Road Accident Fund and Others v Mabunda Incorporated and Others; Minister of Transport v Road Accident Fund and Others (1147/2020; 1082/2020) [2022] ZASCA 169; [2023] 1 All SA 595 (SCA) (1 December 2022)

Road Accident Fund and Others v Mabunda Incorporated and Others; Minister of Transport v Road Accident Fund and Others (1147/2020; 1082/2020) [2022] ZASCA 169; [2023] 1 All SA 595 (SCA) (1 December 2022)

The Supreme Court of Appeal held that the appeal was not moot, as the cancellation of the tender remained a live issue and the high court's order had ongoing effects beyond the six-month period. The RAF had authority to cancel the tender through its Bid Adjudication Committee, as the delegation of power remained valid despite the appointment of a new Board. The cancellation complied with Regulation 13(1) of the Preferential Procurement Policy Framework Act, as there were changed circumstances due to the adoption of a new operational model and insufficient funds to cover the envisaged expenditure. The handover decision and second addendum were not set aside by the high court, and no case...

Citation
[2022] ZASCA 169
Parties
Appellant: Road Accident Fund; Appellant: The Chairperson of the Board of the Road Accident Fund; Appellant: Acting Chief Executive Officer of the Road Accident Fund; Appellant: Minister of Transport; Respondent: Mabunda Incorporated and 41 Others; Respondent: FourieFismer Incorporated; Respondent: Pretoria Attorneys Association; Respondent: Diale Mogashoa Incorporated
Court
Supreme Court of Appeal
Jurisdiction
South Africa
Judgment Date
1 December 2022
Case Number
1147/2020; 1082/2020
Procedural Posture
Civil Appeal / Appeal From Gauteng Division of the High Court, Pretoria
Outcome
Appeal upheld; high court order set aside and review applications dismissed with costs.
Judges
Zondi JA, Gorven JA, Musi AJA, Makaula AJA, Masipa AJA
Legal Topics
Tender Cancellation, Preferential Procurement Policy Framework Act, Review of Administrative Action, Mootness, Service Level Agreement, Condonation
Administrative Law Civil Procedure Tender Cancellation Preferential Procurement Policy Framework Act Review of Administrative Action Mootness Service Level Agreement Condonation

Case Brief

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Parties

Road Accident Fund

Appellant

The Chairperson of the Board of the Road Accident Fund

Appellant

Acting Chief Executive Officer of the Road Accident Fund

Appellant

Minister of Transport

Appellant

Mabunda Incorporated and 41 Others

Respondent

FourieFismer Incorporated

Respondent

Pretoria Attorneys Association

Respondent

Diale Mogashoa Incorporated

Respondent

Procedural Posture

Civil Appeal / Appeal From Gauteng Division of the High Court, Pretoria

Legal Issues

  1. 1 Whether the appeal was moot and should be dismissed on that basis.
  2. 2 Whether the Road Accident Fund had authority to cancel the 2018 tender.
  3. 3 Whether the cancellation of the tender complied with Regulation 13(1) of the Preferential Procurement Policy Framework Act.

Ratio Decidendi

The Supreme Court of Appeal held that the appeal was not moot, as the cancellation of the tender remained a live issue and the high court's order had ongoing effects beyond the six-month period. The RAF had authority to cancel the tender through its Bid Adjudication Committee, as the delegation of power remained valid despite the appointment of a new Board. The cancellation complied with Regulation 13(1) of the Preferential Procurement Policy Framework Act, as there were changed circumstances due to the adoption of a new operational model and insufficient funds to cover the envisaged expenditure. The handover decision and second addendum were not set aside by the high court, and no case...

Court Disposition

Appeal upheld; high court order set aside and review applications dismissed with costs.

Orders

  • The appeal under case number 1082/2020 is struck from the roll with costs.
  • The application for condonation is granted and the appeal under case number 1147/2020 is reinstated.