African Civils (Pty) Ltd v Minister of Rural Development And Land Reform and Another; In re: Asla Construction (Pty) Ltd v Head of the Department of Rural Development and Reform and Another (4157/16, 5222/16) [2016] ZAWCHC 78; [2016] 3 All SA 686 (WCC) (23 June 2016)

African Civils (Pty) Ltd v Minister of Rural Development And Land Reform and Another; In re: Asla Construction (Pty) Ltd v Head of the Department of Rural Development and Reform and Another (4157/16, 5222/16) [2016] ZAWCHC 78; [2016] 3 All SA 686 (WCC) (23 June 2016)

The court found that the tender requirements regarding Tax Clearance Certificates for each proposed sub-contractor were mandatory and clearly communicated to all tenderers. Afriline and Asla listed TT Innovations as their sub-contractor but failed to submit its Tax Clearance Certificate, instead submitting that of...

Source-derived case information.

Citation
[2016] ZAWCHC 78
Parties
Applicant: Afriline Civils (Pty) Ltd; Respondent: Minister of Rural Development & Land Reform; Respondent: Exeo Khokela Civil Engineering Construction (Pty) Ltd; Applicant: Asla Construction (Pty) Ltd; Respondent: Head of the Department of Rural Development and Reform
Court
Western Cape High Court, Cape Town
Jurisdiction
South Africa
Case Number
4157/16, 5222/16
Procedural Posture
Urgent Review Application / Final Judgment After Consolidation of Two Urgent Review Applications
Outcome
The review applications are dismissed. The interim interdicts are discharged. Costs are awarded against the applicants, including costs of two counsel.
Judges
D V Dlodlo
Legal Topics
Public Procurement, Mandatory Requirements in Tender, Tax Clearance Certificates, Cidb Registration, Procedural Fairness, Review of Administrative Action
Administrative Law Civil Procedure Commercial and Corporate Public Procurement Mandatory Requirements in Tender Tax Clearance Certificates Cidb Registration Procedural Fairness +1 more

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Parties

Afriline Civils (Pty) Ltd

Applicant

Minister of Rural Development & Land Reform

Respondent

Exeo Khokela Civil Engineering Construction (Pty) Ltd

Respondent

Asla Construction (Pty) Ltd

Applicant

Head of the Department of Rural Development and Reform

Respondent

Procedural Posture

Urgent Review Application / Final Judgment After Consolidation of Two Urgent Review Applications

  1. 1 Whether Afriline's and Asla's tenders were fairly rejected as non-responsive for failing to submit mandatory Tax Clearance Certificates for their proposed sub-contractor, TT Innovations.
  2. 2 Whether Afriline's tender was fairly rejected due to the expiry of its CIDB grading prior to the award of the tender.
  3. 3 Whether the Department's award of the tender to Exeo was fair given allegations of non-compliance with mandatory requirements.

Ratio Decidendi

The court found that the tender requirements regarding Tax Clearance Certificates for each proposed sub-contractor were mandatory and clearly communicated to all tenderers. Afriline and Asla listed TT Innovations as their sub-contractor but failed to submit its Tax Clearance Certificate, instead submitting that of Martin & East and asserting TT Innovations was a division thereof. Documentary evidence from SARS and CIPC demonstrated TT Innovations was an independent entity, and Exeo's submission of its Tax Clearance Certificate confirmed this. The Department was not obliged to make further enquiries or allow supplementation of bids post-submission, as this would compromise fairness and...

Court Disposition

The review applications are dismissed. The interim interdicts are discharged. Costs are awarded against the applicants, including costs of two counsel.

Orders

  • The application to strike out certain parts of replying affidavits is dismissed with costs.
  • The review applications under case numbers 4157/16 and 5222/16 are dismissed.