Kufanikiwa Consulting (Pty) Ltd and Others v Member of the Executive Council for the Department of Transport, KwaZulu-Natal Province and Another (15659/2023P) [2024] ZAKZPHC 24 (22 March 2024)

Kufanikiwa Consulting (Pty) Ltd and Others v Member of the Executive Council for the Department of Transport, KwaZulu-Natal Province and Another (15659/2023P) [2024] ZAKZPHC 24 (22 March 2024)

The court held that the cancellation of the tender by the Department constituted administrative action as it had a direct, external legal effect and occurred at an advanced stage of the tender process. The reasons advanced by the respondents for cancellation, including alleged bid discrepancies and material...

Source-derived case information.

Citation
[2024] ZAKZPHC 24
Parties
Applicant: Kufanikiwa Consulting (Pty) Ltd; Applicant: Impumelelo Consulting Engineers (Pty) Ltd; Applicant: TPA Consulting CC; Respondent: Member of the Executive Council for the Department of Transport, KwaZulu-Natal Province; Respondent: Department of Transport, KwaZulu-Natal Province
Court
Kwazulu-Natal High Court, Pietermaritzburg
Jurisdiction
South Africa
Case Number
15659/2023P
Procedural Posture
Urgent Application / Final Determination of Urgent Application for Implementation of Tender Recommendations
Outcome
Application granted. The Department is ordered to implement the Bid Evaluation Committee's recommendations and offer contracts to the applicants at the specified market values.
Judges
Pitman AJ
Legal Topics
Promotion of Administrative Justice Act, Tender Cancellation, Stare Decisis, Preferential Procurement Regulations, Substitution Order
Administrative Law Civil Procedure Promotion of Administrative Justice Act Tender Cancellation Stare Decisis Preferential Procurement Regulations Substitution Order

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Parties

Kufanikiwa Consulting (Pty) Ltd

Applicant

Impumelelo Consulting Engineers (Pty) Ltd

Applicant

TPA Consulting CC

Applicant

Member of the Executive Council for the Department of Transport, KwaZulu-Natal Province

Respondent

Department of Transport, KwaZulu-Natal Province

Respondent

Procedural Posture

Urgent Application / Final Determination of Urgent Application for Implementation of Tender Recommendations

  1. 1 Whether the cancellation of the tender constituted administrative action reviewable under PAJA.
  2. 2 Whether the doctrine of stare decisis binds this court to previous judgments on the same tender cancellation.
  3. 3 Whether the applicants are entitled to the contracts recommended by the Bid Evaluation Committee.

Ratio Decidendi

The court held that the cancellation of the tender by the Department constituted administrative action as it had a direct, external legal effect and occurred at an advanced stage of the tender process. The reasons advanced by the respondents for cancellation, including alleged bid discrepancies and material irregularities, were not supported by the Department's own records and did not meet the threshold required by Regulation 13 of the Preferential Procurement Regulations. The previous judgments of Bezuidenhout AJ and Ncube J, which reviewed and set aside the cancellation, were binding on this court under the doctrine of stare decisis, as the facts and legal issues were identical. The...

Court Disposition

Application granted. The Department is ordered to implement the Bid Evaluation Committee's recommendations and offer contracts to the applicants at the specified market values.

Orders

  • The Second Respondent is directed to implement the recommendations of the Bid Evaluation Committee of 13 December 2021, alternatively 2 March 2022, by forthwith offering the applicants the contracts for the relevant Cost Centres as bid on by them, at the specified market values.
  • The Second Respondent is directed to, within 10 days of written acceptance of the offers by the applicants, issue letters of appointment to each relevant applicant for the appointment and provision of professional engineering services for the three-year period for the relevant Cost Centre.