South Africa probes $3 billion police software scandal amid fraud allegations

South Africa is facing renewed scrutiny over alleged large-scale procurement irregularities, as the Madlanga Commission comes under pressure to investigate claims that the South African Police Service (SAPS) may have been defrauded of more than R50 billion ($3 billion) through controversial software contracts.

The allegations, contained in an affidavit submitted by the Busisiwe Mkhwebane Foundation, center on the Property Control and Exhibit Management (PCEM) system, an internal SAPS platform used to manage firearms, forensic evidence, and laboratory exhibits.

Disputed ownership of police software

According to the foundation, SAPS paid private firms billions of rand for access to software it had originally developed in-house, effectively ceding control of its own intellectual property over an extended period.

At the core of the claims is an assertion that three private companies secured control of the PCEM system through irregular contracts, enabling them to license the platform back to the police. The firms involved have not publicly responded, and attempts to reach them were unsuccessful.

The Madlanga Commission, which is probing broader allegations of corruption and criminality within South Africa’s justice system, confirmed receipt of the submission but declined to comment on the details of the investigation.

Legal challenge and abandoned review

The affidavit draws on findings from the late deputy national police commissioner Sindile Mfazi, who had challenged the legality of the contracts in a 2018 court application, arguing that the agreements were fraudulent and seeking to restore ownership of the system to the state.

That legal challenge was abandoned following his death in July 2021, with no senior SAPS officials continuing the case.

The foundation alleges that Mfazi’s investigation uncovered evidence of “criminal conduct, non-compliance with legal obligations, and maladministration,” and has urged the commission to examine why the review process was halted.

Forensic findings raise further concerns

Additional support for the claims comes from a forensic investigation led by IT specialist Lithisha Frances Richardson, who was initially appointed by one of the companies to validate its ownership of the software.

Following a review spanning approximately five years, covering corporate records, source code, financial data, and internal communications, Richardson reportedly concluded that the companies were involved in a scheme that stripped the state of its intellectual property rights.

The foundation argues that under South Africa’s copyright laws, ownership of the PCEM system should reside with the state, given that it was developed under SAPS direction, funded with public resources, and built with direct input from police personnel.

Broader corruption risks

The affidavit also references testimony from a former SAPS officer, later employed by one of the firms, who stated that the system was conceptualized and developed internally by police staff as far back as the early 1990s.

The Busisiwe Mkhwebane Foundation has called on the commission to fully investigate the alleged scheme, warning that the case could expose deeper systemic weaknesses in SAPS procurement processes and broader governance failures within the justice system.