Kunene Rampala Inc. v North West Province Department of Education and Sport and Development (460/2022) [2023] ZASCA 120 (15 September 2023)

Kunene Rampala Inc. v North West Province Department of Education and Sport and Development (460/2022) [2023] ZASCA 120 (15 September 2023)

The Supreme Court of Appeal held that the addendum to the service level agreement was concluded in breach of section 217 of the Constitution and the applicable public procurement prescripts, including the Public Finance Management Act and Treasury Regulations. The transaction value exceeded the threshold requiring an open tender, which was not followed. The addendum unlawfully increased the scope, duration, and fees of the contract without competitive bidding. The Department was entitled to raise the invalidity of the addendum in its plea, and the court could declare the contract invalid and unlawful without a collateral challenge, as justice required. The appellant's request for a just...

Citation
[2023] ZASCA 120
Parties
Appellant: Kunene Rampala Inc.; Respondent: North West Province Department of Education and Sport Development
Court
Supreme Court of Appeal
Jurisdiction
South Africa
Judgment Date
15 September 2023
Case Number
460/2022
Procedural Posture
Civil Appeal / Appeal From the North West Division, Mahikeng
Outcome
Appeal dismissed with costs.
Judges
Mbatha, Mothle, Hughes, Matojane, Mali
Legal Topics
Public Procurement, Constitution Section 217, Collateral Challenge, Contract Invalidity, Treasury Regulations, Just and Equitable Remedy
Administrative Law Commercial and Corporate Public Procurement Constitution Section 217 Collateral Challenge Contract Invalidity Treasury Regulations Just and Equitable Remedy

Case Brief

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Downloadable case file Legal principles 4 Authorities cited 10 Party arguments 2 Amounts and remedies 2
Sign in to unlock

Parties

Kunene Rampala Inc.

Appellant

North West Province Department of Education and Sport Development

Respondent

Procedural Posture

Civil Appeal / Appeal From the North West Division, Mahikeng

Legal Issues

  1. 1 Whether the addendum to the service level agreement was concluded in contravention of section 217 of the Constitution, the Public Finance Management Act, and National Treasury Regulations.
  2. 2 Whether the contract could be declared invalid and unlawful without a collateral challenge or counter-application for review.
  3. 3 Whether a just and equitable remedy under section 172(1)(b) of the Constitution was available to the appellant.

Ratio Decidendi

The Supreme Court of Appeal held that the addendum to the service level agreement was concluded in breach of section 217 of the Constitution and the applicable public procurement prescripts, including the Public Finance Management Act and Treasury Regulations. The transaction value exceeded the threshold requiring an open tender, which was not followed. The addendum unlawfully increased the scope, duration, and fees of the contract without competitive bidding. The Department was entitled to raise the invalidity of the addendum in its plea, and the court could declare the contract invalid and unlawful without a collateral challenge, as justice required. The appellant's request for a just...

Court Disposition

Appeal dismissed with costs.

Orders

  • The appeal is dismissed with costs.