Down Touch Investments v Matjhabeng Local Municipality and Another (A73/2016) [2016] ZAFSHC 186 (28 October 2016)

Down Touch Investments v Matjhabeng Local Municipality and Another (A73/2016) [2016] ZAFSHC 186 (28 October 2016)

The court found that the requirement to submit completion certificates was not stipulated in the tender documents nor properly communicated to bidders. Disqualifying the applicant on this basis was irrational, unfair, and unlawful, violating the constitutional and statutory requirements for fair and transparent...

Source-derived case information.

Citation
[2016] ZAFSHC 186
Parties
Applicant: Down Touch Investments; Respondent: Matjhabeng Local Municipality; Respondent: Rembu Construction
Court
Free State High Court, Bloemfontein
Jurisdiction
South Africa
Case Number
A73/2016
Procedural Posture
Review Application / Judgment After Hearing on Merits
Outcome
Application for review granted. The award of the tender to the second respondent is set aside and the matter remitted for reconsideration.
Judges
Molemela, Jordaan
Legal Topics
Tender Review, Promotion of Administrative Justice Act, Municipal Procurement, Procedural Fairness, Remittal, Costs Order
Administrative Law Civil Procedure Tender Review Promotion of Administrative Justice Act Municipal Procurement Procedural Fairness Remittal Costs Order

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Parties

Down Touch Investments

Applicant

Matjhabeng Local Municipality

Respondent

Rembu Construction

Respondent

Procedural Posture

Review Application / Judgment After Hearing on Merits

  1. 1 Whether the first respondent's decision to disqualify the applicant for non-submission of completion certificates was lawful and rational.
  2. 2 Whether the requirement to submit completion certificates was properly disclosed to tenderers.
  3. 3 Whether the tender process complied with the constitutional and statutory requirements for fairness, transparency, and lawfulness.

Ratio Decidendi

The court found that the requirement to submit completion certificates was not stipulated in the tender documents nor properly communicated to bidders. Disqualifying the applicant on this basis was irrational, unfair, and unlawful, violating the constitutional and statutory requirements for fair and transparent procurement. The court held that the applicant established a ground of review under section 6 of PAJA. However, the court was not in as good a position as the administrator to determine the final point allocation due to lack of pertinent information on the scoring formula. Therefore, substitution was not appropriate. The matter was remitted to the Bid Evaluation Committee for...

Court Disposition

Application for review granted. The award of the tender to the second respondent is set aside and the matter remitted for reconsideration.

Orders

  • The first respondent's decision to award Bid 22/2015 to the second respondent is reviewed and set aside.
  • The matter is remitted to the first respondent's Bid Evaluation Committee for reconsideration.