Case Law[2025] ZAGPPHC 892South Africa
Gong Lu Maintenance Services (Pty) Ltd v City of Tshwane Metropolitan Municipality and Others (053301/2024) [2025] ZAGPPHC 892 (21 August 2025)
Headnotes
on 13 December 2023 resolved to recommended bidder number 35 Gong Lu Maintenance Services at an amount of R265 740.94 (items) to tender to appoint service provider/s for the provision of cleaning and related services at a main fresh produce market and Marabastad retail market as and when for a period of three (3) years.
Judgment
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# South Africa: North Gauteng High Court, Pretoria
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## Gong Lu Maintenance Services (Pty) Ltd v City of Tshwane Metropolitan Municipality and Others (053301/2024) [2025] ZAGPPHC 892 (21 August 2025)
Gong Lu Maintenance Services (Pty) Ltd v City of Tshwane Metropolitan Municipality and Others (053301/2024) [2025] ZAGPPHC 892 (21 August 2025)
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sino date 21 August 2025
REPUBLIC OF SOUTH AFRICA
IN
THE HIGH COURT OF SOUTH AFRICA
GAUTENG
DIVISION, PRETORIA
CASE
NO. 053301/2024
(1)
REPORTABLE: NO
(2)
OF INTEREST TO OTHER JUDGES: NO
(3)
REVISED: NO
21.08.2025
In the matter between:
GONG
LU MAINTENANCE SERVICES (PTY) LTD
Applicant
(Registration
no.2016/527872/07)
And
THE
CITY OF TSHWANE METROPOLITAN MUNICIPALITY
1
st
Respondent
JOHANN
METTLER N.O
2
nd
Respondent
DAMARIS
HOLDING CC
3
rd
Respondent
(Registration
no.2007/227931/23)
MUZIWOZWANO
TRADING ENTERPRISE CC
4
th
Respondent
(Registration
no.2011/034899/23)
YELLOW
STAR TRADING 147 CC
5
th
Respondent
(Registration
no.2000/032358/23)
CLUFF
CAPITAL (PTY) LTD
6
th
Respondent
(Registration
no.2013/083267/07)
SWAMDLA
TRADING & PROJECTS CC
7
th
Respondent
(Registration
no.2002/047026/23)
CLIFF
EMPIRE (PTY) LTD
8
th
Respondent
(Registration
no.2016/134427/07)
MOGATLADI
TRADING ENTERPRISE (PTY) LTD
9
th
Respondent
(Registration
no.2017/133757/07)
SIMSANGO
BUSINESS PROJECTS (PTY) LTD
10
th
Respondent
(Registration
no.2015/094582/07)
R A
ZOO LAUNDRY & CLEANERS (PTY) LTD
11
th
Respondent
(Registration
no.2009/014752/07)
KHABOKEDI
WASTE MANAGEMENT (PTY) LTD
12
th
Respondent
(Registration
no.2009/014752/07)
KEKGOTHETSE
TRADING ENTERPRISE (PTY) LTD
13
th
Respondent
(Registration
no.2014/066653/07)
BOTSENGKWALA
HYGIENE SERVICES CC
14
th
Respondent
(Registration
no.2009/165043/23)
ONKARABILE
(PTY) LTD
15
th
Respondent
(Registration
no.2019/001083/07)
AMBIDEX
HOLDINGS (PTY) LTD
16
th
Respondent
(Registration
no.2016/043292/07)
NDIMO
HYGIENE (PTY) LTD
17
th
Respondent
(Registration
no.2017/111383/07)
5
STAR CLEANING SERVICES (PTY) LTD
18
th
Respondent
(Registration
no.2017/111383/07)
MOTATI
GROUP (PTY) LTD
19
th
Respondent
(Registration
no.2017/297787/07)
BOTHANE
GROUP (PTY) LTD
20
th
Respondent
(Registration
no.2023/609247/07)
MOTATI
GROUP & BOTHANE GROUP JOINT VENTURE
21
st
Respondent
DENZHELASHU
TRADING AND PROJECTS (PTY) LTD
22
th
Respondent
(Registration
no.2012/080974/07)
CO
SETATI TRADING & PROJECTS (PTY) LTD
23
rd
Respondent
(Registration
no.2012/080974/07)
GAGA
TRADING & PROJECTS 82 (PTY) LTD
24
th
Respondent
(Registration
no.2019/490148/07)
PREMEDITATED
INITIATIVES (PTY) LTD
25
th
Respondent
(Registration
no.2020/709262/07)
KWANTSHO
ENTERPRISE (PTY) LTD
26
th
Respondent
(Registration
no.2016/478766/07)
RUGOF
(PTY) LTD
27
th
Respondent
REATLEGILE
CONSTRUCTION & PROJECTS CC (PTY) LTD
28
th
Respondent
(Registration
no.2008/063563/23)
IZT
BUSINESS ENTERPRISE (PTY) LTD
29
th
Respondent
(Registration
no.2016/350529/07)
SHIMANE’S
TRADING ENTERPRISE (PTY) LTD
30
th
Respondent
(Registration
no.2008/095919/23)
BT
CONGLOMERATE (PTY) LTD
31
st
Respondent
(Registration
no.2016/043292/07)
TSHIPEMBE
MZANSI PROJECTS CC
32
nd
Respondent
(Registration
no.2005/031404/23)
ENOCH
SEKGOTE (PTY) Ltd
33
rd
Respondent
(Registration
no.2022/699582/07)
MMAMMULE
TRADING ENTERPRISE (PTY) LTD
34
th
Respondent
(Registration
no.2018/098038/07)
DIPALA
PROJECTS & CIVILS
35
th
Respondent
MOTHO
WAKA TRADING ENTERPRISE CC
36
th
Respondent
(Registration
no.2009/022825/23)
MS
& ASSOCIATES CONSULTING ENGINEERS
37
th
Respondent
(PTY)
LTD
(Registration
no.2015/313584/07)
AMANDLA
(PTY) LTD
38
th
Respondent
(Registration
no.2017/649543/07)
NOLUNATHI
(PTY) LTD
39
th
Respondent
(Registration
no.2014/285744/07)
AMANDLA
& NOLUNATHI JOINT VENTURE
40
th
Respondent
The
matter was heard in open court and the judgment was prepared and
authored by the judge whose name is reflected herein and was
handed
down electronically by circulation to the parties’ legal
representatives by email and by uploading it to the electronic
file
of this matter on Caselines. The date of handing-down is deemed
to be 21
st
August 2025
JUDGMENT
KEKANA,
AJ
INTRODUCTION
[1]
This is a review application in which the applicant seeks to review
the decision of the first respondent not to award a tender
for which
the applicant was recommended for appointment by the first
respondent’s Bid Evaluation Committee. The application
is
opposed by the first and second respondents only (“the
respondents”)
BACKGROUND
[2]
On 29 September 2023, the Municipality published Tender ED02-2023/23
with tender description “Tender to appoint service
provider/s
for the provision of cleaning and horticultural services at main
Fresh Produce Market and Marabastad Retail Market on
as and when, for
a period of three (3) years” (“the Tender”).
[3]
The applicant submitted an acceptable tender in response to the
Municipality’s tender invitation. On 13 December 2023,
the Bid
Evaluation Committee (“BEC”) duly evaluated all submitted
tenders and made the specific recommendation to award
the Tender to
the applicant as the highest-scoring tenderer. The recommendation
reads as follows:
“
The
Bid evaluation committee, at its meeting held on 13 December 2023
resolved to recommended bidder number 35 Gong Lu Maintenance
Services
at an amount of R265 740.94 (items) to tender to appoint service
provider/s for the provision of cleaning and related
services at a
main fresh produce market and Marabastad retail market as and when
for a period of three (3) years.
The
committee further recommends that category B be re-advertised.
All
the recommendations are in accordance with the Municipality’s
specifications and conditions of tenderer and their tender.
That
the Group Hed: Economic Development and Spatial Planning Department
manages the expenditure incurred for the duration of the
contract
within the available approved budget.”
[4]
The Bid Adjudication Committee (“the BAC”) decided not to
make any tender award. Herein below is an extract of the
minutes of
the BAC meeting dated 19 December 2023:
“
During
the discussion of this item by the Bid Adjudication Committee on the
19 December 2023, the Committee noted the following:
•
The
concerns regarding replacement of reports during the meeting.
•
That
there is no budget confirmation.
•
That
cost-benefit analysis was not done.
•
That
there is a similar tender in GPM, and enquired why the department is
not utilising it.
•
The
comment from the department that the scope of work on the GPM tender
does not cover operational work, that the specification
only provides
the labour and not the material.
•
That
it is not clear that the financial statement attached are audited.
•
That
the confirmation of budget availability was verbally confirmed.
It
was therefore agreed that the
tender
is not awarded, and that the department strengthen internal control
measures in terms of utilising the existing tender as an aid
of
continuing with the service rather than committing the city to a
separate contract altogether.
It
was therefore resolved as set out below:
RESOLVED:
1.
That ED02-2023/24 tender to appoint
service provider/s for the provision of cleaning related services at
main fresh produce market
and Marabastad retail market as and when
for a period of three (3) years that the tender is not approved.
2.
That the department strengthen
internal control measures in terms of utilising the existing GPM
tender as an aid of continuing with
the service rather than
committing the city to a separate contract altogether.
3.
That the entire tender be
re-advertised taking all the components into consideration.
4.
That cost benefit assessment be
done.”
[5]
On 31 January 2024, the second respondent accepted the BAC’s
recommendation and made the final decision not to make any
tender
award. It is this decision that is being reviewed.
THE
SPECIFIC PAJA GROUNDS OF REVIEW
[6]
The PAJA grounds of review relied on by the applicant are as follows:
“
13.3
The BAC was obliged to act in accordance with the provisions of
section 2(1)(f) of the PPPFA The failure to do so amounts
to a ground
of review in terms of section 6(2)(b) of PAJA.
13.4
The failure of the BAC to appreciate the fact that it was legally
obliged to make a tender award to the highest-scoring
tenderer
amounts to an error of law. This materially influenced the
recommendation made by the BAC, and approval thereof by the
municipal
manager, as contemplated in section 6(2)(d) of PAJA.
13.5
The BAC took into account irrelevant considerations and failed to
consider relevant considerations as contemplated
in section
6(2)(e)(iv) of PAJA.
13.6
The recommendation made by the BAC, and the approval thereof by the
municipal manager, was not rationally connected
to the purpose for
which it was taken; and/or the purpose of the empowering provision;
and/or the information that served before
the BAC and the municipal
manager and/or the reasons given for the decision by the BAC and the
municipal manager as envisaged in
section 6(2)(f)(ii).”
[7]
furthermore, the applicant submitted that as a result of the fact
that the tender process was also in direct conflict with the
peremptory provisions of section 217 of the Constitution, GLMS also
relies on section 6(2)(i) of PAJA.”
LEGAL
FRAMEWORK
[8]
Tender processes are “administrative action” under
section 1 of PAJA and must comply with the constitutional standards
in section 217 of the Constitution.
[9]
The grounds for judicial review under PAJA are contained in section
6, the relevant part reads as follows:
“
(2)
A court or tribunal has the power to judicially review an
administrative action if―
(a)
the administrator who took it―
(i)
was not authorised to do so by the empowering provision;
(ii)
acted under a delegation of power which was not authorised by the
empowering provision; or
(iii)
was biased or reasonably suspected of bias;
(b)
a mandatory and material procedure or condition prescribed by an
empowering provision was not
complied with;
(c)
the action was procedurally unfair;
(d)
the action was materially influenced by an error of law;
(e)
the action was taken―
(i)
for a reason not authorised by the empowering provision;
(ii)
for an ulterior purpose or motive;
(iii)
because irrelevant considerations were taken into account or relevant
considerations were not considered;
(iv)
because of the unauthorised or unwarranted dictates of another person
or body;
(v)
in bad faith; or
(vi)
arbitrarily or capriciously;
(f)
the action itself―
(i)
contravenes a law or is not authorised by the empowering provision;
or
(ii)
is not rationally connected to―
(aa)
the purpose for which it was taken;
(bb)
the purpose of the empowering provision;
(cc)
the information before the administrator; or
(dd)
the reasons given for it by the administrator;
(g)
the action concerned consists of a failure to take a decision;
(h)
the exercise of the power or the performance of the function
authorised by the empowering provision,
in pursuance of which the
administrative action was purportedly taken, is so unreasonable that
no reasonable person could have
so exercised the power or performed
the function; or
(i)
the action is otherwise unconstitutional or unlawful.”
[10] Section 217 (1) of
the Constitution reads as follows:
When an organ of state in
the national, provincial or local sphere of government, or any other
institution identified in national
legislation, contracts for goods
or services, it must do so in accordance with a system which is fair,
equitable, transparent,
competitive and cost-effective.
[11]
In Allpay Consolidated Investment Holdings (Pty) (Ltd) and Others v
Chief Executive Officer of South African Social Security
Agency and
Others
2014 (1) SA 604
(CC) the Constitutional Court set out a
structured approach for courts when assessing irregularities in
procurement or administrative
processes under PAJA which is as
follows:
The
first step is to establish whether an irregularity in fact occurred.
This is a question of fact; was there non-compliance with
a legal or
procedural requirement? If a factual irregularity is established, the
next step is to legally evaluate whether that
irregularity
constitutes a ground of review under PAJA (failure to comply with a
mandatory statutory requirement, procedural unfairness,
irrationality, etc.). The court must then determine whether the
irregularity is material. This involves: (a) Linking compliance
(or
non-compliance) with the purpose of the requirement; (b) Asking
whether the deviation undermines the objects of fairness,
transparency, competitiveness, and cost-effectiveness in public
procurement or administration; (c) If the irregularity is immaterial
i.e., it does not affect the integrity of the process or the outcome,
it will not justify setting aside the decision. Only once
the
irregularity has been factually established, legally characterised,
and found to be material to the purpose of the statutory
scheme, can
it be said to amount to a valid review ground under PAJA.
APPLICANT’S
SUBMISSIONS
[12]
The applicant submitted that the decision not to award the tender to
it, despite the applicant being the highest scorer, was
irrational
and irregular, especially when
the purported reasons for the
recommendation are scrutinised.
[13]
Regarding the justification that there is no budget confirmation, the
applicant stated that the minutes of the BAC meeting
itself undermine
this issue because they later indicate that the confirmation of
budget availability was provided verbally. The
applicant rejects the
Municipality’s assertion that there is uncertainty regarding
the budget on the basis that it was not
substantiated. A further
argument is that the Municipality was in the best possible position
to make an allegation regarding the
availability of the budget and
substantiate it, if it were true, and that the Municipality’s
failure to do so was telling.
[14]
The applicant further argued that it is not disputed by the
Municipality that the decision to publish the Tender was preceded
by
first establishing the need for services and by ensuring that
provision is made in the budget of the Municipality for the relevant
services. The applicant contends that the decision by the
Municipality to readvertise the Tender indicates that the
Municipality
is satisfied that it has sufficient budget for the
services.
[15]
Regarding the reason that a cost-benefit analysis was not done, the
applicant submitted that the Municipality failed to demonstrate
that
a cost-benefit analysis was a requirement of the tender process.
Furthermore, that even if there was a requirement on the
Municipality
to conduct a cost-benefit analysis, it ought to have been done prior
to publication of the Tender. The applicant argued
that by publishing
the Tender, the Municipality already accepted that the benefit of the
Tender justifies its costs and that it
was completely irrational to
suggest that this consideration can be made after the Tender is
published and bids have been received
and evaluated. The applicant
contends that the Municipality’s intention to readvertise the
tender confirms that the Tender
justifies its costs.
[16]
Regarding the issue of financial statements, the applicant submitted
that it is apparent from the tender document that audited
financial
statements only applied to tenders with a value of above R10 million
and the value of the tender in question is below
R10 million.
RESPONDENTS’
SUBMISSIONS
[17]
The respondent submitted that the decision not to award is rational
and that the rationality argument was raised for the first
time in
the Heads of Argument. Furthermore, that, it is not a foregone
conclusion that the highest scoring tenderer will be awarded
the
tender because there could be existence as there is in this case of
other considerations which vitiate the need to award.
The
replacement of reports
[18]
The respondents submitted that the applicant did not take issue with
the complaint raised by the BAC that there was a replacement
of
reports during the meeting of the BEC. The respondent contends that
the applicant’s failure to address this aspect should
be deemed
to be an acceptance that there were such irregularities pertaining to
the exchange of reports during the bid evaluation
stage, which in
turn brings forth the question of the appropriateness of the report
as provided to the BAC.
The
absence of a budget confirmation
[19]
The respondents submitted that the BAC duly noted that there was no
actual budget confirmation except verbal instruction that
there is a
budget existing. The respondents contend that an actual
confirmation as at the time the decision was taken must
be in
existence and that the say so of a municipal employee was not
sufficient.
[20]
The respondents deny that the decision to re-advertise the tender
confirms there is a budget for it, because several issues
must be
resolved before the actual re-advertisement, which means that all the
concerns the BAC raised will need to be addressed
before the date of
the re-advertisement.
[21]
The applicant’s contention that the municipality was in the
best possible position to make such an allegation as to the
availability of the budget for the tender and substantiate it is
resisted on the basis that such records would not be in existence
because such a confirmation never happened.
Cost-benefit
analysis absent
[22]
The applicant’s argument about the cost-analysis benefit is
that it was not a tender requirement,
and therefore, when
the BAC raised it as a concern, it did so for an improper reason or
an invalid reason. The respondent argued
that the BAC did not raise
it as a concern on the basis that it was part of the tender process
but that it was raised as part of
checks and balances. Furthermore,
that since the cost-benefit analysis was not done and it was unclear
whether the municipality
was receiving value for money. This, the
respondent argues, became a relevant consideration even though it was
not part of the
tender requirements.
[23]
The respondent further submitted that a cost-benefit analysis will
serve as a relevant consideration in the future when this
tender is
adjudicated and therefore, the need to re-advertise also presupposes
that this exercise will be undertaken before tenders
are called.
Interim
Use of Damaris (Pty) Ltd
[24]
Regarding the interim use of Damaris Pty Ltd, the respondents
submitted that the applicant did not raise this as a ground of
review. The respondents admit that the municipality is utilizing the
services of an existing service provider who provides similar
services to other infrastructure of the municipality in the interim
but argue that this cannot be used to support the contention
that the
applicant ought to be appointed.
RESPONDENTS’
FURTHER SUBMISSIONS ON PAJA GROUNDS OF REVIEW
[25]
The respondents submitted that the BAC did not fail to appreciate the
import of Section 2(1)(f) of the PPPFA and that the section
will only
be applicable where there are no problems with the tender itself.
According to the respondent, that is not the case with
the tender
under review, as the BAC raised several valid concerns regarding the
propriety of the award. The respondents submitted
that Section
6(2)(d) of PAJA does not arise because the preconditions were not
complied with. The respondents contend that the
considerations of the
BAC cannot be said to be irrelevant when Section 6(2)(e)(iii) of PAJA
is considered.
ANALYSIS
[26]
The irregularities relied upon by the applicant concern the reasons
advanced by the respondents for their decision not to award
the
tender. It is a well-established principle of administrative law that
judicial scrutiny of administrative action focuses primarily
on the
fairness and lawfulness of the process, rather than on the
substantive correctness of the outcome (see AllPay Consolidated
Investment Holdings (Pty) Ltd v CEO of SASSA
2014 (1) SA 604
(CC) at
para 27).
[27]
It is undisputed that the BEC duly evaluated the bids and recommended
the appointment of the applicant as the successful tenderer.
Despite
this, the BAC, after considering the BEC’s report, elected not
to award the tender. That decision was subsequently
endorsed by the
Municipal Manager.
[28]
The respondents have since sought to justify this decision by
reference to several grounds, including the alleged absence of
a
written budget confirmation and a cost-benefit analysis. These
purported justifications fall to be carefully scrutinised against
the
requirements of the Constitution and PAJA, as they represent the
process-based reasons relied upon to depart from the BEC’s
recommendation.
Replacement
of reports
[29]
A further issue raised by the BAC was the alleged replacement of
reports during the meeting of the BEC. This allegation was
not
substantiated in any meaningful way. Principles of fairness and
transparency demand that, where a decision-maker relies on
alleged
deficiencies in the evaluation process to justify, in this case
departing from the BEC’s recommendation, such deficiencies
must
be clearly identified and disclosed.
[30]
In the absence of the relevant information regarding the alleged
replacement of reports, the Court is unable to determine whether
the
respondents were justified in invoking this ground. It is not
sufficient for the respondents to rely on a general statement
when
making a decision that adversely affects the rights of the applicant.
[31]
This is particularly important given that the BEC had recommended the
applicant’s appointment. To displace such a recommendation
on
the basis of vague or unexplained allegations undermines both
fairness and accountability in procurement processes, contrary
to the
principles entrenched in section 217 of the Constitution and the
review grounds under PAJA.
Absence
of a written budget confirmation
[32]
The respondents rely on the absence of a written budget confirmation
as justification for cancelling the tender. It is undisputed
that the
applicant complied with the tender requirements, and equally
undisputed that a verbal confirmation of funds was given
at the time
of evaluation. The factual question, therefore, is whether the
absence of a written confirmation amounted to non-compliance
with a
material requirement.
[33]
In Allpay Consolidated Investment Holdings (Pty) Ltd v CEO of SASSA
2014 (1) SA 604
(CC) at paras 28–30, the Constitutional Court
held that an irregularity must first be factually established and
then legally
evaluated to determine whether it amounts to a
reviewable irregularity under PAJA. The Court emphasised that the
purpose of the
requirement must be considered in evaluating
compliance.
[34]
The purpose of requiring budget confirmation is to ensure that funds
are available before awarding a tender, thereby protecting
the
Municipality from contractual obligations it cannot fulfil. In this
case, that purpose was met by the verbal assurance of funding.
To
insist on a written confirmation when the substance of the
requirement (availability of funds) was achieved is to adopt an
unduly formalistic approach that is inconsistent with the purposive
reasoning endorsed in Allpay (
supra
).
[35]
The Constitutional Court in Allpay (
supra
at para 30) held
that not every deviation from a legal requirement is material.
Materiality depends on whether the purpose of the
requirement was
frustrated. Here, the purpose, which is the assurance of financial
capacity was fulfilled.
[36]
This approach finds resonance in other judgments, e.g. Millennium
Waste Management (Pty) Ltd v Chairperson, Tender Board: Limpopo
Province
2008 (2) SA 481
(SCA) and Logbro Properties CC v Bedderson
NO
2003 (2) SA 460
(SCA): and Steenkamp NO v Provincial Tender Board,
Eastern Cape
2007 (3) SA 121
(CC):
[37]
On the facts, the absence of a written document, where verbal
confirmation existed, did not compromise fairness, transparency,
or
cost-effectiveness. It neither distorted the evaluation process nor
created risk that the Municipality would act without funds.
[38]
The irregularity, if it existed, was immaterial in relation to the
purpose of the requirement. The respondents’ reliance
on the
absence of a written budget confirmation cannot withstand scrutiny
under PAJA. It represents an elevation of form over substance,
contrary to the principles articulated in Allpay, Millennium Waste,
Logbro, and Steenkamp. Consequently, this ground cannot justify
the
non-award of the tender.
No
cost-benefit analysis
[39]
The respondents contend that the tender could not be awarded because
no cost-benefit analysis was conducted. It is, however,
common cause
that a cost-benefit analysis was not required by the bid invitation
or by the prescribed evaluation criteria. The
reliance on its absence
is therefore not a matter of non-compliance with a binding
requirement, but the introduction of an extra-statutory
factor at the
adjudication stage.
[40]
While the BAC factually relied on the absence of a cost-benefit
analysis, that reliance cannot lawfully justify the cancellation
of
the tender. Since no such requirement formed part of the bid
criteria, reliance on its absence amounted to the taking into account
of an irrelevant consideration, a ground of review under section
6(2)(e)(iii) of PAJA.
[41]
As the case of AllPay makes it clear, materiality is determined by
linking the deviation to the purpose of the requirement.
The
constitutional procurement principles in section 217 of the
Constitution demand fairness, transparency, competitiveness and
cost-effectiveness. These objectives are achieved by adherence to the
published evaluation criteria, not by reliance on undisclosed
internal tools.
[42]
The Supreme Court of Appeal has repeatedly warned against such
conduct. See
Millennium Waste Management (Pty)
Ltd v Chairperson, Tender Board: Limpopo Province
2008 (2) SA 481
(SCA),
see also Logbro Properties CC v Bedderson
NO
2003 (2) SA 460
(SCA).
[43]
By invoking the absence of a cost-benefit analysis, an internal,
undisclosed tool, the BAC not only strayed from the prescribed
bid
criteria, but also undermined the transparency and fairness of the
process.
[44]
Applying the AllPay test, the reliance on the absence of a
cost-benefit analysis cannot withstand scrutiny: Factually, there
was
no irregularity since such an analysis was not required; Legally,
reliance on its absence amounted to the consideration of
an
irrelevant factor; Materially, the reliance frustrated the purpose of
section 217 of the Constitution by undermining transparency,
fairness, and competitiveness.
REMEDY
[45]
Section 8(1) of PAJA empowers a court in review proceedings to grant
any order that is just and equitable. The Constitutional
Court in
AllPay confirmed that, once an irregularity is found, the general
rule is that the unlawful administrative action must
be reviewed and
set aside.
[46]
In the present case, the decision of the BAC, confirmed by the
Municipal Manager, was based on irrelevant considerations and
a
failure to act fairly and transparently. The decision accordingly
falls to be reviewed and set aside under section 6 of PAJA.
[47]
The question then is whether the Court should substitute the decision
or remit the matter for reconsideration. In Trencon Construction
(Pty) Ltd v IDC
2015 (5) SA 245
(CC) at paragraph 94 the
Constitutional Court made it clear that substitution is exceptional,
and that ordinarily the matter must
be remitted to the administrator
for reconsideration, unless the circumstances justify otherwise (for
example, where the outcome
is a foregone conclusion or where remittal
would cause undue delay and prejudice).
[48]
In the present matter, although the BEC recommended the applicant as
the successful bidder, the BAC remains the statutory decision-maker
under the procurement framework. It is therefore appropriate that the
BAC, properly directed by the findings of this Court, should
reconsider the tender in a manner that is lawful, fair, rational and
consistent with section 217 of the Constitution.
CONCLUSION
[49]
Consistent with the matter of AllPay, the BAC’s conduct was
irrational, unlawful, and amounts to a reviewable administrative
action under PAJA. The just and equitable remedy is accordingly that
the decision of the BAC and the Municipal Manager not to award
the
tender be reviewed and set aside; and that the matter be remitted to
the BAC for reconsideration in accordance with this Court’s
findings and the requirements of PAJA.
In
the result I make the following order:
1.
The decision of the first respondent to make no tender award in
resect o ED02-2023/24 for the appointment of service providers
for
the provision of cleaning and related services at Main Fresh Produce
Market and Marabastad Retail Market (“the tender”)
for a
period of three years, is reviewed and set aside;
2.
The tender is remitted to the first respondent for reconsideration;
3.
The first and second respondents, jointly and severally to pay the
costs on a party and party scale, including costs of two counsel.
P D
KEKANA
ACTING
JUDGE OF THE HIGH COURT
DATE
OF HEARING: 19
th
February 2025
DATE
OF JUDGMENT: 21
st
August 2025
APPEARANCES
FOR
THE APPLICANT:
Adv.
A.P.J Els SC
Adv.
N.G Louw
INSTRUCTED
BY:
ALBERT
HIBBERT INC ATTORNEYS
jaco@hubbertlaw.co.za
FOR
THE RESPONDENT:
Adv.
M.R Maphutha
INSTRUCTED
BY:
LEKHU
PILSON ATTORNEYS
nmnyadu@lekhupilson.co.za
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