Renaissance Security and Cleaning Services CC v Rustenburg Local Municipality and Others (1811/2007) [2008] ZANWHC 29 (19 August 2008)

Renaissance Security and Cleaning Services CC v Rustenburg Local Municipality and Others (1811/2007) [2008] ZANWHC 29 (19 August 2008)

The court held that Section 38(1)(d)(ii) of the Supply Chain Management Policy requires the municipality to notify a bidder in writing of unsatisfactory performance before relying on poor track record to refuse a tender award. The Respondents failed to produce any written notification to the Applicant regarding poor performance. A single isolated incident of guards sleeping on duty did not constitute a poor track record over a year-long contract. The Respondents' reliance on a letter of complaint dated after the decision to reject the bid was misplaced. The established practice of adjudicating tenders after the ninety-day period was accepted by all bidders, including the Applicant, and...

Citation
[2008] ZANWHC 29
Parties
Applicant: Renaissance Security and Cleaning Services CC; Respondent: Rustenburg Local Municipality; Respondent: Municipal Manager: Rustenburg Local Municipality
Court
North West High Court, Mafikeng
Jurisdiction
South Africa
Judgment Date
19 August 2008
Case Number
1811/2007
Procedural Posture
Review Application / Judgment
Outcome
The application succeeds; the decision of the First and Second Respondents to award the tender to the Third Respondent is reviewed and set aside with costs.
Judges
Gura
Legal Topics
Promotion of Administrative Justice Act, Tender Review, Procedural Fairness, Statutory Interpretation
Administrative Law Civil Procedure Promotion of Administrative Justice Act Tender Review Procedural Fairness Statutory Interpretation

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 3 Authorities cited 5 Party arguments 2
Sign in to unlock

Parties

Renaissance Security and Cleaning Services CC

Applicant

Rustenburg Local Municipality

Respondent

Municipal Manager: Rustenburg Local Municipality

Respondent

Procedural Posture

Review Application / Judgment

Legal Issues

  1. 1 Whether the Second Respondent was entitled in law not to award the tender to the Applicant although it scored the highest points.
  2. 2 Whether the tender invitation expired after ninety days from date of advertisement.
  3. 3 Whether the awarding of the tender to the Third Respondent for a period of three years instead of seventeen months renders the award reviewable.

Ratio Decidendi

The court held that Section 38(1)(d)(ii) of the Supply Chain Management Policy requires the municipality to notify a bidder in writing of unsatisfactory performance before relying on poor track record to refuse a tender award. The Respondents failed to produce any written notification to the Applicant regarding poor performance. A single isolated incident of guards sleeping on duty did not constitute a poor track record over a year-long contract. The Respondents' reliance on a letter of complaint dated after the decision to reject the bid was misplaced. The established practice of adjudicating tenders after the ninety-day period was accepted by all bidders, including the Applicant, and...

Court Disposition

The application succeeds; the decision of the First and Second Respondents to award the tender to the Third Respondent is reviewed and set aside with costs.

Orders

  • The decision of the First and Second Respondents to award tender number RLM/DTS/0061/2006/07 to the Third Respondent is reviewed and set aside with costs.