Dimension Data (Pty) Ltd and Others v State Information Technology Agency (SOC) Ltd and Another (28952/2016) [2016] ZAGPPHC 351 (13 May 2016)

Dimension Data (Pty) Ltd and Others v State Information Technology Agency (SOC) Ltd and Another (28952/2016) [2016] ZAGPPHC 351 (13 May 2016)

The court found that SITA failed to comply with statutory and constitutional requirements by not conducting price and BBBEE evaluations prior to awarding the tender, as mandated by the PPPFA and the bid invitation. The failure to assess empowerment credentials and price rendered the procurement process irregular and unlawful. The disqualification of the Akono consortium was also found to be procedurally unfair, as SITA did not properly consider the consortium's structure or the role of Zetta, nor did it exercise its discretion to seek clarification or condone non-compliance as it had done for other bidders. The court held that urgency was justified due to SITA's obstruction and lack of...

Citation
[2016] ZAGPPHC 351
Parties
Applicant: Dimension Data (Pty) Ltd; Applicant: Nambiti Technologies (Pty) Ltd; Applicant: Yotta Zetta (Pty) Ltd; Respondent: State Information Technology Agency (SOC) Ltd; Respondent: EOH Mthombo (Pty) Ltd
Court
North Gauteng High Court, Pretoria
Jurisdiction
South Africa
Judgment Date
13 May 2016
Case Number
28952/2016
Procedural Posture
Urgent Application / Interim Interdict Pending Review (part a of Notice of Motion)
Judges
AC Basson
Legal Topics
Public Procurement, Preferential Procurement Policy Framework Act, Promotion of Administrative Justice Act, Interim Interdict, Black Economic Empowerment, Non Joinder
Administrative Law Civil Procedure Commercial and Corporate Public Procurement Preferential Procurement Policy Framework Act Promotion of Administrative Justice Act Interim Interdict Black Economic Empowerment +1 more

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Parties

Dimension Data (Pty) Ltd

Applicant

Nambiti Technologies (Pty) Ltd

Applicant

Yotta Zetta (Pty) Ltd

Applicant

State Information Technology Agency (SOC) Ltd

Respondent

EOH Mthombo (Pty) Ltd

Respondent

Procedural Posture

Urgent Application / Interim Interdict Pending Review (part a of Notice of Motion)

Legal Issues

  1. 1 Whether the procurement process conducted by SITA complied with statutory and constitutional requirements for fairness, transparency, competitiveness, and cost-effectiveness.
  2. 2 Whether SITA's failure to conduct price and BBBEE evaluations prior to awarding the tender constituted a reviewable irregularity.
  3. 3 Whether the disqualification of the Akono consortium's bid was procedurally and substantively fair.

Ratio Decidendi

The court found that SITA failed to comply with statutory and constitutional requirements by not conducting price and BBBEE evaluations prior to awarding the tender, as mandated by the PPPFA and the bid invitation. The failure to assess empowerment credentials and price rendered the procurement process irregular and unlawful. The disqualification of the Akono consortium was also found to be procedurally unfair, as SITA did not properly consider the consortium's structure or the role of Zetta, nor did it exercise its discretion to seek clarification or condone non-compliance as it had done for other bidders. The court held that urgency was justified due to SITA's obstruction and lack of...