A top South African court has ruled that the government may be held liable in cases where public contracts are tainted by corruption, a local newspaper reported on Saturday.

The Supreme Court of Appeal ruling covered a case that dates back to 1994, when technology firm 3D-ID failed to win a government contract to supply fingerprint identification systems and comes as the ANC battles corruption in its ranks.

3D-ID protested the government’s decision but its appeals were rejected by officials and the firm was eventually liquidated after losing several court challenges.

Then, in 1996, the contract with 3D-ID’s competitor was cancelled when authorities discovered senior officials had been bribed and colluded with the rival company to help it win a deal valued at around R100 million.

The appeals court ­ the second highest in the country ­ on Friday ruled that 3D-ID’s liquidators had the right to claim compensation from the government due to these irregularities, the weekend newspaper reported.

The amount of the damages has yet to be determined.

The decision potentially holds significant implications for the government, which has been plagued by graft scandals in the 12 years since the end of apartheid.

President Thabo Mbeki ­ who has acknowledged corruption as a challenge to his administration ­ last year fired his deputy Jacob Zuma after his former financial adviser, Shabir (sic - Schabir) Shaik was found guilty of having a corrupt relationship with Zuma.

In another blow to Mbeki’s professed tough stance on corruption, several ANC lawmakers stand accused of misusing parliamentary travel vouchers and are facing prosecution.

With acknowledgements to Reuters and The Witness.