MPs concerned about Home Affairs` contract for visas

Source: News24, 12/03/2019

Chief director of immigration services at the department Richard Stolz
said the extension of the contract `was legally provided for`. He said
there would have been an `immense` reputational risk to the department
if there was a discontinuity in their operating model.
But MPs are highly critical of the deal.
DA MP Haniff Hoosen said it destroyed job creation in South Africa
because the deal meant that several local companies providing visa
services had to close their doors.
ANC MP and chairperson of the Portfolio Committee on Tourism Lusizo
Sharon Makhubela-Mashele, who also attended the meeting, likened it to
the South Africa Social Security Agency`s (Sassa`s) controversial
dealings with CPS.
Committee chairperson Hlomani Chauke also subscribed to this idea.
`The extension creates a perception of another Cash Paymaster Services
(CPS), which was the only service provider at the South Africa Social
Security Agency said to have the capacity to render services. It is
even more concerning that the department has extended the scope of
work of VFS to establish services in countries it did not have
previously,` Chauke said in a statement released after the meeting.
Several MPs said it seemed like the law was amended to deliberately
give VFS Global a monopoly.
`Maybe, if we can`t conclude these issues, we must refer it to the
Zondo commission [into state capture]. It is part of state capture,`
Chauke said.
`Deliberately, you have amended legislation to create this monopoly.
It killed all the small players.`
After being castigated by the committee, deputy director general of
immigration services Jackie Mckay said: `We note all of the issues
that are raised here.`
He acknowledged that it was not the first time that the committee had
raised it.
`We take note of it.`
He said before the contract expired, they had started with an open
tender process, but in April last year received a legal opinion to not
follow such a process.
`That threw a spanner in the works,` Mckay said.
`We have no interest in who is delivering the service, as long as the
service is delivered to us.`
Mckay said `serious, serious capacity problems` had been the bane of
his existence.
`We just don`t have the staff.`
He said they had approached Treasury on several occasions, to no
avail. This did little to appease the committee.
In his statement, Chauke said the committee would like to hear from
Cwele about the possibility of going out on an open tender process and
his plans to build capacity within the department to quickly process
visa applications.
Cwele will be expected to respond to the committee within a week to
ensure that the matter is dealt with before Parliament rises.
`While the committee acknowledges that Parliament has no right to
inform the department on whom to contract for services, it would be a
dereliction of its duty if it did not highlight cases where the
department is deliberately breaking its own rules and guidelines,`
read the statement.
`It is even more concerning that capacity in key tourism markets, such
as Nigeria and India, is lacking, leading to few processed
applications impacting on the numbers of tourists coming into the
country,` Chauke said.
VFS Global describes itself as the `world`s largest outsourcing and
technology services specialist for governments and diplomatic missions
worldwide` on its website.
`The company manages the administrative and non-judgmental tasks
related to visa, passport, identity management and other citizen
services for its client governments. This enables them to focus
entirely on the critical task of assessment.`
The company`s headquarters are in Dubai, its parentage is Swiss and it
is a portfolio company of EQT, a global private equity firm
headquartered in Stockholm, Sweden.
Last week, the committee also asked Cwele to investigate the
department`s contract for the automated biometric identification
system with technology company EOH.