Umfolozi Transport (Edms) Bpk v Minister van Vervoer en Andere (231/95) [1997] ZASCA 8; ; [1997] 2 All SA 548 (A); (13 March 1997)

Umfolozi Transport (Edms) Bpk v Minister van Vervoer en Andere (231/95) [1997] ZASCA 8; ; [1997] 2 All SA 548 (A); (13 March 1997)

The Supreme Court of Appeal held that TAS tendered as principal and was the proper contracting party. The Board's procedures were administratively fair, and sufficient information was provided to enable a proper exercise of discretion. The Board was entitled to award the contract to the lowest tender unless material...

Source-derived case information.

Citation
[1997] ZASCA 8
Parties
Appellant: Umfolozi Transport (Edms) Bpk; Respondent: Minister van Vervoer; Respondent: Staatstenderraad; Respondent: J C Coetzer N O; Respondent: Transport Advisory Services (Edms) Bpk
Court
Supreme Court of Appeal
Jurisdiction
South Africa
Case Number
231/95
Procedural Posture
Civil Appeal / Appeal From the Transvaal Provincial Division
Outcome
Appeal dismissed with costs, including costs of two counsel.
Judges
Van Heerden, Vivier, Howie, Olivier, Plewman
Legal Topics
Tender Review, Institutional Bias, Procedural Fairness, Contract Award, Judicial Review
Administrative Law Civil Procedure Tender Review Institutional Bias Procedural Fairness Contract Award Judicial Review

Source-derived case record

Summary, issues, holding and outcome

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Parties

Umfolozi Transport (Edms) Bpk

Appellant

Minister van Vervoer

Respondent

Staatstenderraad

Respondent

J C Coetzer N O

Respondent

Transport Advisory Services (Edms) Bpk

Respondent

Procedural Posture

Civil Appeal / Appeal From the Transvaal Provincial Division

  1. 1 Whether the State Tender Board's award of the public transport contract to TAS was procedurally fair and lawful.
  2. 2 Whether TAS tendered as principal or merely as agent for another company, affecting the validity of the contract.
  3. 3 Whether institutional bias existed due to the involvement of state-controlled companies.

Ratio Decidendi

The Supreme Court of Appeal held that TAS tendered as principal and was the proper contracting party. The Board's procedures were administratively fair, and sufficient information was provided to enable a proper exercise of discretion. The Board was entitled to award the contract to the lowest tender unless material risks were present, and no evidence of actual bias or unfairness was established. The statutory framework did not prohibit the Board from considering tenders from state-related entities, and the regulatory safeguards were adequate. Umfolozi's existing contract had lawfully expired and was replaced by the new contract. The appeal was dismissed with costs, including the costs of...

Court Disposition

Appeal dismissed with costs, including costs of two counsel.

Orders

  • The appeal is dismissed with costs, including the costs of two advocates.