Case Law[2025] ZAGPPHC 1142South Africa
Minister of Employment and Labour and Another v Sekelaxabiso CA Inc (B230/2023) [2025] ZAGPPHC 1142 (20 October 2025)
High Court of South Africa (Gauteng Division, Pretoria)
20 October 2025
Headnotes
Summary:
Judgment
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# South Africa: North Gauteng High Court, Pretoria
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## Minister of Employment and Labour and Another v Sekelaxabiso CA Inc (B230/2023) [2025] ZAGPPHC 1142 (20 October 2025)
Minister of Employment and Labour and Another v Sekelaxabiso CA Inc (B230/2023) [2025] ZAGPPHC 1142 (20 October 2025)
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sino date 20 October 2025
IN
THE HIGH COURT OF SOUTH AFRICA
GAUTENG
DIVISION, PRETORIA
Case
number: B230/2023
In
the matter between:
MINISTER
OF EMPLOYMENT AND LABOUR
First
Applicant
DIRECTOR
GENERAL: DEPARTMENT OF EMPLOYMENT AND LABOUR
Second
Applicant
and
SEKELAXABISO
CA INC
Respondent
Neutral
citation:
Coram:
E
Botha AJ
Heard:
8
& 10 September 2025
Decided:
20
October 2025
Summary:
ORDER
The
application is dismissed with costs, including the costs consequent
upon the employment of the advocate for the respondent on
Scale C.
JUDGMENT
E
BOTHA AJ:
Introduction
[1]
The respondent, SekelaXabiso CA Inc, or SkX, is an incorporated
firm
of chartered accountants. In March 2022 it was awarded a tender
intending to appoint it to a panel of service providers to
render
verification and support services to the Unemployment Insurance Fund
for the Covid-TERS disaster benefit.
[2]
The first applicant, the Minister of Employment and Labour,
and the
second applicant, the Director General: Department of Employment and
Labour wants the court to declare the decision to
award the tender
unlawful, unconstitutional, and invalid.
[3]
Although the Department takes some responsibility for
its decision,
it primarily blames SkX. It says it SkX made a
misrepresentation that induced it into awarding the tender.
SkX
denies this. It opposes the relief and sets out to clear its
name from the Department’s allegations.
[4]
The main questions are whether the SkX complied with
the requirements
of the tender at the relevant stages and the material times, and
whether this application was brought in time.
The
legal basis for the review
[5]
Since the
Department seeks to invalidate its own decision, this review falls to
be dealt with under the principle of legality.
[1]
Section 1 of the Constitution provides that one of the values that
South Africa is founded on is the supremacy of the Constitution
and
the rule of law. Section 2 provides that the Constitution is
the supreme law and conduct that is inconsistent with it
is invalid.
[6]
The Department’s case is that it acted contrary
to Section 217
of the Constitution and the legislation giving effect thereto when it
awarded the tender to SkX. The Department
argued that the
awarding of the tender to SkX in the circumstances of the case was
unfair to other bidders. Section 217 provides:
“
(1) When
an organ of state in the national ... sphere of government ...
contracts for goods or services, it must do so in accordance
with a
system which is fair, equitable, transparent, competitive and
cost-effective.”
[7]
In the
right circumstances, this may found a case to set aside the awarding
of a tender. Reliance was placed on
Steenkamp
,
[2]
where Moseneke DCJ said:
“
There
can be no doubt that in procuring ... services for the State, a
tender board must act consistently with its statutory mandate.
It must act fairly, impartially and independently. Equally, it
may not act with negligent or reckless disregard for the protectable
interests of tenderers. It must act within the legislative
power conferred on it and properly and honestly exercise the
discretion it may have. A tender board must in doing its work
act transparently and be held accountable, when appropriate.”
[8]
Section
172(1)(a) of the Constitution provides that when deciding a
constitutional matter within its power a court must declare
that any
conduct that is inconsistent with the Constitution is invalid.
In
Simeka
[3]
the
Supreme Court of Appeal reminded:
“
...
once a court has found that any conduct is, as a fact, inconsistent
with the Constitution, such a court is obliged to declare
it invalid.
It has no choice in the matter.”
[9]
This is what the Department calls on the court to do.
The
factual basis for the review
[10]
The deponent to the Department’s founding affidavit, Mr Gumede,
is the
Deputy-Director: Compliance at the UIF. In it, he
declares that he has personal knowledge of all the facts and that he
has
unlimited access to the records of the Department relating to
this matter.
[11]
On 6 August 2021 the Department issued and advertised a tender under
number
UIF7/2021. The request for proposals, or RFP, says that
its purpose was to establish a panel of service providers to render
verification and support services for the COVID-19 TERS disaster
benefit for a period of twelve months. The bid closing date
was
27 August 2021.
[12]
Mr Gumede explains that the bid evaluation process had four phases.
He
describes phase two as follows:
“
Phase
two: Primary reviews of mandatory and other bid documents which
documents include invitation to bid, declaration of interest,
preference point form, declaration of bidder 'supply chain
management, certificate of independent bid determination,
registration
on Central Supplier database, tax compliance status pin
and UIF compliance. Non submission of the required pricing
information,
both SBD 3.3 will lead to immediate disqualification.
Failure
by a bidder to be compliant with UIF contributions and declarations
at the award stage will lead to disqualification.
”
[4]
[13]
The various phases and stages of the process, as well as the portion
that Mr
Gumede underlined is important and will be returned to later.
He goes on to explain that SkX was one of forty-one bidders.
SkX’s bid document was not placed before the court, but the
main source of the Department’s complaint was: a UIF compliance
certificate that SkX provided to the Department when it submitted its
tender. This certificate is central to the Department’s
case and is referred to in this judgment as the manual certificate.
[14]
Pursuant to a bid evaluation and adjudication process, SkX was
awarded the
tender on 31 March 2022. This, the Department says,
should not have happened, because of the manual certificate. To start
to appreciate the Department’s case in respect of the manual
certificate it is necessary to quote paragraphs 18 to 22 of
the
founding affidavit in full:
“
18.
It is worth mentioning that the Bid Evaluation Committee and the Bid
Adjudication Committee of the Department
both believed, at the time
of the evaluation and the award and mistakenly or erroneously so,
that the UIF compliance certificate
submitted by SkX with its bid was
valid.
19.
Later and pursuant to the award it came to the attention of the UIF
that the UIF compliance certificate
submitted by SkX was not valid.
The UIF then conducted an investigation through its compliance
Department.
20.
The investigation revealed that
SkX's UIF compliance certificate
submitted
with the bid was issued manually on 11 May 2021 and signed off on 27
August 2021. The Department ceased or stopped issuing
manual
compliance certificates with effect from 24 January 2021.
21.
Accordingly at the time of
supposedly issue of SKX certificate, the generation
of
manual compliance certificate was already abolished on the 24 January
2021. Starting from 25 January 2021, UIF was generating
compliance
certificate electronically.
22.
The above further pointed to the
certificate having been issued fraudulently an issue that the
Department is still trying to investigate.
What is clear though is
that the certificate submitted by SkX was invalid and SkX failed to
comply with a mandatory requirement
of the bid and ought not have
been awarded the tender
”
[15]
The
founding affidavit and the argument on behalf of the Department goes
further than its concern about the manual certificate.
It
explains that a ‘
[f]ailure
by a bidder to be compliant with UIF contributions and declarations
at the award stage will lead to disqualification.’
However,
t
here
are two separate paragraphs in the founding affidavit where the
Department alleges that SkX made contributions. For reasons
that will become clearer, the Department does not elaborate on these
allegations. There are also two separate paragraphs
where it
says that SkX was not compliant with Section 10 of the
Unemployment
Insurance Contribution Act
.
[5]
Section 10 concerns an employers’ duty to register as employer
and to provide particulars concerning employees to the Commissioner.
Like the contributions, the founding affidavit is also silent on the
factual basis for the Department saying that SkX was not compliant
with Section 10.
Was
SkX compliant with UIF contributions and declarations?
[16]
The Department says that it was a mandatory and material term of the
bid that
bidders like SkX must comply with the UIF requirements in
terms UIF contributions and declarations. It says this because it
will
only award a contract to a bidder who is fully compliant in
terms of UIF contributions and declarations. This estimation by the
Department of the requirements of the RFP is correct, and accords
with Clause 14 thereof. There are at least four reasons to find
that
SkX was up to date with its declarations and contributions to the UIF
at the material times.
[17]
First, the Department does not provide any evidence that SkX was
non-compliant
in respect of either the submission of declarations or
payment of contributions at the time that the bid was made in August
2021.
One would expect that the Department’s records - which Mr
Gumede says he has full access to - would have made it simple to
provide the necessary evidence. Ms Poswa-Lerotholi, initially argued
strongly that SkX was not compliant. She was constrained to
concede
that the Department’s papers does not provide evidence that SkX
was not up to date with declarations or contributions
when the bid
was made or when the tender was awarded. This included that there was
no merit in the Department’s allegation
that SkX did not comply
with Section 10 - a point that was abandoned.
[18]
Second, SkX alleges that it was compliant with declarations and
contributions.
It is not a bare denial. It goes to some
trouble to explain why it says so, including providing evidence of
two instances
before the manual certificate was issued where it was
initially informed by the Department that it was in arrears with
payments
and where it paid the arrears. There is no reason to reject
its version, particularly under circumstances where the Department
did not provide evidence to the contrary. The Department seeks to
undermine SkX’s allegations by pointing that out that the
manual certificate was issued the day after the payment of 10 May
2021 was made, although it was indicated that reapplication could
be
made after seven working days. If the information on and the
timing between the Department’s letter of non-compliance
of 7
May 2021; the payment made by SkX on 7 May; and the Department’s
letter of non-compliance on 10 May 2021, is considered,
it is clear
that the Department was indeed processing information faster than
seven working days. This suspicion the Department
had was elevated to
a fact that SkX ‘was fully aware that the certificate did not
originate from the UIF’. This
is not borne out by the
evidence. As suspicious as the Department may have found this, its
suspicion cannot displace the evidence.
[19]
Third, SkX attached to the answering affidavit an electronic
compliance certificate
dated 12 November 2021. This was during
the evaluation phase, before the bid was awarded to SkX. The
Department took
no issue with its validity. During argument, Ms
Poswa-Lerotholi conceded that this electronic compliance certificate
is valid;
then went on to submit that it does not change the fact
that SkX initially filed the manual certificate. The point is
that
on the Department’s own version the electronic compliance
certificate would not have been issued unless SkX was up to date
with
declarations and contributions. This is compelling evidence
that it was up to date at the relevant time.
[20]
Fourth, Mr Gumede attempts to persuade that the submission of the
manual certificate,
which he says is fraudulent, is evidence that SkX
was not compliant with contributions and declarations. It is an
argument
that rests on a contradiction. The version to which he
is committed is that the manual certificate was falsified. If
that is the case, he cannot rely on it as being evidence of anything
other than its falsity. Just like a false certificate
cannot be
evidence that SkX was up to date, it also cannot be evidence that SkX
was not up to date, as he argues. The conclusion
Mr Gumede
arrives it requires an inference that is not open for the court to
draw on the evidence.
[21]
It accordingly must be held that from 11 May 2021 and at all relevant
times
thereafter, SkX was compliant with UIF declarations and
contributions within the meaning of the RFP.
Was
there fraud or a fraudulent misrepresentation by SkX?
[22]
Mr Gumede says that the Department was induced to award the tender to
SkX because
of a misrepresentation. He then goes on to typify
it as a fraudulent misrepresentation. Later, he says that the
timing
thereof pointed to it being ‘issued fraudulently’.
Whilst relying on the fact that it was issued on 11 May 2021,
he says
it was signed off in August 2021. The August-date was merely
the date on which it was later certified to be a true
copy. At the
time that the application was launched in January 2023, he
acknowledged that the alleged fraudulent issuing of the
manual
certificate was ‘an issue that the [D]epartment is still trying
to investigate’.
[23]
In the answering affidavit SkX dismantled the Department’s
allegations
of fraud by explaining how it came about that it obtained
the manual certificate in a detailed, open and honest manner.
It
also pointed that the Department had laid a charge of fraud
against SkX long before September 2022 (the date that Mr Gumede says
the Department became aware). It included in its answer an
affidavit and other evidence that SkX submitted to the investigating
officer in that year, before the application was launched. The
affidavit and the evidence attached dispels any suspicion
of fraud on
the part of SkX. It is no wonder that, as SkX points out, there
was a finding of
nolle prosequi.
None of this was disclosed to
the court by Mr Gumede. He also avoids this in the replying
affidavit. What Mr Gumede says in reply
requires further
consideration.
[24]
The impression given by the Department is that a bidder would
conclude from
the RFP that there was only one way of obtaining a
compliance certificate, and that someone without knowledge of the
inner workings
of the UIF would, on the face of it, be able to
distinguish between a valid certificate and an invalid one. This is
not correct.
Although a side-by-side comparison of the manual
certificate and an electronic one shows the differences, the content
of both is
typewritten with a manuscript signature appearing to be
that of the commissioner or acting commissioner. In addition to
explaining
how it came into possession of the manual certificate, SkX
says that it had no way of knowing or suspecting what the Department
says about the manual certificate at the time.
[25]
The
Departments other argument is based on ‘Annexure J’ of
the RFP. Annexure J is nothing more than a user guide
that
explains what the so-called ‘e-Compliance certificate’ -
or ‘ECC’ system is, its benefits and how
one goes about
applying for it through an online portal. A more complete
consideration of the Department’s papers show that
it missed an
important part of the RFP. Paragraph 3.2 and 3.3 of the RFP outlines
the relevant provisions of the
Unemployment
Insurance Act
[6]
and the
UIC Act,
before
it turns to the submission of a compliance certificate. It goes
on to list a number of e-mail addresses and people
from whom
compliance certificates may be obtained. Annexure J confirms the two
options when it asks ‘Why send emails when
you can obtain a
compliance certificate online’. This shows that compliance
certificates were obtainable in more than one
way, and it lends
further credence to the evidence and explanation provided by SkX.
Did
the submission of the manual certificate preclude the Department from
awarding the tender?
[26]
In the founding affidavit, Mr Gumede says:
“
It
was a mandatory and material term [of] the bid that bidders must
comply [with] the UIF’s requirements in terms of UIF
contributions and declarations. Bidders must note that the UIF
will only award a contract to a bidder who is fully compliant
with
UIF contributions and declarations ... Furthermore, that bidders must
include a compliance certificate as part of the bid
proposals and
that failure by a bidder to by compliant with UIF contributions and
declarations at the award stage will lead to
disqualification.”
[27]
When it
comes to the procurement of goods and services by organs of state,
requirements like those in the RFP serve at least two
crucial
purposes. First, it informs prospective bidders what is
required of them. Second, it foreshadows the terms
of the
contract that would be concluded between the organ of state and
the successful bidder to be incorporated in the contract.
[7]
[28]
The
relevant terms of the RFP and Mr Gumede’s outline thereof in
the founding affidavit emphasises compliance with contributions
and
declarations. The RFP also distinguishes between those
requirements that will lead to ‘immediate disqualification’,
and those that will lead to disqualification at ‘award
stage’.
[8]
In the
case of compliance with contributions and declarations, it requires
compliance at the award stage. The relevant terms
of the RFP are
clear enough, but it is clarified further by the relevant part of
Table 5 in the bid document that is reproduced
here:
Table
5
Documents that must
be submitted
Non-submission may
result in disqualification
...
...
...
UIF Compliance
Certificate
**** No
Bidders must provide a
UIF Compliance certificate (Refer to Annexure J for the detail)
Important note:
* Non-submission of
the required pricing information, ... in the bid proposal will
lead to
immediate
disqualification.
**Incomplete and
unsigned SBD forms that still exist at the
Phase 2 evaluation
stage
will lead to disqualification.
***Failure by a bidder
to be tax compliant at the
award stage
or have written
proof from SARS to verify their tax compliance status, or the
arrangement the bidder has made with SARS to
meet outstanding tax
obligations
**** Failure by a
bidder to be compliant with UIF contributions and declarations at
the
award stage
will lead to disqualification (refer to
Annexure J for detail).
[29]
The table confirms what the terms of the RFP provide: it is not the
failure
to submit the document that must lead to disqualification,
but a failure to be compliant with contributions and declarations at
the award stage.
[30]
It is obvious that the requirement to submit a compliance certificate
has a
purpose that goes deeper than the mere submission of a
document. It is not part of a mere tick-box exercise. Its
purpose
is to assist the Department in determining whether a bidder
like SkX is compliant with regards to declarations and contributions
as required by the relevant legislation. The fact that the
evaluation whether a bidder is compliant in this regard is set
to
happen at the award stage is conversant with this purpose. For
example, the purpose of the requirement will have been
undermined if
a bidder submits a valid certificate that is three months old at
the time that the bid is made, but is non-compliant
with declarations
or payments when the award is made. What is material is that
the bidder must be up to date with declarations
and contributions,
and that it is compliant at the award stage.
[31]
As said earlier, the Department made much of the reference to
‘Annexure
J’, but it makes reference to another way of
obtaining a compliance certificate, through e-mail. The Department
has elevated
the reference to Annexure J and the submission of an
electronic compliance certificate to a material requirement that, if
not complied
with, disqualifies a bidder during phase two of the
evaluation stage. This is not borne out by the RFP.
[32]
As has already been held, there is no evidence provided by the
Department that
SkX was non-compliant, and all the available evidence
points to it that it was compliant. In the absence of fraud and in
the circumstances
of this case it must be found that SkX had complied
with the material requirements of the RFP. The Department was not
precluded
from awarding the tender based on the submission of the
manual certificate.
Was
there any misrepresentation?
[33]
Despite it being the Department’s case that the submission of
the manual
certificate constituted a fraudulent misrepresentation, it
also took another approach. It argued that, even if the
submission
of the manual certificate was not fraudulent, it still
constituted a misrepresentation that induced the Department to award
the
tender that it would otherwise not have awarded. It is not
necessary to decide whether such a misrepresentation would
necessarily
have entitled the Department to the relief it
seeks, or whether any contractual remedies are open to the parties,
because
this approach by the Department fails on the facts.
[34]
A party
seeking to avoid a contract on the ground of misrepresentation must
prove that: (a) the representation
relied upon was
made; (b) it was a representation as to a fact; (c) the
representation was false; (d) it
was material, in the sense
that it would have influenced a reasonable person to enter into the
contract; and (e) it was
intended to induce the person to
whom it was made to enter into the transaction.
[9]
The difficulty facing the Department is requirement (c), the question
whether the representation was false.
[35]
To succeed, the Department had to demonstrate at least two facts:
first, it
would have to show that the submission of the manual
certificate and the information contained therein placed it under the
impression
that SkX was compliant with the UIF legislation; and,
second, it would have to show that it was actually false,
because SkX
was non-compliant with the UIF legislation. For all
the reasons already provided, it fails in respect of the second. It
is
the truth concerning SkX’s compliance that induced the
Department to award the tender, not any misrepresentation.
Was
the awarding of the tender unfair to other bidders?
[36]
The Department’s argument is that it had contravened Section
217 and
legislation giving effect to it, because the Department was
unfair to other bidders when it awarded the tender. It argues
that, unlike SkX, other bidders were disqualified based on their
compliance certificates. However, it did not provide evidence
of this in either of its affidavits.
[37]
The only evidence concerning disqualification is a report from the
bid evaluation
committee to the bid adjudication committee of 23
March 2022, attached to SkX’s answering affidavit. Although it
refers to
the exclusion of fifteen bidders during the evaluation
process, the reasons provided there have nothing to do with
compliance certificates.
[38]
There is no evidence that SKX was given any advantage over any of the
others
bidders, particularly those that were disqualified for other
reasons. All the evidence points to it that all bidders were treated
equally and in accordance with the terms of the RFP.
Delay
[39]
The Department submits that it became aware of the invalidity of the
manual
certificate in September 2022 when it received the outcome of
an investigation. The application was instituted about four months
later, on 30 January 2023. On this basis, the Department submits,
there is no delay. It further submits that, if there is
a
delay, it is not unreasonable, and the court ought to overlook the
delay in the interest of justice. What the Department probably
meant
by this is that, if the delay is found to be reasonable the merits
can be considered, but if it is found that the delay is
unreasonable,
the court should overlook it in the interest of justice. SkX
raises the fact that Mr Gumede who was a member
of the bid evaluation
committee took issue with the manual certificate as early as 2
November 2021. On this basis, it submits
that the delay of more
than a year is unreasonable and that the Department has failed to
explain the delay.
[40]
SkX’s
view disregards the fact that the tender was only awarded in March
2022, and that Mr Gumede’s views and knowledge
should not
necessarily be taken to be that of the Department. Despite him having
an issue with the manual certificate in November
2021, the clock
starts running when the Department became aware or reasonably ought
to have become aware of the action taken and
the reasons for it.
[10]
The Department’s view ignores the fact that the investigation
was completed in May 2022 and that the Department says it withdrew
the award in May 2022. It is in May 2022 that the Department became
aware or reasonably ought to have become aware of the action
taken
and the reasons for it. The Department could have brought the
application shortly after that. Yet, it took eight months
to do
so. Considering the facts set out above, including the fact
that most of the period of delay is unexplained and, in
some respects
simply incorrect, the delay is unreasonable.
[41]
In a
legality review no explicit application for condonation is
needed.
[11]
If the delay
is unreasonable, the question becomes whether the court ought to
overlook the delay in the interest of justice.
[12]
It is a discretion that must be exercised in the circumstances of
case, gleaned from the facts placed before the court by
the parties
or objectively available facts.
[13]
Although the court should be slow to allow procedural obstacles to
prevent it from looking into a challenge such as this
one, undue
delay should not be tolerated and vigilance must be exercised.
[14]
In
Venus
Rays
[15]
Rogers
J reminded that the approach to be followed in such a case is a
flexible one, and that the various factors to be taken into
account
are (a) potential prejudice to the affected parties, the consequences
of setting aside the impugned decision, amelioration
of prejudice by
granting a just and equitable remedy; (b) the nature of the impugned
decision, including the consideration of the
merits of the legality
challenge and the extent and nature of the illegality; (c) the
conduct of the applicant; and (d) the
Gijima
-principle.
[42]
In this
case the Department did not provide a full and honest explanation for
the whole period of the delay.
[16]
Where it gave some explanation, it does not accord with the facts. In
cases where there is corruption, collusion or fraud
a court may well
be ‘[j]ustified in looking less askance in condoning the
delay.’
[17]
For the
reasons given this is not such a case. In this case, the delay does
not appear to have caused prejudice to SkX, but that
is only because
the Department withdrew the award and SkX seemingly accepted it. Even
if the tender was not withdrawn, SkX would
only have been appointed
to the panel for a period of twelve months. There is no
evidence of prejudice to the public interest
or the Department if the
decision to award the tender is left to stand. In the
circumstances of this case, all the considerations
related to
prejudice weigh against overlooking the delay. Although the
merits of the application is not a determinative factor,
it is an
important consideration. For the reasons given, the lack of merit in
the Department’s case militates against overlooking
the delay.
The
Gijima-
principle
is not applicable.
[18]
[43]
It is
difficult to appreciate why the Department brought this application
at all. Even if it is accepted for the sake of the
argument
that it had good reasons for doing so, it is still difficult to
appreciate why it took the approach it did and why Mr
Gumede did what
he did. In
Buffalo
City
Cameron
J said in a minority judgment that courts ‘[s]hould be vigilant
in ensuring that state self-review is not brought
by state officials
with a personal interest in evading the consequences of their prior
decisions.’
[19]
He also
said that the explanation for the delay ‘is an
opportunity for the state to demonstrate that its self-review
seeks
to promote open, responsive and accountable government rather than
the self-interest of state officials seeking to evade
the
consequences of their prior decisions.’
[44]
The Department asks for the invalidation of the awarding of a tender
that was
withdrawn two months after it was awarded. If it had
not been withdrawn, it would have lapsed two months after the
application
was launched. In court it was said on the Department’s
behalf that it did not expect that SkX would oppose the application.
Considering the lack of merit and the extent of the allegations
against SkX, this was a mistake. The Department brought the
application
on tenuous grounds without having put all the facts and
relevant documents before the court. The Department sought to make
out
a case that SkX was non-compliant with declarations and
contributions, but was constrained to concede that it did not provide
evidence
of either. It accused SkX of being non-compliant with
Section 10, only to abandon it as a ground at the hearing.
[45]
Mr Gumede did not place the investigation report before the court,
nor did
he point out that there was a report that was concluded in
May of 2022. In his replying affidavit he tried to explain it away
with
the ambiguous statement that he ‘explicitly mentioned in
the founding affidavit that [SkX’s] compliance certificate
was
found by the investigation to be invalid in the investigative
report.’ The founding affidavit does not mention the report.
He
did not inform the court it was he who sounded the alarm about the
manual certificate and that he had done so in November 2021.
He did
not disclose that he was a member of the bid evaluation committee
that, in March 2022 wrote to the bid adjudication committee
recommending SkX’s appointment. Yet, in the founding
affidavit he says ‘the Bid Evaluation Committee ... of the
department ... believed, at the time of the evaluation and the award
and mistakenly or erroneously so, the that UIF compliance
certificate
submitted by the respondent with its bid was valid.’ He also
did not tell the court that a charge of fraud was
laid against SkX,
that SkX had provided an affidavit and evidence in respect thereof,
and that there was a finding of
nolle prosequi.
When it was
raised by SkX in its answer, he did not reply to it at all.
[46]
In setting
out various factors for the court to consider in the exercise of its
discretion, Rogers J held
[20]
as follows with regards to the conduct of an applicant like the
Department:
“
State
actors are subject to a higher duty to respect the law, including a
duty to act promptly when rectifying illegality. However,
even where
the public functionary has not acted as a model litigant,
unreasonable delay may be overlooked if the functionary acted
in good
faith or with the intent to ensure clean governance. There is a
difference between muddle and malice.”
[47]
Despite having some misgivings, this is probably a case of muddle,
rather than
malice. Although it cannot be found that the
Department was anything but
bona fide
when it brought the
application, its
bona fides
is not sufficient to displace the
other factors that weigh against the court overlooking the delay.
Conclusion
[48]
The Department’s delay in bringing the application was
unreasonable.
In all the circumstances, considering the
relevant factors, it is not in the interest of justice to overlook
the delay.
[49]
In any event, for all the reasons provided earlier, the Department
has not
made out a case for any of the relief that it seeks.
[50]
The application stands to be dismissed for both these reasons.
Costs
[51]
The Department sought attorney and client costs based on what it says
was SkX’s
conduct. Bearing in mind the Department and its
deponent’s conduct, there may have been sufficient reasons to
give
a punitive cost order against the Department. SkX,
however, did not pursue such an order.
[52]
There is no reason to deviate from the principle that the costs
should follow
the result. SkX moved for the costs consequent
upon the employment of its advocate on Scale C. Bearing in mind
the
nature of the matter, its complexity, the nature of the
allegations made against SkX, and there being sufficient cause to
instruct
senior counsel in these circumstances, such an order is
justified.
Order
[53]
The following order is made:
The
application is dismissed with costs, including the costs consequent
upon the employment of the advocate for the respondent on
Scale C.
E BOTHA
ACTING JUDGE OF THE HIGH
COURT
For the Applicants:
S Poswa-Lerotholi
SC with M V Makamu
(heads
of argument prepared by Z Matabese SC with M V Makamu)
on instruction of
State Attorney Pretoria
For the Respondent:
J O Williams SC
on instruction of
Morne Coetzee Attorneys
[1]
See, for example in this regard:
State
Information Technology Agency SOC Limited v Gijima Holdings (Pty)
Limited
[2017]
ZACC (
Gijima
)
40 para 41; and
MEC
for Health, Eastern Cape and Another v Kirland Investments (Pty) Ltd
[2014]
ZACC.
[2]
Steenkamp
NO v Provincial Tender Board of the Eastern Cape
[2006]
ZACC 16
at para 35.
[3]
Minister
of International Relations and Co-operation and Others v Simeka
Group (Pty) Ltd and Others
[2023]
ZASCA 98
(14 June 2023).
[4]
Sic.
Underlining
is the deponent’s in the founding affidavit.
[5]
4 of 2002. Hereinafter referred to as the “
UIC
Act”
.
[6]
63
of 2001.
[7]
Minister
of International Relations and Co-operation and Others v Simeka
Group (Pty) Ltd and Others
(610/2021)
[2023] ZASCA 98
(14 June 2023) para 61.
[8]
It
also provides for some other requirements that may lead to
disqualification at some other stages in between, but that is not
relevant in this instance.
[9]
Quartermark
Inv (Pty) Ltd v Mkhwanazi
2014
(3) SA 96
(SCA) para 14, with reference to
Novick
and Another v Comair Holdings Ltd and Others
1979
(2) SA 116 (W).
[10]
In
Buffalo
City Metro Municipality v Asla Construction (Pty) Ltd
[2019] ZACC 15
(
Buffalo
City
)
para 49 Theron J held that this was the approach in a legality
review. For this, she relied on
City
of Cape Town v Aurecon South Africa (Pty) Ltd
[2017]
ZACC 5
(
Aurecon
)at
41, where the Constitutional Court held, in the context of delay in
a PAJA review, that ‘the clock starts to run with
reference to
the date on which the reasons for the administrative action became
known (or ought reasonably to have become known)
to an applicant.’
See the discussion of these two judgments by Rogers J (as he then
was) sitting in the Western Cape
High Court in
Central
Energy Fund SOC Ltd and Another v Venus Rays Trade (Pty) Ltd and
Others
[2020] ZAWCHC 164
(
Venus
Rays
)
para 287.
[11]
Buffalo
City
para
51.
[12]
Buffalo
City
para
51.
[13]
Gijima
para
49.
[14]
Department
of Transport and Others v Tasima (Pty) Limited
[2016]
ZACC 39
para 160.
[15]
Venus
para
290.
[16]
Buffalo
City
para
80.
[17]
Aurecon
para
50.
[18]
Gijima
para
52.
[19]
Buffalo
City
para
139.
[20]
Venus
para
290.
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