Siemans Energy (Pty) Ltd and Others v City of Cape Town and Others (19749/2022) [2024] ZAWCHC 193 (25 July 2024)

Siemans Energy (Pty) Ltd and Others v City of Cape Town and Others (19749/2022) [2024] ZAWCHC 193 (25 July 2024)

The court held that the City of Cape Town’s SCM policy defines abuse to include any misrepresentation on information submitted for the purpose of procuring a contract, regardless of whether the misrepresentation was intentional, material, or negligent. The applicants’ interpretation requiring intent or materiality was rejected as inconsistent with the plain wording, context, and purpose of the policy, which aims to promote transparency and prevent corruption in public procurement. The City Manager acted within the empowering provisions, considered relevant factors, and exercised discretion in imposing a wholly suspended restriction, which did not bar the applicants from contracting with...

Citation
[2024] ZAWCHC 193
Parties
Applicant: Siemens Energy (Pty) Ltd; Applicant: Thabo Abbiot Molekoa; Applicant: Ipeleng Odette Selele; Applicant: Timothy Rick O’Shea; Respondent: City of Cape Town; Respondent: Lungelo Mbandazayo N.O.; Respondent: Minister of Finance
Court
Western Cape High Court, Cape Town
Jurisdiction
South Africa
Judgment Date
25 July 2024
Case Number
19749/2022
Procedural Posture
Review Application / Opposed Application for Judicial Review Under Rule 53; Judgment on Merits
Outcome
Application dismissed with costs, including costs of two counsel on the party and party scale at Scale C from 12 April 2024.
Judges
Andrews
Legal Topics
Promotion of Administrative Justice Act, Municipal Supply Chain Management, Public Procurement, Strict Liability in Procurement, Review of Administrative Action, Declaration of Interest
Administrative Law Civil Procedure Commercial and Corporate Promotion of Administrative Justice Act Municipal Supply Chain Management Public Procurement Strict Liability in Procurement Review of Administrative Action +1 more

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Parties

Siemens Energy (Pty) Ltd

Applicant

Thabo Abbiot Molekoa

Applicant

Ipeleng Odette Selele

Applicant

Timothy Rick O’Shea

Applicant

City of Cape Town

Respondent

Lungelo Mbandazayo N.O.

Respondent

Minister of Finance

Respondent

Procedural Posture

Review Application / Opposed Application for Judicial Review Under Rule 53; Judgment on Merits

Legal Issues

  1. 1 Whether the City of Cape Town's decision that the applicants committed an abuse of the Supply Chain Management (SCM) system should be reviewed and set aside.
  2. 2 Whether the City's decision to restrict the applicants and list them on the Register of Tender and Contract Defaulters for twelve months, with the restriction wholly suspended, should be reviewed and set aside.
  3. 3 Whether the impugned decisions were unlawful, irrational, unreasonable, or materially influenced by errors of law or fact under PAJA and the principle of legality.

Ratio Decidendi

The court held that the City of Cape Town’s SCM policy defines abuse to include any misrepresentation on information submitted for the purpose of procuring a contract, regardless of whether the misrepresentation was intentional, material, or negligent. The applicants’ interpretation requiring intent or materiality was rejected as inconsistent with the plain wording, context, and purpose of the policy, which aims to promote transparency and prevent corruption in public procurement. The City Manager acted within the empowering provisions, considered relevant factors, and exercised discretion in imposing a wholly suspended restriction, which did not bar the applicants from contracting with...

Court Disposition

Application dismissed with costs, including costs of two counsel on the party and party scale at Scale C from 12 April 2024.

Orders

  • The application is dismissed with costs, including the costs of two counsel on the party and party scale, at Scale C from 12 April 2024, as contemplated under Uniform Rule 69, as amended.