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)
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…
Source excerpt
- Municipal Procurement
- Invalid Contract
- Unjust Enrichment
- Competitive Bidding
- Risk Appointment
- Public Interest