Marce Projects (Pty) Ltd and Others v City of Johannesburg Metropolitan and Others (33291/2019) [2021] ZAGPJHC 138 (3 August 2021)

Marce Projects (Pty) Ltd and Others v City of Johannesburg Metropolitan and Others (33291/2019) [2021] ZAGPJHC 138 (3 August 2021)

The court found that the applicant failed to comply with its previous orders for financial disclosure, independent verification, and delivery of vehicles, despite confirming its willingness to abide by those orders. The applicant attempted to cherry-pick aspects of the order it found favourable, declining accountability and scrutiny. The court held that the appropriateness of disgorgement could not be determined without full compliance and disclosure. The legal framework for disgorgement in public procurement is not rigidly defined, and the court retains discretion to craft remedial relief. The application for leave to appeal was dismissed because the applicant's non-compliance rendered...

Citation
[2021] ZAGPJHC 138
Parties
Applicant: Marcé Projects (Pty) Ltd; Applicant: Marcé Firefighter Technology (Pty) Ltd; Applicant: Fire Raiders; Respondent: City of Johannesburg Metropolitan; Respondent: TFM Industries (Pty) Ltd; Respondent: Executive Mayor of City of JHB Metropolitan
Court
South Gauteng High Court, Johannesburg
Jurisdiction
South Africa
Judgment Date
3 August 2021
Case Number
33291/2019
Procedural Posture
Leave to Appeal / Application for Leave to Appeal Following a Prior Judgment and Order.
Outcome
Application for leave to appeal dismissed.
Judges
Siwendu
Legal Topics
Public Procurement, Disgorgement of Profits, Remedial Powers of Court, Financial Disclosure, Leave to Appeal, Supervisory Jurisdiction
Administrative Law Civil Procedure Commercial and Corporate Public Procurement Disgorgement of Profits Remedial Powers of Court Financial Disclosure Leave to Appeal +1 more

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Parties

Marcé Projects (Pty) Ltd

Applicant

Marcé Firefighter Technology (Pty) Ltd

Applicant

Fire Raiders

Applicant

City of Johannesburg Metropolitan

Respondent

TFM Industries (Pty) Ltd

Respondent

Executive Mayor of City of JHB Metropolitan

Respondent

Procedural Posture

Leave to Appeal / Application for Leave to Appeal Following a Prior Judgment and Order.

Legal Issues

  1. 1 Whether the court's disgorgement orders relating to profits, dividends, and bonuses arising from an invalid contract were appropriate.
  2. 2 Whether the applicant was obliged to comply with orders for financial disclosure and independent verification.
  3. 3 Whether the applicant could appeal against the referral of affidavits for investigation of perjury and the costs order.

Ratio Decidendi

The court found that the applicant failed to comply with its previous orders for financial disclosure, independent verification, and delivery of vehicles, despite confirming its willingness to abide by those orders. The applicant attempted to cherry-pick aspects of the order it found favourable, declining accountability and scrutiny. The court held that the appropriateness of disgorgement could not be determined without full compliance and disclosure. The legal framework for disgorgement in public procurement is not rigidly defined, and the court retains discretion to craft remedial relief. The application for leave to appeal was dismissed because the applicant's non-compliance rendered...

Court Disposition

Application for leave to appeal dismissed.

Orders

  • The application for leave to appeal is dismissed.
  • The applicant is directed to comply with the court order and to present the requisite information for the further direction and conduct of the matter.