Mining Qualifications Authority v IFU Training Institute (Pty) Ltd (2016/44912) [2018] ZAGPJHC 455 (26 June 2018)

Mining Qualifications Authority v IFU Training Institute (Pty) Ltd (2016/44912) [2018] ZAGPJHC 455 (26 June 2018)

The court found that the applicant's executive had committed multiple irregularities in the tender process, including material non-compliance with bid specifications and unlawful deviation from mandatory procurement procedures. The respondent's bid was initially disqualified for failing to provide an original tax clearance certificate and for exceeding the permitted subcontracting percentage. The subsequent reversal of disqualification and award of the tender bypassed both evaluation and adjudication committees, lacked proper authorisation, and was not reported to the Treasury as required. The principle of legality was breached, rendering the award and contract invalid. However, to avoid...

Citation
[2018] ZAGPJHC 455
Parties
Applicant: Mining Qualifications Authority; Respondent: IFU Training Institute (Pty) Ltd
Court
South Gauteng High Court, Johannesburg
Jurisdiction
South Africa
Judgment Date
26 June 2018
Case Number
2016/44912
Procedural Posture
Review Application / Judgment
Outcome
Tender award and contract set aside; invalidity suspended pending lawful award of new tender; respondent to forfeit profits; costs awarded against respondent.
Judges
Roland Sutherland
Legal Topics
Public Procurement, Principle of Legality, Irregular Award of Tender, Suspension of Invalidity, Forfeiture of Profits
Administrative Law Commercial and Corporate Public Procurement Principle of Legality Irregular Award of Tender Suspension of Invalidity Forfeiture of Profits

Case Brief

Summary, issues, holding and outcome

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Parties

Mining Qualifications Authority

Applicant

IFU Training Institute (Pty) Ltd

Respondent

Procedural Posture

Review Application / Judgment

Legal Issues

  1. 1 Whether the respondent's bid contained material irregularities warranting disqualification.
  2. 2 Whether the applicant unlawfully deviated from prescribed procurement procedures in awarding the tender.
  3. 3 Whether the principle of legality was breached in the tender process.

Ratio Decidendi

The court found that the applicant's executive had committed multiple irregularities in the tender process, including material non-compliance with bid specifications and unlawful deviation from mandatory procurement procedures. The respondent's bid was initially disqualified for failing to provide an original tax clearance certificate and for exceeding the permitted subcontracting percentage. The subsequent reversal of disqualification and award of the tender bypassed both evaluation and adjudication committees, lacked proper authorisation, and was not reported to the Treasury as required. The principle of legality was breached, rendering the award and contract invalid. However, to avoid...

Court Disposition

Tender award and contract set aside; invalidity suspended pending lawful award of new tender; respondent to forfeit profits; costs awarded against respondent.

Orders

  • Tender No MQA 13/15-15 to IFU Training Institute was irregularly awarded.
  • The tender is set aside.