South Africa Case Law

TEB Properties CC v MEC, Department of Health and Social Development, North West (792/10)

TEB Properties CC v MEC, Department of Health and Social Development, North West (792/10) [2011] ZASCA 243; [2012] 1 All SA 479 (SCA) (1 December 2011)

Court

Supreme Court of Appeal

Case number

792/10

Judges

Lewis, Bosielo, Petse

The Supreme Court of Appeal held that the lease agreement between TEB Properties CC and the Department of Health and Social Development, North West, was invalid as it was concluded without compliance with mandatory statutory procurement procedures. The department failed to refer the lease to the tender board or follow an open bidding process as required by section 217(1) of the Constitution, the PFMA, and the North West Tender Board Act. The court rejected the appellant's reliance on Treasury Regulation 13.2.4, finding that it does not grant carte blanche to accounting officers to bypass comp…

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• Public Procurement
• Invalid Contract
• Tender Board Powers
• Treasury Regulations
• Estoppel
• Administrative Action

New Republic Bank Limited v MEC for Sports, North-West Province (72/2004)

New Republic Bank Limited v MEC for Sports, North-West Province (72/2004) [2006] ZANWHC 18 (2 March 2006)

Court

North West High Court, Mafikeng

Case number

72/2004

Judge

MTR Mogoeng

The Department of Education, Sport and Recreation of the North West Province lacked legal authority to conclude the 13 master rental agreements for office equipment because section 4(1) of the North West Tender Board Act vests exclusive power in the tender board to arrange such contracts. The absence of the word 'sole' in the Act does not diminish the exclusivity of the tender board's powers. The Department did not receive any delegation of authority from the tender board. Consequently, the agreements were concluded ultra vires and are invalid. Estoppel and ostensible authority cannot validat…

Source excerpt

• Tender Board Powers
• Ultra Vires
• Invalidity Of Contract
• Estoppel
• Ostensible Authority

Provincial Government of the Eastern Cape and Others v Contractprops 25 (Pty) Ltd (414/99)

Provincial Government of the Eastern Cape and Others v Contractprops 25 (Pty) Ltd (414/99) [2001] ZASCA 68; [2001] 4 All SA 273 (A); 2001 (4) SA 142 (SCA) (25 May 2001)

Court

Supreme Court of Appeal

Case number

414/99

Judges

Marais, Olivier, Scott, Streicher, Brand

The Supreme Court of Appeal held that leases concluded by an Eastern Cape department without Tender Board involvement were ultra vires and invalid, and estoppel could not cure the defect.

• Tender Board Powers
• Ultra Vires
• Statutory Formalities
• Estoppel
• Public Procurement
• Public-procurement

Premier of the Free State Provincial Government and Others v Firechem Free State (Pty) Ltd. (548/98)

Premier of the Free State Provincial Government and Others v Firechem Free State (Pty) Ltd. (548/98) [2000] ZASCA 28; 2000 (4) SA 413 (SCA); [2000] 3 All SA 247 (A) (29 May 2000)

Court

Supreme Court of Appeal

Case number

548/98

Judges

Schutz, Hefer, Harms, Farlam, Mpati

The Supreme Court of Appeal held that a Firechem delivery contract was unlawful because it departed from the tender and acceptance terms and bypassed proper procurement procedures.

• Tender Board Powers
• Public Procurement
• Contractual Validity
• Presumption Of Legality
• Agreements To Agree
• Severance