Afrisake NPC and Others v The City of Tshwane Metropolitan Municipality and Others (74192/2003) [2016] ZAGPPHC 641 (22 July 2016)

Afrisake NPC and Others v The City of Tshwane Metropolitan Municipality and Others (74192/2003) [2016] ZAGPPHC 641 (22 July 2016)

The court found that the applicants had established a prima facie right to the relief sought, as the payment of R950 million to TUMS was directly linked to the validity of the Master Services Agreement (MSA), which was under review for alleged constitutional invalidity and non-compliance with procurement legislation. The urgency was justified given the imminent payment and the public interest involved. The court held that irreparable harm would result if the interdict was refused, as the funds could be dissipated before the review was finalised. The balance of convenience favoured the applicants, as TUMS had agreed to continue providing services pending the outcome. The respondents'...

Citation
[2016] ZAGPPHC 641
Parties
Applicant: Afrisake NPC; Applicant: Afriforum NPC; Applicant: Cornelius Jansen van Rensburg; Respondent: The City of Tshwane Metropolitan Municipality; Respondent: PEU Capital Partners (Pty) Ltd; Respondent: Total Utility Management Services (Pty) Ltd
Court
North Gauteng High Court, Pretoria
Jurisdiction
South Africa
Judgment Date
22 July 2016
Case Number
74192/2003
Procedural Posture
Urgent Application / Application for Extension of Interim Interdict Pending Review
Outcome
Interim interdict extended as prayed, pending finalisation of the review application.
Judges
BAM
Legal Topics
Interim Interdict, Review of Administrative Action, Competitive Bidding, Municipal Procurement, Constitutional Invalidity, Public Interest Litigation
Administrative Law Civil Procedure Commercial and Corporate Interim Interdict Review of Administrative Action Competitive Bidding Municipal Procurement Constitutional Invalidity +1 more

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Parties

Afrisake NPC

Applicant

Afriforum NPC

Applicant

Cornelius Jansen van Rensburg

Applicant

The City of Tshwane Metropolitan Municipality

Respondent

PEU Capital Partners (Pty) Ltd

Respondent

Total Utility Management Services (Pty) Ltd

Respondent

Procedural Posture

Urgent Application / Application for Extension of Interim Interdict Pending Review

Legal Issues

  1. 1 Whether the applicants have established a prima facie right to an interim interdict preventing payment of R950 million pending review of the Master Services Agreement.
  2. 2 Whether the payment of R950 million to TUMS is intrinsically linked to the validity of the Master Services Agreement.
  3. 3 Whether the applicants will suffer irreparable harm if the interdict is refused.

Ratio Decidendi

The court found that the applicants had established a prima facie right to the relief sought, as the payment of R950 million to TUMS was directly linked to the validity of the Master Services Agreement (MSA), which was under review for alleged constitutional invalidity and non-compliance with procurement legislation. The urgency was justified given the imminent payment and the public interest involved. The court held that irreparable harm would result if the interdict was refused, as the funds could be dissipated before the review was finalised. The balance of convenience favoured the applicants, as TUMS had agreed to continue providing services pending the outcome. The respondents'...

Court Disposition

Interim interdict extended as prayed, pending finalisation of the review application.

Orders

  • The interim interdict restraining the City of Tshwane from paying R950 million to Total Utility Management Services (Pty) Ltd is extended as prayed in prayers 1, 2, 3 and 4 of the Notice of Motion.
  • Applicants to approach the Deputy Judge President for a preferential date for the hearing of the pending review application.