio clip, Faiz was sacked from his position in MPL.

Destroying democracy

President of the Anti-Corruption Commission (ACC) Hassan Luthfee said he condemned the unlawful acts carried out by political parties to increase membership figures.

“This is a very serious issue. Actions like these will only destroy the democracy in this country. The purpose of democracy is to exercise the free will of the people in making their political decisions. It is not democracy when a party induces an individual to join a specific political party by unlawful means by offering jobs and money. That is not in within the spirit of democracy,” Luthfee told Minivan News.

He reiterated that politicians should realise that the success of a democracy depends on sincerity.  He also highlighted the challenges faced by the ACC in looking into such allegations.

“The biggest difficulty is that as per the laws of the country, finding substantial evidence is very difficult. Even when we summon a suspected person, would they be honest in giving evidence to the commission?” Luthfee asked.

He further stressed that it was important to have more efficient and stricter laws to address such issues, but said that the ACC is working with the Elections Commission to reduce fraudulent action being carried out by political parties in acquiring members.

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Former DRP Secretary General replaces sacked Felivaru MD

Former Secretary General of the Dhivehi Rayyithunge Party (DRP) and long-serving senior official of the Fisheries Ministry, Hassan Rasheed of G. Sherenade, was appointed Managing Director of Felivaru Fisheries Ltd yesterday, according to local media reports.

Rasheed, currently a member of the Progressive Party of Maldives (PPM), replaces former MD Ali Ahmed, who was sacked from the post after the Anti-Corruption Commission (ACC) forwarded a corruption case against the senior official for prosecution.

Former Chairman of Felivaru, Mohamed Imthiyaz, a member of the government-aligned Jumhooree Party (JP), was also dismissed from his post on September 25 following allegations of corruption and misappropriation of funds.

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Fenaka Corporation takes over four island powerhouses

The government’s utilities company, Fenaka Corporation, signed agreements yesterday to take over four island powerhouses.

At a ceremony yesterday, agreements were signed with the powerhouses of Haa Alif Vashafaru, Meemu Mulaku, Meemu Naalaafushi and Meemu Dhiggaru.

Speaking to press following the ceremony, Fenaka Managing Director Mohamed Nimal said the corporation expected to receive funds in next year’s budget for electricity and water works in 136 islands.

Nimal revealed that the corporation inherited a debt of MVR 472 million (US$30 million). The Progressive Party of Maldives (PPM) member said the corporation has decided to forward a number of corruption cases from the defunct utility companies to the Anti-Corruption Commission (ACC) on Thursday.

A number of projects had been carried out with no documentation or records, Nimal said, including renting an office for the former Northern Utility Company without a bidding process.

Nimal also claimed that 75 percent of Fenaka Corporation’s 1,400 employees were members of the Maldivian Democratic Party (MDP). He added that some MDP members had been sacked due to harassment of staff from other political parties and actions detrimental to the corporation.

In June, President Dr Mohamed Waheed Hassan Manik established Fenaka by presidential decree to take over the seven utility companies, created during the administration of former President Mohamed Nasheed under the ousted MDP government’s policy of dividing the nation into seven provinces for decentralised administration.

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Auditor General accuses senior officials of negligence in embezzlement of MVR 24 million from DMC

The Auditor General’s Office has accused senior government officials of negligence in the alleged embezzlement of MVR 24 million (US$1.6 million) through the Disaster Management Center (DMC) in 2009 and 2010.

In a presentation to parliament’s Finance Committee on Wednesday, Director General Ibrahim Aimon reportedly revealed that the Auditor General’s Office suspected former State Minister Abdulla Shahid, who was in charge of the DMC at the time, along with DMC Director General Mohamed Shahid and Deputy Director General Moosa Ali Kaleyfan as well as former State Minister for Finance Ahmed Assad and Finance Controller Ahmed Mohamed, were culpable in the scam or guilty of gross negligence.

Auditor General Niyaz Ibrahim told members of the Finance Committee that the negligence of the DMC and Finance Ministry in the embezzlement of funds was “very serious.”

Minivan News is seeking comment from the accused senior officials.

ABCs

On October 11, the Auditor General’s Office made public a special audit report (Dhivehi) of an investigation into misappropriation of MVR 24 million from the DMC, uncovered in the centre’s 2010 audit.

In the 2010 audit of the DMC, auditors discovered that payments were made for “hundreds of invoices from 2005”. As the DMC refused to comply with a request for all documentation relating to the transactions, the report noted that the files were eventually obtained from the Finance Ministry.

In 2005, the report explained, the DMC bought construction material for tsunami-related reconstruction from local businesses with “credit purchase order forms.”

The Finance Ministry paid the bills for credit purchases from the “tsunami recovery fund (TFR).”

A company named Allocate Business Company (ABC) was issued “a large number of purchase orders in 2005,” the report found, noting that the company was about a year-old and was not an importer or seller of construction material.

“Therefore invoices for all the purchase order forms released to ABC were submitted under the names of ‘Apollo Hardware Store’ and ‘Apollo Holdings Pvt Ltd,” the report stated, adding that the payments were made to Apollo in 2005 for the ABC purchase order forms.

The invoices submitted by Apollo Hardware and Apollo Holdings included references to the purchase order forms released to ABC, the report noted.

“Therefore it is believed that these two companies are strongly linked,” the report stated.

The scam

Meanwhile, in 2009 and 2010, ABC submitted over 700 new invoices to seek payments from the state with photocopies of the original purchase orders taken from the Apollo invoices.

The audit found that MVR 24,008,503.75 was paid out for 571 of the invoices.

The Finance Ministry prepared payment vouchers for the DMC and made the payments in four cheques between August 2009 and April 2010.

The fourth and final payment of MVR 13 million (US$843,060) was issued on April 27, 2010 for 193 fraudulent invoices.

While over 700 invoices were sent over by the DMC, the report noted that the Finance Ministry rejected 140 invoices worth over MVR 10 million (US$648,508) after the public accounting system showed that payments had already been made.

“Therefore, this showed that ABC attempted to obtain funds using invoices for which payments had been made [to the company],” the report noted.

“From one perspective, ABC was offered the opportunity to embezzle funds so openly because the company knew of the faulty arrangement between the Disaster Management Centre and and Ministry of Finance for issuing funds and took advantage of it. Or [it is because] the scam was carried out with the collaboration of senior officials of the Disaster Management Centre and Ministry of Finance and Treasury.”

Negligence or involvement of senior officials

The report added that the issuing of funds for forged invoices accepted by the public accounting system “raises serious questions regarding the integrity and capability of those entrusted with spending public funds.”

Moreover, the case demonstrated “extreme irresponsibility” on the part of the public officials, the report stated.

Among the reasons listed for suspecting either involvement or gross negligence of senior government officials, the report noted that as a rule public funds were released only for original documents, whereas the invoices in the DMC case contained photocopies of purchase order forms.

The Auditor General’s Office therefore believed that “this was done deliberately and with a plan rather than out of ignorance or because of mistakes.”

The report also noted that it was highly unlikely that either the state would have held payments owed to a private company without any reason or that the company would have waited four or five years to demand payment with no record of complaint or a court case.

The audit further discovered that officials from the DMC met with the state minister for finance regarding the payments to ABC, “however neither minutes nor any documentation of the discussion was maintained for any of these meetings.”

Moreover, the audit found that the Finance Ministry had rejected some invoices forwarded by the DMC that lacked purchase order forms. However, the audit investigation found that a Director General at the DMC instructed an employee to photocopy purchase order forms and attach the bill to the invoices, which were then sent again to the Finance Ministry.

In conclusion, the Auditor General recommended further investigations by the Anti-Corruption Commission (ACC) and Maldives Police Service (MPS) for prosecuting the directors of ABC Pvt Ltd as well as the culpable government officials.

According to local media reports, police have since arrested two individuals in connection with the ongoing investigation into the DMC scam. Police have however not revealed the identity of the suspects in custody.

At a press briefing on Thursday, parliament’s Finance Committee Chair MP Ahmed Nazim said that the committee has decided to summon Prosecutor General Ahmed Muiz and members of the ACC along with Finance Minister Abdulla Jihad and Finance Controller Ahmed Mohamed next week to discuss measures to prevent corruption and misappropriation of public funds.

Finance Controller Ahmed Mohamed is among the officials named by the Auditor General’s Office at the Finance Committee meeting last week.

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Former STO chair’s case passed to PG

The Anti Corruption Commission (ACC) has sent a case concerning former Chairman of State Trading Organisation (STO) Farooq Umar to the Prosecutor General (PG).

The ACC has reportedly said that Farooq accepted a $19,000 (MVR292,800) from a Sri Lankan company.

Farooq also stands accused of using the corporate credit card for personal items, something the STO has said is allowed in emergencies according to its policy. Sun reported that Farooq had told the paper different in a previous interview.

Farooq was removed from his post when President Dr. Mohamed Waheed Hassan reconstituted the boards of government companies after taking office.

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Supreme Court precedent in Nexbis case makes ACC meaningless: ACC President

The Supreme Court of the Maldives last Sunday invalidated the a High Court injunction blocking the implementation of a border control system (BCS) in Ibrahim Nasir International Airport by Malaysia-based security solutions firm Nexbis.

The seven member bench of the Supreme Court invalidated the injunction, stating that “the subject of the injunction was not a subject where an injunction can be issued and thereby the bench of the Supreme Court unanimously rule that High Court order is invalid”.

The decisive ruling ends a long-running legal battle involving Department of Immigration, the Anti-Corruption Commission (ACC) and Nexbis. The ACC had alleged there was corruption in the bidding process.

Following the decision, Controller of Immigration Dr Mohamed Ali stated to local media that the system would soon be fully installed.

“A team of Nexbis staff will be coming over by the end of this week. A large portion of the system has already been installed. I hope we would be able to begin using the system very soon,” the controller said.

He reiterated that the immigration department currently uses a very basic application which has many issues and would also expire by the end of the year.

The new system he said would alleviate the existing problem of long queues and other issues, as well as increase the efficiency of the process.

He further said that when they when the system is implemented and begins functioning, biometrics from all departures and arrivals will be recorded. Afterward, “no one will dare to enter the Maldives illegally.”

“No one can stop the project,” he concluded.

State of limbo

Meanwhile, ACC President Hassan Luthfee has expressed concern and frustration over the Supreme Court decision stating that it has put the commission in a state of limbo deprived it of purpose.

“If this institution is simply an investigative body, then there is no purpose for our presence,” he said. “Even the police investigate cases, don’t they? So it is more cost effective for this state to have only the police to investigate cases instead of the ACC,” Luthfee said.

Referring to the ruling, Luthfee said that the ruling meant that the ACC had no power to prevent corruption, even if it was carried out on a large scale.

“In other countries, Anti Corruption Commissions have the powers of investigation, prevention and creating awareness. If an institution responsible for fighting corruption does not have these powers then it is useless,” he said.

Officials investigated were invoking their right to remain silent, Luthfee said, and refusing to take any responsibility.

“When an official chooses to remain silent, what is the purpose of sending such a case to the Prosecutor General? Who will take the responsibility for the damages caused by such actions?” Luthfee questioned.

He added that even if a local island council or a school engages in a activity that involves in corruption, the Supreme Court precedent meant there was nothing that the ACC could do.

“This is just a simple example. To be frank this is the size of the ACC. The Supreme Court should be a court that should assist the independent institutions formed within the constitutional framework of this country,” he added.

Nexbis and ACC at loggerheads

The border control system at Ibrahim Nasir International Airport has been subjected to several allegations of corruption linked to former Controller of Immigration Ilyas Hussain – brother in law of current President Mohamed Waheed Hassan.

Following the presidential elections of 2008, then President Mohamed Nasheed gave Ilyas Hussain the position of Controller of Immigration as a part of coalition agreement with Waheed’s party, at the time Nasheed’s Vice President

However, when the Nexbis case came to light, former President Nasheed removed Ilyas Hussain from the position and put him as the head of the Disaster Management Centre, replacing him with Abdulla Shahid.

Shahid was a vocal opponent of the Nexbis system, alleging that the terms agreed with the company would deprive the Immigration department of significant revenue for comparatively little return.

The former controller at the time expressed concern over both the cost and necessity of the project, calculating that as tourist arrivals continued to grow Nexbis would earn US$200 million in revenue over the project’s 20-year lifespan.

Comparing Nexbis’ earnings to the government’s estimated revenue from the deal of US$10 million, Shahid suggested the government instead maximise its income by operating a system given by a donor country.

“Border control is not something we are unable to comprehend – it is a normal thing all over the world,” Shahid told Minivan News at the time. “There is no stated cost of the equipment Nexbis is installing – we don’t know how much it is costing to install, only how much we have to pay. We need to get everything out in the open.”

Following the controversial transfer of power on February 7, President Waheed returned Ilyas Ibrahim to his former position as the controller of Immigration.

However as the corruption investigation progressed, President Waheed removed Ilyas Hussain from Immigration and installed him as Minister of State for Defence and National Security, Chief of Staff of the President’s Office Dr Mohamed Ali replaced him as Controller of Immigration.

Nexbis and ACC came to loggerheads the day after signing ceremony between Immigration Controller Ilyas Hussein Ibrahim and Nexbis CEO Johan Yong. The ACC opposed and sought and injunction after stating it had received “a serious complaint” regarding the “technical details” of the bid.

In November 2010, nearly a month after the signing of the agreement, shares of Nexbis dropped 6.3 percent on the back of rumours that the project had been suspended.

The speculations lead to Nexbis announcing that it would seek legal redress against parties in the Maldives, claiming that speculation over corruption was “politically motivated” in nature and had “wrought irreparable damage to Nexbis’ reputation and brand name.”

In August 2011 the Malaysian based mobile security system vendor on the local media threatened to take legal action over the stalled border agreement with the government.

In a letter to then Immigration Controller Abdulla Shahid on August 19, Nexbis complained that it had not received a reply from the Immigration Department to its inquiries after the cabinet decided to proceed with the project.

Nexbis stated in its letter that the company had spent “millions of dollars” to purchase equipment and had even paid import duties to the government, noting that the continuing delays were resulting in financial losses.

ACC filed a court case against the Rf500 million (US$39 million) Nexbis system in November 2011, two days after cabinet decided to resume the project.

The ACC in December also forwarded corruption cases against former Immigraiton Controller Ilyas Hussain Ibrahim and Director General of Finance Ministry, Saamee Ageel to the Prosecutor General’s Office (PG), claiming the pair had abused their authority for undue financial gain in awarding the Nexbis project.

On January 2012, the Civil Court ruled that ACC did not have the legal authority to order the Department of Immigration and Emigration to terminate the border control system contracted to Nexbis in November 2010.

Judge Ali Rasheed ruled that the ACC Act clearly allowed the commission to investigate corruption cases, but did not give ACC legal authority to issue an order which can annul a formal agreement signed between one or more parties.

He asserted that it was “unfair” to the contractors if ACC could annul an agreement without the contractors’ say, adding that such a decision violated the protection granted to the contractors under the Maldives Law of Contract.

Nexbis on February 2012, a week after the controversial transfer of power, filed a lawsuit at the Civil Court seeking Rf 669 million (US$43 million) in damages from former Immigration Controller Abdulla Shahid.

According to the lawsuit, Nexbis alleged Shahid refused to proceed with the project despite court approval and spread false information regarding the agreement to the media, tarnishing Nexbis’ global reputation.

Meanwhile, the Immigration department decided to proceed with the stalled border control system.

On April 2012, the ACC appealed the Civil Court’s ruling in the High Court.

The High Court favoured the ACC and issued an injunction, temporarily halting the roll out of the border control system pending the outcome of the ACC’s appeal against a Civil Court ruling that the ACC did not have the authority to halt the project.

Nexbis then filed an appeal at the Supreme Court against the High Court injunction.

The firm had earlier in May stated that despite the legal complications surrounding the deal, the border control project had completed its first phase, with Rf 10 million’s (US$650,000) worth of installation work having been finished.

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