DDP Valuers (Pty) v Makhado Municipality and Others (0924/2014) [2014] ZAGPPHC 538 (25 July 2014)

DDP Valuers (Pty) v Makhado Municipality and Others (0924/2014) [2014] ZAGPPHC 538 (25 July 2014)

The court found that the tender process was materially irregular and procedurally unfair. The Second Respondent's tender contained a fraudulent municipal valuer affidavit, with the signature of Mr Zulu forged and his work experience misrepresented. The Second Respondent failed to comply with mandatory requirements, including the appointment of a substitute municipal valuer and submission of requisite financial statements. The First Respondent did not provide reasons for deviating from the Bid Evaluation Committee's recommendation, contravening section 114 of the Municipal Finance Management Act. These irregularities rendered the tender process unfair and unlawful under PAJA. The court...

Citation
[2014] ZAGPPHC 538
Parties
Applicant: DDP Valuers (Pty) Ltd; Respondent: Makhado Municipality; Respondent: Siyabuselela Trading Enterprise 275 CC (T/A Risuna Property Consultants); Respondent: Kulani Dumond Nkuna
Court
North Gauteng High Court, Pretoria
Jurisdiction
South Africa
Judgment Date
25 July 2014
Case Number
0924/2014
Procedural Posture
Review Application / Final Judgment on Review
Outcome
Application granted. The award of tender 1/2013 to the Second Respondent is reviewed and set aside. The matter is remitted to the First Respondent for reconsideration.
Judges
D Dosio
Legal Topics
Municipal Tender Review, Preferential Procurement Policy Framework Act, Promotion of Administrative Justice Act, Municipal Property Rates Act, Fraudulent Misrepresentation, Failure to Give Reasons
Administrative Law Land and Property Civil Procedure Municipal Tender Review Preferential Procurement Policy Framework Act Promotion of Administrative Justice Act Municipal Property Rates Act Fraudulent Misrepresentation +1 more

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Parties

DDP Valuers (Pty) Ltd

Applicant

Makhado Municipality

Respondent

Siyabuselela Trading Enterprise 275 CC (T/A Risuna Property Consultants)

Respondent

Kulani Dumond Nkuna

Respondent

Procedural Posture

Review Application / Final Judgment on Review

Legal Issues

  1. 1 Whether the award of tender 1/2013 by the First Respondent to the Second Respondent was lawful and procedurally fair.
  2. 2 Whether the First Respondent failed to consider relevant considerations and took into account irrelevant considerations in awarding the tender.
  3. 3 Whether the tender process was tainted by fraud and misrepresentation regarding the municipal valuer affidavit.

Ratio Decidendi

The court found that the tender process was materially irregular and procedurally unfair. The Second Respondent's tender contained a fraudulent municipal valuer affidavit, with the signature of Mr Zulu forged and his work experience misrepresented. The Second Respondent failed to comply with mandatory requirements, including the appointment of a substitute municipal valuer and submission of requisite financial statements. The First Respondent did not provide reasons for deviating from the Bid Evaluation Committee's recommendation, contravening section 114 of the Municipal Finance Management Act. These irregularities rendered the tender process unfair and unlawful under PAJA. The court...

Court Disposition

Application granted. The award of tender 1/2013 to the Second Respondent is reviewed and set aside. The matter is remitted to the First Respondent for reconsideration.

Orders

  • The award of tender 1/2013 made by the First Respondent to the Second Respondent is reviewed and set aside.
  • The award of such tender is declared unlawful and unfair.