South Africa Case Law

Maquassi Local Municipality v Kwane Capital (Pty) Ltd (32947/2020)

Maquassi Local Municipality v Kwane Capital (Pty) Ltd (32947/2020) [2024] ZAGPJHC 454 (8 May 2024)

Court

South Gauteng High Court, Johannesburg

Case number

32947/2020

Judge

Noko

The court found that the applicant's procurement process did not comply with Regulation 32, as it entered into new contracts with the respondent rather than procuring under the contract secured by Tsantsabane Local Municipality. This contravened section 217 of the Constitution and the Municipal Finance Management Act, as the process was not fair, equitable, transparent, competitive, or cost-effective. The respondent failed to deliver the contracted machinery and vehicles, resulting in breach of contract and unjust enrichment. The delay in launching the review was not unreasonable given the ci…

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• Municipal Procurement
• Self Review
• Regulation 32
• Unjust Enrichment
• Breach Of Contract
• Constitutional Invalidity

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

Bohlokong Computers Solutions (Pty) Ltd v Maluti A Phofung Local Municipality (A131/2020)

Bohlokong Computers Solutions (Pty) Ltd v Maluti A Phofung Local Municipality (A131/2020) [2021] ZAFSHC 202 (26 August 2021)

Court

Free State High Court, Bloemfontein

Case number

A131/2020

Judges

Mbhele, Reinders, Daniso

The court held that the contract between the appellant and respondent expired on 31 August 2018 and was not validly extended. Any extension of the contract with Dihlabeng Municipality did not automatically extend the contract with the respondent, as such extension would violate Regulation 32 requirements. The respondent provided undisputed proof of payment exceeding the original contract value, discharging its obligations. Services rendered after the contract's expiry were unsolicited and not enforceable under contract law. The appellant's claim for post-expiry services failed as there was no…

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• Municipal Procurement
• Regulation 32
• Contractual Obligations
• Preferential Procurement Policy
• Effluxion Of Time

Govan Mbeki Municipality v New Integrated Credit Solutions (Pty) Ltd (1168/2017)

Govan Mbeki Municipality v New Integrated Credit Solutions (Pty) Ltd (1168/2017) [2019] ZAMPMHC 24 (3 December 2019)

Court

Middelburg High Court, Mpumalanga

Case number

1168/2017

Judge

Brauckmann

The court found that the contract between the plaintiff and defendant was procured under Regulation 32, which requires that the original contract be secured by a competitive bidding process. The evidence established that the portion of the contract relating to debts younger than 60 days was not subject to any competitive bidding and was simply awarded to the defendant, contrary to section 217 of the Constitution and Regulation 32. The court held that all conditions of Regulation 32 must be met conjunctively, and failure to comply with the competitive bidding requirement rendered the relevant…

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• Municipal Procurement
• Regulation 32
• Section 217 Constitution
• Declaratory Relief
• Severance Of Contract
• Unlawful Contract

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