Case Law[2024] ZAWCHC 120South Africa
Princeton Protection Services (Pty) Ltd v Western Cape Provincial Government and Others (5464/24; 5477/24; 5586/24; 5616/24 and 5618/24) [2024] ZAWCHC 120; [2024] 3 All SA 301 (WCC) (2 May 2024)
Judgment
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# South Africa: Western Cape High Court, Cape Town
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## Princeton Protection Services (Pty) Ltd v Western Cape Provincial Government and Others (5464/24; 5477/24; 5586/24; 5616/24 and 5618/24) [2024] ZAWCHC 120; [2024] 3 All SA 301 (WCC) (2 May 2024)
Princeton Protection Services (Pty) Ltd v Western Cape Provincial Government and Others (5464/24; 5477/24; 5586/24; 5616/24 and 5618/24) [2024] ZAWCHC 120; [2024] 3 All SA 301 (WCC) (2 May 2024)
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sino date 2 May 2024
IN
THE HIGH COURT OF SOUTH AFRICA
(WESTERN
CAPE DIVISION, CAPE TOWN)
Case Nos: 5464/24;
5477/24; 5586/24; 5616/24 and 5618/24
Case No: 5464/24
In
the matter between:
PRINCETON
PROTECTION SERVICES (PTY) LTD
Applicant
and
WESTERN CAPE
PROVINCIAL GOVERNMENT
First Respondent
THE MEC FOR THE
DEPARTMENT OF HEALTH
AND WELLNESS WESTERN
CAPE GOVERNMENT
Second Respondent
THE DIRECTORATE:
SUPPLY CHAIN SOURCING
DEPARTMENT OF HEALTH
AND WELLNESS
WESTERN CAPE
GOVERNMENT
Third
Respondent
THE HEAD OF THE
DEPARTMENT OF HEALTH AND
WELLNESS WESTERN CAPE
GOVERNMENT
Fourth
Respondent
THE MEC FOR PROVINCIAL
TREASURY WESTERN
CAPE GOVERNMENT
Fifth
Respondent
PHANGELA PRIVATE
SECURITY SERVICES (PTY) LTD
Sixth
Respondent
GOLDEN SECURITY
SERVICES CC
Seventh Respondent
AMAZIM-ZIM SECURITY
AND PRIVATE
INVESTIGATORS (PTY)
LTD
Eighth
Respondent
AND
Case No:
5477/24
In the matter between
GRINNELL
SECURITY SERVICES (PTY)
LTD
Applicant
and
WESTERN CAPE
PROVINCIAL GOVERNMENT
AND SEVEN OTHER
RESPONDENTS
Respondents
AND
Case
No:
5586/24
In the matter between
XOLISWA M HOLDINGS
(PTY) LTD
t/a
EAGLE AGE PROTECTION SOLUTIONS
Applicant
and
WESTERN CAPE
PROVINCIAL GOVERNMENT
AND SEVEN OTHER
RESPONDENTS
Respondents
AND
Case
No:
5616/24
In the matter between
GREYSTONE
TRADING 389CC
Applicant
and
WESTERN CAPE
PROVINCIAL GOVERNMENT
AND SEVEN OTHER
RESPONDENTS
Respondents
AND
Case
No: 5618/24
In the matter between
SECHABA PROTECTION
SERVICES WESTERN CAPE
(PTY)
LTD
First
Applicant
SILVER SOLUTIONS 2616
CC t/a
STAR
SECURITY SERVICES
CC
Second
Applicant
STAR PROJECT
MANAGEMENT (PTY) LTD t/a
AMA
SECURITY SERVICES
Third
Applicant
ALL
4 SECURITY SERVICES
CC
Fourth
Applicant
HELIOS
SECURITY AND RISK MANAGEMENT CC
Fifth Applicant
and
WESTERN CAPE
PROVINCIAL GOVERNMENT
AND SEVEN OTHER
RESPONDENTS
Respondents
Coram:
NUKU J
Heard on
:
16
and 18 April 2024
Delivered on:
2 May 2024
JUDGMENT
NUKU,
J
INTRODUCTION
[1]
There are five applications which were brought on an urgent
basis, all seeking interdictory relief. The interdictory relief
sought
is the suspension of an
implementation of a tender awarded by the Western Cape Department of
Health and Wellness (Department) to
Phangela Private Security
Services Proprietary Limited (Phangela), Golden Security Services
Close Corporation (Golden) and Amazim-zim
Security and Private
Investigators Proprietary Limited (Amazim-zim), pending final
determination of proceedings to review the Department’s
decision to award the aforesaid tender.
[2]
The applications served before Blumberg AJ on 27 March 2024, and he
postponed them to 16 April
2024, that being the first day that I
heard them. The order postponing the applications granted the parties
leave to approach the
Acting Judge President for the allocation of a
judge to hear the applications as it had become clear that arguments
would exceed
half a day. The order also incorporated a timetable for
the filing of answering affidavits by the respondents on or before
Friday,
5 April 2024, the filing of the replying affidavits by
applicants on or before Wednesday, 10 April 2024, and the exchange of
the
parties’ heads of argument by Friday, 12 April 2024. It was
also ordered that all costs would stand over for later determination.
[3]
Although the applications were heard together, they were not
consolidated and that necessitates consideration of each application
individually although there are some arguments that overlap. I
consider it convenient to deal with the applications in the sequence
that they were issued.
[4]
The first application was launched by Princeton Protection Services
Proprietary Limited (Princeton)
on 18 March 2024 under case number
5464/2024 (Princeton application). The relevant part of the
interdictory relief sought by Princeton
reads:
‘
2.
That, pending the final determination of the review application set
out on Part B below
(“the review application”), the
Respondents are interdicted and or directed as follows:
2.1
Giving effect to the purported notice of termination of services,
dated 26 February 2024,
which is meant to take effect, as of 1 April
2024; and/or
2.2
Giving effect to the purported appointment of any other service
provider for private security
at Groote Schuur Hospital.
2.3
That the Applicant be permitted to continue rendering the services it
currently renders
at Groote Schuur Hospital, on the same terms and
conditions as it is currently doing….’
[5]
The second application was
launched by Grinnell Security Services Proprietary Limited (Grinnell)
also on 18 March 2024 under case
number 5477/2024 (Grinnell
application). Th
e
relevant part of the interdictory relief
sought by Grinnell reads:
‘
2.
That, pending the final determination of the review application set
out in Part B below
(“the review application”), the first
and second respondents (collectively referred to as “
the
Department
”):
2.1
be interdicted from giving effect to the decision of the Department
to award tender WCGHSC
0362/1/2023 (“the tender”) to the
sixth to eighth respondents;
2.2
be interdicted from implementing the awarding of the tender to the
sixth to eighth respondents;
2.3
be interdicted from concluding and/ or implementing any contract
concluded with the sixth
to eighth respondents pursuant to the award
of the tender.
2.4
directing that the Department take all actions necessary to allow the
applicant to continue
to provide security services at the sites which
it is currently servicing (“
the existing contract
”)
on the same terms and conditions as those which are currently in
place under the existing contract ….’
[6]
The third application was launched
by Xoliswa M Holdings Proprietary Limited trading as Eagle Age
Protection Solutions (Eagle Age)
on 19 March 2024 under case number
5586/2024 (Eagle Age application). The relevant part of the
interdictory relief sought by Eagle
Age reads:
‘
2.
That, pending the final determination of the review application set
out in Part B below
(“the review application”), the first
and second respondents (collectively referred to as “
the
Department
”):
2.1
be interdicted from giving effect to the decision of the Department
to award tender WCGHSC
0362/1/2023 (“the tender”) to the
sixth to eighth respondents;
2.2
be interdicted from implementing the awarding of the tender to the
sixth to eighth respondents;
2.3
be interdicted from concluding and/ or implementing any contract
concluded with the sixth
to eighth respondents pursuant to the award
of the tender.
2.4
directing that the Department take all actions necessary to allow the
applicant to continue
to provide security services at the sites which
it is currently servicing (“
the existing contract
”)
on the same terms and conditions as those which are currently in
place under the existing contract ….’
[7]
The fourth application was launched by Greystone Trading 389
Close Corporation (Greystone) on 20 March 2024 under case number
5616/2024
(Greystone application). The relevant part of the
interdictory relief sought by Greystone reads:
‘
2.
That, pending the final determination of the review application set
out in Part B below
(“the review application”), the first
and second respondents (collectively referred to as “
the
Department
”):
2.1
be interdicted from giving any further effect to the decision of the
Department to award
tender WCGHSC 0362/1/2023 (“the tender”)
to the sixth to eighth respondents;
2.2
be interdicted from implementing the awarding of the tender to the
sixth to eighth respondents;
2.3
be interdicted from concluding and/ or implementing any contract
concluded with the sixth
to eighth respondents pursuant to the award
of the tender.
2.4
directing that the Department take all actions necessary to allow the
applicant to continue
to provide security services at the sites which
it is currently servicing (“
the existing contract
”)
on the same terms and conditions as those which are currently in
place under the existing contract …. ’
[8]
The fifth application was launched
by Sechaba Protection Services Western Cape Proprietary Limited
(Sechaba), Silver Solutions 2616
Close Corporation trading as Star
Security Services CC (Star), Star Project Management Proprietary
Limited trading as Ama Security
Services (AMA)
,
All 4 Security Services Close Corporation (All 4), and Helios
Security and Risk Management Close Corporation (Helios) on 20 March
2024 under case number 5618/2024 (Sechaba application). The relevant
part of the interdictory relief sought by the applicants in
the
Sechaba application reads:
‘
2.
That, pending the final determination of the review application set
out in Part B below
(“the review application”), the
respondents are interdicted and or directed as follows:
2.1
giving effect to the purported notice of termination of services
provided to the applicants,
dated 29 February 2024, which is meant to
take effect, as of 1 April 2024.
2.2
giving any, or any further, effect to the decision of the first and/
or second respondents
(“the Department”) to award tender
WCGHSC 0362/1/2023 (“the tender”) to the sixth to eighth
respondents;
2.3
implementing the awarding of the tender to the sixth to eighth
respondents;
2.4
be interdicted from concluding and/ or implementing any contract
concluded with the sixth
to eighth respondents pursuant to the award
of the tender.
2.4
directing that the Department take all actions necessary to allow the
applicant to continue
to provide security services at the sites which
it is currently servicing (“
the existing contract
”)
on the same terms and conditions as those which are currently in
place under the existing contract ….
3.
In the alternative
, that pending the final determination of
the review application set out in Part B below (“the review
application”),
the respondents are interdicted and/ or directed
as follows:
3.1
giving effect to the purported notice of termination of services
provided to the applicants,
dated 29 February 2024, which is meant to
take effect, as of 1 April 2024.
3.2
giving effect to the purported appointment of any other service
provider for sites currently
serviced by first, second, fourth and
fifth applicants….
4.
In the further alternative
, that the respondents are
interdicted and restrained from allocating any sites which are
covered by, and in contravention of, the
Order of Acting Justice
Sievers dated 27 September 2019.’
[9]
What is clear from the above is that the interdict sought by the
applicants is directed at three things. First, it is to prohibit
the
Department from terminating the contracts of those applicants with
existing contracts with the Department. Second, it is to
prohibit the
implementation of the tender awarded to Phangela, Golden and
Amazim-zim. Third and lastly, it is to extend the contracts,
on the
same terms and conditions, of those applicants who had existing
contracts with the Department before 1 April 2024. This
is what some
of the applicants referred to as the status quo that they want
maintained until the final determination of review
proceedings.
[10]
The orders sought by Grinnell, Eagle Age and Greystone in the
review are couched in identical terms. In the relevant part they
read:
7.
Reviewing and setting aside in terms of the Promotion of
Administrative Justice
Act 3 of 2000 (“PAJA”) the first
respondent’s, alternatively the second respondent’s,
further alternatively
the fourth respondent’s (“the
respondents”) decision to mark the applicants’ tenders
WCGHSC 0362/1/2023(“the
tender”) non-responsive and to
exclude them from further consideration.
8.
Declaring the applicants’ bids were responsive to the
requirements of the
tender.
9.
Referring the matter back to the respondents for the applicants’
tenders
to be re-adjudicated by the third and fourth respondents on
the basis that they are deemed responsive.
[11]
The relief sought by Princeton and the applicants in the Sechaba
application in the review are also couched in similar terms. In
the
relevant part they read:
1.
Reviewing and setting aside in terms of the
Promotion of
Administrative Justice Act 3 of
2000 (“PAJA”) the
decision to declare the Applicants’ tender submissions for
tender number WCGHSC 0362/1/2023,
as non-responsive.
2.
Substituting that decision(s), one that the Applicants are declared
responsive
and must be included in the panel of service providers
constituted pursuant to tender number WCGHSC 0362/1/2023.
3.
In the alternative to paragraph 2 above, remitting the Applicants’
bid
documentation to the Respondent for reconsideration for the
purposes of inclusion in the panel of service providers pursuant to
tender number WCGHSC 0362/1/2023.
[12]
To summarise, Grinnell, Eagle Age and Greystone seek the setting
aside of the tender award as well as the
remittal of the tender for
reconsideration by the Department on the basis that their bids were
responsive. Princeton and the applicants
in the Sechaba application,
on the other hand, seek the setting aside of the tender award as well
as the substitution of the decision
of the Department with a decision
that declares that their tenders were declared responsive and must be
included in the panel of
service providers constituted pursuant to
tender number WCGHSC 0362/1/2023. In the alternative, they also seek
the remittal of
the tenders for reconsideration by the Department on
the basis that their bids are responsive.
FACTUAL BACKGROUND
[13]
Nine of the ten applicants provide private security services
(Services) at the healthcare facilities of the Department. The
Services
are provided in terms of contracts between individual
applicants and the Department. All these contracts were for fixed
terms that
were to terminate on 31 March 2024. For convenience I
refer to these contracts as ‘existing contracts.’
[14]
In anticipation of the termination of the existing contracts by
effluxion of time, the Department commenced
a procurement process
with the aim of concluding new contracts for the provision of the
Services effectively from 1 April 2024.
The invitation to tender was
published on 12 May 2023 under tender number WCGHSC03621/1/2023
(Tender) and the closing date was
9 June 2023.
[15]
The healthcare facilities in respect of which the Department requires
these Services were grouped into
zones and the interested service
providers were required to submit bids in respect of each zone. The
zones were, in turn, divided
into two groups, that is metro zones and
rural zones.
[16]
The Department received 107 bids including those of the applicants.
The evaluation of the bids was done
in three phases. Phase 1 assessed
compliance with mandatory criteria. Phase 2 was an operational
assessment of bidder’s ability
to perform. Phase 3 was to
consider price and preference points.
[17]
All but eight bids made it past phase 1. Four were excluded for
failure to attend the compulsory briefing sessions, ninety-one were
excluded for failure to comply with the mandatory criteria regarding
the submission of documents and four were excluded for incomplete
pricing schedules. Except for Star Project Management (Pty) Ltd, all
the applicants were excluded during this phase although there
was
some argument that Grinnell made it past phase 1.
[18]
Operational assessmen
ts
were
conducted in respect of the eight remaining bids. All eight proceeded
to phase 3 where they were considered on
the
price and preference points. In the end the Department awarded the
tender to Phangela, Golden and Amazim-zim. All the bidders
were
advised of the outcome. The Department also communicated its
intention to have Phangela, Golden and Amazim-zim take over by
1
April 2024.
[19]
Dissatisfied with the Department’s decision to award the
tender, the applicants brought these applications
seeking, in Part A,
the interim interdictory relief and in Part B, a judicial review of
the Department’s decision.
[20]
All the applications are opposed by first to the fifth
respondents (the government respondents) as well as the eighth
respondent.
The seventh respondent’s opposition is limited to
the extent that the relief would impact on the zones that it has been
awarded.
The sixth respondent did not participate in the proceedings.
[21]
As indicated earlier the applications were not consolidated. That
notwithstanding
, and
by agreement
between the parties’ legal representatives, the government
respondents filed one answering affidavit dealing
with all five
applications. Considering that
,
I
consider it convenient to set out each of the applicants’ case.
Before doing that, I deal briefly with two issues, namely
urgency and
the late application for the filing of the eighth respondent’s
answering papers.
URGENCY
[22]
As stated earlier, the application started off in the fast lane.
One of the
initial
points taken by the
government departments relates to urgency. To that end, they had
filed an affidavit dated 26
th
March 2024 dealing only with
the issue of urgency. By the time the matter came before me, it was
not immediately clear whether
the government respondents persisted in
taking the urgency point. On the second day of the hearing, Mr De
Waal SC, who appeared
for the government respondents, advised the
court that the government respondents were not persisting with the
issue of urgency
as a self-standing ground of opposition. That then
disposed of the need for the parties to address the court on the
issue of urgency.
THE
EIGHTH RESPONDENT’S APPLICATION FOR CONDONATION FOR THE LATE
FILLING OF THE ANSWERING AFFIDAVIT AND HEADS OF ARGUMENT
[
23]
The eighth respondent was required to deliver its answering
papers, in terms of the court order taken by agreement between the
parties,
on 5 April 2024. This it did not do. It is not clear when
its answering affidavit was filed but it is dated 13 April 2024,
which
is a day after the applicants were required to file their
replying affidavits.
[24]
The explanation for the delay by the deponent to the affidavit
filed on behalf of the eighth respondent, starts off with the
respondent’s
failure to file the answering affidavit by 25
March 2024. This, however, is unnecessary as the parties had
subsequently agreed
on a new date for the filing of answering papers,
the 5
th
April 2024.
[25]
The sum-total of the eighth respondent’s explanation is
that the decision not to deliver the answering affidavit was a
strategic
decision taken to avoid costs and in the hope that the
applications would be successfully opposed by the government
respondents.
The deponent goes furthe
r stating
that he became unavailable at times which he does not spell out in
his affidavit. Finally, he states that it was on the urging
by the
attorneys acting for the government respondents that the eighth
respondent decided to deliver its answering affidavit.
[26]
Mr Nyathi, who appeared on behalf of the eighth respondent, frankly
acknowledged the shortcomings of the
explanation for the late
delivery of the eighth respondent’s answering papers. He,
however, implored the court to condone
the lateness on the basis that
it would be in the interest of justice to do so. In this regard, he
referred this court to the decisions
of the Constitutional Court in
Bertie
Van Zyl
[1]
and
Ferris
[2]
.
[27]
In Bertie Van Zyl
,
Mokgoro
J writing for the majority had the following to say
[3]
‘… lateness is not the only consideration. The test for
condonation is whether it is in the interest of justice to
grant
condonation’. (footnotes omitted) In Ferris, the Constitutional
Court referred to its decision in Bertie Van Zyl and
went further to
state that ‘As the interest of justice is a requirement for
condonation and granting leave to appeal, there
is an overlap between
the enquiries. For both enquiries, an applicant’s prospects of
success and the importance of the issue
to be determined are relevant
factors.
[4]
[28]
In determining whether it is in the interest of justice to
condone the lateness
,
a court is
required to consider several factors and there is not an exhaustive
list. In light thereof, I invited Mr Nyathi to indicate
what factors
should be considered in this matter to which he only referred to the
prospects of success of the eighth respondent’s
opposition of
the application.
[29]
In my view, the prospect of success alone in this matter do not
tilt the scales sufficiently for the lateness to be condoned. The
lateness was deliberate. The eighth respondent’s affidavit was
filed to deal, in essence
,
with one
issue the government respondents could not deal with, that is the
balance of convenience as between the applicants and
the eighth
respondent. This is an important aspect in respect of which, because
of the lateness of the filing of the answering
affidavit, the
applicants were deprived of an opportunity to deal with in their
replying papers. That this must result in great
prejudice to the
applicants is self-evident.
[30]
Also, the approach of the eighth respondent to the application for
condonation is as if condonation can
be had for the mere asking
,
something which the Constitutional Court has said cannot be.
My view is that taking into account the period of the delay, the
absence of a satisfactory explanation for the delay as well as
prejudice to the applicants, it would not be in the interests of
justice to condone the late filing of the eighth respondent’s
answering affidavit. The eighth respondent’s application for
condonation for the late filing of the answering affidavit cannot
succeed.
[31]
As for the eighth respondent’s heads of argument, there was not
even an application for condonation
and in the absence thereof
condonation cannot be granted. The lateness of the filing of the
eighth respondent’s answering
affidavit as well as the heads of
argument cannot be condoned in these circumstances.
[32]
The time taken in dealing with arguments in respect of the eighth
respondent’s application for condonation was miniscule such
that a cost order is not warranted. There shall therefore be no order
as to costs in respect of the eighth respondent’s application
for condonation.
PRIMA
FACIE
RIGHT ASSERTED ON BEHALF OF EACH APPLICANT
[33]
One of the government respondents’ grounds of opposing Part
A is that all the applicants had not alleged any rights that required
protection pending the review. Instead, they all had relied on the
right to review the outcome of the tender process, which right
requires no protection pending the determination of the review.
[34]
During argument, all the applicants’ counsel disavowed any
reliance by the applicants on the applicants’
right to review
the outcome of the tender process as the right that they sought to
have protected pending the final determination
of the review. It is
thus necessary to have regard to how each applicant pleaded the
right/s alleged to require protection pending
the final determination
of the review.
Princeton
[35]
Princeton currently provides Services at the Groote Schuur
Hospital and the interdict it seeks pertains only to Groote Schuur
Hospital.
Its bid was excluded on the basis that it had not submitted
a certificate from the National Bargaining Council for the Private
Security Sector (NBCPSS). It contends that the decision to exclude it
constitutes a reviewable irregularity because it had substantially
complied with that requirement as it had provided a letter from the
NBCPSS.
[36]
Princeton deals with the
prima facie
right in paragraphs 71 to
77 of the founding affidavit. These paragraphs read:
’
71.
As indicated here in above, the applicant is one
of the incumbent service providers in terms of the previous tender.
The applicant
has via this experience, gained vast and specific
experience regarding the respondents’ security needs.
72.
The applicant’s bid was substantially and substantively
compliant. Notwithstanding
this, the applicant has been unfairly and
unlawfully excluded from the process.
73.
The applicant, and by consequence its employees, have a
constitutional right to just administrative
action. As has been
explained above, this constitutional right has been violated. There
have been reviewable irregularities which
have led to the irregular
exclusion of the applicant from consideration. The grounds are
narrow, yet fundamentally flawed.
74.
The perverse effect of the unlawful exclusion of the applicant is
that respondent will now
pay more
for the service. This is so
because the exclusion of the applicant will reduce competition and
therefore increase the price for
the service. The effect of this is
that the respondent will be non-compliant with
section 217
of the
constitution.
75.
I have been advised that properly construed,
section 217
of the
constitution requires that the process must be competitive. The
inclusion, rather than the exclusion, of the applicant would
further
the competitive nature of the process. Furthermore, the inclusion of
the applicant would lead to cost-effectiveness (also
a requirement of
section 217
of the constitution), because prices would need to be
lowered by the inclusion of more compliant bidders, than excluding
them.
76.
Should interdictory relief not be granted, there will be potential
loss of employment of
198 officers in respect of the Groote Schuur
Hospital site. The applicant will need to retrench these officers.
This will affect
not only those officers, but their respective
families. In addition, the applicant’s decline in its financial
situation will
place its existence in peril - this in turn places my
personal livelihood at jeopardy.
77.
In light of the above, it is respectfully averred that the
applicant’s prima facie
right is not only its right to review
the adverse decision, but is a right which if not protected,
irreparable harm may ensue’
Grinnell
[37]
Grinnell currently
provides Services at the
Red Cross War Memorial Children's Hospital in terms of framework
agreement WCPT-TR01/2017/2018. The contract
concluded between
Grinnell and the Department pursuant thereto expired on 31 March
2024.
Its bid was excluded on the basis that it did not bid
for all the services required by the Department. It contends that the
decision
to exclude it constitutes a reviewable irregularity in that
(a) there was no requirement that bidders had to bid for all the
services
required by the Department, (b) the Department, in its
clarification letter, never conveyed the requirement to bid for all
the
services, (c) the tender was awarded to only three bidders when
the tender documents did not specify that the tender was a winner
takes all, and (d) the tender requirements were vague and ambiguous.
[38]
The
prima facie
right it relies on is dealt with in
paragraphs 104 to 111 which read:
‘
104.
I am advised that the first requirement for an
interim interdict is that an applicant needs to show a
prima
facie
right
,
even
if it may be subject to some doubt. This may be established by
showing prospects of success on review.
105.
The reason why Grinnell seeks a general interdict
in respect of the implementation of the tender, is because it would
be extremely
difficult, if not impossible, for three companies to
provide the full spectrum of services required by the Department at
all the
facilities throughout the province. Any failure on their part
to provide a full and comprehensive service, imposes severe risks
to
the department, its staff and patie
nts
.
Alternatively, there should at least be an
interdict in favour of Grinnell at our sites.
106.
It is respectfully submitted that, on the facts
and circumstances set out above, it is evident that a material
irregularity occurred
in the evaluation end subsequent
disqualification of Grinnell’s bid and Grinnell has a right to
have the decision reviewed
and set aside in order to protect its
right to just administrative action in terms of
section 33
of the
constitution, read with PAJA.
107.
Had Grinnell not been unlawfully and unfairly disqualified, it stood
an excellent chance of being successful,
at least in respect of the
Red Cross War Memorial Children's Hospital facility, where it has
provided services to the department
at a competitive rate for years.
During this period there have been no complaints by the department as
to the nature, scope and
quality of the services provided.
108.
For current purposes it is submitted that Grinnell has provided a
compelling basis to indicate the
strong likelihood that the review
proceedings will be successful. The interim relief which Grinnell
seeks – i.e. to freeze
the status quo until such further
processes are exhausted – is necessary to ensure the integrity
of the tender process and
to ensure that Grinnell can be given
effective relief. An eventual finding that the department acted
unlawfully will be meaningless
without the interim relief being
granted.
109.
Grinnell currently employs 80 guards to service the department’s
contract at Red Cross War Memorial
Children's Hospital. Grinnell has
always been committed to upholding the dignity of employment of our
guards. We have nurtured
a work environment that values their skills,
experience, and dedication. The termination of their employment by
the department
pursuant to an unlawful procurement process strips
them of this dignity and respect, treating them as disposable assets
rather
than valued individuals contributing to the safety and the
security of the Department.
110.
The guards, many of whom have served the department for the past two
years, take great pride in their
work and the sense of responsibility
they hold to protect the department's assets. The abrupt termination
of their employment as
a result of an unlawful procurement process
will have an immediate and far-reaching impact on their financial
well-being, as well
as their dignity.
111.
As
I have submitted, Grinnell has strong prospects
of success in the review proceedings. Far more than a
prima
facie
right, Grinnell has actually
shown a clear right to the relief sought
.’
Eagle
Age
[39]
Eagle Age currently
provides Services at the
Vanguard Hospital, Stikland Hospital and College of Nursing pursuant
to the award of tender WCPT-TR01/2017/18.
The contract concluded
between Eagle Age and the Department pursuant to the said award of
the tender expired on 31 March 2024.
The reasons provided for
the exclusion of its bid were that it failed to submit (a) a
registration certificate issued by the NBCPSS,
and (b)
sufficient evidence of its submission of a Workplace Skills Plan to
the Safety and Security Sector Education and
Training Authority
(SASSETA). It contends that the decision to exclude it constitutes a
reviewable irregularity in that (a) it
submitted all the mandatory
documents, (b) the tender was awarded to only three bidders when the
tender documents did not specify
that the tender was a winner takes
all, and (c) the tender requirements were vague and ambiguous.
[40]
Eagle Age deals with the
prima facie
right in paragraphs
84 to 91 of its founding affidavit. The contents of these paragraphs
are a mirror image of the contents of
paragraphs 104 to 111 of the
Grinnell application referred to above. The only difference is that
Eagle Age employs 104 guards which
have been servicing Vanguard
Hospital, Stikland Hospital, and the College of Nursing since October
2019.
Greystone
[41]
Greystone currently
provides Services to the
Department in respect of
George
,
Knysna, Uniondale, Caledon, Grabouw, Hermanus, Mossel Bay,
Swellendam, Riversdal, Beaufort West, Murraysburg and Laingsburg.
This is in terms of a contract that expired on 31 March 2024.
The reasons provided for the exclusion of its bid were that it failed
(a) to submit a registration certificate issued by the NBCPSS
(b)
proof of submission of a Workplace Skills Plan to SASSETA, and (c)
B-BBEE Certificate or an affidavit dated within 3 months
of the
tender closing date. It contends that the decision to exclude it
constitutes a reviewable irregularity in that it submitted
all the
mandatory documents, and that the decision to award the tender to
three bidders was arbitrary, capricious, and irrational.
[42]
Greystone deals with the
prima facie
right in paragraphs
75 to 82 of its founding affidavit. The averments contained in these
paragraphs also mirror those in the Grinnell
and Eagle Age
applications with the minor variations regarding the number of
employees as well as the sites serviced by Greystone.
Sechaba
applicants
[43]
Sechaba currently
provides Services to the
Department in respect of Delft Hospital, Delft Symphony CDC, Bishop
Lavis CHC, Kraaifontein CHC, Elsies
River CHC, Ruiterwacht CHC,
Ravensmead CHC, Bellville CDC, Bothasig CDC, Durbanville CDC,
Goodwood CDC, Parow CDC, Reed Street
CDC, Scottsdene CDC, Karl Bremer
Hospital, Karl Bremer Ad hoc, Mowbray Maternity, New Somerset New
Somerset Ad hoc. This is in
terms of a contract that expired on 31
March 2024.
The reasons provided for the exclusion of its bid
were that it failed to submit bids for all the services required by
the Department.
It contends that the decision to exclude it
constitutes a reviewable irregularity in that (a) the Department
misconstrued the tender
specifications, (b) there was no omission as
its pricing schedule provided all the prices in respect of services
it was bidding
for and left out those in respect of which it did not
intend to bid for, (c) the Department could not require the bidders
to submit
prices in respect of services which the bidders did not
intend to bid for, (d) the decision to award the tender to three
bidders
was arbitrary, capricious and/ or irrational.
[44]
Star currently
provides Services to the
Department in respect of Grassy Park CDC, Lady Michaelis CDC, Lotus
River CDC, Retreat CHC, Victoria Hospital,
Orthotics and Prosthetic
Centre, DP Marais Hospital, Retreat CHC and Retreat Ad hoc. This is
in terms of a contract that expired
on 31 March 2024.
The
reason provided for the exclusion of its bid relates to proof of
submission or failure to submit the Workplace Skills Plan
to SASSETA,
a reason which Star contends is incomprehensible. It contends that
the decision to exclude it constitutes a reviewable
irregularity in
that (a) the decision to award the tender to three bidders was
arbitrary, capricious and/ or irrational, and (b)
the tender
specifications were vague and ambiguous.
[45]
AMA did not have an existing contract with the Department prior
to the publication of the tender
.
AMA made it to the third phase of evaluation. AMA was, however, not
awarded the tender because of its low scoring in respect of
the
B-BBEE preference point. It contends that the decision to exclude it
constitutes a reviewable irregularity in that (a) the
decision to
award the tender to three bidders was arbitrary, capricious and/ or
irrational, and (b) the tender specifications were
vague and
ambiguous.
[46]
All 4 currently
provides services to the
Department in respect of False Bay Hospital, Hout Bay Hospital and
Hout Bay CDC. This is in terms of a
contract that expired on 31 March
2024.
The reasons provided for the exclusion of its bid were
that it failed to submit the certificate of registration with NBCPSS
as
well as proof of submission of the Workplace Skills Plan with
SASSETA. It contends that the decision to exclude it constitutes a
reviewable irregularity in that (a) it submitted both the documents
that form the basis of its exclusion, (b) the decision to award
the
tender to three bidders was arbitrary, capricious and/ or irrational,
and (c) the tender specifications were vague and ambiguous.
[47]
Helios currently
provides services to the
Department in respect of The Cape Town Regrographic Clinic, Dorp
Street Reproductive Health Centre, Green
Point CDC, District Six CDC
and the Observatory Forensic Pathology Institute. This is in terms of
a contract that expired on 31
March 2024.
Its bid was excluded
because it did not bid for all the services required by the
Department. It contends that the decision to exclude
it constitutes a
reviewable irregularity on the same grounds as those advanced on
behalf of Sechaba.
[48]
The Sechaba applicants deal with the issue of a
prima facie
right in paragraphs 108 to 114 of the founding affidavit. The
averments made in this regard mirror those made in the Princeton
application. Curiously there is no differentiation in respect of AMA
which did not have an existing contract with the Department.
SUMBISSIONS
ON BEHALF OF THE APPLICANTS ON THE ISSUE OF
PRIMA FACIE
RIGHT
[49]
Mr Jamie SC, who appeared with Ms Christians on behalf of Grinnell
and Eagle Age submitted that Grinnell
and Eagle Age seek to protect
three species of rights. The first, he termed the public interest.
The second was the right to make
a living. The third was the right of
the guards employed by both companies.
[50]
Mr Nacerodien, who appeared for Princeton and the Sechaba applicants,
submitted that there was an imminent
breach of the Constitutional
rights of Princeton and Sechaba applicants as contained in
section 33
and
217
of the Constitution read with Promotion of Administrative
Justice Act 3 of 2000 (PAJA). He further submitted that the right to
have access to health care as provided for in section 27 of the
Constitution, the right to life as provided for in section 11 of
the
Constitution, as well as the right to freedom and
security
of person
as provided for in section 12, were some of the
rights that Princeton and the Sechaba applicants sought to protect
pending the
finalisation of the review.
[51]
Ms Christians, who appeared on behalf of Greystone associated herself
with most of the arguments made by
her colleagues. She further
submitted that Greystone approached the court out of concern for
public safety that stood to be harmed
by employment of only three
service providers to provide Services to the Department.
WHAT
THEN IS THE
PRIMA FACIE
RIGHT THAT AN APPLICANT FOR AN INTERIM
INTERDICT IS REQUIRED TO ESTABLISH?
[52]
The
answer to this question is, in my view, to be found in the statement
by Corbett J (as he then was) in
LF
Boshoff Investments
[5]
where, dealing with the requirements of an interim interdict, he
stated:
‘
Briefly
these requirements are that the applicant for such temporary relief
must show-
(a)
that the
which
is the subject-matter of
the main action and which he seeks to protect by means of an interim
relief is clear or if not clear, is
prima facie established, though
open to doubt;…’
[53]
It thus
appears that it is not just any right that an applicant can put up in
proceedings for interim relief, but it must be
the
right that requires protection pending the main proceedings
instituted for the final determination of a dispute relating to that
right. As was stated in
Albert
[6]
‘Interdicts are based upon rights, that is, rights, which in
terms of the substantive law are sufficient to sustain a cause
of
action. Such right may arise out of contract, or a delict; it may be
founded in the common law or some or other statute.
[7]
’
In my view, therefore, interdicts of this nature are concerned with
protection of extant rights, which although may be disputed
are
subject to vindication in the main proceedings.
[54]
To paraphrase, the right sought to be protected must the same
right sought to be vindicated in the main proceedings. This, however,
is not always the case but as a minimum the outcome of the main
action must have some bearing on the right sought to be protected
in
the interim. In the circumstances of this case what is required of
the applicants is to establish, albeit on a prima facie basis,
the
existence of
a
right or rights which
will be vindicated in the review proceedings. In the alternative, the
outcome of the review must be demonstrated
to have some bearing on
the prima facie rights relied on upon by the applicants. Having dealt
with the nature of a right that has
to be established, it is now time
to consider whether the rights relied upon by the applicants, are the
same rights sought to be
vindicated in the review or whether the
outcome of the review will have any bearing on the rights sought to
be protected by the
interim interdict.
DISCUSSION
[55]
I have set out above the relief sought by the applicants both in
Part A, that is the interim interdictory relief and Part B, the
review proceedings. It is common cause that the review proceedings
are about the vindication of the applicants’ rights to
just
administrative action that is lawful, reasonable, and procedurally
fair. As already stated above, none of the applicants relied
on this
right in seeking the interim interdict.
[56]
In as much as there was much debate about the
prima facie
right that the applicants sought to have protected by the interim
interdict they seek in these proceedings, none of them suggested
that
any of such rights are the rights sought to be vindicated in the
review proceedings. This is not surprising because proceedings
for
judicial review are concerned only with the right contained in
section 33 of the Constitution as given content to by PAJA.
[57]
That the review proceedings are only concerned with the right to just
administrative action that is lawful,
reasonable, and procedurally
fair is clear from the grounds of review as well as the orders
sought, none of which bears any relation
to the rights put up by the
applicants to support their claim to an interim interdict.
[58]
The
p
ublic interest, the right to
make a living
,
and the rights of the
guards employed by Grinnell and Eagle Age are not that right that the
review court is being called to determine.
And the outcome of the
review has no bearing on these rights. Similarly, the plethora of
rights put up on behalf Princeton and
the Sechaba applicants are not
subject to vindication by the review court, and there can be no
suggestion that the outcome of the
review has any bearing on these
rights. That is also the case with the public
s
afety
right relied upon Greystone. The applicants, therefore, have failed
to establish a
prima facie
right that requires protection
pending the finalisation of the review.
[59]
The question that flows from the above is whether the court is still
required to consider the other requirements
of an interim interdict
in circumstances where the right sought to be protected is not the
same right that is to be vindicated
in the main proceedings. In my
view, the answer must be in the negative. This is so because the
success of the applicants, in the
review, has no bearing on the
rights that they seek to have protected by the interim interdict. It
is well to remember that the
contracts of nine of the applicants had
run their course and the applicants can claim no rights beyond those
conferred by those
contracts. Worse still is the case of AMA who had
no existing contract with the Department.
[60]
It is a different matter where the existence of the right sought
to be protected has been cast in doubt. In those circumstances the
court would still be required to consider the irreparable harm, the
balance of convenience as well as the absence of other satisfactory
remedy. This is not such a case because the only right that is the
subject of the main proceedings is the one which the applicants
have
conceded that it does not require protection by means of an interim
interdict. It follows therefore that the applications
cannot succeed.
There was an alternative claim on behalf of Sechaba relating to an
order granted by Sievers AJ, an issue which
I deal with briefly
below.
THE
SIEVERS AJ ORDER
[61]
On 27 September 2019, Sievers AJ granted an order in favour of
Sechaba under case number 16827/2019. The
order interdicted, pending
the final determination of a review application, the Western Cape
Provincial Government Acting Director:
Supply Chain Management, the
Accounting Officer of the Western Cape Department of Finance, Western
Cape Provincial Government and
the Department of Health, Western Cape
from (a) giving effect to the purported extended notice to Sechaba,
which notice was to
take effect on 20 September 2019 and (b) giving
effect to the purported appointment of Eagle Age, Metro City
Protection Services
CC t/a Metro City Protection and All 4 to various
health facilities falling under the Department. The order further
directed that
Sechaba be permitted to continue rendering the services
it was currently rendering at the time until the finalisation of the
review.
[62]
The allegations were that, by awarding the tender to Phangela,
Golden and Amazim-zim, the Department was in contempt of the order
granted by Sievers AJ. The papers do not make it clear whether an
interdict is sought because the Department is in contempt, or
whether
the intention was to hold the Department in contempt. In either case
,
no case was properly made. It was not explained why an interdict
would be necessary when Sechaba already has an order in place
as all
that would be left was to either execute on the order or initiate
contempt of court proceedings. Any reliance on the order
granted by
Sievers AJ by Sechaba cannot be of any assistance. This is even more
so, that the parties are not the same in that matter
and in this
matter. It remains to deal with the issue of costs.
COSTS
[63]
It was submitted on behalf of the applicants, relying on what has
become known as the
Biowatch
principle, that there should be
no order as to costs in the event of the dismissal of the
applications. This, it was submitted,
is because an application for
an interim interdict forms an integral part of the review proceedings
which are undoubtedly proceedings
to vindicate Constitutional rights.
[64]
Mr De Waal SC left the matter in the hands of the court as he
said that he was not aware of any authority that the Biowatch
principle
applies in respect of interim interdictory proceedings.
[65]
None of the parties referred to any authority dealing with interim
interdictory relief pending proceedings
to vindicate a Constitutional
right. At face value it does, though, seem correct that if you should
be insulated against an adverse
costs order in the main proceedings
to vindicate a right, the same should also apply when a litigant
seeks interim protection of
that right. In my view, therefore,
there should be no order as to costs.
ORDER
[66]
In the circumstances I make the following order:
66.1
The eighth respondent’s application for the late filing o its
answering affidavit is refused;
66.2
All five applications are dismissed; and
66.3
There shall be no order as to costs.
__________________________
Judge L.G. Nuku
Judge of the High
Court
APPEARANCES
For
the Applicant in Case No: 5464/24:
A
Nacerodien instructed by Asherson Attorneys
For
the Applicants in Case Nos: 5477/24 and 5586/24:
I
Jamie SC and A Christians instructed by Dirk Kotze Attorneys
For
the Applicant in Case No: 5616/24:
A
Christians instructed by Wayne Hufkie Attorneys
For
the Applicant in Case No: 5618/24:
A
Nacerodien instructed by Mark Hess Attorneys
For
the First to the Fifth respondents:
J
De Waal SC and M Mokhoaetsi instructed by The State Attorney, Cape
Town
For
the Sixth Respondent:
No
appearance
For
the Seventh Respondent:
Ms.
Mathe-Ndlazi instructed by Lingani and Partners Inc
For
the Eighth Respondent:
D
Nyathi instructed by BDP Attorneys
[1]
Bertie
Van Zyl (Pty) Ltd and Another v Minister for Safety and Security and
Others
2009 (10) BCLR 978
(CC)
[2]
Ferris
and another v FirstRand Bank Ltd and another 2014 (3) BCLR 321 (CC)
[3]
At
para [14]
[4]
At
para [10]
[5]
L
F Boshoff Investments (Pty) Ltd v Cape Town Municipality
1969 (2) SA
256
(C) at 267A
[6]
Albert
v Windsor Hotel (East London) (Pty) Ltd (in liquidation)
1963 (2) SA
237
(E) at 240E – 241G
[7]
Prest,
Law and Practice of Interdicts, Jut and Co, 1996 at p52 (references
to cases omitted)
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