Sekhukhune District Municipality v Bo-Mamohlala Projects CC and Others (60186/15, 60185/15, 60180/15) [2016] ZAGPPHC 206 (10 February 2016)

Sekhukhune District Municipality v Bo-Mamohlala Projects CC and Others (60186/15, 60185/15, 60180/15) [2016] ZAGPPHC 206 (10 February 2016)

The court found that the tender process conducted by the Sekhukhune District Municipality was procedurally flawed and did not comply with the requirements of section 217 of the Constitution or the Supply Chain Management Policy. The Bid Evaluation Committee failed to evaluate each bid for responsiveness and functionality, and decisions were made without proper quorum. The Bid Adjudication Committee was not properly constituted, lacking the required senior supply chain management practitioner. The failure to properly consider the requirement for audited financial statements resulted in arbitrary disqualification of bidders. These irregularities rendered the process unfair, unreasonable,...

Citation
[2016] ZAGPPHC 206
Parties
Applicant: Sekhukhune District Municipality; Respondent: Bo-Mamohlala Projects CC; Respondent: Casnan Civils CC; Respondent: Kingki Electrical & DGCV JV; Respondent: Eternity Star Investments 231 CC; Respondent: HTE Construction CC; Respondent: Kgalemo Construction CC; Respondent: Khulani Trading Enterprises CC; Respondent: KSB Pumps and Values (Pty) Ltd; Respondent: Lebaka Construction (Pty) Ltd; Respondent: Madipadi Construction CC; Respondent: Mashaipane General Construction JA; Respondent: Kingki Electrical Contractors DGDC JV; Respondent: Mothakge Phadima Construction and Sanitary Work & White Hazy Building Construction JV
Court
North Gauteng High Court, Pretoria
Jurisdiction
South Africa
Judgment Date
10 February 2016
Case Number
60186/15, 60185/15, 60180/15
Procedural Posture
Review Application / Judgment
Outcome
Application granted; the tender process and awards are set aside and the procurement process must recommence.
Judges
Hughes
Legal Topics
Municipal Procurement, Tender Irregularity, Review of Administrative Action, Section 217 Constitution, Procedural Fairness
Administrative Law Civil Procedure Municipal Procurement Tender Irregularity Review of Administrative Action Section 217 Constitution Procedural Fairness

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Parties

Sekhukhune District Municipality

Applicant

Bo-Mamohlala Projects CC

Respondent

Casnan Civils CC

Respondent

Kingki Electrical & DGCV JV

Respondent

Eternity Star Investments 231 CC

Respondent

HTE Construction CC

Respondent

Kgalemo Construction CC

Respondent

Khulani Trading Enterprises CC

Respondent

KSB Pumps and Values (Pty) Ltd

Respondent

Lebaka Construction (Pty) Ltd

Respondent

Madipadi Construction CC

Respondent

Mashaipane General Construction JA

Respondent

Kingki Electrical Contractors DGDC JV

Respondent

Mothakge Phadima Construction and Sanitary Work & White Hazy Building Construction JV

Respondent

Procedural Posture

Review Application / Judgment

Legal Issues

  1. 1 Whether the tender process for water supply infrastructure in Sekhukhune District Municipality complied with section 217 of the Constitution.
  2. 2 Whether the Bid Evaluation Committee and Bid Adjudication Committee followed the prescribed procedures under the Supply Chain Management Policy.
  3. 3 Whether the composition of the Bid Adjudication Committee was lawful.

Ratio Decidendi

The court found that the tender process conducted by the Sekhukhune District Municipality was procedurally flawed and did not comply with the requirements of section 217 of the Constitution or the Supply Chain Management Policy. The Bid Evaluation Committee failed to evaluate each bid for responsiveness and functionality, and decisions were made without proper quorum. The Bid Adjudication Committee was not properly constituted, lacking the required senior supply chain management practitioner. The failure to properly consider the requirement for audited financial statements resulted in arbitrary disqualification of bidders. These irregularities rendered the process unfair, unreasonable,...

Court Disposition

Application granted; the tender process and awards are set aside and the procurement process must recommence.

Orders

  • The tender process pertaining to tender number SK8/3/1/16/2014/15 is declared unlawful and set aside.
  • The fifteen awards in respect of such tender to all respondents are set aside.