Case Law[2025] ZAGPPHC 479South Africa
Pro Secure (Pty) Ltd v Mogale City Local Municipality and Others (2025-043172) [2025] ZAGPPHC 479 (16 May 2025)
High Court of South Africa (Gauteng Division, Pretoria)
16 May 2025
Headnotes
against the prejudice to the respondents if it is granted.[6] [25] In the result, the application must succeed. The successful litigant is entitled to its costs as is customary in the absence of a case being made to the contrary. [26] The following order is made: the draft order filed under CaseLines 12-1 to 12-3 is made an order of court. J.S. NYATHI Judge of the High Court Gauteng Division, Pretoria Date of hearing: 23/04/2025 Date of Judgment: 16 May 2025
Judgment
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# South Africa: North Gauteng High Court, Pretoria
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## Pro Secure (Pty) Ltd v Mogale City Local Municipality and Others (2025-043172) [2025] ZAGPPHC 479 (16 May 2025)
Pro Secure (Pty) Ltd v Mogale City Local Municipality and Others (2025-043172) [2025] ZAGPPHC 479 (16 May 2025)
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IN
THE HIGH COURT OF SOUTH AFRICA
GAUTENG DIVISION,
PRETORIA
CASE
NO: 2025-043172
(1)
REPORTABLE:
NO
(2)
OF INTEREST TO OTHER JUDGES:
NO
(3)
REVISED:
NO
(4)
Date: 16 May 2025
Signature:
In
the matter between:
PRO
SECURE (PTY) LTD
Applicant
And
MOGALE
CITY LOCAL
MUNICIPALITY
First Respondent
MAKHOSANA
MSEZANA
Second Respondent
WENZILE
PHAPHAMA TRADING AND PROJECTS
Third Respondent
MABOTWANE
SECURITY SERVICES CC
Fourth Respondent
JUDGMENT
NYATHI
J
A.
INTRODUCTION
[1]
This is an urgent application brought in terms of Rule 6(12) of
Uniform Rules
of Court wherein the applicant seeks an interim
interdict restraining the implementation of tender number RFP no:
CDS(PS) 01/2024
("the tender") awarded to the third
respondent ("Wenzile") pending a final determination of
Part B, being the
review application, wherein the applicant seeks an
order setting aside the tender award.
[2]
The first, second and third respondents oppose this application. The
fourth
respondent ("Mabotwane") filed an explanatory
affidavit wherein it confirms its support for the interim interdict
and
further abides by the decision of this court.
[3]
Mabotwane is the current service provider for the first respondent
("the
Municipality") and, like the applicant, is also an
unsuccessful bidder. The services of Mabotwane were terminated by the
Municipality
and Wenzile is required to commence services on 01 May
2025.
[4]
This application was heard on an urgent basis before me. The
applicant’s
cause and substantiation for urgency was primarily
that, should an interdict not be granted, the Municipality intended
to implement
the tender award, appoint
Wenzile Phaphama
Security
in terms of the tender and commence the contract by
or on 1 May 2025.
[5]
At the commencement of the hearing, Mr Muza came on record as counsel
for the
third respondent
Wenzile Phaphama Security
. On
behalf of the third respondent a document titled "Third
respondent’s points of law” running into some 32 pages
had been filed on the previous evening. There was no explanation
whatsoever. There was opposition from the applicant’s counsel.
[6]
The court ruled that Mr Muza could not continue with his points of
law due to
the flagrant non-compliance with the Uniform rules of
court, more particularly rule 6(5) (d)(iii).
[7]
On behalf
of the applicant, Mr Lüderitz submitted that the applicant would
demonstrate that it has established a clear right
as opposed to
simply a
prima
facie
right. This is one of the requisites of an interim interdict, which
the applicant requires. The others being: irreparable harm,
no other
satisfactory remedy and a balance of convenience.
[1]
[8]
The
applicant relies on the Municipality’s Supply Chain Management
(‘SCM’) Policy
[2]
as
well as the invitation to submit the Request for a Proposal (‘RFP’).
These contain the terms and conditions subject
to which the
adjudication process is to be considered.
[9]
In its clause 25(2) and (3) the policy contemplates a two-stage
bidding process.
It reads as follows:
“
(2) In the
first stage technical proposals on conceptual design or performance
specifications should be invited, subject to technical
as well as
commercial clarifications and adjustments.
(3) In the second
stage final technical proposals and priced bids are invited from only
the bidders who submitted proposals.”
[10]
In clause 4 it provides for a two-envelope bidding system. This
entails the submission of two discreet
envelopes. The first envelope
contains technical proposals that are concerned with functionality.
Only those bidders that qualify
are then invited to submit the second
envelope which contains pricing proposals.
[11]
The specifications in the RFQ are compiled by a Bid Specification
Committee. This committee is created
by clause 27.2 which provides
that:
“
(1) A bid
specification committee must compile the specifications for each
procurement of goods or services by the Mogale City Local
Municipality.
(2) Specifications -
(a) must be drafted in an unbiased manner to allow all potential
suppliers to offer their goods or services,”
[12]
Clause 28 deals with the functions of the Bid Evaluation Committee
(‘BEC’), which are:
“…
to
evaluate bids in accordance with
1. The specifications
for a specific procurement.
2. The points system
set out in terms of paragraph 27(2)(h).”
[13]
The
preference point system envisaged is dependent on value and is either
on a 80:20 or 90:10 basis. In the instant case the basis
is recorded
as 90:10
[3]
given that the value
of the tender is in excess of R50 million.
[14]
What it effectively comes down to, Mr Lüderitz submitted, is
that 90 points are awarded for price
and 10 points are awarded for
specific goals that have been clearly specified in the invitation to
submit a tender.
[15]
The policy document then records that “the points scored must
be rounded off to the nearest two
decimals. The contract must be
awarded to the tenderer scoring the highest points.”
[16]
A contentious clause in the invitation to tender is clause 39 which
appears to conflict with clause
46(8) of the municipality’s own
policy. It provides that:
“
The lowest or
any tender will not necessarily be accepted and Mogale City reserves
the right to accept a tender in whole, or, in
part.”
[17]
The cause of the applicant’s dissatisfaction is that the
municipality has placed reliance
on clause 39 and took into account
criteria that is not in the RFQ and its own policy to award the
tender to
Wenzile
, to its detriment and that of
Mabotwane
. This is a third scoring criterion called
“
special goals”
.
[18]
Mr Nalane submitted on behalf of the first and second respondents
that the facts are largely common
cause. The main point in dispute is
whether price should have been the sole determinant of the winning
tender. In other words,
should the applicant obtain the tender,
simply because its price was cheaper?
[19]
On the
question raised above, I will defer to the court that hears the
review in due course. The details pertaining to how the bid
was
evaluated, will only help enlighten me on whether there are prospects
of success in the review, which is relevant to determining
the grant
or refusal of the temporary interdict.
[4]
[20]
The thrust of the first and second respondents’ case is that
the mere fact that the applicant
scored the highest points on price
is not determinative of whether it won the tender or not. The
applicant’s contention is
that absent the application of the
criterion of “special goals”, it would have been awarded
the tender. This is how
it establishes its
prima facie
right.
[21]
“Where
the right asserted by the applicant is
prima
facie
established
although open to some doubt”, the applicant, on proving
irreparable injury, had fulfilled the requirement for
an interim
interdict.
[5]
[22]
The irreparable injury or harm to the applicant, is the likelihood of
the municipality rolling out
the tender in the face of the
applicant’s review application, which is yet to be judicially
considered.
[23]
It is the applicant's case that there is no other satisfactory
alternative remedy for it in due course
in the absence of the interim
intervention that it seeks.
[24]
The balance
of convenience: this requirement calls for the court to exercise its
discretion and weigh amongst other considerations,
the prejudice to
the applicant if the interdict is withheld, against the prejudice to
the respondents if it is granted.
[6]
[25]
In the result, the application must succeed. The successful litigant
is entitled to its costs as is
customary in the absence of a case
being made to the contrary.
[26]
The following order is made: the draft order filed under CaseLines
12-1 to 12-3 is made an order of
court.
J.S.
NYATHI
Judge
of the High Court
Gauteng
Division, Pretoria
Date
of hearing: 23/04/2025
Date
of Judgment: 16 May 2025
On behalf of the
Applicant:
Mr Lüderitz SC
With him:
Mr GJ Lotter
Instructed by:
Cox Yeats
c/o
Couzyn Hertzog & Horak, Pretoria
E-mails:
JSmit@coxyeats.co.za
On behalf of the
1
st
and 2nd Respondents:
Mr Sibeko SC
With him:
Mr F.
Nalane SC (Who made the submissions)
With him:
Ms S. Magxaki
Attorneys:
Madhlopa &
Thenga Inc.
E-mails:
hugo@madhlopathenga.co.za
On
behalf of the 3
rd
Respondent:
Adv Muza
With him:
Adv Pooe
3
rd
Respondent’s attorneys:
Mkhize Attorneys.
On behalf of the
4th Respondent:
Albert Hibbert
Attorneys Inc
Delivery
:
This judgment was handed down electronically by circulation to the
parties' legal representatives by email and uploaded on the
CaseLines
electronic platform. The date for hand-down is deemed to be 16 May
2025.
[1]
Setlogelo
v Setlogelo
1914
AD 221.
[2]
Annexure
A – Supply Chain Management Policy in terms of the Municipal
Finance Management Act, 2003.
[3]
Clause
45.
[4]
Webster
v Mitchell
1948
(1) SA 1186
at 1189.
Olympic
Passenger Service (Pty) Ltd v Ramlagan
1957 (2) SA 382
(N) at 383F.
[5]
Kilroe
v Kilroe
1928
WLD 112
at 114-15; quoted by
C.B.
Prest – the Law and Practice of Interdicts
(1993) at p54.
[6]
Eriksen
Motors (Welkom) Ltd v Protea Motors, Warrenton & another
1973
(3) SA 685
(A) at 691D-E.
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