Special Investigating Unit v Zakheni Strategic Supplies (Pty) Ltd and Another (GP09/2021) [2022] ZAST 16 (29 June 2022)

Special Investigating Unit v Zakheni Strategic Supplies (Pty) Ltd and Another (GP09/2021) [2022] ZAST 16 (29 June 2022)

The Tribunal found that the contract awarded to Zakheni Strategic Supplies (Pty) Ltd was unlawful and irregular due to non-compliance with mandatory procurement prescripts, specifically Instruction Note 3, and the lack of authority of the CFO to singularly award the contract. The Tribunal dismissed Zakheni's...

Source-derived case information.

Citation
[2022] ZAST 16
Parties
Applicant: Special Investigating Unit; Respondent: Zakheni Strategic Supplies (Pty) Ltd; Respondent: Member of the Executive Council, Gauteng Department of Health
Court
Special Tribunal
Jurisdiction
South Africa
Case Number
GP09/2021
Procedural Posture
Review Application / Judgment
Outcome
Application succeeded; contract set aside; Zakheni divested of profits; counterclaim dismissed; costs awarded against Zakheni.
Judges
L T Modiba
Legal Topics
Public Procurement Irregularity, Just and Equitable Relief, Statement and Debatement of Account, Special Tribunal Jurisdiction, Instruction Note 3 Compliance, Profit Disgorgement
Administrative Law Civil Procedure Commercial and Corporate Public Procurement Irregularity Just and Equitable Relief Statement and Debatement of Account Special Tribunal Jurisdiction Instruction Note 3 Compliance +1 more

Source-derived case record

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Downloadable case file Legal principles 5 Authorities cited 12 Party arguments 2 Amounts and remedies 3
Sign in to unlock

Parties

Special Investigating Unit

Applicant

Zakheni Strategic Supplies (Pty) Ltd

Respondent

Member of the Executive Council, Gauteng Department of Health

Respondent

Procedural Posture

Review Application / Judgment

  1. 1 Whether the contract awarded to Zakheni Strategic Supplies (Pty) Ltd for PPE procurement was unlawful and irregular.
  2. 2 Whether the Special Tribunal has jurisdiction to review and set aside the contract and grant just and equitable relief.
  3. 3 Whether the applicant is entitled to an order for statement and debatement of account from Zakheni.

Ratio Decidendi

The Tribunal found that the contract awarded to Zakheni Strategic Supplies (Pty) Ltd was unlawful and irregular due to non-compliance with mandatory procurement prescripts, specifically Instruction Note 3, and the lack of authority of the CFO to singularly award the contract. The Tribunal dismissed Zakheni's arguments that TN3 was merely a guideline and confirmed its jurisdiction to review and set aside the contract and grant just and equitable relief. The Tribunal held that Zakheni is not entitled to profit from the impugned contract and ordered Zakheni to render audited financial statements and supporting documents for statement and debatement of account. The counterclaim for specific...

Court Disposition

Application succeeded; contract set aside; Zakheni divested of profits; counterclaim dismissed; costs awarded against Zakheni.

Orders

  • The application succeeds.
  • The counterclaim is dismissed with costs.