Case Law[2023] ZAGPPHC 2008South Africa
Keegans Auto Spares and Accessories CC t/a Jaymees Midas v National Treasury of South Africa and Others (38145/2022) [2023] ZAGPPHC 2008 (12 December 2023)
Headnotes
at that office/warehouse in that particular province.
Judgment
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# South Africa: North Gauteng High Court, Pretoria
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## Keegans Auto Spares and Accessories CC t/a Jaymees Midas v National Treasury of South Africa and Others (38145/2022) [2023] ZAGPPHC 2008 (12 December 2023)
Keegans Auto Spares and Accessories CC t/a Jaymees Midas v National Treasury of South Africa and Others (38145/2022) [2023] ZAGPPHC 2008 (12 December 2023)
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sino date 12 December 2023
HIGH
COURT OF SOUTH AFRICA
(GAUTENG
DIVISION, PRETORIA)
CASE
NO: 38145/2022
(1)
REPORTABLE: NO.
(2)
OF INTEREST TO OTHER JUDGES: NO
(3)
REVISED.
DATE:
12 DECEMBER 2023
SIGNATURE
In
the matter between:
KEEGANS
AUTO SPARES AND ACCESSORIES CC
t/a
JAYMEES MIDAS
Applicant
and
NATIONAL
TREASURY OF SOUTH AFRICA
First
Respondent
CHIEF
DIRECTOR: TRANSVERSAL
CONTRACTING
OFFICE, NATIONAL TREASURY
Second
Respondent
THE
ACTING DIRECTOR GENERAL,
NATIONAL
TREASURY
Third
Respondent
THE
MINISTER OF FINANCE
Fourth
Respondent
THE
MINISTER OF POLICE
Fifth Respondent
THE
NATIONAL COMMISSIONER OF POLICE
Sixth Respondent
ALLPARTS
(PTY) LTD
Seventh Respondent
KAIZEN
MSD (PTY) LTD
Eighth Respondent
AHK
MOTOR PARTS (PTY) LTD
Ninth
Respondent
DAR
AUTOMOTIVE (PTY) LTD
Tenth
Respondent
BOUTIQUE
LEASING COMPANY (PTY) LTD
Eleventh Responden
ORDER
The
application is dismissed with costs, including the costs of two
counsel, where employed.
JUDGMENT
This
matter has been heard in open court and is otherwise disposed of in
terms of the Directives of the Judge President of this
Division. The
judgment and order are accordingly published and distributed
electronically.
DAVIS,
J
Introduction
[1]
On 21 May
2021, the National Treasury of South Africa (the Treasury) called for
bids for the supply of automotive parts and tools
for the State,
primarily for use by the South African Police Service. The
applicant, Keegans Auto Spares and Accessories
CC t/a Jaymees Midas
(Keegans) unsuccessfully bid for this tender. The Treasury
maintains that the reason for Keegans’
failure was that it did
not meet the requirement of demonstrating a “footprint”
in the provinces for which it had submitted
bids. It
consequently disqualified Keegans from the award of a tender for any
of the provinces. It is this decision
which Keegans sought to
have reviewed.
The
parties
[2]
The Treasury
was cited as the first respondent and the Chief Director: Transversal
Contracting Office and the Acting Director General,
both of the
Treasury, were cited as the second and third respondents
respectively. The Minister of Finance was cited as the
fourth
respondent and the Minister of Police and the National Commissioner
of Police were cited as the fourth and fifth respondents
respectively. The seventh to eleventh respondents were the
other bidders, of which the seventh and eighth respondents had
been
successful.
The
tender
[3]
The tender in
question was for the “Supply and Delivery of Automotive Parts
and Tools to the State” for a period of
36 months, labelled
RT45-2021.
[4]
The bidding
process, supervised by the Treasury (due to the fact that
“Transversal Contracts” were envisaged) was subject
to
“General Conditions of Contract” (GCC) requirements,
issued in accordance with Treasury Regulation 16A (GNR 225
of 15
March 2005 – Amendment of Treasury Regulations in terms of
Section 76) issued in terms of the Public Finance Management
Act 1 of
1999 (the PFMA) as well as the Preferential Procurement Policy
Framework Act, 5 of 2000 (the PPPFA). In addition,
“Special
Conditions of Contract” (SCC), as provided for in the GCC, were
also applicable.
[5]
The scope of
works for the tender was to provide the South African Police Service
with automotive parts and tools on a nationwide
basis. The
successful bidder was expected to have the capacity and capability to
render the service as required. A
prospective bidder could bid
for any number of provinces and/or a combination of provinces.
[6]
In addition to
the above, bidders were required to complete an “Authorization
Declaration” (in terms of clause 5.3.5
of the SCC, provided for
in a prescribed format, labelled TCBD1).
[7]
The
Authorisation Declaration required an indication as to whether the
goods to be supplied would be acquired from a “third
party”.
If so, the bidder was required to declare that the goods were sourced
from a third party, in respect of which
the bidder needed to supply
particulars of the bid items and the brands thereof to be supplied by
each third party. In respect
each third party the bidder also
had to supply the name, physical address and contact particulars.
In addition the bidder
had to supply an unconditional written
undertaking from each third party to supply the specified goods “…
in
accordance with the terms and conditions of the bid document …
”.
[8]
In addition to
the above, the bidder was required to acknowledge in the bid
documents “…
that
the State reserved the right to verify the information contained
therein and, if found false or incorrect, may involve any
remedies
available to it in the bid documents …
”.
[9]
The “bid
documents” (in this case, the SCC) provided for three phases of
evaluation of bids. Phase 1 encompassed
the “Pre-qualifying
Criteria” and required that only bidders having a B-BBEE
contributor status level of 1 –
8 would qualify (Keegans was
able to satisfy this requirement).
[10]
Phase 2
encompassed “Mandatory Requirements and other Bid
Requirements”. This included as clause 5.3.4 of the
SCC
the following (due to the “footprint” issue being the
crux of the dispute, the clause is quoted in full):
“
5.3.4
FOOTPRINT
(a)
It is a
requirement of this bid that bidders provide the details of their
footprint in the province they are bidding for.
(b)
For
each province a bidder bids for, the bidder must provide a list of
their offices/warehouses and details of activities taking
place in
that office/warehouse. The details of activities must amongst
others over the following:
(i)
Address
of the offices/warehouses.
(ii)
Type of
office (office/warehouse).
(iii)
Parts
or stock held at that office/warehouse in that particular province.
(iv)
Areas
that are served by that office/warehouse in that particular province.
(c)
Annexure
A: Footprint Declaration of undertaking form must be used to provide
details of the footprint. No other format will
be accepted for
this purpose.
(d)
Over
and above the submission of Annexure A, bidders must submit proof of
existence of such office/warehouse by submitting any document
(not
older than 3 months) but not limited to the below:
(i)
Utility
bill, e.g. municipal water and lights account or property managing
agent statement;
(ii)
Municipal
rates and taxes invoice;
(iii)
Telephone
statement;
(iv)
Letter
from municipality confirming business address.
(e)
Bidders
will be disqualified if they don’t provide information
”
.
Keegans’
bid and the evaluation thereof by Treasury
[11]
Timeously
before the extended closing date, Keegans submitted its bid for the
North West Province, Gauteng Province, Limpopo Province,
Free State
Province and the Mpumalanga Province.
[12]
Keegans’
bid, together with 22 other bids were evaluated by a Bid Evaluation
Committee (the BEC). All twenty-three bids
passed the
pre-qualification phase and progressed to the second phase.
[13]
Sixteen of the
twenty-three bidders failed to submit the required information and/or
documents necessary to comply with the mandatory
requirements of
phase 2. The remaining seven bidders, including Keegans and the
seventh and eighth respondents were considered
responsive and were
then evaluated for compliance with phase 2.
[14]
Keegans
“Footprint Declaration”, signed by the deponent to its
affidavit delivered in support of this review application,
contained
the following declaration: “
I,
Manmadam Verdapen Govinder ... do hereby provide an undertaking that
the offices/warehouses provided in the table are
our
offices/warehouses
and will be utilised for the purpose of providing services as
required by this bid, should we be awarded any
portion of the
contract
”
(my emphasis). This was followed by a table containing the
following particulars:
Province
City/Town/Area
Address
Office/Warehouse
1.
Gauteng
East
Rand
2
Gordon Ave, Linbro Park
Warehouse
2.
North
West
Pretoria
Unit
2A April Malan S Moot, Pretoria
Warehouse
3.
Mpumalanga
Nelspruit
15
Fuschia Str, Nelspruit
Warehouse
4.
Free
State
Bloemfontein
2
Blignanlt Str, Bloemfontein
Warehouse
5.
Limpopo
Polokwane
Corporate
Park 2, Polokwane
Warehouse
For
each of the warehouses it was indicated that the “entire range”
of parts would be held thereat.
[15]
The BEC
conducted a due diligence exercise to verify that the declared
information indicated a “…
capacity
to deliver the services tendered for, by way of a “footprint”
of offices and/or warehouses from where the goods
will be stored,
ordered and delivered
”.
It found that the warehouses indicated by Keegans actually belonged
to an entity named Parts Incorporated Africa
Ltd t/a Motus
Aftermarket Parts (Motus). The BEC therefore on 15 February
disqualified Keegans from progressing to phase
3. This was done
in accordance with clause 5.3.4(e) of the SCC quoted in par [10]
above.
[16]
When the above
was discovered by Keegans after the delivery of the record, it
delivered an amended notice of motion and supplemented
ifs founding
affidavit (as it was entitled to do). The relief claimed by
Keegans was then for a review and setting aside
of the BEC’s
decision whereby Keegans was disqualified, a setting aside of the
BEC’s decision not to disqualify the
eighth respondent, a
setting aside of
Treasury’s
decision to award tenders to the seventh and eighth respondents and a
setting aside of the contracts concluded
with these two respondents.
A remittal to the BEC and costs were also claimed.
Keegans’
attack on the BEC’s inspection and subsequent decision
[17]
As a first
line of attack, Keegans alleged that the “footprint”
requirement per province was “…
so
vague as to be unreasonable, irrational and unfair
”.
[18]
As a second
attack, the lack of minutes of the BEC’s consideration of the
bids during the course of 11, 12, 13 and 14 October
2021 as well as
on 15 February 2022 led to an accusation that the meetings were “…
conducted
in a clandestine manner, were inherently flawed, irregular and
untransparent
”.
[19]
The primary
attack, was however, was that despite the fact that two letters had
been sent to Keegans, indicating proposed site inspections
at a “Jet
Park” address (at 10h00 on 14 February 2022) and at Keegans’
“Linbro Park” address (at
14h00 on the same day), that
only one inspection took place at 14h00 at “Jet Park” and
a promised alternate inspection
at a Florida warehouse never took
place.
[20]
The minutes of
the BEC of 15 February 2022 (incorrectly dated “2021”)
indicated the identity of the five BEC members
who had attended to
the site meeting at Jet Park. They included two Treasury
officials and three members of the South African
Police Service.
The notes were taken by a Ms Gumede. Also in attendance were
two representatives of Motus and three
staff members of Keegans.
[21]
At this site
visit it was (correctly) established that the warehouse does not
belong to Keegans. It is in fact a Motus warehouse,
being
operated on leased premises. Keegans complained that, at the
site meeting, it was indicated to those conducting the
inspection
that Keegans owns a warehouse in Florida and that “
at
all relevant times during and after the site visit, [Keegans] was
under the impression and had a reasonable expectation that
a proper
site visit will be conducted at the Florida warehouse. Having
made reference to the Florida warehouse in the minute,
the BEC had an
obligation to conduct the site visit prior to taking a decision to
exclude [Keegans]
”.
[22]
In the
supplementary affidavit Mr Govinder disclosed that the Florida
warehouse also does not actually belong to Keegans, but to
him
personally. As he was the sole member of Keegans, he considered
this difference immaterial. He furthermore relied
on Ms
Gumede’s oral indication that the BEC would also visit the
Florida warehouse. A failure to do so, so Keegan averred,
amounted to an exclusion of relevant considerations when the BEC
considered Keegans’ bid.
[23]
In argument,
adv. Maritz SC, who appeared for Keegans together with adv Wessels,
strenuously advanced two main arguments, the first
was that Treasury
was “never” permitted to perform a “footprint”
due diligence investigation. The
second was that the “footprint
requirement” did not require that a successful bidder had to
own, lease or manage a
warehouse in the province in respect of which
it had submitted a bid.
Treasury’s
response
[24]
In answer to
the above, Treasury firstly submitted that it always had a right to
perform a due diligence exercise, which included
the right to inspect
warehouses. It maintained that, in respect of the Jet Part
warehouse that was inspected, being an address
nominated by Keegans,
it had been found that Motus was the owner and as there had been no
service or supplier agreement between
Keegans and Motus and that
Keegans “…
had
been unable to explain in these circumstances what role it would be
playing”
Keegans
had not satisfied the “footprint” requirement, being a
material requirement in terms of the SCC.
[25]
After having
dealt with the peripheral issues raised by Keegans (such as the
obvious date error on the minutes of the site visit,
the correct
chronology of the e-mail correspondence and the purported quorum
issue of the inspection team), it was argued by adv
Chabedi SC on
behalf of Treasury that a review application is a “backward-looking”
process whereby it must be determined
whether the decision-maker’s
decisions was lawful, rationable and reasonable.
[26]
She further
argued that, if Keegans is correct that only a supplier due diligence
exercise was permitted, then even on that basis
Keegans had not
sufficiently indicated that Motus was a mere supplier. The
inspection had revealed that Motus would in fact
do “everything”
that Keegans had tendered to do.
[27]
Adv
Chabedi SC emphasized however, that Treasury sought to satisfy itself
that the information provided by a bidder, in particular
in respect
of its ability to readily supply parts in the provinces for which it
had bid, could be relied on. She referred
the court to on
e-mail sent by Treasury to all bidders on 7 February 2022, requesting
clarity on details of the respective footprints,
as it was entitled
to do in terms of clause 16.1 of the SCC
[1]
.
Keegans had responded by way of a letter dated 8 February 2022.
The letterhead indicated Keegans’ address at
No 9 Goldman
Street, Florida, an address not listed in its Footprint Declaration.
The letter then listed warehouse addresses
for each of the provinces
contained in its bid with the invitation: “
Please
feel free to contact all the above warehouse managers to understand
the delivery route between towns on a daily basis
”.
[28]
It was when an
actual inspection was carried out at one of the addresses nominated
by Keegans, being the Jet Park address (which
address Keegans say in
its founding affidavit it had nominated despite the fact that it did
not feature in its Footprint Declaration),
that it was found that the
warehouse was in fact not a Keegans warehouse, but a Motus Warehouse.
[29]
In this
regard, Keegans had submitted a letter from Motus which confirmed the
availability of its distribution centres for the required
parts
across South Africa as proof of Keegans’ third-party sources.
[30]
Treasury
however pointed out that “sourcing parts from a third party”
is not the same as using a third party’s
warehouse to provide
the service. The reason for this submission can be found in
clause 5.3.5(e) of the SCC which provides
that “
(e)
in the event that a bidder is sourcing goods from a third party, the
following hierarchy of parties MUST be adhered to and observed:
i)
the
bidder must be sourcing goods directly from the manufacturer or an
accredited distributor of the manufacturer in question;
ii)
it is
not allowed to have intermediaries between the bidder and the
manufacturer of the goods concerned other than the accredited
distributor of the manufacturer
iii)
where a
bidder is sourcing the products from an accredited distributor, the
bidder must submit with the bid at the closing date
and time, proof
from the manufacturer that indeed the accredited distributor in
question is appointed by the manufacturer
”
.
[31]
After having
received the report of the site visit, the BEC inter alia concluded
that what Keegans intended doing was effectively
sub-contracting the
entire service for which it had submitted a bid to Motus despite it
expressly having stated in paragraph 7.1
of its bid that it would not
be sub-contracting. Despite Keegans’ denial of
sub-contracting in its papers in the review
application, it could not
explain what role it and Motus respectively would be playing.
Treasury further maintained that
there was no service or supplier
agreement between the Keegans and Motus. At best, Keegans had
submitted as part of its bid
a letter from Motus confirming the
position as follows: “
This
letter serves to confirm that Keegans Auto Spares t/a Jaymees Midas …
is a long-standing customer of Parts Incorporated
Africa, a division
of Motus Aftermarket Parts
”.
[32]
The
supplementary affidavit by Keegans contained (without supporting
source documents) the following statement: “
The
applicant is a franchisee and, accordingly, it can source the ‘parts’
(the stock) from the various braches in the
Motus Group.
Applicant has the benefit to access the stock held by the various
branches in all the provinces tendered for
should the need arise to
provide emergency deliveries
”.
[33]
In reply to
Treasury’s answering affidavit, Keegans stated “
The
site visit was merely intended to illustrate that the Applicant will
have access to all the parts housed in the warehouse of
the
franchisor as part of its supply chain. The applicant has not
subcontracted any part of the agreement to Motus and Motus
merely
provides the applicant with additional parts (from time to time)
”.
Seventh
respondent’s case
[34]
The seventh
respondent (AllParts) submitted that, as Keegans had omitted to
disclose in its bid documents that it intended to perform
under the
tender by making use of warehouses owned or operated by Motus, it had
failed to comply with peremptory SCC requirements.
This failure
resulted therein that Treasury had no option but to disqualify
Keegans.
[35]
Insofar as
Keegans complained that it had no opportunity to make representations
to Treasury prior to being disqualified, the opportunity
to provide
particulars of the relationship between a bidder and a third party or
a supplier as provided for in the bid documents,
provided a
sufficient opportunity to make representations.
[36]
In respect of
its own successful bid (which is also attacked by Keegans) AllParts
submitted that its bid had correctly been found
compliant and that it
was able to perform in terms of the tender. The fact that the
site visit in respect of its nominated
warehouse was done after the
BEC meeting was irrelevant as such verification by inspection was a
permissible and not peremptory
option exercised by Treasury and in
any event, it had passed that due diligence exercise. Its later
agreement with Treasury
to supply the same parts, albeit by way of
alternate brands of parts, did not render it non-complaint.
There was therefore
no reason to set aside the contract it had
entered into with Treasury subsequent to the acceptance of its bid.
Eighth
respondent’s case
[37]
The award of a
tender to the eighth respondent (Kaizen) was also attacked by
Keegans. In its defence, Kaizen also argued that
once Keegans
had been found to rely exclusively on Motus’ resources in order
to fulfill the intended tender and had been
found to have factually
incorrectly stated that it owned the warehouses listed in its
Footprint Declaration, it mattered little
whether this had been
labelled a misrepresentation or whether there had been “a
misunderstanding” regarding the sites
to be inspected –
the simple fact remained that a due diligence exercise had exposed
Keegans’ non-compliance with the
SCC requirements. Its
disqualification by Treasury was therefore justified.
[38]
Kaizen also
shed more light on how the Jet Park address had been nominated by
Keegans for inspection. The answer was in a
letter from Keegans
to Treasury dated 10 February 2023. The relevant contents
thereof read as follows: “
Initially
when our tender was submitted, the entire parts basket for Gauteng
was kept at 2 Gordon Ave, Linbro Park. Subsequently
we learned
yesterday the entire warehouse was now being moved to Cnr Kolly and
Yaldwya Road, Jet Park. The reason why we
didn’t know
when the move will be completed, is because we place our orders and
drop shipments online for delivery …
”.
[39]
It was only
after receipt of this letter that Treasury confirmed the site visit
at Jet Park and also confirmed that, during the
site visit, it would
require a presentation to “
indicate
live demonstration on how the systems work on rendering of services
to the State
”
and required a physical inspection of the storage facility and to see
“
how
everything runs
”.
The subsequent presentations made during the inspection exclusively
consisted of Motus’ capabilities, infrastructure
and supply
chain distribution facilities.
[40]
All that the
attack on the award of a tender to Kaizen demonstrated in respect of
its alleged non-compliance, was a comment that
in respect of its
warehouse which had been inspected the warehouse was found to have
“some” health and safety issues.
This, however,
related to warehouse cleanliness. Another attack was that the
BEC considered whether Kaizen had underquoted.
None of these
issues had been found to be decisive at the time. Kaizen also
submitted that since it had been awarded a tender,
it supplied parts
at the quoted prices and therefore any suggestion that it had
underquoted mere in order to obtain a tender with
a view to
thereafter charge higher prices, was factually unsubstantiated.
Evaluation
[41]
The
allegation that the “footprint” requirement was so vague
that it rendered the whole tender process void, can summarily
be
dispensed with. Starting with the language employed in the
tender documents, a “footprint” means not only
“an
impression left by a foot” but also “the amount of space
that something fills” or “the shape
and size of the area
something occupies”
[2]
.
When read together with the warehouse and address
requirements, there can be no doubt that bidders were in their
Footprint Declaration required to indicate a physical and
geographical “space” (warehouse) from which it intended
to
supply parts to a specific province for which it submitted a bid.
[42]
The
parties were all
ad
idem
that the footprint requirement was not as stringent as requiring a
physical presence inside a particular province. Keegans
put the
requirement as follows in its founding affidavit
[3]
“
The
requirement does not require a bidder to own the specific warehouse
in each province but requires it to have access to a warehouse
in a
specific province or illustrate another manner in which the
footprint requirement can be satisfied
”.
Treasury agreed with this interpretation, thereby rendering the
voidness argument without force.
[43]
Treasury’s
argument was that bidders were not obliged to submit bids to provide
services in the whole of the Republic.
Bidders were also
allowed to source parts from third parties, but then only if they
complied with the conditions referred to in
para [30] above, thereby
complying with clause 5.3.5(e) of the SCC.
[44]
Treasury
therefore submitted that the wording of the SCC regarding the
footprint requirement was clear and required no interpretation
or
construction. I agree.
[45]
The basic
premise on which the BEC evaluated bids and on which Treasury relied
was that, in terms of clause 5.3.4 of the SCC, bidders
were assessed
based on the information they themselves provided and that “…
if a bidder
declares that it owns or has access to a warehouse, the bidder must
be able to demonstrate that it does
”.
[46]
The
reservation by Treasury in the bid documents to perform due-diligence
exercises on the information contained in bid documents,
corresponds
with the above premise, the provisions of the PFMA
[4]
and the basic requirement that a bidder’s bid must truthfully
reflect the facts on which the bid was based.
[47]
The true facts
surrounding Keegans’ bid was that it did not own any of the
warehouses disclosed in its Footprint Declaration.
It also did
not own the warehouse in Florida belonging to its sole member, which
warehouse it had not relied on in its bid documents
and which in
fact, would provide no warehouse function. Keegans would not
stock any parts in warehouses from which it would
service any of the
provinces for which it had submitted bids and all indications in its
bid documents that it would do so, was
false.
[48]
The true facts
were that Keegans would simply, apparently as franchisee, rely on
Motus’ “footprints”, conduct
online orders,
shipments and “drop-offs” via Motus without any supplier
or third party agreements either in place or
having been disclosed in
its bid documents.
[49]
In
my view, the purpose sought to have been achieved by Treasury, as the
entity exercising public power, namely to only have a properly
verified bid qualify for acceptance, had been achieved.
Treasury’s decision to disqualify Keegans was therefore,
objectively
viewed, rational
[5]
.
[50]
Once
this is so, as I find it is, the principle that then “
not
every slip in the administration of tenders is necessarily to be
visited by judicial sanction
”
[6]
applies.
[51]
Borrowing from
Adv Chabedi SC’s argument, in looking back on the tender
process, I do not find that there was any irregularity
which was so
material that it overshadows the ultimate objective reasons for
Keegans’ disqualification. This includes
Keegans’
argument that the reasons furnished by Treasury do not exactly accord
with the BEC’s memorandum.
[52]
Keegans
further complained that there was a procedural irregularity in that
it had not been afforded the opportunity to make representations
prior to disqualification, but this is not entirely true: it was
asked by letter for clarification of its warehousing position
prior
to the site inspection and was invited to make a presentation in
respect thereof.
[53]
In
view of the above, Keegans’ further “expectation”
that its member’s warehouse in Florida would also be
visited
(another of Keegans’ complaints), also cannot have been a
procedural irregularity. An expectation that a site
visit to an
address not contained in the bid documentation should operate as a
pre-requisite to a decision being taken, cannot
be a reasonable one,
even if the possibility of such an expectation may have been
expressed by a member of the inspection team
[7]
.
[54]
To sum up then
(from the 30 000 pages of the record and the hundreds of pages
of documents filed in the review application):
I find that the
“footprint” requirement is not
as Keegans had claimed,
“
so vague as to
be unreasonable, irrational and unfair” that it rendered the
whole tender process invalid. Keegans’
suggestion that
the BEC had initially found Keegans’ documents compliant with
phase 2 of the evaluation process, precluded
the BEC from conducting
a due diligence exercise, cannot stand, neither in terms of the
reserved right in the SCC to do so and
neither in terms of the PFMA.
Keegans’ complaint that it had not been afforded a sufficient
opportunity to make representations
is factually incorrect.
Keegans’ argument regarding expectations of inspection of its
member’s warehouse was
neither valid nor did the absence
thereof amount to a procedural irregularity.
[55]
I therefore
find that there had been no material irregularities in the evaluation
process and that Treasury had correctly disqualified
Keegans as
having not demonstrated compliance with the “footprint”
requirement of the tender it had bid for.
[56]
There were a
number of further minor peripheral arguments advanced on behalf of
Keegans, none of which I find detract from the above.
Costs
[57]
I find no
cogent reason to depart from the general principle that costs should
follow the event. This includes the costs of
the seventh and
eighth respondents.
Order
[58]
The following
order is made:
The
application is dismissed with costs, including the costs of two
counsel, where employed.
N DAVIS
Judge of the High Court
Gauteng Division,
Pretoria
Date
of Hearing: 14 June 2023
Judgment
delivered: 12 December 2023
APPEARANCES:
For the Applicant:
Adv N G D Maritz
SC together with
Adv H P Wessels
Attorney for the
Applicant:
Couzyn, Hertzog &
Horak Inc.,
Pretoria
For the 1
st
to 4
th
Respondents:
Adv M P D Chabedi
SC together with Adv N January
Attorney for the
1
st
to 4
th
Respondents:
State Attorney,
Pretoria
For the 7
th
Respondent:
Adv Y Alli together
with
Adv S Mohammed
Attorney for the
7
th
Respondent:
Hajibhey-bhyat,
Mayet & Stein Inc,
Johannesburg
For the 8
th
Respondent:
Adv M Cajee
together with
Adv M K Peacock
Attorney for the
8
th
Respondent
Taahir Moola
Attorney, Norwood
For the 11
th
Respondent:
Mr M Bouwer
(watching brief)
Attorney for the
11
th
Respondent:
Bouwer Olivier Inc,
Randburg
c/o Pierre Krynauw
Attorney,
Pretoria
[1]
Clause 16.1 of the SCC (quoted in the said e-mail) provides that
“
National
Treasury may communicate with bidders where clarity is sought after
the closing date of the bid and prior to the award
of the bid
”.
[2]
See: The
Concise
Oxford
English Dictionary
and
Collins
Dictionary
.
[3]
At para 9 thereof.
[4]
Which has as a stated purpose to prevent unauthorised, irregular or
wasteful expenditure as contemplated in sections 38(1)(g)
and
76(2)(e).
[5]
See:
Pharmaceutical
Manufacturers Association of SA: In re: Ex parte Resident of RSA
[2000] ZACC 1
;
2000 (2) SA 674
(CC) and
Masethla
v President of the RSA
[2007] ZACC 20
;
2008 (1) SA 566
(CC) at par 81.
[6]
See
Altech
Radio Holdings (Pty) Ltd v City of Tshwane Metropolitan Municipality
2021 (3) SA 25
(SCA) at par 54.
[7]
See:
Duncan
v Minister of Environmental Affairs and Tourism
2010 (6) SA 374
(SCA) at par 15 and
SA
Veterinary Council v Szymanski
2003 (4) SA 42
(SCA).
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