South Africa Case Law

Maximum Profit Recovery (Pty) Ltd v Umkhanyakude District Municipality and Another (D12061/2024)

Maximum Profit Recovery (Pty) Ltd v Umkhanyakude District Municipality and Another (D12061/2024) [2025] ZAKZDHC 32 (23 May 2025)

Court

Kwazulu-Natal High Court, Durban

Case number

D12061/2024

Judge

Shapiro AJ

The court found that the Municipality's decision to appoint the second respondent via a quotation process was unlawful and constitutionally invalid. The value of the contract exceeded the statutory threshold for competitive bidding, and the Municipality's use of a quotation process constituted prohibited contract splitting. The Municipality failed to invite all panel members to quote, did not comply with its own policies, and did not provide evidence justifying its deviation from the competitive process. The procurement process lacked transparency, fairness, and accountability, violating sect…

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• Public Procurement
• Competitive Bidding
• Municipal Supply Chain Management
• Promotion Of Administrative Justice Act
• Preferential Procurement Policy Framework Act
• Contract Splitting

Siemans (Pty) Limited v Eskom Holdings SOC Limited and Others (026621/2024)

Siemans (Pty) Limited v Eskom Holdings SOC Limited and Others (026621/2024) [2024] ZAGPJHC 555 (7 June 2024)

Court

South Gauteng High Court, Johannesburg

Case number

026621/2024

Judge

Unterhalter

The High Court dismissed Siemens’ review of Eskom’s TPSCM tender award to GE, holding the award was made lawfully within the valid tender period.

• Public Procurement
• Tender Validity Period
• Judicial Review Of Administrative Action
• Competitive Bidding
• Disqualification Of Tender
• Incumbency Advantage

Bertobrite (Pty) Ltd v Kgetlengrivier Local Municipality (3200/2019)

Bertobrite (Pty) Ltd v Kgetlengrivier Local Municipality (3200/2019) [2023] ZANWHC 48 (17 April 2023)

Court

North West High Court, Mafikeng

Case number

3200/2019

Judge

J T Djaje

The court found that the plaintiff was appointed under Regulation 32 of the Municipal Supply Chain Management Regulations, as evidenced by the appointment letter issued by the defendant's Municipal Manager. The defendant failed to adduce any evidence disputing compliance with Regulation 32 or the lawfulness of the appointment. The requirements for dispensing with a competitive bidding process were met, and the defendant's arguments regarding non-compliance with section 217 of the Constitution were unsupported by evidence. The plaintiff proved on a balance of probabilities that it was entitled…

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• Municipal Procurement
• Service Level Agreement
• Regulation 32
• Acknowledgment Of Debt
• Competitive Bidding
• Costs Award

Ntiyiso Consulting CC v Maluti-A-Phofung Local Municipality (1215/2019)

Ntiyiso Consulting CC v Maluti-A-Phofung Local Municipality (1215/2019) [2022] ZAFSHC 206 (22 August 2022)

Court

Free State High Court, Bloemfontein

Case number

1215/2019

Judge

C Reinders

The court dismissed a consulting firm’s claim against a municipality and declared its appointment and service level agreement invalid for non-compliance with procurement rules.

• Municipal Procurement
• Regulation 32
• Preferential Procurement Policy Framework Act
• Service Level Agreement
• Illegality Of Contract
• Competitive Bidding

City of Mbombela v SMEC South Africa (PTY) Ltd (2438 / 2021)

City of Mbombela v SMEC South Africa (PTY) Ltd (2438 / 2021) [2022] ZAMPMBHC 39 (30 May 2022)

Court

Mbombela High Court, Mpumalanga

Case number

2438 / 2021

Judge

TV Ratshibvumo

The application for rescission under Rule 31(5)(d) is incompetent because the default judgment was granted by a judge, not the registrar. Under common law, the applicant failed to provide a convincing explanation for its default, as the affidavits lacked detail and did not demonstrate that the default was not wilful. The applicant's alleged bona fide defence—that the contract is invalid due to non-compliance with procurement laws—does not provide prospects of success. Established case law holds that even if a contract is declared invalid for lack of competitive bidding, just and equitable rel…

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• Rescission Of Judgment
• Default Judgment
• Municipal Procurement
• Competitive Bidding
• Estoppel
• Just And Equitable Relief

KwaDukuza Municipality v Skillful 1169 CC and Another (11060/2017)

KwaDukuza Municipality v Skillful 1169 CC and Another (11060/2017) [2018] ZAKZDHC 35 (6 July 2018)

Court

Kwazulu-Natal High Court, Durban

Case number

11060/2017

Judge

Madondo DJP

The court found that the applicant did not comply with the competitive bidding requirements set out in s 217 of the Constitution and s 112 of the Local Government: Municipal Finance Management Act. Although regulation 32 permits procurement under contracts secured by other organs of state, such procurement must be based on a valid competitive bidding process and proper consent. In this case, the applicant failed to demonstrate that all statutory requirements were met, and the agreements were therefore invalid. The court held that the contracts appointing the first and second respondents as ma…

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• Municipal Procurement
• Competitive Bidding
• Regulation 32
• Contract Nullity

VIP Consulting Engineers (Pty) Ltd v Mafube Local Municipality (4888/2013)

VIP Consulting Engineers (Pty) Ltd v Mafube Local Municipality (4888/2013) [2017] ZAFSHC 30 (16 February 2017)

Court

Free State High Court, Bloemfontein

Case number

4888/2013

Judge

MBHELE

The court found that the contracts between the plaintiff and defendant were concluded in breach of mandatory municipal procurement laws, specifically the requirement for competitive bidding for services exceeding R200,000. The plaintiff was appointed based on a longstanding relationship, bypassing prescribed procedures and capturing the decision-making process of the municipality. The evidence established that payment for preliminary designs was contingent on approval and allocation of funds through the Municipal Infrastructure Grant, and no agreement existed for payment prior to such approva…

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• Municipal Procurement
• Invalid Contract
• Unjust Enrichment
• Competitive Bidding
• Risk Appointment
• Public Interest

Afrisake NPC and Others v The City of Tshwane Metropolitan Municipality and Others (74192/2003)

Afrisake NPC and Others v The City of Tshwane Metropolitan Municipality and Others (74192/2003) [2016] ZAGPPHC 641 (22 July 2016)

Court

North Gauteng High Court, Pretoria

Case number

74192/2003

Judge

BAM

The court extended an urgent interim interdict preventing Tshwane from paying R950 million to TUMS pending review of the Master Services Agreement.

• Interim Interdict
• Review Of Administrative Action
• Competitive Bidding
• Municipal Procurement
• Constitutional Invalidity
• Public Interest Litigation

Fidelity Services (Pty) Ltd v Mogale City Local Municipality and Others (32719/15)

Fidelity Services (Pty) Ltd v Mogale City Local Municipality and Others (32719/15) [2016] ZAGPJHC 397 (27 May 2016)

Court

South Gauteng High Court, Johannesburg

Case number

32719/15

Judge

S Du Toit

The court found that Mogale City Local Municipality unlawfully entered into a direct contract with Sidas Security Guards (Pty) Ltd, a private entity, under the guise of regulation 32 of the Municipal Supply Chain Management Regulations. Regulation 32 only permits procurement from another organ of state, not a private party. The contract was not the result of a competitive bidding process, and the requirements of the Constitution, the Municipal Finance Management Act, and the municipal supply chain management policy were not met. The municipality failed to demonstrate any discounts or benefits…

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• Municipal Supply Chain Management
• Review Of Administrative Action
• Unlawful Procurement
• Competitive Bidding
• Remedy Substitution
• Costs Orders

Open Edge Technologies SA (Pty) Ltd v City of Tshwane Metropolitan Municipality and Others (53770/2015)

Open Edge Technologies SA (Pty) Ltd v City of Tshwane Metropolitan Municipality and Others (53770/2015) [2015] ZAGPPHC 1087 (9 December 2015)

Court

North Gauteng High Court, Pretoria

Case number

53770/2015

Judge

Nkosi

The High Court dismissed a review of Tshwane’s Vodacom procurement, finding the applicant lacked standing and had not shown unlawful compliance with Regulation 32.

• Municipal Supply Chain Management
• Regulation 32 Procurement
• Locus Standi
• Competitive Bidding
• Promotion Of Administrative Justice Act
• Municipal-procurement