AfriRent (Pty) Ltd v Rand West City Local Municipality and Another (2023-052811) [2023] ZAGPJHC 1430 (11 December 2023)

AfriRent (Pty) Ltd v Rand West City Local Municipality and Another (2023-052811) [2023] ZAGPJHC 1430 (11 December 2023)

The court held that Rand West City Local Municipality acted rationally in refusing to award the tender to Afrirent due to its failure to provide a statement of tax liability, as requested. Fleet Horizon Solutions (Pty) Ltd was not legally required to submit audited financial statements, and therefore, its bid was lawfully accepted despite its initial representation. The post-award condition required only negotiation to decrease the price, not an actual reduction, and evidence of such negotiation was present. There was no reasonable prospect that another court would reach a different conclusion on any of these issues.

Citation
[2023] ZAGPJHC 1430
Parties
Applicant: AfriRent (Pty) Ltd; Respondent: Rand West City Local Municipality; Respondent: Fleet Horizon Solutions (Pty) Ltd
Court
South Gauteng High Court, Johannesburg
Jurisdiction
South Africa
Judgment Date
11 December 2023
Case Number
2023-052811
Procedural Posture
Leave to Appeal / Application for Leave to Appeal Following Dismissal of Review Application
Outcome
Application for leave to appeal dismissed with costs, including costs of two counsel.
Judges
S D J Wilson
Legal Topics
Public Procurement, Tender Review, Strict Compliance, Rationality, Costs Award
Administrative Law Civil Procedure Public Procurement Tender Review Strict Compliance Rationality Costs Award

Case Brief

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Parties

AfriRent (Pty) Ltd

Applicant

Rand West City Local Municipality

Respondent

Fleet Horizon Solutions (Pty) Ltd

Respondent

Procedural Posture

Leave to Appeal / Application for Leave to Appeal Following Dismissal of Review Application

Legal Issues

  1. 1 Whether Rand West City Local Municipality acted irrationally in refusing to award the tender to Afrirent due to non-disclosure of a tax liability statement.
  2. 2 Whether Fleet Horizon Solutions (Pty) Ltd ought to have been disqualified for failing to submit three years of audited financial statements.
  3. 3 Whether the post-award condition requiring negotiation to decrease Fleet Horizon's tender price was fulfilled.

Ratio Decidendi

The court held that Rand West City Local Municipality acted rationally in refusing to award the tender to Afrirent due to its failure to provide a statement of tax liability, as requested. Fleet Horizon Solutions (Pty) Ltd was not legally required to submit audited financial statements, and therefore, its bid was lawfully accepted despite its initial representation. The post-award condition required only negotiation to decrease the price, not an actual reduction, and evidence of such negotiation was present. There was no reasonable prospect that another court would reach a different conclusion on any of these issues.

Court Disposition

Application for leave to appeal dismissed with costs, including costs of two counsel.

Orders

  • The application for leave to appeal is dismissed.
  • The applicant is ordered to pay the costs of the application, including the costs of two counsel.