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…

Source excerpt

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

Maluti-A-Phofung Local Municipality v Kill Crime Security Service (Pty) Ltd and Others (2237/2023)

Maluti-A-Phofung Local Municipality v Kill Crime Security Service (Pty) Ltd and Others (2237/2023) [2025] ZAFSHC 24 (30 January 2025)

Court

Free State High Court, Bloemfontein

Case number

2237/2023

Judge

Mhlambi

The court found that the service level agreements and acknowledgment of debt were concluded in violation of section 217 of the Constitution and relevant procurement legislation, as they were not subjected to a competitive bidding process. The municipal manager was unauthorized and conflicted in concluding the acknowledgment of debt. The agreements are constitutionally invalid. The default judgment was granted in the applicant's absence due to deliberate failure to defend, orchestrated by conflicted officials. The application before the court is a legality review, not a PAJA review. In terms o…

Source excerpt

• Constitutionality Of Procurement
• Legality Review
• Municipal Supply Chain Management
• Default Judgment Rescission
• Acknowledgment Of Debt
• Accrued Rights Preservation

H & I Civil & Building (Pty) Ltd and Another v City of Cape Town and Others (59/24)

H & I Civil & Building (Pty) Ltd and Another v City of Cape Town and Others (59/24) [2024] ZAWCHC 329 (18 October 2024)

Court

Western Cape High Court, Cape Town

Case number

59/24

Judges

Magardie, Fortuin, Erasmus

The court held that the City of Cape Town was lawfully empowered to determine and implement its own preferential procurement policy and scoring system for tenders, provided it acted within the constitutional and legislative framework. The process followed by the City in developing the new scoring system was rational, involved internal consultation and legal advice, and was necessitated by changes in the regulatory environment following the Afribusiness judgment and the 2022 Procurement Regulations. The applicants' arguments regarding procedural unfairness, legitimate expectation, and alleged…

Source excerpt

• Preferential Procurement
• Broad Based Black Economic Empowerment
• Municipal Supply Chain Management
• Promotion Of Administrative Justice Act
• Constitutional Review
• Public Tender Scoring

Mabotwane Security Services CC and Others v Sekhukhune District Municipality and Others (4291/2023)

Mabotwane Security Services CC and Others v Sekhukhune District Municipality and Others (4291/2023) [2024] ZALMPPHC 97 (20 August 2024)

Court

Limpopo High Court, Polokwane

Case number

4291/2023

Judge

Monene

The court found that the acting municipal manager's decision to appoint the third respondent for all four clusters contravened the clear terms of the tender, which required four preferred service providers, one per cluster. The empowering provision did not permit a single bidder to be appointed for all clusters. The supply chain management policy did not authorize the acting municipal manager to deviate from the Bid Adjudication Committee's recommendations; the only permissible action was to refer the matter back for reconsideration. Both committees had recommended four different entities, an…

Source excerpt

• Promotion Of Administrative Justice Act
• Municipal Supply Chain Management
• Judicial Review Of Tender Awards
• Exhaustion Of Internal Remedies
• Separation Of Powers

Siemans Energy (Pty) Ltd and Others v City of Cape Town and Others (19749/2022)

Siemans Energy (Pty) Ltd and Others v City of Cape Town and Others (19749/2022) [2024] ZAWCHC 193 (25 July 2024)

Court

Western Cape High Court, Cape Town

Case number

19749/2022

Judge

Andrews

The High Court dismissed Siemens Energy’s review of the City of Cape Town’s abuse finding and suspended procurement restriction under the SCM policy.

• Promotion Of Administrative Justice Act
• Municipal Supply Chain Management
• Public Procurement
• Strict Liability In Procurement
• Review Of Administrative Action
• Declaration Of Interest

Alfred Nzo District Municipality v Sokhani Development and Consulting Engineers (Pty) Ltd (1254/2024)

Alfred Nzo District Municipality v Sokhani Development and Consulting Engineers (Pty) Ltd (1254/2024) [2024] ZAECMKHC 72 (20 June 2024)

Court

Eastern Cape High Court, Makhanda

Case number

1254/2024

Judge

Zono

Leave to appeal against an interim interdict was dismissed because the order was not appealable and no proper grounds were shown.

• Interim Interdict
• Leave To Appeal
• Legality Review
• Municipal Supply Chain Management
• Urgency
• Rule 41a Compliance

Likunga Protection and Security Services (Pty) Ltd v Emalahleni Local Municipality and Another (673/2023)

Likunga Protection and Security Services (Pty) Ltd v Emalahleni Local Municipality and Another (673/2023) [2024] ZAECMKHC 61 (13 June 2024)

Court

Eastern Cape High Court, Makhanda

Case number

673/2023

Judge

Cengani-Mbakaza

The court found that the requirement to submit audited annual financial statements for the previous three years was a mandatory and statutorily prescribed condition for tenders exceeding R10 million. The applicant was fully aware of this requirement, having completed the relevant tender documentation, but failed to submit the statements due to its own oversight. The Municipality was explicit in its tender requirements and correctly disqualified the applicant's bid as non-responsive. The second respondent's audited statements were found to be compliant, bearing the auditor's signature and cont…

Source excerpt

• Public Procurement
• Preferential Procurement Policy Framework Act
• Municipal Supply Chain Management
• Review Of Administrative Action
• Bid Disqualification

Afriforum NPC v Abaqulusi Local Municipality and Others (3128/2021)

Afriforum NPC v Abaqulusi Local Municipality and Others (3128/2021) [2024] ZAKZPHC 44 (16 May 2024)

Court

Kwazulu-Natal High Court, Pietermaritzburg

Case number

3128/2021

Judge

Sabela AJ

The High Court reviewed and set aside a municipality’s caretaker forestry appointment for unlawfulness, irrationality, and procedural unfairness under the MFMA.

• Municipal Supply Chain Management
• Legality Review
• Public Asset Disposal
• Irrationality
• Procedural Fairness
• Unlawful Administrative Action

Amadwala Trading 73 CC v Ethekwini Municipality (AR317/2022)

Amadwala Trading 73 CC v Ethekwini Municipality (AR317/2022) [2024] ZAKZPHC 93 (28 March 2024)

Court

Kwazulu-Natal High Court, Pietermaritzburg

Case number

AR317/2022

Judges

Mathenjwa, Olsen, Mpontshana

The court found that the tender was never formally awarded to the appellant, as the respondent's practice was to inform unsuccessful bidders first and only appoint the successful bidder after internal appeals were finalised. The respondent's SCM policy and Preferential Procurement Regulations permitted cancellation of the tender due to changed circumstances, specifically the decision to insource waste management services in response to service disruptions. The cancellation was lawful and rationally connected to the respondent's constitutional obligations to provide sustainable services. The d…

Source excerpt

• Tender Cancellation
• Preferential Procurement Regulations
• Municipal Supply Chain Management
• Procedural Fairness
• Principle Of Legality

Kuzobalula v Ingquza Local Municipality and Another (4797/2023)

Kuzobalula v Ingquza Local Municipality and Another (4797/2023) [2024] ZAECMHC 16 (28 March 2024)

Court

Eastern Cape High Court, Mthatha

Case number

4797/2023

Judge

Majiki

The court found that the municipality's decision to withdraw the tender was not rationally connected to the reasons advanced, as the five-year financial statement requirement was not prohibited by current regulations and the municipality relied on repealed provisions. The municipality failed to provide objective criteria for not awarding the tender to the applicant, who was the preferred bidder and had scored the highest points. The process was procedurally unfair, as bidders were not afforded an opportunity to be heard prior to withdrawal, and the municipality was not transparent about its d…

Source excerpt

• Promotion Of Administrative Justice Act
• Preferential Procurement Policy Framework Act
• Municipal Supply Chain Management
• Tender Award Review
• Substitution Order
• Procedural Fairness