Provincial Government of the Eastern Cape and Others v Contractprops 25 (Pty) Ltd (414/99) [2001] ZASCA 68; [2001] 4 All SA 273 (A); 2001 (4) SA 142 (SCA) (25 May 2001)

Provincial Government of the Eastern Cape and Others v Contractprops 25 (Pty) Ltd (414/99) [2001] ZASCA 68; [2001] 4 All SA 273 (A); 2001 (4) SA 142 (SCA) (25 May 2001)

The Supreme Court of Appeal held that section 4(1) of the Tender Board Act (Eastern Cape) 2 of 1994 confers sole power on the Tender Board to arrange leases on behalf of the Province. The Department acted ultra vires in concluding the leases without reference to the Tender Board, rendering the leases invalid. The...

Source-derived case information.

Citation
[2001] ZASCA 68
Parties
Appellant: Provincial Government of the Eastern Cape; Appellant: Premier of the Eastern Cape; Appellant: Member of the Executive Council for the Eastern Cape Department of Education, Culture and Sport; Appellant: Member of the Executive Council for the Eastern Cape Department of Roads and Public Works; Appellant: Member of the Executive Council for the Eastern Cape Department of Finance; Respondent: Contractprops 25 (Pty) Limited
Court
Supreme Court of Appeal
Jurisdiction
South Africa
Judgment Date
25 May 2001
Case Number
414/99
Procedural Posture
Civil Appeal / Appeal From Declaratory Order of Court a Quo
Outcome
Appeal upheld; application dismissed with costs.
Judges
Marais, Olivier, Scott, Streicher, Brand
Legal Topics
Tender Board Powers, Ultra Vires, Statutory Formalities, Estoppel, Public Procurement
Administrative Law Civil Procedure Tender Board Powers Ultra Vires Statutory Formalities Estoppel Public Procurement

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Parties

Provincial Government of the Eastern Cape

Appellant

Premier of the Eastern Cape

Appellant

Member of the Executive Council for the Eastern Cape Department of Education, Culture and Sport

Appellant

Member of the Executive Council for the Eastern Cape Department of Roads and Public Works

Appellant

Member of the Executive Council for the Eastern Cape Department of Finance

Appellant

Contractprops 25 (Pty) Limited

Respondent

Procedural Posture

Civil Appeal / Appeal From Declaratory Order of Court a Quo

Legal Issues

  1. 1 Whether leases concluded by the Department without reference to the Tender Board are invalid for non-compliance with section 4(1) of the Tender Board Act (Eastern Cape) 2 of 1994.
  2. 2 Whether the doctrine of estoppel can be invoked to validate leases concluded ultra vires the Department's powers.

Ratio Decidendi

The Supreme Court of Appeal held that section 4(1) of the Tender Board Act (Eastern Cape) 2 of 1994 confers sole power on the Tender Board to arrange leases on behalf of the Province. The Department acted ultra vires in concluding the leases without reference to the Tender Board, rendering the leases invalid. The statutory language is clear and unambiguous, and the legislative intent is to prevent patronage and ensure fair, impartial, and competitive procurement. The doctrine of estoppel cannot operate to validate a transaction prohibited by law in the public interest, as this would perpetuate the mischief the Act seeks to prevent. The respondent's reliance and expenditure, while...

Court Disposition

Appeal upheld; application dismissed with costs.

Orders

  • The order of the court a quo is set aside.
  • The application is dismissed with costs.