Legal & Risk: What Businesses Need to Watch

2026‑09‑09 – Legal & Risk: What Businesses Need to Watch

In a week that saw the launch of new foldable flagships, banks grappling with passport‑booking bottlenecks, and a decade‑long digital‑migration project still unfinished, three stories stand out for their hidden legal fallout. Below is what most companies overlook, together with concrete compliance steps a CLO should consider.

---

1. Foldable Flagships – Beyond the Buzz

As reported by TechCentral in “Huawei, Xiaomi crash Apple’s party with new foldable flagships,” two South African competitors have entered the premium handset arena. While the headlines focus on market share, the legal implications run deeper.

• Product‑Safety & Standards Compliance

Every import of electronic equipment into South Africa must comply with SABS (South African Bureau of Standards) safety and labeling requirements. Failure to meet these standards can expose a distributor to civil liability under the Product Liability Act and even criminal sanctions for non‑compliance.

• Intellectual‑Property Risk

Huawei’s and Xiaomi’s designs may infringe on patents held by other parties, especially in the foldable‑screen technology space. A supplier or retailer that sells unlicensed products could be exposed to litigation under South African IP law (the Patents Act, 1990).

• Data‑Privacy Considerations

Modern smartphones routinely collect biometric and location data. If a business equips employees with these devices for work, the company must ensure that any data processing complies with POPIA (Protection of Personal Information Act 4 of 2013). A breach or inadequate consent could lead to significant fines under the amended POPIA penalty regime.

Compliance Actions

• Conduct an SABS conformity assessment before stocking or distributing new models.
• Run a patent‑risk review against the devices’ key features; secure licenses where necessary.
• Update your IT asset policy to include POPIA‑compliant data‑handling clauses and employee training on privacy responsibilities.

---

2. Passport Slot Shortage – Customer Data Under Pressure

The MyBroadband article “Passport booking slot shortage at banks so bad that people recommend just going to Home Affairs” highlights a crisis in service delivery through the eHomeAffairs platform. When banks cannot provide adequate appointment slots, several legal lines are cut.

• Consumer‑Protection Breach

Under the Consumer Protection Act (CPA), service providers must ensure that “reasonable expectations of service quality” are met. Systematically denying or delaying passport appointments could be deemed a failure to meet this standard, opening the door to CPA claims and statutory damages.

• POPIA Compliance Stress‑Test

The eHomeAffairs system processes vast amounts of personal data (identification numbers, addresses, biometric images). Overloading the platform may lead to data breaches or non‑compliance with lawful processing principles, inviting sanctions under POPIA’s Section 35(3)(a) and potential civil liability.

• Financial Intelligence Centre Act (FICA) Implications

Passport applicants provide sensitive identification data that must be verified for anti‑money‑laundering purposes. Interruptions in service can impair KYC verification, potentially exposing the bank to FICA penalties.

Compliance Actions

• Implement a contingency plan: designate alternate appointment channels (e.g., dedicated Home Affairs queues or third‑party booking portals) and clearly communicate these to clients.
• Review and reinforce POPIA governance around data handling for passport processing—ensure encryption, access controls, and breach notification procedures are robust.
• Conduct periodic FICA compliance audits to verify that the system’s delays do not compromise KYC obligations.

---

3. Digital‑Migration Waste – Governance on a White Elephant

“R1.85 billion wasted on white elephant that is still not finished after 25 years,” as per MyBroadband, underscores a massive fiscal misstep in the Broadcast Digital Migration (BDM) programme. The legal consequences are not limited to public finances.

• Public Finance Management Act (PFMA) Scrutiny

Government‑funded projects must undergo transparent procurement and reporting. A project that remains incomplete after 25 years signals a potential breach of PFMA’s duty to ensure efficient use of state resources, subjecting responsible officials to disciplinary action under the PFMA (and possibly the Corruption Prevention Act).

• Contractual Risk for Contractors

Firms contracted for equipment supply or construction face risks if payment schedules are altered or delayed. Breach of contract claims can arise under the South African Companies Act and Civil Procedure Act, especially if indemnity clauses have not been negotiated.

• Broadcasting Rights & Licensing Issues

The BDM transition involves significant changes to content distribution rights. Providers that supply broadcasting equipment must confirm compliance with the Broadcasting Act 2000; non‑compliance could invalidate licensing agreements or trigger regulatory enforcement by the Independent Communications Authority of South Africa (ICASA).

Compliance Actions

• Demand independent audits of PFMA compliance and require a formal risk assessment report on remaining project milestones.
• Ensure all contractor agreements contain clear payment triggers, liquidated damages clauses, and force‑majeure limitations that reflect the program’s long timeline.
• Verify that any broadcasting equipment supplied is ISO‑certified for digital terrestrial transmission and meets ICASA licensing requirements.

---

Key Takeaways

• Device imports must pass safety tests, respect IP, and adhere to POPIA data rules.
• Banks facing appointment shortages need robust consumer‑protection strategies and strengthened POPIA/FICA governance.
• Long‑running public projects demand strict PFMA oversight, solid contract terms, and licensing compliance.

These hidden legal threads can quietly erode a company’s risk profile if left unattended.

---