TLJ Security Services v Tswaing Local Municipality (1376/22) [2023] ZANWHC 232 (18 January 2023)

TLJ Security Services v Tswaing Local Municipality (1376/22) [2023] ZANWHC 232 (18 January 2023)

The court found that the oral agreement between the applicant and the municipality for the provision of security services was concluded in contravention of the statutory procurement framework, specifically the Municipal Finance Management Act and its regulations, as well as Section 217 of the Constitution. The contract was not subjected to a competitive bidding process and was not reduced to writing as required by law. The principle of legality, a cornerstone of constitutional democracy, prohibits organs of state from acting outside the scope of their lawful powers. Estoppel cannot be invoked to validate a contract that is unlawful and ultra vires. The application for default judgment was...

Citation
[2023] ZANWHC 232
Parties
Applicant: TLJ Security Services; Respondent: Tswaing Local Municipality
Court
North West High Court, Mafikeng
Jurisdiction
South Africa
Judgment Date
18 January 2023
Case Number
1376/22
Procedural Posture
Civil Application / Application for Default Judgment; Reasons for Dismissal
Outcome
Application for default judgment dismissed; contract declared invalid due to non-compliance with statutory procurement requirements.
Judges
O.Y Dibetso-Bodibe
Legal Topics
Municipal Procurement, Doctrine of Legality, Oral Contracts, Supply Chain Management, Default Judgment, Public Tender Requirements
Administrative Law Civil Procedure Commercial and Corporate Municipal Procurement Doctrine of Legality Oral Contracts Supply Chain Management Default Judgment +1 more

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Parties

TLJ Security Services

Applicant

Tswaing Local Municipality

Respondent

Procedural Posture

Civil Application / Application for Default Judgment; Reasons for Dismissal

Legal Issues

  1. 1 Whether an oral agreement for the procurement of security services by a municipality is valid under South African law.
  2. 2 Whether the municipality's failure to follow prescribed supply chain management procedures renders the contract unlawful and unenforceable.
  3. 3 Whether estoppel can be invoked to validate a contract concluded in contravention of statutory procurement requirements.

Ratio Decidendi

The court found that the oral agreement between the applicant and the municipality for the provision of security services was concluded in contravention of the statutory procurement framework, specifically the Municipal Finance Management Act and its regulations, as well as Section 217 of the Constitution. The contract was not subjected to a competitive bidding process and was not reduced to writing as required by law. The principle of legality, a cornerstone of constitutional democracy, prohibits organs of state from acting outside the scope of their lawful powers. Estoppel cannot be invoked to validate a contract that is unlawful and ultra vires. The application for default judgment was...

Court Disposition

Application for default judgment dismissed; contract declared invalid due to non-compliance with statutory procurement requirements.

Orders

  • The application for default judgment is dismissed.
  • No order as to costs.