Case Law[2024] ZAWCHC 319South Africa
Helios Security and Risk Management CC and Another v College of Cape Town and Others (22265/2023) [2024] ZAWCHC 319 (18 October 2024)
Judgment
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# South Africa: Western Cape High Court, Cape Town
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## Helios Security and Risk Management CC and Another v College of Cape Town and Others (22265/2023) [2024] ZAWCHC 319 (18 October 2024)
Helios Security and Risk Management CC and Another v College of Cape Town and Others (22265/2023) [2024] ZAWCHC 319 (18 October 2024)
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sino date 18 October 2024
IN
THE HIGH COURT OF SOUTH AFRICA
(WESTERN
CAPE DIVISION, CAPE TOWN)
Case
No: 22265/2023
In
the matter between:
HELIOS
SECURITY AND RISK MANAGEMENT CC
First
Applicant
SECHABA
PROTECTION SERVICES
WESTERN
CAPE (PTY) LTD
Second
Applicant
and
COLLEGE
OF CAPE TOWN
First
Respondent
MTHIDHLA
GROUP VIP AND SECURITY (PTY) LTD
Second
Respondent
SNIPER
SECURITY SOLUTIONS
Third
Respondent
TSHEDZA
PROTECTIVE SERVICES CC
Fourth
Respondent
MAFUKO
SECURITY SERVICES CC
Fifth
Respondent
MADUNA
PROTECTION SERVICES
Sixth
Respondent
DEPARTMENT
OF HIGHER EDUCATION
AND
TRAINING
Seventh
Respondent
Bench: Vivier, P AJ
Heard: 28 August 2024
Delivered: 18 October
2024
This judgment was handed
down electronically by circulation to the parties' representatives
via email and release to SAFLII. The
date and time for hand-down is
deemed to be 10h00 on Friday, 18 October 2024.
JUDGMENT
VIVIER,
AJ
:
Introduction
[1]
The First Applicant, Helios Security and Risk Management CC
(“
Helios”
), and the Second Applicant, Sechaba
Protection Services Western Cape (Pty) Ltd (“
Sechaba”
),
render security services to state institutions and private clients.
Where applicable I shall hereinafter refer to Helios and
Sechaba
jointly as the Applicants.
[2]
The First Respondent is the College of Cape Town (“
the
College”
). It was established as a public college, as
described in sections 1 and 53 of the Continuing Education and
Training Act, No. 16
of 2006 (“
CETA”
). The
College’s main office is situate at Salt River, Cape Town, and
it has several campuses within the Western Cape Peninsula.
[3]
The College is a semi-autonomous entity established by CETA. It is
listed in Schedule 2
of CETA as one of the “
[e]xisting
public further education and training institutions, structures and
bodies”
. The College is a juristic entity and derives its
powers from the provisions of CETA.
[4]
Helios previously provided security services to the College at eight
college sites (seven
campuses and the central offices). This occurred
in terms of a contract that had been entered into between Helios and
the College,
for the rendering of such services during the period of
1 November 2020 to 31 October 2023.
[5]
With a view thereto that the duration of this contract would come to
an end on 31 October
2023, the College issued an invitation to
bidders, to tender for the provision of security services at the
college sites, for a
further period of 36 months. The closing date of
the tender was 25 August 2023.
[6]
In response to this invitation, 17 bidders,
inter alia
Helios,
Sechaba, the Second Respondent, Mthidhla Group VIP and Security (Pty)
Ltd (“
Mthidhla”
), and the Third Respondent, Sniper
Security Solutions (“
Sniper”
), submitted bids.
[7]
On 16 October 2023 the College Principal (as the accounting offer of
the College) considered
the recommendations of its Bid Evaluation
Committee (“
the BEC”
) and Bid Adjudication
Committee (“
the BAC”
), whereafter he awarded the
bid jointly to Mthidhla and Sniper. These entities were described in
the tender documents as the “
Mthidhla-Sniper Security JV”
.
I shall for convenience refer to these successful bidders jointly as
“
Mthidhla-Sniper”
.
[8]
This is an application for the review and setting aside of (a) the
decisions and recommendations
made by the BEC in respect of the
tender on 30 October 2023, as well as (b) the decision of the College
Principal to award the
tender to Mthidhla-Sniper, on the grounds for
review that I shall expand upon below.
[9]
At the hearing of the application, Ms N Nyathi appeared for the
Applicants, and Mr L Matiso
for the College.
[10]
This application has an extra-ordinary procedural history. It was
launched by the Applicants on 7 December
2023. On 18 December 2023,
the College delivered a notice of intention to oppose the application
(“
the notice of opposition”
).
[11]
However, after the College had made the record of proceedings
available in compliance with rule 53(1) of
the Uniform Rules of
Court, and Helios, on 9 April 2024, had filed a supplementary
founding affidavit and amended the relief sought
in the notice of
motion, the College –
[11.1]
on 13 May 2024 filed a counter-application, seeking a self-review of
(a) the determination
of the tender specifications, as well as (b)
the decision to award the tender to Mthidhla-Sniper; and
[11.2]
on 21 May 2024 filed a notice in terms of which it withdrew its
opposition to the review application.
[12] In
addition to this relief, the College also sought the following relief
in prayers 4 and 6 of the notice
of motion filed in the
counter-application:
[12.1]
“
[T]hat the terms of the contract
concerning
payment for services rendered by the third and fourth respondents
shall remain intact
and subject to the said
terms and rights that the third and fourth respondents and the
applicant have as against each other in
contract, the third and
fourth respondents are to be paid for services already rendered.”
(Emphasis added.)
The references to the
Third and Fourth Respondents in this prayer were to Mthidhla and
Sniper respectively, as they were cited in
the counter-application.
[12.2]
“
Directing that the costs of this application be paid by any
party that oppose this application, jointly and severally, the one
paying
the others to be absolved.”
[13]
The parties are in agreement that the decision of the College
Principal to award the tender to Mthidhla-Sniper,
should be reviewed
and set aside. The Applicants recorded this agreement as follows in
paragraph 4 of the practice note filed by
them:
“
The parties are
ad idem that the administrative decision in question should be
reviewed and set aside.”
[14] In
paragraph 5 of this practice note, the Applicants confirmed that the
relief sought by the College, as
referred to in paragraph [12] above,
are the only issues for determination.
[15] In
paragraph 1 of the practice note filed by the College, it confirmed
the aforesaid as follows:
“
The First
respondent makes common cause with the description of proceedings as
set out in the applicants’ practice note.”
[16] In
the founding affidavit filed by the College in the
counter-application, it failed to disclose any basis
for the relief
sought in respect of the contract between it and Mthidhla-Sniper, as
referred to in paragraph [12.1] above. When
this aspect was raised by
the Applicants in their answering affidavit filed in the
counter-application, the College explained,
in its replying
affidavit, that such relief is merely “
consequential relief
to cater for the period of the
(new)
procurement process”
.
This was presumably a reference to the new procurement process that
would have to be implemented in the event of the decision
to award
the tender to Mthidhla-Sniper, being reviewed and set aside.
The
main grounds for review set out in the main founding affidavit
[17]
Helios alleged that, on 23 August 2023, it submitted its bid in
compliance with the tender invitation. It
thereafter received no
further communication from the College with regard to its bid.
[18]
On 20
October 2023 Helios received “
an
electronic communication”
[1]
from the College, requesting it to attend a meeting scheduled for 23
October 2023, at the central office of the College. No explanation
was given with regard to the purpose of this meeting.
[19] Mr
Reza de Bruyns, the managing director of Helios, attended the
meeting. It was chaired by the College Principal,
and several other
persons were in attendance. Mr De Bruyns incorrectly assumed that
they were campus managers. To his surprise,
the College Principal
however announced that they were the representatives of the “
new
security service provider”
, and that the primary purpose of
the meeting was to discuss the handover of the security services.
[20] An
agenda for the meeting was then handed out, and the following was,
inter alia
, listed as the items on the agenda – (a)
“
Attendance Register and Apologies”
; (b) “
Purpose
of the Meeting”
; (c) “
Security Services (Current
Contract and New Contract)”
; (d) “
Handover Process
and Communication Protocols”
and (e) “
Handover and
Close Out Report”
.
[21] On
23 October 2023 Helios sent a letter to the College, and requested it
to provide Helios with the reasons
why its bid had been unsuccessful.
On 24 October 2023, the College responded to this letter, by
e-mail. In this e-mail the
College advised Helios that its request
had been sent to the College’s attorneys “
for
processing”
, and that the attorneys would “
instruct
a response”
for the College. No further correspondence was
received by Helios, from either the College or its attorneys, with
regard to this
request.
[22] On
26 October 2023 Helios sent a further letter to the College. In this
letter Helios pointed out and emphasised
the lack of response to its
previous request for information, and recorded the following in
paragraphs 8 and 9 thereof:
“
8. It is
of importance to note that the successful company namely, Mthidhla,
was established two years ago and has little
experience in the
security services industry. We also note that Mthidhla & Sniper
are both Gauteng based security service providers
with little
presence in the Western Cape Province.
9. In contrast
to the above, Helios Security has been providing security services in
the Western Cape Province for approximately
16 years and has a wealth
of experience in providing such services to tertiary institutions.”
[23]
Helios concluded the letter with a request that the appointment of
the successful bidders should be held
in abeyance, until Helios had
been provided with the requested information. Helios also requested
an opportunity to file an appeal,
if necessary.
[24]
Helios received no response from the College to its letter of 26
October 2023. It then resolved to launch
an application for the
review of the decision to award the tender to Mthidhla-Sniper.
[25]
Sechaba submitted its tender on 25 August 2023. It likewise received
no further response from the College.
It was only on 24 October 2023,
after Sechaba had communicated with Helios with regard to the matter,
that it obtained knowledge
thereof that the tender had been awarded
to Mthidhla-Sniper. It addressed similar correspondence to the
College, requesting reasons
as to why its bid had been unsuccessful.
[26] On
25 October 2023 the College’s attorneys sent a letter to
Sechaba in reply to its request for information.
In this letter the
College’s attorneys acknowledged that Sechaba was well within
its rights to have requested information
with regard to the reason(s)
why its bid had been unsuccessful. It advised Sechaba that such
reasons would be requested from the
College and “
be provided
in terms of the College’s Supply Chain Policy, and
relevant/applicable legislation”
.
[27]
Notwithstanding this acknowledgment by the College’s attorneys
of Sechaba’s entitlement to the
relevant reasons as requested,
and the undertaking to provide such reasons, the College failed to do
so.
[28]
Neither Helios nor Sechaba received any further response from the
College with regard to the reasons why
their bids were unsuccessful.
[29]
Section 45(1) of CETA imposed the following obligation on the College
to furnish the requested information
to Helios and Sechaba –
“
[A] college
must make information available for inspection by any person in so
far as such information is required for the exercise
and protection
of the rights of such person”
.
[30]
Paragraph 2 of the tender invitation stipulated that the tender
process was subject to the
Preferential Procurement Policy Framework
Act, No. 5 of 2000
, and the Preferential Procurement Regulations
2017. The Applicants contended that the College, by initiating and
concluding a tender
process, was required to give effect to section
217(1) of the Constitution of the Republic of South Africa, 1996
(“
the Constitution”
), which provides as follows:
“
217.
Procurement–
(1) When an organ of state in the
national, provincial or local sphere of government, or any other
institution identified
in the national legislation, contracts for
goods or services, it must do so in accordance with a system which is
fair, equitable,
transparent, competitive and cost-effective.”
[31]
The Supply
Chain Management Policy (“
the
SCM Policy”
)
of the College provides
[2]
that
its accounting officer is required to comply with the prescripts of
the
Preferential Procurement Policy Framework Act.
[32
]
The SCM
Policy also provides
[3]
that the
College
must
adhere,
inter
alia
,
to the following stages of a tender process:
·
The handling of bids submitted in response to the public
invitation
·
The evaluation of bids
·
The adjudication of bids
·
The awarding of contracts
·
The notification to bidders
·
The signing of contracts
(Emphasis added.)
[33]
In terms of
clauses 4.30 and 4.31 of the SCM Policy,
[4]
the College
must
–
[33.1]
inform all unsuccessful bidders in writing about the outcome of the
bid; and
[33.2]
when requested in writing by unsuccessful bidders, provide them with
the reasons why his/her
own bid was not successful.
[34]
The College failed to comply with these peremptory provisions of the
SCM Policy, in respect of its decision
to award the bid to
Mthidhla-Sniper. The Applicants contend that the bidding process was
therefore not conducted in a manner that
encourages ethical conduct,
open and effective competition, fairness and equal treatment.
[35]
The Applicants further contend that the College, by failing to comply
with the Applicants’ requests
for reasons, also failed to
comply with the provisions of
section 3(2)
and section 6(2)(b) and
(c) of the Promotion of Administrative Justice Act, No. 3 of 2000
(“
PAJA”
).
The
main grounds for review set out in the supplementary founding
affidavit
[36]
The Bid Specification Committee (“
the BSC”
)
comprised of the following persons: (a) Tilly Reddy as chairperson;
(b) Nathaniel Masiza; (c) Ryan March and (d) Brenda Maasdorp.
[37]
The BEC comprised of the following persons: (a) Sindiso Msipha as
chairperson; (b) Daria Duncan and (c) Alfred
Ramahlaphe.
[38]
The BAC comprised of the following persons: (a) Deon van Rooyen as
chairperson; (b) Achmat Gafieldien as
deputy chairperson; (c) Basil
Naicker; (d) Fred Koopman and (e) Melody Marescia.
[39] On
21 July 2023 the BSC held a meeting in order to,
inter alia
,
agree on and adopt the tender specifications. However, Tilly Reddy
did not attend this meeting and Ryan March acted as chairperson
(a
position not held by him, but by Tilly Reddy). A further irregularity
was that Basil Naicker attended and participated in the
meeting. He
was not appointed as a member of the BSC, but of the BAC (a committee
which served an entirely different function).
In terms of clause 4.11
of the SCM Policy, the BSC has the function of “
compiling
the specifications for all procurement goods and services before the
invitation process”
. On the other hand, clause 4.13 of the
SCM Policy stipulates that the BAC is responsible for making a final
award or recommendation
to the College Principal.
[40]
The BSC adopted the tender specifications on 21 July 2023, and on 31
July 2023 the College Principal approved
the recommended
specifications.
[41] On
15 August 2023 the College called on interested bidders to attend a
tender briefing session. The Applicants
attended this meeting. The
briefing session was conducted by the College Principal. The main
focus of the meeting was the section
of the tender documentation
which contained the tender specifications. A question-and-answer
session was held thereafter, on the
basis of the tender
specifications, which was dealt with by the College Principal.
[42]
The Applicants alleged that they submitted their bids in accordance
with the requirements of the tender documentation,
particularly the
tender specifications.
[43] On
3 October 2023 the BEC held a meeting in order to evaluate the
submitted bids, in accordance with the
tender specifications. The BEC
discussed the bids, in particular those who had complied with the
tender specifications, and those
who purportedly did not comply. Out
of 17 bidders, only 2 were recommended, namely Gap Management and
Mthidhla-Sniper.
[44]
The bids of 15 bidders were not recommended, for the same reasons,
namely their failure to provide the following
documents: (a) UIF
certificates; (b) provident fund compliance; (c) public liability
insurance cover; (d) vehicle documents; and
(e) proof of firearm
licences.
[45]
However, none of these documents were required to be submitted in
terms of the tender documentation and,
particularly, the tender
specifications.
[46]
The BEC therefore evaluated and disqualified 15 bidders, including
the Applicants, on the basis of inaccurate
criteria and on the basis
of documents that were not required to be submitted in terms of the
tender specifications.
[47]
The BEC therefore failed to evaluate the bids in accordance with the
provisions of clause 4.12 of the SCM
Policy, which provides as
follows:
“
A bid
evaluation committee must
a
Evaluate bids in accordance with:
(i)
the
specifications for a specific procurement
; and
(ii) …
b
Evaluate each bidder’s ability to execute the contract”
.
(Emphasis added.)
[48] On
12 October 2023 the BAC held a meeting in order to consider the
report and recommendations of the BEC,
and to make a final award or
recommendation to the College Principal.
[49]
Two members of the BAC, Mr Gafieldien and Mr Naicker, did not attend
the meeting. It was proceeded with in
their absence, with no
apologies recorded for the absence, and no official replacements
appointed for them.
[50]
Moreover, Mr Van Rooyen who acted as chairperson, was a member of the
College Council. He was
not
entitled to attend this meeting by
virtue of the prohibition contained in clause 4.13 of the SCM Policy,
which provides as follows:
“
No members of
the college council may be part of the BAC.”
[51]
During this meeting the comments and decisions of the BEC were
discussed and reviewed. The BAC recorded its
concern that the BEC had
evaluated the submitted bids on the basis of documents which had not
been required in terms of the tender
specifications, as follows:
“
The BEC
minutes did not give full clarity on the reasons for implementing the
requirements of a Provident Fund and therefore eliminating
certain
suppliers
. The Chair discussed this with the Chair of the
BEC.
The BAC requested that
in order for the members to agree to the rejection of Supplierd
(sic)
on the basis of provident funds, the BEC is requested to update
their minutes as the Tender Documents was not clear on this process.
The Members then
proceeded with the rest of the Suppliers and confirmed the findings
of the BEC.”
(Emphasis added.)
[52] As
is evident from these minutes, the BAC both acknowledged and
expressed its concern that the BEC had evaluated
the submitted bids
on the basis of documents that had not been required in terms of the
tender specifications.
[53]
The BAC proceeded to discuss the recommended bidders, GAP Management
and Mthidhla-Sniper. The following was
recorded in the minutes, in
this regard:
“
The BAC
reviewed the two Suppliers and concluded as follows:
1)
GAP Management is more than 50km in radius as required by the
bidding document. BAC rejects GAP’s application.
2)
Mthidlha-Snipper
(sic)
is lacking
proof of financial stability of the Company
. The
Financials submitted was not properly concluded and indicated no
financial support.
The Joint Venture on the suppliers did
not submit the JV’s financials and therefore the BAC is unable
to recommend the Supplier
.
BAC members could
therefore not conclude a recommendation
.”
(Emphasis added.)
[54]
The BAC therefore decided not to recommend any bidders, and recorded
its decision as follows:
“
The Bid
Adjudication Committee do not recommend any Supplier but recommends
that the matter be referred to the Office of the Principal
for
consideration and next steps
. If necessary the 17
Suppliers who tendered should be called to another Briefing Session
to explain the requirements of the Provident
fund as well as Proper
Financial Statements.
It is best due to time
and appointments to urgently clear with the Principal Office and
extend the services of the current service
provider on Security for
another month.”
(Emphasis added.)
[55] On
16 October 2023 the College Principal received the recommendations of
the BEC and BAC, and considered
the evaluation forms which had been
completed by the BEC and BAC in respect of all the received bids.
[56] On
the last page of the bid evaluation form in respect of
Mthidhla-Sniper, the College Principal recorded
the following
statements and decision made by him in respect of this bid:
“
The issue of
feasibility of finances raised by the BAC is outside of the
requirement of the tender and can therefore not be considered
.
The office of the Accounting Officer notes that the two Committees
agree in everything and therefore submitted to him to make
a
determination.
The office of the Principal therefore award
this contract to the JV
.”
(Emphasis
added.)
[57]
The College
Principal’s summation in the first two sentences of the
quotation in the previous paragraph, is manifestly incorrect.
Clause
16 of the Special Conditions of Contract
[5]
required an investigation by the College of the bidder’s
financial position to execute the contract, and to reject any bid
received from a bidder who does not have the capacity to execute the
contract. Clause 16 provides as follows:
“
16. Vendor
assessment (capability and financial ability)
16.1 The College of
Cape Town will have the right to confirm the ability of bidders to
execute this contract successfully. This
includes an investigation by
the College of Cape Town or its appointee of the following: a)
the bidder’s financial position to execute the contracts
,
b) previous contracts executed and current contract, c) delivery
periods, Quality and Quantity of Products.
16.2
…
16.3 …
16.4
Should the contractor not cooperate in any of these matters
and/or do not have the capability to execute the contract his/her
offer
will be regarded as not acceptable
.”
(Emphasis added.)
[58] It
therefore follows that a bidder’s financial ability to execute
a tender contract, was a materially
relevant consideration. The
College Principal failed to consider this requirement, nor did he
consider the fact that the unsuccessful
bidders had been unduly
disqualified on the basis of the failure to submit documents, which
the tender document did not call for.
[59]
The College Principal did not take into account the recommendations
by the BAC which called for a further
briefing session to be held
with the bidders who had been disqualified. The College Principal did
not follow these recommendations,
and failed to provide a justifiable
reason for effectively rejecting the BAC’s recommendations in
this regard.
[60] In
awarding the bid to Mthidhla-Sniper, a bidder who had not been
recommended by the BAC (on the basis that
a requirement of the tender
specifications had not been met), the College Principal gave
Mthidhla-Sniper an unfair advantage, to
the detriment of all the
other bidders.
The
grounds of review set out in the counter-application
[61]
The College alleges that after the filing of the Applicants’
amended notice of motion and supplementary
affidavit, the officials
of the College “
took advice”
(presumably from the
College’s legal advisors) and there was consensus “
that
the tender process had been tainted by bona fide irregularities that
rendered the entire procurement process unlawful”
. The
College was therefore advised to institute a counter-application for
a self-review of its decision to award the tender to
Mthidhla-Sniper.
[62]
The College
relied, in the first instance, on the judgment of
Minister
of Finance v Afribusiness NPC 35
,
[6]
in which the Constitutional Court held that the Preferential
Procurement Regulations,
[7]
promulgated by the Minister of Finance, were inconsistent with the
Preferential Procurement Policy Framework Act, and
therefore invalid.
The College alleged that it was unaware of this judgment at the time
that it formulated the tender specifications.
The tender process was
therefore rendered unlawful, because the empowering provision (the
aforesaid Regulations) was invalid.
[63]
The College further alleged that the requirements of the “
tender
data”
was vague and caused confusion, in that it was not
clear what documents would be required in order to comply with the
following
operational requirement:
“
The Service
Provider is solely responsible for the safety and well-being of its
employees when working at CCT.”
[64]
The tender data therefore did not set out the “
evaluation
criteria for administrative phase”
, nor did it “
explicitly
set out the administrative requirement and sanction for
non-compliance”
. The provisions of
section 3(2)(b)
of PAJA
had therefore not been complied with.
[65]
The College alleged that the bidders were entitled to know how their
bids would be evaluated in each evaluation
phase, which was not the
case given the vagueness of the requirement. This vagueness “
strikes
at the core of the tenderer’s right to procedural fairness”
.
Discussion
[66]
The College did not file an answering affidavit and raised no defence
to the grounds upon which the Applicants
sought the review and
setting aside of the impugned decisions.
[67]
Instead, on 13 May 2024 the College filed its counter-application.
[68] On
21 May 2024 the College filed a notice entitled “
Notice of
Withdrawal”
, in which it notified the Applicants as
follows:
“
BE PLEASED TO
TAKE NOTICE THAT THE FIRST RESPONDENT hereby withdraws their
(sic)
notice of intention to oppose.”
I have already alluded to
this notice in paragraph [11.1] above.
[69] In
the founding affidavit filed in the counter-application, the College
proffered the following explanation
as to why it deemed it necessary
to launch a counter-application, notwithstanding its decision to
withdraw its opposition to the
main application:
“
The College
does not concede any of the review grounds advanced by the
applicants’ in the main application but rather, institutes
this
self-review application in discharge of its higher duty as a public
institution to act lawfully and correct any unlawful acts
as soon as
it becomes aware of such.”
[70] In
my view, this explanation is unsatisfactory and difficult to
reconcile with the College’s decision
not to file an answering
affidavit in the main application, but, instead, to withdraw its
opposition thereto. There was no need
to institute a
counter-application for essentially the same relief sought by the
Applicants, albeit on different grounds, in respect
of the decision
to award the tender to Mthidhla-Sniper.
[71] In
view of these decisions by the College, the grounds for review upon
which the Applicants rely, became
unopposed. The College could
therefore not have laboured under any misapprehension with regard to
the outcome of the main application.
The position taken by the
College in its founding affidavit in the counter-application, that it
does not concede any of the review
grounds, does not detract from
this conclusion.
[72]
The College did not proffer any explanation in its founding affidavit
as to why it had filed the “
Notice of Withdrawal
. In
argument, Mr Matiso sought to explain this on the following basis –
the notice of opposition was irregular. It had been
filed prematurely
and out of sequence, because it would only have been necessary to
file such notice after the
rule 53
record had been made available. Mr
Matiso was, however, unable to explain why the College had decided to
withdraw its opposition
to the main application at such a late stage,
if the purpose thereof was merely to rectify its own mistake (of
having filed the
notice of opposition prematurely).
[73]
This explanation proffered on behalf of the College, is
unsatisfactory. There is no suggestion in the papers
that the
Applicants objected to the notice of opposition, because it had been
filed prematurely. In any event, nothing was done
to replace the
irregular notice, if it was indeed the intention of the College to
merely rectify this irregularity, and to persist
in its opposition of
the main application.
[74] It
became apparent during argument that the College’s decision to
withdraw the notice of opposition,
occurred concurrently with the
decision to launch the counter-application. The inference is
inescapable that this was not a mere
coincidence, notwithstanding the
College’s contention to the contrary. I therefore question the
explanation proffered on
behalf of the College, as to why it had
withdrawn the notice of opposition.
[75] Be
that as it may, regardless of my view in this regard, the fact
remains that the main application and the
grounds upon which the
Applicants seek the review and setting aside of the impugned
decisions, are unopposed.
[76]
When I questioned Mr Matiso about the merits of the grounds for
review, as set out in the Applicants’
main founding affidavit,
he did not contest that they were valid, but merely stated that he
had no instructions to concede the
merits thereof.
[77] I
am satisfied that the grounds for review, as set out in the
Applicants’ main and supplementary founding
affidavits, are
well-founded. The College Principal’s decision to award the
tender to Mthidhla-Sniper was not only procedurally
unfair, but taken
because (a) irrelevant considerations were taken into account and (b)
relevant considerations were not considered.
The grounds for review
as described in
section 6(2)(c)
and (e)(iii) of PAJA are therefore
satisfied.
[78]
The conclusion is inescapable that the College’s main purpose
for launching the counter-application,
was to obtain the relief
sought in prayer 4 of its notice of motion (as quoted in paragraph
[12.1] above).
[79]
The College failed to disclose any basis for this relief in its
founding affidavit. Mr Matiso contended that
the College required
such relief because it could not allow its campuses to be without any
security services. He was unable to
substantiate this contention,
with reference to any evidence produced by the College.
[80]
In the
College’s replying affidavit it embarked upon a process of
interpreting the relief sought in prayer 4 of its notice
of motion,
and contended that it “
is
no more than a
(sic)
consequential
relief to cater for the period of the procurement process”
.
It was submitted in the College’s heads of argument that the
Court is empowered by section 172(1)(b) of the Constitution
to grant
just and equitable relief, after having set aside a decision taken in
the exercise of a public power.
[8]
[81]
It is trite
that under section 172(1)(b) of the Constitution, a court deciding a
constitutional matter has a wide remedial power
to make “
any
order that is just and equitable”
.
[9]
However, this discretion cannot be exercised in the air. If the Court
is to exercise its discretion to grant an equitable
remedy under
section 172(1)(b), there must be a basis to do so, and that basis
must be gleaned from the facts placed before the
Court, or
objectively available facts.
[10]
The College made no attempt to place relevant facts before the Court
in support of the relief it seeks in this regard.
[82] A
further difficulty is that Mr Matiso confirmed that the College
persisted in seeking the relief as formulated
in prayer 4 of its
notice of motion. This relief is contradictory to the relief sought
in prayer 3 of the notice of motion, namely
–
“
Reviewing and
setting aside the contract concluded between the applicant and the
third and fourth respondents’
(sic)
pursuant to the
award of the tender.”
[83]
Moreover, the Court is left in the dark with regard to at least the
following important aspects: (a) what
are the terms of the existing
contract “
concerning payment for services rendered”
that should “
remain intact”
; and (b) for what
period should these provisions of the contract effectively remain
extant?
[84]
The “
Service Level Agreement”
entered into between
the College, on the one hand, and Mthidhla and Sniper, on the other,
for the provision of security services
to the College, was attached
to the College’s replying affidavit. Clause 2.1 thereof
provides as follows:
“
The price for
the service shall be as set out in the Security Pricing Schedule
(SPS) attached (
Annexure ‘A’
).”
[85]
However, the document which was attached to the contract as annexure
“A”, is not a “
Security Pricing Schedule”
.
It appears to be a document that related to the scope of works, that
formed part of the tender documentation. It does not deal
with the
prices for the rendering of security services. Mr Matiso conceded
that this was not the correct attachment to the service
level
agreement.
[86] I
therefore conclude that no basis exists for granting the relief
sought in prayer 4 of the notice of motion
in the
counter-application, as an equitable remedy in terms of section
172(1)(b) of the Constitution. The College’s
counter-application
for such relief should therefore be dismissed.
Costs
[87]
The Applicants initiated these proceedings in order to obtain the
review and setting aside of the decision
to award the tender to
Mthidhla-Sniper. The application was initially opposed by the
College. As a consequence, the Applicants’
legal
representatives was faced with the formidable task of perusing and
considering a voluminous rule 53 record, comprising more
than 20
lever-arch files, and the filing of a supplementary founding
affidavit and an amended notice of motion.
[88] It
was only thereafter that the College withdrew its opposition to the
application. Although the College
took the position in its founding
affidavit in the counter-application that it does not concede any of
the grounds for review relied
upon by the Applicants, it effectively
never challenged the basis upon which the Applicants sought the
setting aside and review
of the impugned decisions.
[89]
In my view,
there is no reason to depart from the general rule, namely that costs
should follow the event in respect of the main
application. This rule
should only be departed from where there are good grounds for doing
so.
[11]
None have been
disclosed.
[90]
With regard
to the counter-application, it is apparent from the College’s
founding affidavit that it based the self-review
of its decision to
award the tender to Mthidhla-Sniper, on the provisions of PAJA.
[12]
[91]
This cause
of action was misconceived. The College exercised a public function
when it procured security services and awarded the
tender to
Mthidhla-Sniper. As such, it could not use PAJA to review its own
decision. PAJA is not available to organs of state
as a vehicle for
self-review.
[13]
[92] It
is unnecessary, however, to make a finding in this regard, given the
fact that the parties are in agreement
that the decision to award the
tender to Mthidhla-Sniper, should be reviewed and set aside.
[93] In
my view, the main purpose of the counter-application was to obtain
the relief sought in prayer 4 of the
notice of motion, namely that
the terms of the College’s existing contract with
Mthidhla-Sniper, with regard to the latter’s
remuneration for
the provision of security services, should remain intact.
[94]
The College was unsuccessful in obtaining such relief, and should
therefore pay the Applicants’ costs.
[95] In
the result, I make the following order:
1. The
decisions and recommendations made by the First Respondent’s
Bid Evaluation Committee on 3 October
2023 in respect of Tender No.
CCT042023, are reviewed and set aside.
2. The
decision of the First Respondent’s College Principal to award
Tender No. CCT042023 to the Joint Venture
between the Second
Respondent and the Third Respondent, is reviewed and set aside.
3. The
First Respondent is directed to appoint the following committees –
(a) a bid specification
committee;
(b) a bid evaluation
committee; and
(c) a bid adjudication
committee;
in accordance with its
supply chain management policy, with a view to re-advertising,
adjudicating and awarding Tender No. CCT042023.
4. The
First Respondent is directed to re-advertise Tender No. CCT042023 in
accordance with its supply chain management
policy.
5. The
application for the relief sought by the First Respondent in terms of
prayer 4 of its notice of motion
in the counter-application, is
dismissed.
6. The
First Respondent shall pay the Applicants’ costs in respect of
the main and counter-applications.
Costs are granted on Scale A in
terms of rule 67A(3)(a).
VIVIER,
AJ
APPEARANCES
For
the Applicants
:
Adv N Nyathi
Instructed
by
Mark
Hess Attorneys
Cape
Town
For
the Respondents
:
Adv L Matiso
Instructed
by
Mukombo
Attorneys
Cape
Town
[1]
Presumably
by e-mail. The nature of this communication was not explained in the
founding affidavit.
[2]
In
clause 3.4.5 at page 17 thereof.
[3]
In
clause 3.5 at page 17 thereof.
[4]
At
page 45 thereof.
[5]
A
s
set out at page 42 of the tender documentation.
[6]
2022
(4) SA 362 (CC).
[7]
Preferential
Procurement Regulations, GN R32
GG
40553, 20 January 2017.
[8]
Par
16 of the heads of argument.
[9]
State
Information Technology v Gigima Holdings
2018 (2) SA 23
(CC), par 53.
[10]
Gigima
,
supra
,
par 49.
[11]
Law
of Costs
,
3
rd
Edition, by A C Cilliers at page 2-16.
[12]
See
paragraphs 29 and 35 of the College’s founding affidavit.
[13]
Gigima
,
supra
,
par 36 and 37.
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