Case Law[2024] ZAGPPHC 384South Africa
Professional Aviation Services (Pty) Ltd v City of Tshwane Metropolitan Municipality (37721/2021) [2024] ZAGPPHC 384 (16 April 2024)
Headnotes
the special plea and ordered Tshwane Municipality to file review relief within 10 (ten) days of the award. Factually Tshwane Municipality only filed its review relief almost a year after being ordered to do so. [12] Of significance then, an extract from the Arbitrator’s award:
Judgment
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# South Africa: North Gauteng High Court, Pretoria
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## Professional Aviation Services (Pty) Ltd v City of Tshwane Metropolitan Municipality (37721/2021) [2024] ZAGPPHC 384 (16 April 2024)
Professional Aviation Services (Pty) Ltd v City of Tshwane Metropolitan Municipality (37721/2021) [2024] ZAGPPHC 384 (16 April 2024)
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sino date 16 April 2024
IN THE HIGH COURT OF
SOUTH AFRICA
(GAUTENG DIVISION,
PRETORIA)
Case
No:
37721/2021
(1)
REPORTABLE: YES/NO
(2)
OF INTEREST TO OTHERS JUDGES: YES/NO
(3)
REVISED
SIGNATURE
DATE:
16 APRIL 2024
In the matter between:
PROFESSIONAL
AVIATION SERVICES (PTY) LTD
Applicant
and
THE
CITY OF TSHWANE METROPOLITAN MUNICIPALITY
First
Respondent
LEANDA
KOCK-ACKERMAN N.O.
Second
Respondent
This
judgment is prepared and authored by the Judge whose name is
reflected as such, and is handed down electronically by
circulation to the parties / their legal representatives by email
and by uploading it to the electronic file of this matter
on
CaseLines. The date for handing down is deemed to be 16 April
2024.
JUDGMENT
RETIEF
J
INTRODUCTION
[1]
The
Applicant, Professional Aviation Services (Pty) Ltd [Applicant] seeks
to make a duly supplemented and amended arbitration award,
dated 12
March 2021 [ the award] an order of Court. The award was made
subsequent upon the interim findings of the Second Respondent
[arbitrator] pertaining to a contractual dispute arising from the
non-payment of services rendered by the Applicant to Tshwane
Municipality [Tshwane Municipality] in terms of a Service Level
Agreement [initial agreement] [main application]. Tshwane
Municipality
does not oppose this relief sought in the main
application.
[2]
Tshwane
Municipality in answer to the main application brought a counter
application for,
inter
alia
,
a self-review of its own decisions taken on or around the 28 November
2018 and on the 1 August 2019 [impugned decisions]. The
impugned
decisions concern the procurement of the Applicant’s services
for an extended period without having followed the
legislative and
constitutional procurement prescripts [review relief]. By agreement,
the review relief and the ancillary relief
related thereto is the
only issue for adjudication.
[3]
Tshwane
Municipality’s papers in support of the review relief are
procedurally disjointed. The disjoint is caused by their
‘founding’
papers, filed in support of the review relief, as it is incorporated
into the body of their answering affidavit
in the main application. A
further disconnect occurred when Tshwane Municipality failed to
simultaneously file the notice of motion
setting out the review
relief, as procedurally required, when it filed the ‘founding’
affidavit in the counter application.
[4]
The
sequence of papers to be filed and the procedural steps to be taken
by a litigant when initiating application proceedings is
clearly set
out in Uniform Rule 6. The reason for this is clear, it regulates due
process which affords each party the opportunity
to know what case it
has to meet and when. This did not occur in the counter application.
When the Applicant filed its replying
affidavit in the main
application it too, had to answer and deal with the founding
allegations in the counter application. This
it did without fully
appreciating what case it had to meet because it had no insight of
the sight of the prayers sought in the
review relief.
[5]
The
domino effect is that Tshwane Municipality did not file a replying
affidavit in its counter application and as will become apparent,
a
disconnect and failure to deal with and clarify allegations occurred.
[6]
Tshwane
Municipality only filed its notice of motion onto caselines on the
10
March 2022, this is three weeks after it filed its ‘founding’
papers.
[7]
In
fact, this is why Tshwane Municipality seeks condonation for the late
filing of its answering affidavit in the main application,
condonation for the late filing of its notice of motion in respect of
the review relief and condonation for the delay in launching
its
review relief itself.
[8]
The
Applicant did raise certain technical objections in its papers
because of the procedural disconnect but, in argument confirmed
that
by agreement, the only determinable issues are the merits of the
review relief and the delay in launching it.
[9]
In
so doing, a brief introduction of the necessity for the institution
of the main application is required. Prior to the main application
and in 2020, a dispute arose between the parties concerning the
non-payment of 7 (seven) invoices raised by the Applicant for
services it rendered at the Wonderboom National Airport [WNA]. The
services rendered where in terms of the initial agreement [the
payment dispute]. The initial agreement regulated the terms and
conditions of the services rendered from 14 November 2017 to 13
November 2018 [initial period].
[10]
The
Applicant finally referred the contractual dispute to arbitration.
The arbitrator’s award settled the contractual dispute
involving the non-payment in part, namely, the resolution of the
non-payment of 2 (two) remaining invoices remained unresolved.
The
arbitration process was postponed pending the outcome of the review
relief.
[11]
The
reason for pending the arbitration was because Tshwane Municipality
raised a special plea challenging the constitutional validity
of the
procurement process in respect of the extended contract period with
the Applicant. The remaining 2 invoices were for services
rendered
within that extended period.
The
arbitrator upheld the special plea and ordered Tshwane Municipality
to file review relief within 10 (ten) days of the award.
Factually
Tshwane Municipality only filed its review relief almost a year after
being ordered to do so.
[12]
Of
significance then, an extract from the Arbitrator’s award:
“
61.4
Insofar as Respondent (Tshwane Municipality-own emphasis)
filing its review application in respect of the issues falling
outside of 61.1 above, as an arbitrator have no jurisdiction to hear
that matter, the arbitration is not the correct forum to determine
the Validity of the First and Second Extensions of the Service
Agreement. The Special Pleas are upheld, and the Respondent is
hereby
ordered
(own
emphasis)
to
proceed to file its review application within ten days from date of
this award, failing which the claimant
may
(own
emphasis)
bring
a review application.
61.5
The arbitration proceedings are hereby held in abeyance in respect of
61.4 above until the determination of the
court insofar as the issues
raised in the review application and the impact it may have on the
continuation of the arbitration.”
[13]
Notwithstanding,
as is apparent from the main application, Tshwane Municipality failed
to pay the Applicant in terms of arbitration
award and failed to
launch the review relief in time as ordered. The Applicant, to secure
the payment awarded launched the main
application and opposed the
review relief.
[14]
To
consider the impugned decisions in context requires consideration of
the facts giving rise to the main application and the reason
for
launching the review relief.
FACTUAL
BACKGROUND
[15]
It
is common cause that the Applicant ‘s services giving rise to
the conclusion of the initial agreement was in terms of regulation
36(1)(a)(v) of the Municipal Supply Chain Management Act, 56 of 2003
published under the Municipal Finance Management Act
[1]
[[the MSCMA] [regulation 36]. The initial agreement was concluded on
19 June 2018 over the initial period.
[16]
The
relevance of the Applicant’s appointment in terms of regulation
36 lies therein that the regulation caters for circumstances
in which
the Supply Chain Policy allows an accounting officer to deviate from
and ratify any minor breaches of the procurement
process itself.
Regulation 36(1)(a)(v) specifically speaks to dispensing with an
official procurement process established by policy
to require the
services through a convenient process or by direct negations in
exceptional cases where it is impractical or impossible
to follow a
procurement process. In other words, regulation 36 caters for a
deviation from legislative and section 217 Constitutional
prescripts.
The Applicant was appointed in such circumstances warranting a
deviation from the official procurement processes.
[17]
The
necessity to appoint the Applicant is common cause on the facts, such
depicting an exceptional case. The exceptional case is
borne out of
by the fact that the Applicant was appointed on an urgent basis to
assist Tshwane Municipality with the management,
aviation security
and training services of the WNA to ensure that the WNA complied with
89 (eighty-nine) previously raised non-compliance
matters raised by
the South African Civil Aviation Authority [SACAA]. The consequence
of which may have triggered the receipt of
an enforcement order from
the SACAA which could have led to the possible termination of Tshwane
Municipality’s operating
licence and ultimately the closure of
the WNA, the cities risk factor.
[18]
The
scope of the Applicant’s primary appointment was to manage the
aspects required to ensure compliance to the SACAA audit
findings,
aviation and business development, operation of the Permit System,
provision of security expertise, safety, and quality
assurance
inclusive of conducting of regular audits and inspections of all
operations of the WNA as set out in clause 5 of the
initial
agreement. The scope was expanded because of the circumstances to
include assisting with the renewal of the operating licence
of the
WNA and acting as the interim airport manager. The later services a
critical aspect for the need and reason proffered to
deviate.
[19]
Given
the scope of work and the need in which the dire situation of the
WNA, under the care of Tshwane Municipality, required attention,
its
City Manager deployed a municipal intervention team. The Applicant
was part of that municipal intervention team. According
to Tshwane
Municipality, the implementation of the work to be done by the
municipal intervention team was in two phases. The first
phase
dealing with the SACAA and the non-compliance matters relating to
both airside and landside including the appointment of
the required
staff at the airport in terms of the redesigned institution. Phase
two dealt with governance and international and
financial matters,
logistics inspection and audit matters concerning the implementation
of the aerodrome licence. The scope between
these two phases are
interlinked.
[20]
The
Applicant assisted with the clearance and closure of the 89
(eighty-nine) SACAA non-compliance findings, some which had been
unresolved since 2012. SACAA matters required continual monitoring
and auditing by personnel who possessed the appropriate
qualifications
and experience.
[21]
To
achieve the implementation of both phases took time. The time it took
exceeded the initial period and Tshwane Municipality desired
to
retain the Applicant’s expertise on the intervention municipal
team.
[22]
Contractually,
the initial agreement catered for such eventualities, the renewal of
or termination of the initial agreement was
regulated by clauses 3.3
and 3.4 of the initial agreement. Both the Applicant and Tshwane
Municipality rely on these clauses.
[23]
On
5 November 2018, the City Manager approved the recommendation for the
extension
of the initial agreement period from
1
December 2018 to 31 July 2019 to be tabled before the
Bid
Adjudication
Committee
[Committee]
.
On
15
November 2018, the Committee received a deviation report by N Pillay
dealing with the reasons and comments from the respective
Divisional
Heads for such extension to be recommended in terms of regulation 36
[the report].
[24]
According
to the report which served before the Committee, the Head of Legal
and Secretarial Services supported the recommendation
stating that it
would be impractical to follow an official procurement process. Mr
Mphahlele, the current Acting Head of Legal
for Tshwane Municipality,
and the deponent of their ‘founding’ papers did not deal
with content of the report. This
would explain why the Applicant
contended that Mr Mphahlele did not possess the requisite knowledge
of the facts as stated under
oath. This allegation remained
unchallenged.
[25]
The
Divisional Head of the Supply Chain Management [SCM] however did not
support the deviation request on the same basis as Tshwane
Municipality now brings the review relief (i.e. the appointment was
an extension of the initial agreement which could not at that
time be
validly extended, a procurement process to be followed).
[26]
The
Committee notwithstanding the view of the SCM, recommend the
deviation, stating that what served before them was not an extension
and in consequence the SCM response was irrelevant but noted.
The
Committee noted further that should the Tshwane Municipality not have
an airport manager in place by 1 December 2018, it would
result in
the licence of the WNA being revoked placing the city at risk. The
Committee’s recommendation was signed by the
Acting
Chairperson, Previn Govender on 20 November 2018 and by the City
Manager on 23 November 2018.
[27]
On
28 November 2018, the Applicant received notice of the deviation in
line with the Committee’s recommendation. Of significance
the
preamble of the notice which states that “
I
have the pleasure to inform you that the City Manager on
14
November 2017
(date
of inception of the initial agreement period-own emphasis) has in
terms of Regulation 36(1)(a)(v) of the Municipal Finance
Management
Act, appointed your company for the management of the Wonderboom
National Airport from 1 December 2018 to 31 July 2019
”
.
This supports the Committee’s contention of ‘no
extension’ and the automatic renewal argument of the
Applicant.
Such argument expanded below.
[28]
The
2 (two) remaining unpaid invoices, the subject matter still before
the arbitrator, were raised for services afforded Tshwane
Municipality during the period of
1
December 2018 to 31 July 2019.
[29]
On
1 August 2019, the Committee was again approached with a request for
deviation in terms of regulation 36 read with regulation
18(1)(a)(iv). The reason for the request was that the cities risk had
persisted in that an airport manager for the WNA had still
not been
appointed, this risk contended the Committee, would spill onto the
tenants who occupy the WNA. The Committee resolved
to ameliorate the
persisting risk to the city, warranted a deviation of the prescribed
procurement process and that a contract
with a service provider was
to be concluded on a month-to-month basis.
[2]
The Applicant had, in the interim being acting as the WNA airport
manager. The Applicant received notice on the 1 August 2019 of
its
appointment on a month-to-month basis. Tshwane Municipality relying
on a “devious scheme” by the Applicant to be
reappointed
on a month-to-month basis. No outstanding payments are due to
the Applicant during this period.
[30]
Having
regard to the circumstances, procedural and otherwise, Tshwane
Municipality brings an application for condonation for its
delay in
launching the review relief. This is the first issue requiring the
Court’s attention before dealing with the review
relief.
Was
the delay undue/unreasonable and condonable
?
[31]
Tshwane
Municipality contends that it should request condonation for its
delay in bringing a legality review, it being the first
prayer in the
review relief. In support it deals with the circumstances from
paragraphs 79-97 of the ‘founding’ papers
under the
heading ‘AD CONDONATION’. As a preamble, Tshwane
Municipality contends that the reason for its delay is the
same
reason for its non-compliance of the unform rules dealing with its
delay in filing its answering affidavit in the main application.
[32]
To
unpack the contention, it is not condonation which the Applicant
should seek in a legality review as, unlike the ability to condone
the non-compliance of a procedural prescript provided for by the
uniform rules, no such procedural prescripts apply to the time
in
which a legality review is to be brought and as such, there is no
non-compliance to speak of. However, it is trite that a legality
review must be brought without undue delay therefore triggering an
enquiry into whether there is a delay and if such delay is
reasonable. Therefore, the clock in the legality review does not
start ticking because of a provision of a uniform rule, but rather
the date on which Tshwane Municipality became aware or reasonably
ought to have become aware of the impugned decisions it seeks
to
challenge. For this reason alone, Tshwane Municipality’s
contention that same reasons will suffice for the consideration
of
the delay and failure to serve their answering affidavit appears, on
the face of it, is misplaced.
[33]
Be
that as it may, in dealing with a delay on the papers, the Court
commences by considering the weight of paragraph 81 in the ‘founding’
affidavit which deals with Tshwane Municipalities condonation.
Mr
Mphahlele in paragraph 81
states
that “
During
consultation on or around November
2020
,
it transpired that there were
glaring
irregularities and gross malfeasance
(own
emphasis)
in
the award and conclusion of the extension agreements.”
[34]
Such
knowledge occurred against the backdrop of a contract dispute having
arisen between the parties, knowledge of which was gained
by Tshwane
Municipality when it received the written demand on 30 December 2019.
[35]
The
Applicant correctly argues that Tshwane Municipality must reasonably
have been aware of the reason why it refused to pay them
warranting
the formal demand. This factually refers to a period from 30 December
2019 to 10 March 2022 (the date when the notice
of motion was filed).
During this period the Head of the Legal and Secretarial Services for
Tshwane approved the deviation process
referred to in the notice of
the 28 November 2018, Tshwane Municipality raised the special plea
regarding such knowledge before
the arbitrator and Tshwane
Municipality had knowledge of the arbitration award which in
unambiguous terms ordered them to bring
the review relief within a
limited time.
Furthermore,
no evidence from the City Manager nor Acting City Manager are
attached to the papers in an attempt to explain what
transpired
during this period nor, for that matter, what happened at the
relevant times the impugned decisions were taken preventing
Tshwane
Municipality from launching the review relief without
delay. No evidence of other attempts to review the decisions
are
apparent. A full and proper explanation is key in assessing whether
Tshwane Municipality’s behaviour is reasonable.
[36]
Against
this backdrop there is no explanation from Mr Mphahlele how these
glaring irregularities and gross malfeasance, now relied
on, did not
or could not have reasonably come to his attention sooner than in
November 2020. This allegation is made by Mr Mphahlele
whilst, at the
time, he must have been aware that a live contractual dispute had
already arisen in 2019 which necessitated not
only the referral of
the contractual dispute to mediation but finally to arbitration. Yet
no attempt is made to launch the review
relief. Mr Mphahlele too,
fails to explain why the Head of the Legal and Secretarial Services
for Tshwane was incorrect to support
the deviation recommendation
brought before the Committee on the 15 November 2018. Such
explanations critical in establishing any
reasonable behaviour. Lack
thereof speaks lack of effective oversight.
[37]
This
lack of explanation and oversight warrants a reminder of what, Theron
J, aptly stated in the
Buffalo
City
matter
when she referred to an overview report
[3]
by the Department of Cooperative Governance and Traditional Affairs
on the State of Local Government in South Africa, she quoted:
“
Municipalities
must have effective structures and mechanisms in place to ensure
proper oversight for its services delivery projects.
This is one of
its responsibilities…. A lack of effective oversight leads to
dysfunctionality within municipalities by creating
loopholes for
fraud and corruption.”
[38]
Tshwane
Municipality has failed to provide any, let alone, a sufficient
explanation for the delay for the whole relevant period.
Where there
is no explanation for the delay, the delay will be undue.
[4]
[39]
As
far as the delay explanation from February 2021 to filing the
counterclaim is concerned, such
explanation
only speaks of internal administrative difficulties to get their
house in order from February 2021 until they appointed
new attorneys
in May 2021. The explanation too, fails to speak to when they
acquired the knowledge to review the impugned decisions.
It is
apparent from the procedural chronology that Tshwane Municipality and
its attorneys, only got their house in order on the
22 March 2022.
This is a year, on their own explained version, from February 2021.
[40]
It
is because of these glaring failures to explain the delay or
insufficient explanation of the delay in their papers, that Counsel
for Tshwane Municipality, in argument conceded that the delay
explained on the papers was unreasonable. In consequence, the delay
for the explained period too, is undue. A concession well-made in the
circumstances.
[41]
The
enquiry which then follows is whether the undue delay for the period
over 2 (two) years from December 2019 to 22 March 2022
should be
overlooked.
Should
the undue delay be overlooked
?
[42]
This
Court notes that the approach to overlook an unreasonable delay in a
legality review is rather a flexible one and is a legal
evaluation.
Bearing in mind that a delay bar serves an important rule of law
function: it promotes the public interest in certainty
and finality
in decision-making.
[5]
[43]
To
evaluate this the Court considers a number of factors being the
nature of the impugned decisions
[6]
[nature of impugned decision consideration], the conduct of Tshwane
Municipality [conduct consideration] which is an evaluation
of
Tshwane Municipality conduct in approaching this Court with its
review relief which, if unsatisfactory is alone sufficient to
refuse
to overlook the delay.
[7]
Lastly, on the authority of Gijima,
[8]
whether the this Court must declare any agreements with the Applicant
unlawful and set them aside if, on the undisputed facts are
clearly
unlawful. The Gijima principle or rule applies withstanding an
unreasonable delay in bringing review relief.
Nature of the
impugned decision consideration
[44]
The
thrust of Tshwane Municipality’s attack on the first impugned
decision on or around 28 November 2018 giving rise to the
award of
the Applicant’s services period 1 December 2018 to 31 July 2019
has consistently been that due to the effluxion
of time determined by
the initial agreement, no valid agreement was in place when the
impugned decision was taken to extend the
agreement and that process
to procure the Applicant services in awarding them the contract, was
not done according to legislative
and section 217 Constitutional
prescripts.
[45]
To
illustrate the effluxion of time argument, Tshwane Municipality
relied on clauses 3.3 and 3.4 of the initial agreement. The Applicant
conversely being of the view that the initial agreement was
automatically renewed relying on the application of the same clauses.
[46]
Clauses
3.3 and 3.4
of
the initial agreement states as follows:
“
3.3
The Principal shall be entitled to renew, or cancel, the agreement at
its sole and absolute discretion
prior to, and with effect from, the
renewal date by giving written notice to the contract 3 (three)
months prior to the renewal
date.
Should
the municipality not give renewal notice as aforesaid, then this
agreement will automatically be renewed upon existing terms
and
conditions
(own
emphasis).
3.4
If the municipality chooses not to notify the contractor in writing
of renewal or cancellation the service
agreement will continue
subject to a 3 (three) month notice period by either party.”
[47]
In
clause 3.3, reference to “
the
Principal
”
and
‘
renewal
date’
are
words and phrases which are not clearly defined in the initial
agreement however when reading the initial agreement as a whole
and
when considering the arguments advanced, the Principal is Tshwane
Municipality and the renewal date, the date following the
initial
agreement period, from the 14 November 2018.
[48]
To
place the nature of the first impugned decision in context there is a
necessity to appreciate the reason for the conclusion of
the initial
agreement. The necessity and the urgency of acquiring the Applicant’s
expertise is to appreciate that it was
for a very specific task,
inter
alia,
to
secure the functionality and lawfulness of the WNA. This fact
warranted the authorisation of a
deviation
from the legislative prescripts and constitutional constraints when
Tshwane Municipality procured their services. To achieve
the result,
Tshwane Municipality implemented regulation 36, a common cause fact.
[49]
The
necessity to deviate would explain the purpose of clause 3.3 as it
caters for an automatic renewal of the initial agreement
on the same
terms and conditions, in circumstances when the very specific task
has not been completed. Clause 3.3 too allows Tshwane
Municipality,
at its own discretion, to renew or cancel the initial agreement
within a prescriptive notice period. No notice in
terms of clause 3.3
is evident from the papers. In applying clause 3.3 the initial
agreement, absent a notice to renew or to cancel
prior to the 13
November 2018, the initial agreement automatically is renewed.
[50]
Tshwane
Municipality contends that a decision to award and agreement was
taken on or about the 28 November 2018 which is capable
of being
reviewed and set aside and for that matter declared unlawful
ab
anitio
.
However, this contention is factually incorrect. The only documentary
evidence connected to the 28 November 2018 was attached
to the
Applicant’s papers which is simply a notice of a decision
already taken. The City Manager
in
the notice letter confirms that the Applicant has already been
appointed on 14 November 2017 and announces a further renewal
term,
the continuation of these services for a further 8 (eight) months.
This catered for in clause 3.4 of the initial agreement
and supports
the Committee’s unchallenged view that the deviation was not in
support of an extension. The only reasonable
inference on the facts
that the initial agreement was in place by virtue of the automatic
renewal trigger in clause 3.3.
[51]
T
shwane
Municipality fails to deal, nor does it challenge the decision of the
Committee of the 15 November 2018 who factually, at
resolution 2
thereof, approved the Applicants. Their internal committee process
and reasoning remains unchallenged and exists as
a fact until set
aside.
[9]
[52]
On
the facts the decision to award an agreement to the Applicant on or
about the 28 November 2018 on the facts must fail and too,
any
declaratory relief based thereon.
[53]
The
nature and consideration of the second impugned decision of 1 August
2019 remains to be considered. According to the Applicant’s
papers
the letter of 1 August 2019 indeed confirms that the impugned
decision was taken on 1 August 2019 in terms of
regulation
36(1)(a)(v)
of the
Municipal Supply Chain Management Regulations read
together with paragraph 18(1)(a)(iv) of the City Supply Chain
Management Policy by the Committee. The Committee however resolved
on
the 1 August 2019 that a service provider be appointed without the
necessity to following the procurement process.
[54]
Tshwane
Municipality attacks the second impugned decision on the basis that
no legislative procurements were followed, that a deviation
was not
rational in that,
inter
alia
,
any emergency was self-created by Tshwane Municipality, the Applicant
not the sole provider of such services. The glaring difficulty
is
that the rationality argument to deviate demonstrates a disconnect
between the facts and the applicable
regulation 36.
[55]
Regulation
36
relied on and as provided as authority, does not rely on Tshwane
Municipality making the impugned decision in terms of
regulation
36(1)(a)(i)
which speaks of an emergency, but rather sub-regulation
(a)(v) which refers to an exceptional circumstance in cases of
impracticality.
The then reliance of a self-created emergency
misplaced as too, reference to the amount and sole provider as none
of these are
requirements of
regulation 36(1)(a)(v)
nor of the
performance management on a month-to-month basis in terms of
regulation 18
which was not even addressed.
[56]
The
absence of a proper record filed by Tshwane Municipality in its
review application too created the impression that general statements
are made without applying any facts. A further example is the
allegation that the Applicant obtained the month-to-month agreement
through devious tactics. This remains a hollow allegation unsupported
by facts upon which this Court can entertain the weight or
veracity
of the allegation. In fact, what is demonstrated is that phase two
had still not been finally implemented at the material
time and that
the services of the Applicant were required as they were when the
initial undisputed agreement was awarded to them
in terms of
regulation 36.
The Applicant fulfilling the role of the airport
manager.
[57]
No
evidence exists that the agreement awarded to the Applicant was
irrational in circumstances when the risk to the city persisted.
Furthermore, the agreement was concluded on a month-to-month basis
allowing Tshwane to terminate it with a month’s notice.
No
attack regarding Tshwane’s failure to terminate is on the
paper.
[58]
The
award to the Applicant appearing rational from the supported facts.
What
was the conduct of the Tshwane Municipality
?
[59]
The
conduct consideration weighs heavily against Tshwane Municipality.
Not only have they failed to explain the relevant delay properly
or
al all from December 2019 but, they have failed to demonstrate how
they actioned a proper coherent judicial self-review.
[60]
Having
regard to the papers the picture which emerges is an application as
an afterthought, a knee jerk reaction to the main application.
This
observation is borne out by their failure to launch a substantive
application timeously and/or at all, failure to provide
the Applicant
and the Court with a complete record, failure to follow procedural
prescripts necessitating three applications for
condonation, failure
to even honour and pay the Applicants for services rendered during
the initial agreement which arose from
a common cause fact thereby
forcing the Applicants to incur costs by launching the main
application, failure to file a reply
to the Applicant’s
answer to their counterclaim in circumstances when the possession of
knowledge of Mr Mphahlele of the
material requisite facts was placed
in dispute, they raised a special plea during the arbitration
proceedings without demonstrating
that they truly had an intention to
bring a review without delay whilst being represented, failed to file
papers which with a degree
of accuracy dealing with the first
impugned decision and failed to show any regard to the weight of an
arbitrator’s award
causing this Court to now be seized with
forcing them to do was ordered of them.
[61]
Having
regard to the above the only reasonable inference is that they wished
to delay paying the Applicant. In consequence on their
conduct alone
the unreasonable delay should not be overlooked.
Gijima
consideration
[62]
However,
what of the Gijima principle? Is this Court enjoined to declare the
impugned initial renewed agreement and the further
month to month
service level agreement unlawful? The answer on the fact is no.
[63]
The
lawfulness of both extended agreements remains disputed on the papers
and no clarity exists that they are unlawful.
[64]
In
consequence, the inevitable. The delay bar applies having regard to
all three of the factors and Tshwane Municipality’s
delay is
not to be overlooked. The outcome too, in any event would have had
the same result as the order given considering the
merits of the
review relief and the ancillary relief sought as a direct result
thereof.
Costs
[65]
The
Applicant seeks a punitive cost order of attorney own client in
respect of the main application. Although the Applicant was
forced to
approach this Court to ensure execution of the arbitration award it,
also sought other relief in the main application.
Such relief
possibly usurping the arbitrator’s function. Nevertheless, a
reason for Tshwane Municipality to oppose the main
application. The
matter became settled, the Applicant did not move for the remainder
of its relief and as such no grounds or facts
warrant the exercise of
the Court’s discretion to grant a punitive cost order.
[66]
The
Applicant too, seeks a punitive cost order in circumstances of the
dismissal of Tshwane Municipalities counterclaim. Reference
was made
to In
Re
Alluvial Creek Ltd
matter
[10]
with reference the consideration where proceedings have the effect of
being vexatious. Having regard to the reasons listed above
in the
main application and that Tshwane was ordered to bring review relief
the proceedings initiated and or opposed by them seen
in their
totality cannot be seen as possessing a vexatious effect.
[67]
In
consequence, the following order:
1.
The Arbitrator’s award dated 12 March 2021,
duly supplemented is amended on the 17 March 2021 is hereby made an
order of Court.
2.
The First Respondent is ordered to pay the costs
occasioned by prayer 1.
3.
The First Respondent is granted condonation for
the late filing of its answering affidavit in the main application
and is granted
condonation for the late filing of its notice of
motion in the counter application.
4.
The First Respondent’s counter application
is dismissed with costs.
L.A.
RETIEF
JUDGE
OF THE HIGH COURT
GAUTENG
DIVISION, PRETORIA
Appearances
:
For
the Applicant:
Adv K
Fitzroy
Cell:
082 476 5048
Email:
advfitzroy@gkchambers.co.za
Instructed
by:
Jordaan
Smit Incorporated
Tel:
012 940 3579
Email:
jjordaan@jordaansmit.co.za
For
the First Respondent:
Adv T
M Makola
Cell:
076 470 1403
Email:
Thulelo.Makola@pabasa.co.za
Instructed
by:
Marivate
Attorneys Incorporated
Tel:
012 341 1510
Email:
nyiko@marivate.co.za
/
rhulani@marivate.co.za
Matter
heard:
04
March 2024
Date
of judgment
:
16
April
2024
[1]
Act
56 of 2003 and regulation 36 of the published Regulations 2005.
[2]
See
regulation 18.
[3]
Buffalo
City Metropolitan Municipality v Asla Construction (Pty) Ltd
[2019]
ZACC 15
;
Overview
Report (October 2009), Footnote para [81].
[4]
Khumalo
v Member of the Executive Council for Education, KwaZulu-Natal
[2013] ZACC 49
;
2014 (5)
SA 579
(CC);
2014 (3) BCLR 333
(CC) at paras 49-51.
[5]
Khumalo
ibid at para 47.
[6]
Skweyiya
J who wrote for the majority in the Khumalo matter (footnote 4)
explained that: “
An
additional consideration in overlooking an unreasonable delay lies
in the nature of the impugned decisions
”
.
[7]
Buffalo
at para [82];
Member
of the Executive Council for Health, Eastern Cape v Kirkland
Investments (Pty) Ltd t/a Eye & Lazer Institute
[2014] ZACC 6
;
2014 (3)
SA 481
(CC);
2014 (5) BCLR 547
(C) at par 82.
Cameron
J reaffirmed: “
There
is a higher duty on the State to respect the law, to fulfil
procedural requirements respectfully when dealing with rights.
Government is not an indigent or bewildered litigant, adrift on a
sea of litigious uncertainty, to whom the courts must extend
a
procedure-circumventing lifeline. It is the Constitution’s
primary agent. It must do right, and it must do it properly
”
[8]
State
Information Technology Agency SOC Limited v Gijima Holdings (Pty)
Ltd
[2017]
ZACC 40
;
2018 (2) SA 23
(CC);
2018 (2) BCLR 240
(CC) at par 52.
[9]
Oudekraal
Estates (Pty) v City of Cape Town & Others
[2004]
3 All SA 1
(SCA) (28 May 2004).
[10]
1929
CPD 532
at 535.
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