MINET Lesotho PTY LTD V The Tender Panel- Lesotho National Development Cooporation (CCA/0089/2022) [2023] LSHC 135 (17 April 2023)

MINET Lesotho PTY LTD V The Tender Panel- Lesotho National Development Cooporation (CCA/0089/2022) [2023] LSHC 135 (17 April 2023)

The CEO of LNDC acted irregularly and ultra vires by awarding the tender and signing the contract with the 3rd respondent while a complaint was pending, in breach of the LNDC Procurement Policy and Public Procurement Regulations. The public interest exception was not properly invoked or justified, and there was no evidence the Tender Committee was convened as required. These procedural irregularities are material and render the award and contract unlawful.

Citation
[2023] LSHC 135
Parties
Applicant: Minet Lesotho (Pty) Ltd; 1st Respondent: The Tender Panel – Lesotho National Development Corporation; 2nd Respondent: Lesotho National Development Corporation; 3rd Respondent: Guardrisk Insurance; 4th Respondent: Thaba Bosiu Insurance Brokers; 5th Respondent: Signature Insurance Brokers; 6th Respondent: Insurecare; 7th Respondent: BMM Insurance; 8th Respondent: Risk Managers; 9th Respondent: Thari Mutual
Court
High Court
Jurisdiction
Lesotho
Judgment Date
17 April 2023
Case Number
CCA/0089/2022
Procedural Posture
Judicial Review / Judgment
Outcome
Application allowed; tender award and contract set aside as irregular and unlawful.
Legal Topics
Tender Review, Procurement Policy Compliance, Ultra Vires Acts, Procedural Fairness
Source Language
English
Administrative Law Procurement Law Tender Review Procurement Policy Compliance Ultra Vires Acts Procedural Fairness

Case Brief

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Downloadable case file Legal principles 4 Authorities cited 10 Party arguments 2
Sign in to unlock

Parties

Minet Lesotho (Pty) Ltd

Applicant

The Tender Panel – Lesotho National Development Corporation

1st Respondent

Lesotho National Development Corporation

2nd Respondent

Guardrisk Insurance

3rd Respondent

Thaba Bosiu Insurance Brokers

4th Respondent

Signature Insurance Brokers

5th Respondent

Insurecare

6th Respondent

BMM Insurance

7th Respondent

Risk Managers

8th Respondent

Thari Mutual

9th Respondent

Procedural Posture

Judicial Review / Judgment

Legal Issues

  1. 1 Whether the LNDC CEO acted ultra vires by awarding the tender while a complaint was pending
  2. 2 Whether the procurement process breached the LNDC Procurement Policy and Public Procurement Regulations
  3. 3 Whether the constitution of the Tender Evaluation Committee was irregular

Ratio Decidendi

The CEO of LNDC acted irregularly and ultra vires by awarding the tender and signing the contract with the 3rd respondent while a complaint was pending, in breach of the LNDC Procurement Policy and Public Procurement Regulations. The public interest exception was not properly invoked or justified, and there was no evidence the Tender Committee was convened as required. These procedural irregularities are material and render the award and contract unlawful.

Court Disposition

Application allowed; tender award and contract set aside as irregular and unlawful.

Orders

  • The decision awarding the tender to the Third Respondent and the subsequent contract are reviewed, corrected and set aside as irregular and unlawful.
  • The Award Letter dated 18th August 2022 is declared unlawful and irregular.