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South Africa Judgment

Middelburg High Court, Mpumalanga

Gert Sibande District Municipality v Bonginkosi Technologies (Pty) Ltd (5459/2022) [2025] ZAMPMHC 37 (4 August 2025)

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01

Holding and result

The court, after considering the written and oral submissions, found that the applicant had demonstrated reasonable prospects that another court may reach a different conclusion regarding the review of the tender award and the associated agreements. The court did not revisit the merits but was satisfied that the threshold for granting leave to appeal was met. Accordingly, leave to appeal to the Full Court was granted, with costs to be costs in the appeal.

Court disposition

Leave to appeal to the Full Court of this Division is granted.

Orders

  • The application for leave to appeal the judgment and orders of the court dated 04 November 2024 to the Full Court of this Division is granted.
  • The costs to be the costs in the appeal.

02

Material facts

Parties

Gert Sibande District Municipality

Applicant Counsel: R Maphutha

Bonginkosi Technologies (Pty) Ltd

Respondent Counsel: JA Venter

Amounts and remedies

  • Counterclaim Amount Granted: ZAR 2,465,252.21

03

Procedural history

  1. Posture

    Leave to Appeal / Application for Leave to Appeal to Full Court

04

Questions and positions

Legal issues

Party arguments

Applicant
The applicant contended that the court erred in dismissing the review application and in granting the respondent's counterclaim. It argued that there are reasonable prospects that another court may come to a different conclusion regarding the legality of the tender award and the enforceability of the Service Level Agreement. The applicant maintained that the interpretation of section 172 of the Constitution and the entitlement to recover excess payments were not properly considered.
Respondent
The respondent argued that the judgment was correct and that the applicant's grounds for appeal lacked merit. It submitted that the review was properly dismissed and the counterclaim for payment was justified based on the Bill of Quantities and the Service Level Agreement. The respondent asserted that there are no reasonable prospects of success and that leave to appeal should be refused.

05

Court’s reasoning

  1. 01

    Section 17(1)(a) of the Superior Courts Act 10 of 2013

    Leave to appeal should be granted where there are reasonable prospects that another court may come to a different conclusion.

  2. 02

    Section 172 of the Constitution of the Republic of South Africa, 1996

    A court may review and set aside its own administrative decisions in terms of section 172 of the Constitution.

06

Ratio, limits and disposition

Ratio decidendi

The court, after considering the written and oral submissions, found that the applicant had demonstrated reasonable prospects that another court may reach a different conclusion regarding the review of the tender award and the associated agreements. The court did not revisit the merits but was satisfied that the threshold for granting leave to appeal was met. Accordingly, leave to appeal to the Full Court was granted, with costs to be costs in the appeal.

Obiter and limits

  • The merits of the underlying dispute were comprehensively addressed in the main judgment and need not be traversed in this application.
  • The judgment was handed down electronically and is deemed delivered on the date specified.

Court disposition

Leave to appeal to the Full Court of this Division is granted.

  • The application for leave to appeal the judgment and orders of the court dated 04 November 2024 to the Full Court of this Division is granted.
  • The costs to be the costs in the appeal.

Source and reliance status

Middelburg High Court, Mpumalanga

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Judgment text

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Source document

Middelburg High Court, Mpumalanga

Judgment

[2025] ZAMPMHC 37

IN THE HIGH COURT OF SOUTH AFRICA

MPUMALANGA DIVISION (MIDDELBURG LOCAL SEAT)

CASE NO: 5459/2022

(1) REPORTABLE: NO

(2) OF INTEREST TO OTHER JUDGES: NO

(3)

REVISED

DATE 04/08/2025

SIGNATURE

In the matter between:

GERT

SIBANDE DISTRICT MUNICIPALITY

APPLICANT

And

BONGINKOSI TECHNOLOGIES (PTY)LTD

RESPONDENT

JUDGMENT

Coram: Langa J

Introduction and facts

[1] The Applicant, Gert Sibande Local Municipality, (“the Municipality”), seeks leave to appeal to the Full Court of this Division against the whole judgment and orders of this court handed down om 04 November 2024.

[2] In the application the Applicant, the Gert Sibande District Municipality, sought an order in terms of section 172 of the Constitution to review and set aside its own decision to award the tender for the appointment of the Respondent for the provision of Vehicle Tracking System for the period of 36 months. The Applicant further sought to review and set aside the Service Level Agreement between the parties dated 18 November 2021 and any agreement or arrangement incidental thereto pursuant to the Vehicle Tracking System Tender.

[3] The Applicant further sought a declaratory order that the Respondent is entitled to claim reasonable expenses in line with the submitted Bill of Quantities notwithstanding the setting aside of the Service Level Agreement. Further that the Applicant is entitled to recover from the Respondent an amount that exceeds the actual expenses on the Vehicle Tracking System to the extent that it has paid the Respondent in excess of the reasonable expenses as set out in the Bill of Quantities.

[4] After hearing the matter the court decided in favour of the Respondent and made the following orders:

1. The application for the review and setting aside of the tender is dismissed with costs;

2. The Respondents counter claim for the payment of an amount of R2 465 252.21 is granted with costs;

3. The Applicant is ordered to pay the costs on the scale as between attorney and client.

[5] It is the judgment and orders that the Applicant seeks to appeal against.

[6] I do not intend traversing the merits here as that has been done in the comprehensive judgment delivered. However, atter reading the written heads of argument and after hearing the submissions by the parties, I have decided to grant the application for leave to appeal.

Order

[7] I accordingly make the following order;

1. The application for leave to appeal the judgment and orders of the court dated 04 November 2024 to the Full Court of this Division is granted.

2. The costs to be the costs in the appeal.

MBG

LANGA

JUDGE

OF THE HIGH COURT

Appearances:

For the Applicants: Advocate R Maphutha Instructed by: Lusenga Attorneys Inc. For the Respondent: JA Venter Instructed by: Dr TC Botha Incorporated Attorneys Date heard: 20 June 2025 Date delivered: 04 August 2025

This judgment was handed down electronically by circulation to the parties’ representatives by email. The date for hand-down is deemed to be the 04 August 2025 at 14h00.

Source wording is retained. Consult the source document for its original formatting and pagination.

Authorities

Authorities used by the court

Cases, legislation, regulations, and constitutional provisions identified in the available record.

Section 172 of the Constitution of the Republic of South Africa, 1996

Legislation

Legislation referenced in the available case record.

Section 17(1)(a) of the Superior Courts Act 10 of 2013

Legislation

Legislation referenced in the available case record.

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