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# South Africa: Western Cape High Court, Cape Town
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## J S Maritime Partners (Pty) Ltd v Minister of Forestry, Fisheries and the Environment and Another (Reasons) (2025/077739)
[2025] ZAWCHC 451 (30 September 2025)
J S Maritime Partners (Pty) Ltd v Minister of Forestry, Fisheries and the Environment and Another (Reasons) (2025/077739)
[2025] ZAWCHC 451 (30 September 2025)
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sino date 30 September 2025
IN THE HIGH COURT OF
SOUTH AFRICA
(WESTERN CAPE
DIVISION, CAPE TOWN)
Case number: 2025-077739
In the matter between:
J
S MARITIME PARTNERS (PTY)
LTD
Applicant
and
MINISTER OF FORESTRY,
FISHERIES AND
THE
ENVIRONMENT
First respondent
DIRECTOR-GENERAL OF
FORESTRY, FISHERIES
AND
THE
ENVIRONMENT
Second respondent
REASONS DELIVERED ON
30 SEPTEMBER 2025
VAN
ZYL AJ
:
Introduction
1.
On 12 June 2025 I granted the following
order:
1.1.
The applicant’s non-compliance with
the forms, time periods and service requirements of the Uniform Rules
of Court is condoned,
and Part A of the application is heard as one
of urgency under Rule 6(12).
1.2.
Part A of the application is dismissed on
the basis that the applicant has not satisfied the requirements for
the grant of an interim
interdict.
1.3.
Each party will pay its own costs in
respect of Part A of the application.
2.
These are the reasons for the order.
Background
3.
The
background to these proceedings is essentially common cause. On 11
April 2025 the Department of Forestry, Fisheries and the
Environment,
published a tender
[1]
for the
appointment of a service provider for the crewing and manning,
technical and commercial management of the polar supply
and research
vessel SA Agulhas II and the environmental and research vessel RV
Algoa. The contract was to endure for a period of
60 months.
The closing date for bids was 23 May 2025.
4.
The current .service provider is African
Marine Solutions Group (Pty) Ltd ("AMSOL"), whose contract
has been extended
to September 2025. This was, in fact, the
third time that this bid invitation had been issued. AMSOL’s
contract had
previously been extended to March 2025, and it was
thereafter extended for a further six months to accommodate the new
round of
tendering and adjudicating.
5.
The two vessels in question are valuable
State-owned assets, and the tender for their operation and technical
management was published
pursuant to the statutory and executive
mandates of the respondents in relation to environmental and
oceanographic
scientific research and the South African
Antarctic Expedition ("SANAE") research stations located in
Antarctica and
the Sub-Antarctic Marion and Gough islands. The
effective operation of the SANAE research stations is a matter of
strategic national
interest for South Africa, which is an original
signatory to the Antarctic Treaty , signed by twelve countries on 1
December 1959.
6.
The vessels are the only South African
vessels capable of providing multi-purpose logistics support to the
SANAE and dedicated scientific
environmental research around the
South African coastline. It is imperative that the SA Agulhas II
undertake annual relief voyages
to the Antarctic region between
December and March each year to deliver
inter
alia
overwintering supplies for the
South African research base in Antarctica, and to provide the
transport for the overwintering team
and base maintenance personnel.
7.
The SA Agulhas was scheduled to depart on
its next voyage to the South African scientific research bases on the
sub-Antarctic Marion
and Gough Islands during September 2025. The
SANAE annual relief voyage to the South African research base on the
Antarctic ice
shelf was scheduled for departure during December 2025,
and it was anticipated that both these would be undertaken by a
service
provider appointed pursuant to the tender.
8.
A compulsory briefing session in relation
to the tender was held on 23 April 2025. The session was attended by
a representative
of the applicant, who raised questions orally, and
who was requested to direct written questions to the Department.
These questions
were responded to on 14 May 2025.
9.
By the closing date of 23 May 2025 three
bids had been received, and the bid prices were made public on 27 May
2025. The tender
evaluation processes were ongoing at the time
of the institution of this application.
10.
The applicant chose not to submit a bid in
response to the tender, but instead instituted an application in two
parts, of which
Part A was before this Court. It sought, in
essence, an interdict prohibiting the respondents from awarding the
tender pending
the outcome of the final relief sought in Part B of
the application.
11.
Part B entailed an application for judicial
review, seeking the setting aside of the tender, alternatively,
seeking the following
relief:
“
2.1
that the answers provided by the
Respondents are declared to be insufficient and are reviewed and set
aside;
2.2
that the Respondents' decision to ignore, alternatively reject, the
Applicant's Letter of Protest
is reviewed and set aside;
2.3
that the Respondents' decision to ignore, alternatively reject, the
Applicant's Letter Requesting
an Extension of the Closing Date is
reviewed and set aside;
2.4
that the Applicant be provided with proper answers to the questions
raised by it; as set out
in the Founding Affidavit to enable it to
Tender;
2.5
that the Closing Date of the Tender be extended to a date to be
determined.by this Honourable
Court to enable the Applicant to
Tender;
2.6
that
TENDER
DFFE 8004 (25/26) SA AGULHAS
II
be remitted to the Respondents for a reconsideration of the point
allocations therein contained, upon the consideration of relevant
and
material factors, as set out in the Founding Affidavit.
"
The
respondents’ points
in
limine
12.
The respondents raised three points
in
limine
in opposition to the
application, part from their opposition on the merits.
13.
I refer to each of these points only
briefly, as I was of the view that, although there might have been
merit in them, it was in
the interests of justice that the merits of
the application be considered insofar as it entailed the grant of
interdictory relief.
Lack
of urgency
14.
The respondents took issue with the urgency
with which the application was brought, but I was of the view that it
was sufficiently
urgent to warrant determination on the urgent roll.
15.
I agreed with the respondents’
argument that the urgency was to some extent self-created. The
applicant’s complaint
lay with the alleged lack of information
in the tender documents, which had been available since 11 April
2025, and not with the
adjudication of the tender. It waited until 28
May 2025, after receipt of the respondents’ answers on 14 May
2025, to bring
an urgent application seeking to halt the adjudication
process, which application turned out to be voluminous and
strenuously opposed
despite the extremely tight timelines posed for
the delivery of answering papers.
16.
It
is well-established that a court will first consider whether an
applicant has averred facts which, objectively speaking, demonstrate
urgency. Where the application lacks the requisite element or degree
of urgency, the court may, for that reason, decline to exercise
its
powers under Rule 6(12)(a).
[2]
In other words, where the facts indicate that the urgency is
self-created, an applicant will not necessarily be entertained.
17.
Essentially,
however, the question was whether the applicant demonstrated that it
would not be afforded substantial redress at a
hearing in due
course.
[3]
In the present case
that question was answered in the affirmative. This Court had,
moreover, considered the papers, and the
parties had delivered
detailed heads of argument. The matter was, despite the short
period within which it proceeded to court,
well-ventilated and ready
for determination. I was accordingly satisfied that it should
be entertained.
Non
joinder
18.
The applicant, quite obviously, failed to
join any of the three bidders who had submitted bids. It appears from
the papers that
the applicant did not take steps to ascertain the
identity of the bidders prior to the issue of non-joinder being
raised in the
answering papers.
19.
The legal principles underlying the law on
joinder are well-known:
"
The
issue in our matter, as it is in any non-joinder dispute, is whether
the party sought to be joined has a direct and substantial
interest
in the matter. The test is whether .a party that is alleged to be a
necessary party has a legal interest in the subject
matter, which may
be affected prejudicially by the judgment of the court in the
proceedings concerned.
"
[4]
20.
No
court can make findings adverse to any person's interests, without
that person first being a party to the proceedings before
it.
[5]
21.
The applicant contended in reply that its
application was distinguishable from that of an interdict pending the
review of a tender
which had been awarded since, in the latter case,
a successful bidder has a direct and substantial interest because if
the review
is successful, it will no longer be the successful
tenderer. The present case, however, sought to review and set aside
the whole
tender, and potential bidders did not have a direct and
substantial interest because they did not have any right to be
awarded
the tender.
22.
I failed to see the logic in this argument
because it would deprive the applicant itself of a direct and
substantial interest to
challenge the bid. It disregarded, in
any event, the import of and consequences arising from the interim
interdictory relief
sought which, if granted, would be to interdict
the respondents, pending the determination of the review application,
from proceeding
with the evaluation and adjudication of the tender.
The bidders undeniably had an expectation in relation to the award of
the tender.
23.
The
applicant was remiss in failing to cite the bidders, whose identities
could easily have been obtained from the respondents,
[6]
and this failure would undoubtedly loom large during the
determination of Part B of the application. The bidders’
bid prices had already been disclosed, and the potential reopening of
the tender process would thus be prejudicial to them.
As to
AMSOL in particular the relief sought by the applicant in Part B
(quoted above) could arguably be regarded as involving its
commercial
information, the disclosure of which would obviously affect AMSOL's
rights and interests.
24.
I was however willing, specifically for the
purposes of Part A of the application and in light of the view I took
of the merits
of the applicant’s case, to accept the
applicant’s submission that the applicant had addressed
correspondence to the
three bidders notifying them of the
application, and therefore that they were aware of the proceedings.
One of the bidders
indicated that it would not join in the
proceedings. Another (AMSOL) reserved its rights but declined
to take part in the
hearing. The third bidder did not respond.
25.
I did not wish to risk elevating form
over substance in circumstances where the bidders, if joined, would
probably abide, and thus
dealt with the application on that basis.
Lack
of standing
26.
It was clear from the content of the
founding and replying affidavits that the applicant essentially
sought relief in its own interest,
although it indicated that it also
acted in the public interest.
27.
The
respondents argued that, because the applicant had failed to submit a
bid, the applicant had no standing to seek the relief
sought in
either Part A or Part B of its notice of motion.
[7]
28.
I
had doubts as to whether the applicant had made out a case based on
standing in the public interest, given the requirements in
that
regard as enunciated in, for example,
Ferreira
v Levin NO and others; Vryenhoek and others v Powell NO and
others
.
[8]
That is an issue that will have to be considered by the review court
as far as Part B of the application is concerned.
29.
For
the purposes of Part A, I accepted that the applicant
prima
facie
had standing on the principles set out in
SMEC
South Africa (Pty) Ltd v City of Cape Town and others; SMEC South
Africa (Pty) Ltd v City of Cape Town and others
:
[9]
“
[92] There
are cases in which vagueness, ambiguity or inconsistency in tender
documents has led to the award of tenders being
set aside at the suit
of disappointed bidders. While there is no reason to doubt that
a disappointed bidder may seek to impeach
an award on this basis, the
argument in those cases did not focus attention on whether the
reviewable decision is simply the award
of the tender or whether such
a review necessarily encompasses an attack on the decision to issue
the tender on terms suffering
from vitiating vagueness, ambiguity or
inconsistency. This question is important, having regard to the
time-limit for review proceedings
laid down section 7(1) of
PAJA. ACSA
[10]
is an example of a case where the decision to issue the tender was
explicitly challenged.
In
principle, it seems undesirable that a bidder should be at liberty to
“take a chance” in the hope that it will be
awarded the
tender, keeping in reserve an attack on the validity of the tender
terms should it be unsuccessful in winning the bid.
However, in view of the conclusion I have reached on other aspects, I
need not finally decide this point
.”
30.
I accordingly determined the relief sought
in Part A on that basis.
The requirements
for the grant of interim relief
31.
The
requirements for the grant of an interim interdict are the
following:
[11]
31.1.
A
prima facie
right – this need not be shown on a balance of probabilities,
but is sufficiently proved if
prima
facie
established though open to some
doubt. The stronger the right is, the less need there is for
the balance of convenience to
be considered.
31.2.
A well-grounded apprehension of irreparable
harm if the interim relief is not granted and the ultimate relief is
eventually granted
– this is a harm that a reasonable person
might entertain on being faced with certain facts, and is an
objective test.
31.3.
A balance of convenience favouring the
grant of the interim relief – the Court must weigh the
prejudice the applicant will
suffer if the interim interdict is not
granted against the prejudice to the respondent if it is.
31.4.
The absence of any other satisfactory
remedy in the circumstances.
32.
The
proper approach in determining whether to grant an interim interdict
is to take the facts set out by the applicant, together
with any
facts set out by the respondents which the applicant cannot dispute,
and to consider whether, having regard to the inherent
probabilities,
the applicant should on those facts obtain final relief at the
trial.
[12]
33.
All of these requirements must be met by an
applicant seeking an interim ·interdict, and even if they are
all met, the Court
still has the discretion to refuse to grant the
interdict sought. By contrast, if an applicant fails to satisfy all
four requirements
mentioned above, the Court has no discretion to
grant an interdict.·
34.
An important consideration in the present
matter is that it is common cause that tender for the operation and
management of the
vessels has been published pursuant to the
respondents’ executive and statutory mandates in relation to
research underlying
the functions of the vessels. The effect of the
interim relief sought would constitute a restraint on the exercise of
these statutory
and executive powers and mandates.
35.
A
court may grant a temporary restraining order against the exercise of
statutory or executive powers only in exceptional cases,
and when a
strong case for that relief has been made out.
[13]
The Court must recognise and assess the impact of temporary
restraining orders when dealing with those matters pertaining to the
best application, operation, and dissemination of public resources.
The question is thus not merely whether an interim interdict
against
a state functionary is competent, but also whether it is
constitutionally appropriate to grant the interdict.
[14]
The Court must be satisfied that the applicant for an interdict in
these types of cases has good prospects of success in
the main
review, based on strong grounds which are likely to succeed.
[15]
36.
In the present matter, I did not think that
the applicant cleared the hurdles posed, firstly, by the requirements
for the grant
of the relief sought and, secondly, by the prospects of
success requirement. I consider this in the course of the
discussion
below. ·
Did the applicant
demonstrate a
prima facie
right?
37.
At
a basic level, I did not consider that the applicant had shown a
prima
facie
right. It sought to rely on its right to lawful, reasonable,
and procedurally fair administrative action under section 33
of the
Constitution
[16]
as the basis
for its application to review and set aside what it referred to as
"administrative
law decisions”.
38.
An
applicant can, however, not rely on a professed right to review the
impugned decisions based on section 33 of the Constitution.
The
prima
facie
right
that must be established for an interim interdict is not simply an
applicant's right to approach the court for a review:
[17]
"
Under
the Setlogelo test, the prima facie right
a
claimant must establish
is
not
.
merely
the right to approach a court in order to. review an administrative
decision. It
is
a
right to which, if not protected by an interdict, irreparable
harm would ensue. An interdict
is
meant to prevent future conduct and not
decisions already made. Quite apart from the right to review and to
set aside impugned decisions,
the applicants should have demonstrated
a
prima
facie right that is threatened by an impending· or imminent
irreparable harm. The right to review the impugned decisions
did not
require any preservation pendente lite.
"
39.
The nature of the
prima
facie
right asserted by the applicant
was described in the founding papers either as “
the
right or reasonable apprehension of
a
right to be, alternatively a legitimate
interest in being, appointed as the preferred bidder",
a
prima facie
right
“
to tender once it has been
provided with the information reasonably required to do
so",
or a right based on the notion that the applicant
"
...has been unlawfully, unduly and unfairly excluded from the tender
process."
40.
I
agreed with the respondents’ submission that none of these
bases on which the·applicant asserted its
prima
facie
right
were ultimately sustainable. The applicant approached the
prima
facie
right
enquiry squarely by focusing on the grounds on which it suggested
that it had good prospects of success in the review application.
This
was not the correct approach for determination of the first
requirement underpinning the grant of an interim interdict.
The
question was not whether the applicant had established the existence
of a
prima
facie
right
on the basis of its alleged prospects of success in the review
(although its prospects fell to be considered given the impact
of the
interdict sought),
[18]
but
rather whether the applicant had demonstrated that it had a
prima
facie
right
which was threatened by irreparable pending or imminent irreparable
harm. This the applicant had not done.
41.
It seemed to me, in any event, that the
applicant did not have good prospects of success on review. I
say this mindful of
the fact that the final determination of the
merits of the review application lies with the review court, and
therefore discuss
the main grounds of review only briefly.
The alleged undue
influence issue
42.
The applicant made allegations regarding
irregularities in the tender process without laying a factual
foundation therefor. The
applicant’s main contention was that
it believed the tender process to have been unduly influenced to
favour AMSOL, the incumbent
service provider.
43.
Apart from the fact that AMSOL was not
cited as a respondent to the application and thus did not respond to
these accusations, the
applicant’s case in this respect was
speculative. It alleges that the conduct of the Department
"
reflects conduct made for an
ulterior purpose and in bad faith
as
a
direct·result of undue influence."
There
is no factual basis for this contention in the founding affidavit
and, despite an invitation to provide the require=site detail
by the
respondents in their answering papers, none in the replying
affidavit.
44.
The respondents pointed out that the
procurement process relating to the bid
specifications in the terms of reference
of the tender had been
independently vetted and subjected to quality assurance review by an
external firm specializing in internal
audit, forensics, and related
advisory work. This firm’s advice had been sought and
implemented prior to the advertisement
of the tender. The
internal verification and vetting process were also explained.
None of the respondents' statements
regarding the independent
external vetting of this procurement process and its internal
approval processes relating to the tender
specifications were
meaningfully disputed in reply.
45.
There
was no basis on which undue influence, a form of corruption, could be
inferred from the allegations in the founding affidavit.
The drawing
of inferences must be based on admitted or proven facts, not matters
of conjecture or speculation.
[19]
The attendance
register issue
46.
This was a storm in a teacup. The
applicant complained that an attendance register completed at the
compulsory briefing session
on 23 April 2025 had been altered
afterwards. The respondents provided a full explanation in this
respect, which was not
disputed in reply.
The respondents’
alleged failure (adequately) to respond to the applicant’s
questions
47.
The applicant complained that the
respondents failed to respond to its questions, which it regarded as
being crucial for the completion
of its tender. The response
ultimately given was too late.
48.
It was common cause that the Department did
respond to the applicant’s questions on 14 .May 2025, nine days
before the closing
date for the tender. The tender documents and
detailed terms of reference had already been published a month prior,
on 11 April
2025. The applicant did not explain, whether in its
founding or its replying affidavit, precisely why it had not been
able to prepare
any
aspect of a bid in response to the tender before 14 May 2025, or in
the nine days thereafter.
49.
Notably, two other bidders (as well as
AMSOL) received the same tender documentation, and were able to
submit bids by the tender
closing date of 23 May 2025.
The
applicant placed much emphasis on the vast price differentials
between those bidders, arguing that that showed that their bids
were
inaccurate – but that was an aspect to be determined by the
Department in the evaluation of the bids in due course.
It
appeared that the applicant required commercial data in the form of
the historical-spend data and the planned maintenance system
of the
incumbent service provider prior to submitting a bid.
50.
If the tender and its terms of reference
were as vague and unclear as the applicant held them out to be, the
other two bidders would
no doubt have directed similar questions to
the Department. There was, however, no evidence of confusion on their
part. The applicant’s
complaint that by the time it had been
provided with answers to its questions it was too late to submit a
bit thus had a hollow
ring to it.
51.
It had to be kept in mind that an
invitation for the services required under the tender had initially
been issued in October 2023,
but it was cancelled in February 2024.
It was re-issued in April 2024, with bidders being given 21 days to
submit their bids. This
process was cancelled in October-2024 and the
tender was issued again in April 2025. In the 2025 process, potential
bidders were
given 42 days to submit a bid. There was no dispute that
this period was double the 21 days minimum period that the National
Treasury
prescribed for bids to remain open.
52.
It was also undisputed that various of the
questions which the applicant claimed were insufficiently answered by
the Department
on 14 May 2025, had been asked by the applicant’s
representative (and answered) at the previous round in 2024 when the
tender
was not awarded. I accept the applicant’s
submission to the effect that those questions had been asked by a
different
representative as part of a different joint venture, and I
do not know whether the two tenders were in all respects similar.
Neverhtless, given the nature of the services required, there must
have been some overlap. Why the applicant was unable to
submit
a bid on the most recent remained essentially unanswered, especially
as bidders had been invited to indicate the bases on
which they
determined their pricing - this was not a tender that would
automatically be awarded to the lowest bidder. The
applicant
did not dispute that it knew of the submitted bids and prices
tendered for the tender when had been advertised during
2023 and
2024.
53.
The functionality criteria stipulated in
the terms of reference, which were common cause, made it clear that
this tender was one
for the appointment of an experienced and
qualified service provider who would be able to provide a complete
suite of services
on all operational and logistical aspects relating
to the crewing, manning, technical administration, and enabling
infrastructure
necessary for the vessels safely and effectively to
perform their functions. The functionality criteria included the
bidders' experience
and track record in the field of ship management,
technical management, crew management, and commercial management
services, including
the qualifications and experience of the project
team leader assigned to the project, existing enabling support
structure of the
bidder, and the bidder's experience and track record
with successfully completed projects.
54.
The experience and qualifications of
potential service providers should thus logically be taken into
account when assessing the
reasonableness of a complaint by·a
bidder that a tender document was vague and failed reasonably to
provide information
necessary for the submission of a bid. The
applicant regarded itself, quite correctly so, qualified and
experienced in the
subject matter of the tender. It was common
cause (although not disclosed in the founding affidavit) that the
applicant owns and
operates the SA Agulhas I, the vessel previously
commissioned by the South· African government to supply the
SANAE research
bases located in Antarctica and the Sub-Antarctic
Marion and Gough islands. The applicant had previously purchased and
refitted
the SA Agulhas I for the purpose of performing similar
functions to the SA Agulhas II, and it is currently available for
charter
as a fully operational research vessel for polar and offshore
supply and support. The applicant strenuously emphasized the
differences between the vessels and the fact that the information
application to the one would not apply to the other. Its
argument in this respect dd not, however, detract from the fact of
its experience and knowledge in the field.
55.
The Department, in responding to the
applicant’s queries regarding the tender, accordingly pointed
out that bidders with adequate
experience in managing vessels should
use their experience to articulate the assumptions underlying their
bids. For example,
in relation to questions regarding
historical true spend and crew requirements, the Department stated
that the applicant should
use its experience to estimate and
extrapolate in its bid. Assumptions made during the bidding and in
their proposals should be
clearly articulated. These were the types
of answers that the applicant took umbrage at. There is,
however, nothing unlawful
or irrational about a tender process which
evaluates a bidder's proposal for services on the basis of clearly
articulated assumptions
provided by that bidder.
56.
It must be kept in mind that the applicant
had exercised its right to seek clarification and submit questions in
respect of any
of the requirements of the tender process at the
compulsory briefing session on 23 April 2025, and it had the chance
to clarify
the meaning of any clause in the tender about which it was
. unclear prior to completing and submitting a bid, as long as this
was done, in terms of the tender document, prior to the 10 days
preceding the bid. In responding to the applicant's questions,
the Department was obliged to treat all potential bidders equally and
fairly. Had the Department made special enquiries with one
bidder,
for example AMSOL, regarding factual data relating to the pricing of
AMSOL's operations or its bid, this could well have
deprived the
tender process of the essential fairness element of competitiveness.
An extension of the period for the submission
of bids at the behest
of one potential tenderer could have resulted in accusations of undue
influence or bias from other bidders.
57.
Procedural
fairness in tender processes depends on the circumstances of each
case. The essential attributes of fairness, transparency,
competitiveness and cost effectiveness of the tender process have to
be maintained.
[20]
The
applicant could accordingly not rely on a right to be given an
opportunity to be provided with as much information as
it
subjectively considered sufficient to submit a bid for the tender.
Whilst vagueness can render a procurement process procedurally
unfair, the test for vagueness is reasonable certainty, not absolute
certainty or perfect lucidity.
[21]
58.
The review court will no doubt analyse the
Department’s responses to all of the questions posed by the
applicant to determine
whether the tender process was unlawful
because of vagueness or insufficient information. I do not
intend doing so.
Suffice it to say on consideration of the
evidence on record that there was, on the information provided by the
Department, no
clear explanation as to why the applicant could not
have submitted a bid. The applicant was not excluded from the
bid process
– it chose not to submit a bid. I was
constrained to agree with the respondents’ submission that,
shorn of verbiage,
the applicant’s actual complaint was not
that the information provided by the Department was insufficient, but
that the applicant
disagreed with the technical evaluation criteria
adopted by the respondents and how those criteria were to be
assessed.
59.
The
determination of bid evaluation criteria and their weighting are,
however, matters of discretionary executive policy determination,
and
court will not readily interfere. Where a functionary is entrusted
with a discretion (in this case, the determination of bid
evaluation
criteria) the
manner
of their assessment and the relative weight to be attached to
particular factors, is a matter for the functionary to decide.
As long it acts in good faith, reasonably and rationally, a court
cannot interfere.
[22]
The incumbent’s
“unfair advantage”
60.
The applicant’s grounds of review
relied heavily on its argument that AMSOL's current operation of the
two vessels gave it
an unfair advantage over competitors when it came
to bidding. It must however be clear to anyone involved in public
procurement
that there is always an incumbent who might wish to bid
afresh for the relevant contract. The applicant’s
position
was not special in that respect.
61.
The applicant contended that the
"Incumbent
Supplier has access to all the information as they have been
managing these vessels for more than 10
years. That fact in itself
gives them an unfair advantage and it would be impossible to compete
with that level of institutional
knowledge. This creates a situation
whereby no new entrant will ever have a fair opportunity to enter the
market. This by default
makes the tender process fundamentally
flawed as it creates a barrier to the possibility of any new entrants
into this sphere.
This results in the situation whereby one service
provider has access to all relevant information and the other bidders
are forced
to guesstimate for their costing which essentially
guarantees their estimates to be more factual as they are based on
actual data
rather than assumptions.
"
62.
This argument did not, in my view, give
rise to a basis for review, but was a complaint about how the world
works. Inevitably, whenever
a contract comes to an end and a
government department issues a tender, there would be an incumbent
who had previously rendered
the service which forms the subject
matter of the tender. This does not entitle any new bidder
effectively to a handbook on how
the incumbent elected to fulfil the
relevant service. The mere fact that an incumbent service provider
has the benefit of previously
having performed the services does not
render a subsequent procurement process in which that service
provider participates irrational,
unfair, or unlawful.
63.
The purpose of the trite requirement that a
tender document must be reasonably clear is to ensure that a tenderer
knows what information
is expected of it for the merits of its bid
fairly to be assessed. The purpose is not to ensure that a tenderer
is given all information
it requires from the procuring entity to
enable such bidder to submit its most advantageous tender. The
applicant did, in any event,
not submit a bid at all.
64.
The
respondents referred to the position adopted in other jurisdictions,
in particularly in European Union ("EU") law.
The approach
of the European Court of Justice ("ECJ") on the question of
incumbent advantage in public procurement is
instructive. It
has held that the principle of equal treatment in procurement
processes would be infringed by a blanket exclusion
of incumbent
service providers from future bidding for the same service. In
Fabricom
SA v Belgian State (Cases- C21/03 and C-34/03),
[23]
for example, the ECJ endorsed the view that the principle of equal
treatment is infringed by a rule that prohibited an economic
operator
from bidding for a public contract where such an entity had been
involved in preparatory works leading to the tender in
question.
65.
In
Evropaiki
Dynamiki v Commission of the European Communities,
[24]
the
ECJ dealt with the issue of an alleged inherent
de
facto
advantage of an incumbent service provider bidding in a subsequent
procurement process . The ECJ held as follows:
".
..
The principle that tenderers should be
treated equally does not place any obligation upon the contracting
authority to neutralise
absolutely all the advantages enjoyed by a
tenderer where the existing contractor is a subcontractor of that
party. To accept that
it is necessary to neutralise in all respects
the advantages enjoyed by an existing contractor or
a
tenderer connected to that party by
virtue of a subcontract would, moreover, have consequences that are
contrary to the interests
of the service of the contracting
institution in that such neutralisation would entail additional cost
and effort for that institution.
Nevertheless, in order to comply
with the principle of equal treatment in this particular situation, a
balance must be struck between
the interests involved. Thus, in order
to protect as far as possible the principle of equal treatment as
between tenderers and
to avoid consequences that are contrary to the
interests of the service of the contracting institution, the
potential advantages
of the existing contractor or a tenderer
connected to that party by virtue of a subcontract must none the less
be neutralised,
but only to the extent that it is technically easy to
effect such neutralisation. where it is economically acceptable and
where
it does not infringe the rights of the existing contractor or
the said tenderer.
"
66.
This approach is, with respect, sensible.
An incumbent provider will inevitably have an advantage that other
tenderers will not.
This is because they will have knowledge of the
subject matter of the contract. Such an inherent advantage does
not render
the procurement process unfair.
67.
In the present case the tender document,
read together with the information provided by the respondents to
potential bidders at
the compulsory briefing session, created a level
playing field by setting out in advance the criteria on which their
proposals
would be judged. There is no evidence that the tender terms
of reference have been deliberately skewed in favour of a particular
bidder, or that the outcome of the tender process was a foregone
conclusion.
68.
The applicant was of the view that a
technical inspection of the vessel would have assisted in the
formulation of its bid in relation
to crew, maintenance, fuel rates,
and insurance. However, the factors that inform these issues
were in the bid documentation
and within the applicant’s
knowledge and experience, and not on the vessels. In the
circumstances, I do not regard the applicant
as having a reasonable
prospect of succeeding on this ground of review.
A reasonable
apprehension of harm?
69.
An applicant seeking an interim interdict
must show that, without the interdict being granted, it can
reasonably expect to be prejudiced
irreparably. The applicant’s
case was weak on this requirement.
70.
Its main contention in this respect was of
a conclusory nature, namely that "
unreasonable
delays in the granting of the interdict sought by the Applicant would
result in losses and damages being suffered and
would accordingly
occasion significant hardship and prejudice, not only for the
Applicant but for the people of South Africa, the
State and the
related governmental departments that are the subject of the
tenders."
71.
The applicant provided no factual basis for
the alleged
"losses and damages
being suffered"
or the feared
"significant hardship and
prejudice"
. its allegations were
in any event contradictory: on the one hand, the applicant claimed
that the continuation of the tender
process would result in it
suffering unspecified losses and damages; on the other hand, the
applicant did not claim that it would
be entitled to be awarded the
tender if it succeeded in its Part B relief. At the core of it
the applicant contended, on
its own version, for allegedly
irreparable harm on a hypothetical or speculative scenario, in which
it
"would'
suffer
unspecified
"losses and damages".
This is an obvious hurdle in the way of
the applicant satisfying this second requirement for the grant of
interim relief.
72.
This is of course not the end of the
enquiry. An applicant must also show that it has no other way
of addressing the harm
it fears. The applicant chose not to
submit a bid, and had no right to be awarded the tender. It could
hardly lay the blame
for the harm and for the remedies (or lack of
remedies) it had at its disposal at the respondents’ door.
73.
I was accordingly in agreement with the
submission made by the respondents’ counsel that the applicant
failed to show compliance
with this requirement for interdictory
relief, which in the present instance could only be granted
"in
the clearest of cases",
on such a
tenuous basis.
The balance of
convenience
74.
If I was wrong in the determination of the
first two requirements (in particular, the view that the applicant
failed to demonstrate
the existence of a
prima
facie
right (even a weak one) or a
reasonable prospect of success on review), then I considered that an
interim interdict should not
be granted because the balance of
convenience did not favour the applicant.
75.
This
requirement is to some extent linked with the
prima
facie
right
for the grant of an interim interdict, and highlights the discretion
a court has in the grant of interim relief:
[25]
"
In
every case of an application for an interdict pendente lite
the
court has a discretion whether or not to grant the application.
It exercises this discretion upon consideration of all the
circumstances and particularly upon a consideration of the
probabilities
of success of the applicant in the action. It considers
the nature of the injury which the respondent, on the one hand, will
suffer
if the application is granted and he should ultimately tum out
to be right,' and that which the applicant, on the other hand, might
sustain if the application is refused and he should ultimately tum
out to be right. For
though there
may be no balance of probability that the applicant will succeed in
the action, it may be proper to grant an interdict
where the balance
of convenience is strongly in favour of doing so, just as it may be
proper to refuse the application where the
probabilities favour the
applicant if the balance of convenience is against the grant of
interim relief
. The exercise of
the court's discretion usually resolves itself into a nice
consideration of the prospects of success and the balance
of
convenience - the stronger the prospects of success, the less the
need for such balance to favour the applicant; the weaker
the
prospects of success, the greater the need for the balance of
convenience to favour him.
"
76.
The applicant alleged in its founding
affidavit that the balance of convenience favoured it because "...
the
interdicting of the tender process does not cause any undue prejudice
to the State."
It half-concedes,
nevertheless, that in the event that there may be any prejudice to
the State, "...
such prejudice is
justifiable in the circumstances."
The
exact nature of such justification is unclear.
77.
It appeared from the answering papers that
the grant of an interim order would stop the current procurement
process, and would prejudice
the respondents’ responsibility to
ensure that a qualified service provider was appointed to manage its
vessels before they
depart on the missions scheduled for September
and December 2025. I agreed with the respondent that the prejudice
was obvious.
There was an urgent need for the services to be
provided. The public interest would not be served by a suspension of
the tender
process for a third time, which could result in delays in
the execution of the planned 2025 projects. Apart from the time
wasted,
the entire process would be vitiated and would for different
reasons be rendered unfair given that the pricing of bidders (apart
from the applicant, who did not bid) would have been disclosed.
78.
The applicant did not dispute that the
respondents’ current contract with the incumbent service
provider was in force until
September 2025, or that a new vessel
management company had to be appointed and in place by then as the
next voyage of the SA Agulhas
II was scheduled shortly thereafter. It
was common cause that the tender process itself had to be finalised
by the end of June
or July 2025 to allow for a sustainable handover
period, ideally a period of three months, to any new service provider
before the
termination of the current contract. There was,
notably, no dispute that if an interdict was granted, the ensuing
review
proceedings would probably not be finalised by July 2025.
79.
The only real response by the applicant to
the respondents' allegations regarding the prejudice that would
follow if the interim
interdict were to be granted, was that the
respondents could extend the current service provider's contract.
This attitude, for
what it is worth, indicated that the applicant had
been aware of AMSOL's legal interest in the relief sought, and still
failed
to join it to this application. It was in any event not
an answer to the respondents’ case on prejudice.
80.
There could be no guarantee of such an
extension, which would have had to be agreed. An extension
would also incur additional
expenditure by the respondents beyond the
existing contractual terms of the agreement with AMSOL, with a
knock-on effect on the
departmental budget. An extension would,
moreover, not address the prejudice to the respondents arising from
the time wasted
if the entire process thus far was effectively
vitiated because the pricing of the bidders had already been
disclosed, and the
applicant ultimately failed in its review
application. This would prejudice not only of the respondents
but also the current
bidders.
81.
I was therefore not convinced that the
applicant had demonstrated the greater potential harm should its
interdict application be
rejected. The balance of convenience did not
favour it when compared to the respondents’ position.
No other
satisfactory remedy
82.
The applicant accordingly failed to satisfy
the first three requirements for the grant of an interim interdict.
It was, in
the circumstances, not strictly necessary to consider
whether it had any other satisfactory remedy at its disposal.
83.
The
applicant argued that, were the tender allowed to proceed, it would
enjoy no claim for damages other than for out-of-pocket
expenses, and
thus did not have an alternative remedy. This contention was not
entirely correct, because the applicant would possibly
have a claim
for compensation in relation to a loss of profits under the
Promotion
of Administrative Justice Act 3 of 2000
should it establish its
standing, and if it were to be successful in the review and in
establishing some form of undue influence
or corruption in the tender
process as it implies in its founding affidavit:
[26]
“
[54]
…
Loss is sustained relative to the hypothetical
situation in which the defendant does not commit the delict.
Had
the respondent lawfully evaluated and awarded the tender, the
opportunity that the applicant claims it lost – the tender
–
would not have become a nullity. And, assuming that causation is
established, it would have been able to realise that opportunity
through the award of the tender and would thus have accrued profits.
Relative to this hypothetical situation, therefore, the applicant
did
sustain loss. Put differently, the applicant is economically worse
off than it would have been had the tender been lawfully
adjudicated.
The nullity of a tender process does not foreclose the possibility of
a compensatory claim for loss of profit
.
[55] In short,
therefore, a tenderer in the position of the applicant is, in
appropriate circumstances, entitled to recover its
lost profits in
terms of PAJA. Generally, an order setting aside a decision and
remitting it to the decision-maker for a fresh
determination or, in
exceptional circumstances, an order of substitution will suffice to
vindicate the interests of both the public
and the aggrieved
tenderer. But that will not always be the case. The relief available
in terms of
section 8
is exemplary rather than exhaustive. This is
apparent from the language of
section 8(1)
which provides that a
court may grant “any order that is just and
equitable, including” the relief detailed
in that section.
Undue weight should therefore not be accorded to the fact that
section 8(1)(c)(i)
, which provides for remittal, is framed
disjunctively from
section 8(1)(c)(ii)(bb)
, which provides for
compensatory relief. Likewise, the fact that
section 8(1)(c)(ii)(aa)
,
which provides for substitution, is framed disjunctively from
section
8(1)(c)(ii)(bb)
, does not mean that an order of substitution is, in
all cases, a true alternative to a compensatory order.”
84.
In any event, in the light of my findings
in relation to the other requirements for the grant of an interim
interdict, it is not
necessary to debate this aspect.
Costs
85.
Costs
are in the discretion of the Court. This was constitutional
litigation, and I was of the view that, for the purposes
of Part A
and despite the applicant litigating with a commercial motive, it
would be fair that each party pay its own costs.
[27]
Conclusion
86.
In
the circumstances, I did not consider that the applicant had
satisfied the requirements for the grant of the interim interdictory
relief sought in circumstances where the “clearest of
cases”
[28]
was required,
and I granted the order set out at the beginning of these reasons.
P. S. VAN ZYL
Acting Judge of the
High Court
Appearances:
For
the applicant:
Mr M. Nowitz and Mr M. Williams, instructed by
Dirk Kotze Attorneys
For
the respondents:
Ms N. Bawa SC and Mr S. Magardie, instructed by
the State Attorney
[1]
Under
Bid Number DFFE-8004.
[2]
See
Commissioner,
South African Revenue Services v Hawker Air Services (Pty) Ltd
[2006] ZASCA 51
;
2006
(4) SA 292
(SCA)
para 9.
[3]
East
Rock Trading 7 (Pty) Ltd and another v Eagle Valley Granite (Pty)
Ltd and others
[2011]
ZAGPJHC 196 (23 September 2011) para 6.
[4]
Gordon
v Department of Health: Kwazulu-Natal
[2008] ZASCA 99
;
2008 (6) SA 522
(SCA) para 9.
[5]
Matjhabeng
Local Municipality v Eskom Holdings Limited and others; Mkhonto and
others v Compensation Solutions (Pty) Limited
2018 (1) SA 1
(CC) para 92.
[6]
See
Pretoria
FM NPC v Chairman of the Independent Communications Authority of
South Africa
[2023]
ZAGPPHC 18 (16 January 2023) para 23:
"…
the other applicants in the ITP-R process do have a vested interest
in the issues raised and the outcome
of this application and
should have been joined. The fact that the applicant did not know
the identity of the other applicants
is no excuse and this could
have easily been obtained from ICASA.”
The court nevertheless
proceeded to consider the interim relief sought, in the event that
its finding on non-joinder was wrong
(at para 24).
[7]
With
reference to
Areva
NP Incorporated in France v Eskom Holdings Soc Limited and others
2017 (6) SA 621
(CC) para 36.
[8]
1996
(1) SA 984
(CC) para 234.
[9]
[2022]
ZAWCHC 131
(23 June 2022) para 92.
[10]
Airports
Company South Africa SOC Ltd v Imperial Group Ltd and others
2020 (4) SA 17 (SCA).
[11]
See
Prest
Interlocutory
Interdicts
(1993) at 54-86.
[12]
Gool
v Minister of Justice
1955 (2) SA 682
(C) at 688D-E.
[13]
National
Treasury and others v Opposition to Urban Tolling Alliance and
others
2012 (6) SA 223
(CC) paras 41-45.
[14]
National
Treasury supra
para 66.
[15]
Economic
Freedom Fighters v Gordhan
2020 (6) SA 325
(CC) para 42.
[16]
The
Constitution of the Republic of South Africa, 1996.
[17]
National
Treasury supr
a
para 50.
[18]
See,
for example,
Economic
Freedom Fighters v Gordhan supra
para 54: “…
The
interim interdict test, which has been developed through case law –
culminating in the OUTA test – is
sound and has
sufficient safeguards to ensure that the Public Protector is not
denuded of her powers when an interim order is
granted against her.
In light of OUTA, it is evident that the interim interdict test
must be informed by the normative
scheme and democratic principles
buttressed by the Constitution. This test is broad and supple
enough to take into account
the constitutional role and functions of
the Public Protector and to ensure that she is not inadvertently
stripped of her powers
.”
[19]
A
M and another v MEC for Health, Western Cape
2021 (3) SA 337
(SCA) para 21.
[20]
Metro
Projects CC v Klerksdorp Local Municipality
2004 (1) SA 16
(SCA) para 21.
[21]
Allpay
Consolidated Investment Holdings (Pty) Ltd and others v Chief
Executive Officer of the South African Social Security Agency
and
others
2014 (1) SA 604
(CC) para 87.
[22]
MEC
for Environmental Affairs and Development Planning v Clairisons CC
2013
(6) SA 235
(SCA) para 22.
[23]
Judgment
of the ECJ (Second Chamber) of 3 March 2025.
[24]
Judgment
of the Court of First Instance (Third Chamber) of 12 March 2008
paras 72-74. See also
Proof
IT SIA v European Institute for Gender Equality (Case T-10I17),
Judgment
of the ECJ (Third Chamber) dated 16 October 2018 para 187
:
"… the alleged advantage of the successful tenderer …
is not the consequence of any conduct on the part of
the contracting
authority. Unless such a contractor were automatically excluded from
any new call for tenders or, indeed, were
forbidden from having part
of the contract subcontracted to it, it is in fact inevitable that
an advantage will be conferred
upon an existing contractor or the
tenderer connected to that party by virtue of a subcontract. since
that is inherent in any
situation in which a contracting authority
decides to initiate a tendering procedure for the award of a
contract which has been
performed, up to that point. by a single
contractor.”
[25]
Prest
The
Law and Practice of Interdicts
(1996( at 79. My emphasis.
[26]
See
the detailed discussion in
Esorfranki
Pipelines (Pty) Ltd v Mopani District Municipality
2023
(2) SA 31
(CC)
paras
28-56. My emphasis.
[27]
Nu
Africa Duty Free Shops (Pty) Ltd v Minister of Finance and others
2024 (1) SA 567
(CC) paras 149, and 279-281.
[28]
See
Economic
Freedom Fighters v Gordhan supra
paras 40 and 48.
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