State Information Technology Agency (Pty) Ltd v Premier, Eastern Cape Provincial Government and Others (250/2018) [2018] ZAECBHC 12 (23 October 2018)

State Information Technology Agency (Pty) Ltd v Premier, Eastern Cape Provincial Government and Others (250/2018) [2018] ZAECBHC 12 (23 October 2018)

The court found that the Eastern Cape Provincial Government did not obtain the unequivocal written approval of SITA, the relevant organ of state, as required by Treasury Regulation 16A6.6 for participation in the Western Cape broadband contract. The correspondence from SITA constituted at best conditional approval, which was not complied with, and the Eastern Cape Government proceeded beyond the scope of any such approval. The court rejected the respondents' preliminary objections regarding locus standi, delay, and non-compliance with the Intergovernmental Framework Relations Act, holding that SITA had standing, the delay was reasonable, and the court had discretion to hear the matter....

Citation
[2018] ZAECBHC 12
Parties
Applicant: State Information Technology Agency (Pty) Ltd; Respondent: Premier, Eastern Cape Provincial Government; Respondent: Liquid Telecommunications South Africa; Respondent: Minister of Telecommunications and Postal Services; Respondent: Minister of Finance
Court
Eastern Cape High Court, Bhisho
Jurisdiction
South Africa
Judgment Date
23 October 2018
Case Number
250/2018
Procedural Posture
Review Application / Judgment Delivered After Hearing on Merits
Outcome
The decision to appoint Liquid Telecommunications South Africa to provide broadband services is reviewable and subject to further determination regarding a just and equitable remedy.
Judges
Smith
Legal Topics
Public Procurement, Treasury Regulations, Locus Standi, Just and Equitable Remedy, Contract Review, Intergovernmental Relations
Administrative Law Civil Procedure Commercial and Corporate Public Procurement Treasury Regulations Locus Standi Just and Equitable Remedy Contract Review +1 more

Case Brief

Summary, issues, holding and outcome

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Parties

State Information Technology Agency (Pty) Ltd

Applicant

Premier, Eastern Cape Provincial Government

Respondent

Liquid Telecommunications South Africa

Respondent

Minister of Telecommunications and Postal Services

Respondent

Minister of Finance

Respondent

Procedural Posture

Review Application / Judgment Delivered After Hearing on Merits

Legal Issues

  1. 1 Whether the Eastern Cape Provincial Government obtained the necessary written approval from the relevant organ of state (SITA) to participate in the Western Cape broadband contract under Treasury Regulation 16A6.6.
  2. 2 Whether SITA has locus standi to bring the review application.
  3. 3 Whether there was undue delay in bringing the application.

Ratio Decidendi

The court found that the Eastern Cape Provincial Government did not obtain the unequivocal written approval of SITA, the relevant organ of state, as required by Treasury Regulation 16A6.6 for participation in the Western Cape broadband contract. The correspondence from SITA constituted at best conditional approval, which was not complied with, and the Eastern Cape Government proceeded beyond the scope of any such approval. The court rejected the respondents' preliminary objections regarding locus standi, delay, and non-compliance with the Intergovernmental Framework Relations Act, holding that SITA had standing, the delay was reasonable, and the court had discretion to hear the matter....

Court Disposition

The decision to appoint Liquid Telecommunications South Africa to provide broadband services is reviewable and subject to further determination regarding a just and equitable remedy.

Orders

  • The parties are ordered to file additional heads of argument regarding the issue of a just and equitable remedy under section 8 of PAJA.
  • The applicant must file by 2 November 2018.