South African Entrepreneur Sues French Government Over R244 Million Breathalyser Deal Dispute

South African entrepreneur Nicolaas van den Bergh is taking the French government to court over an alleged oral agreement that would have seen his company, Redline Products, supply 70 million breathalyser tests per year. The deal’s collapse in 2013 resulted in R244 million in losses, the closure of his business, and mass job losses.

The Rise of Redline Breathalysers

In 2011, Redline Products, based in Cape Town, was one of only two global manufacturers of disposable alcohol breathalysers. The company secured certification from France’s national testing laboratory (LNE) and prepared to supply at least 55 million units in 2012 under an agreement tied to French decree 2012-284.

The decree, signed under then-President Nicolas Sarkozy, mandated that all French drivers carry a self-test breathalyser or face a €11 fine. This move significantly reduced alcohol-related road fatalities, making France’s policy a model for other European nations.

The Contract That Never Was

Van den Bergh claims the French government made a partly oral, partly tacit agreement, requiring Redline to undergo annual audits and maintain strict quality controls. To meet demand, the company hired 1,500 workers and took on substantial debt, with Van den Bergh personally signing R11 million in sureties.

However, after an initial delay, the French Prime Minister indefinitely postponed the fine in 2013, effectively rendering the decree meaningless. This caused demand for Redline’s breathalysers to collapse overnight, leaving the company unable to recover its investment.

Mass Job Losses and Financial Collapse

As a result of the deal’s failure:

• Redline entered business rescue in South Africa.
• 1,500 workers lost their jobs, leading to civil unrest.
• Van den Bergh lost his home and saw his R56.7 million shareholding wiped out.
• He claims to have lost R22.5 million in annual dividends, bringing his total claim to R244.7 million.

Legal Battle Against the French Government

After years of legal hurdles, Van den Bergh won the right in 2024 to have his case heard in a South African court. His lawsuit relies on South African law, which recognizes oral contracts, potentially giving him a stronger case than in France.

Despite multiple requests, the French Embassy in South Africa has yet to comment on the matter.

What’s Next?

As the case unfolds, it could set a legal precedent for cross-border contract disputes involving oral agreements. Van den Bergh hopes the South African courts will provide a fair hearing in a case that has taken over a decade to reach the courtroom.

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