Case Law[2023] ZAWCHC 156South Africa
Quality Plant Hire CC / Expectra 388 CC Joint Venture and Others v MEC for the Department: Transport & Public Works, Western Cape Government and Others (20263/2021) [2023] ZAWCHC 156 (20 June 2023)
Judgment
begin wrapper
begin container
begin header
begin slogan-floater
end slogan-floater
- About SAFLII
About SAFLII
- Databases
Databases
- Search
Search
- Terms of Use
Terms of Use
- RSS Feeds
RSS Feeds
end header
begin main
begin center
# South Africa: Western Cape High Court, Cape Town
South Africa: Western Cape High Court, Cape Town
You are here:
SAFLII
>>
Databases
>>
South Africa: Western Cape High Court, Cape Town
>>
2023
>>
[2023] ZAWCHC 156
|
Noteup
|
LawCite
sino index
## Quality Plant Hire CC / Expectra 388 CC Joint Venture and Others v MEC for the Department: Transport & Public Works, Western Cape Government and Others (20263/2021) [2023] ZAWCHC 156 (20 June 2023)
Quality Plant Hire CC / Expectra 388 CC Joint Venture and Others v MEC for the Department: Transport & Public Works, Western Cape Government and Others (20263/2021) [2023] ZAWCHC 156 (20 June 2023)
Download original files
PDF format
RTF format
make_database: source=/home/saflii//raw/ZAWCHC/Data/2023_156.html
sino date 20 June 2023
IN
THE HIGH COURT OF SOUTH AFRICA
(WESTERN
CAPE DIVISION, CAPE TOWN)
CASE
NO.: 20263/2021
In
the matter between:
THE
QUALITY PLANT HIRE CC / EXPECTRA
First Applicant
388
CC JOINT VENTURE
QUALITY
PLANT HIRE CC
Second Applicant
EXPECTRA
388 CC
Third Applicant
And
THE
MEC FOR THE DEPARTMENT: TRANSPORT
First Respondent
&
PUBLIC WORKS, WESTERN CAPE
GOVERNMENT
THE
MEC FOR THE DEPARTMENT: TREASURY,
Second Respondent
WESTERN
CAPE GOVERNMENT
THE
MINISTER OF FINANCE
Third Respondent
IMVULA
ROADS & CIVILS (PTY) LTD
Fourth Respondent
ROYAL
HASKONING DHV (PTY) LTD
Fifth Respondent
Date
of hearing: 30 January 2023
Date
of Judgment: 20 June 2023 electronically delivered to counsel
JUDGMENT
HENNEY,
J
Introduction:
[1]
The First respondent ("the Department") published an
invitation to tender
for the periodic maintenance of a section of the
Du Tait's Kloof Pass. In response to this invitation, the first
applicant and
the fourth respondent submitted tenders. During the
bidding process, the second and third applicants entered their bid as
a joint
venture. They specifically concluded the Joint Venture
Agreement for the purpose of executing the above-mentioned project
under
contract No C1152. The signed version of the applicants'
agreement was included in the bid submitted by them in respect of the
project.
[2]
On 17 September 2021 correspondence was received from the fifth
respondent, who was
the first respondent's duly appointed agent on
the project. In this letter, clarification was requested in terms of
clause C.2.1.17
of the tender data of the applicants' tender.
Clarification was specifically sought in respect of the construction
programme and
the construction equipment.
[3]
On 2 November 2021, the applicants received a letter from the
Department wherein they
were advised that they were not successful in
their bid and the contract had been awarded to the fourth respondent
in the tender
amount of R96 200 000. Even though the applicants'
tender was R5 million less than the tender of the fourth respondent.
[4]
On 15 November 2021, after a clarification was requested from the
first respondent
regarding the unsuccessful tender, the applicants
were advised that it was unsuccessful due to the following reasons:
'As per the Conditions of Contract clause C. 2.13.4 the Joint
Venture Agreement document was not authenticated by a Commissioner
of
oaths/Public notary or other official deputed to witness sworn
statements. The tenderer has failed to fulfill the requirements
specifically highlighted and listed in clause C2.13.4 and the tender
offer is therefore invalid in terms of this clause.'
[5]
Aggrieved by this decision, the applicants in the course of those
proceedings, contended
that this requirement was not material and
stated that it was overlooked in compiling the bid; and that the
non-compliance was
merely an innocent omission. They subsequently
launched urgent proceedings (Part A) to interdict the rollout of the
tender and
on 9 December 2021, this court granted the interdict. Only
the first respondent opposed the application. Despite the Department
applying for leave to appeal, it was not granted and the Department
remains interdicted from repairing this road.
[6]
The relief sought by the applicants are as follows:
1)
That the decision of the Department to award the contract to lmvula
Roads and
Civil (Pty) Ltd be reviewed and set aside;
2)
That the award be declared null and void ab initio and set aside;
3)
That the decision to award the contract to lmvula is replaced by a
decision to
award the contract to the Joint Venture, in the
alternative, that the decision to award the contract be referred back
to the Department;
and
4)
That the MEC is to pay the cost of the application, such costs to
include the
cost consequent upon the employment of two counsel.
The
Applicants' Case:
[7]
The applicants submit that when the Department disqualified the
tender of the applicants
on the basis that it was non-responsive, it
clearly failed to consider that the Joint Venture Agreement was the
original and it
could not be 'authenticated'.
[8]
The applicants further submit that had the applicants not been
disqualified, the tender
in all likelihood would have been awarded to
it, as it would have been the highest scoring tenderer. The tendered
price of the
applicants was R5 million less than that which the
fourth respondent had tendered. The precise wording of the tender
requirement
under clause C2.13.4 which the Department alleges the
applicants failed to comply with reads as follows:
'Sign
the original and all copies of the tender offered where required in
terms of the tender data. The tender shall be signed by
a person duly
authorised to do so. The employer will hold authorised signatories
liable on behalf of the tenderer. Signatories
for tenderers proposing
the contract as Joint Ventures shall state which of the signatures is
the lead partner whom the employee
shall hold liable for the purposes
of the tender offer. Tenders submitted by Joint Ventures by two or
more firms shall be accompanied
by the document of formation of the
Joint Venture, authenticated by a Notary public or other official
deputed to witness sworn
statements, in which defined precisely the
conditions under which the Joint Venture will function, its period of
duration, the
persons authorised to represent and obligated, the
participation of several firms forming the Joint Venture, and any
other information
necessary to permit a full appraisal of its
functioning. The document or formation of the Joint Venture shall
state explicitly
what the percentage participation in the Joint
Venture will be of every partner involved.'
[9]
The applicants submits that James Etienne Tolmay ("Tolmay")
deposed a confirmatory
affidavit that was attached to the
supplementary founding affidavit which states that he was the duly
authorized representative
of the applicants. Tolmay states that he
signed the tender of the Joint Venture. And the Joint Venture
Agreement included in the
tender document of the Joint Venture, was
the original agreement and the document was personally signed by him.
[10]
According to the submissions of the applicants, logic dictates that
an original document cannot be authenticated, only a copy
can be
authenticated. As a result of the fact that the original Joint
Venture Agreement was submitted as part of the tenant document,
there
was clearly no need to authenticate the original document.
[11]
The applicants submit that on a proper interpretation of clause
C2.13.4 it would only be necessary
to authenticate a Joint Venture
Agreement if the agreement was a copy of the original. In this
regard, they state that 'authentication'
as defined in the Collins
English Dictionary as follows:
'To establish as genuine or valid
or give authority or legal validity'
.
[12]
According to the applicants, in a legal context it normally means to
verify a document to be
genuine, which is often done by verifying or
'authenticating'
the signature on a document. They further submit that though not
applicable in these circumstances, rule 63 of the Uniform Rules
of
Court in dealing with whether a document has been sufficiently
authenticated, it has been said, with the reference to case law
[1]
,
that:
'A
document authenticated in accordance with the Rules furnishes, on its
mere production from proper custody, prima facie proof
of itself,·
and that it should be in a condition to do this, is the true purpose
and the effect of such authentication'.
[13]
The applicants further submits that the ultimate purpose of
authentication is to verify that
a document is genuine. Where the
original Joint Venture Agreement was included in the tender, it would
be farcical to expect the
applicants to also include an authenticated
copy thereof; they submit that an original is the best possible
evidence of the existence
of the agreement.
[14]
They further submit that in the answering affidavit of the Department
that was delivered in respect
of Part A of the notice of motion, it
was specifically alleged that the Joint Venture failed to submit a
'commissioned copy of the Joint Venture Agreement'
. They
submit what the Department completely ignored is the fact that the
original Joint Venture Agreement was included in the tender.
[15]
The applicants contend that in dealing with the relevant applicable
principles regarding interpretation
of documents, it is first
necessary to identify the specific issues that must be considered. If
regard is to be had to the express
provisions of clause C2.13.4, the
applicants contends that the following questions must be answered:
a)
was a Joint Venture entitled to include an original Joint Venture
Agreement instead
of a copy?
b)
is the requirement to authenticate the Joint Venture Agreement still
applicable
if it is originally submitted?
[16]
They submit that the only proper way to interpret clause C2.13.4 is
that the requirement to authenticate
the Joint Venture Agreement
would only be applicable if a copy of the Joint Venture Agreement was
submitted as part of the tender
document; and that it would be absurd
if it was impermissible to include an original agreement. In this
regard, they rely on the
off quoted decision
of
Natal Joint Municipal Pension Fund v Endumeni Municipality
[2]
.
[17]
Based on their reliance on this decision, as well as that of the
Constitutional Court in the
case of
Chisuse
v Director- General of Home Affairs
[3]
they submit where the court should, in interpreting this provision,
undertake a unitary exercise, which means that the interpretation
is
to be approached holistically, simultaneously considering the text,
context and purpose. They submit that it would be preposterous
if it
is contended by the Department that the only manner in which the
aforesaid requirements could be complied with, was if an
authenticated copy (instead of the original) was included in the
tender. This provision was clearly only applicable if a tenderer
included the copy of the Joint Venture Agreement in the tender
application.
[18]
According to them, if it indeed was a requirement that only an
authenticated copy could be included
in the tender, instead of the
original, then it had to be stated in clear and unambiguous terms. In
cases where unclear directions
in a tender was found to be present,
they submit the court in the case of
All
Pay Consolidated Investment Holdings (Pty) Ltd and Others v Chief
Executive Officer, South African Social Security Agency and
Others
[4]
held:
'The
purpose of a tender is not to reward bidders who are clever enough to
decipher unclear directions. It is to elicit the best
solution
through a process that is fair, equitable, transparent, cost
effective and competitive...'
[19]
According to the applicants, it has not been disputed by the
Department that the Joint Venture
Agreement included in the tender
was indeed the original. In this regard the Department has elected
not to respond to the allegations
in the supplementary affidavit.
They submit that the Department committed a serious illegality when
it decided to disqualify the
applicants because it included the
original Joint Venture agreement in its tender instead of an
authenticated copy.
[20]
They further submit that the applicants have a right to fair
administrative action in terms of
the Constitution and that
procurement occurs in a lawful manner that complies with the
requirements of section 217 of the Constitution.
[21]
The applicants further submit the decision be reviewed and set aside
and falls squarely within
the Promotion of Administrative Justice Act
3 of 2000 ("the PAJA"). They specifically rely on the
following grounds in
terms of PAJA:
1)
section 6(2)(d}, because the action was materially influenced by an
error of
law;
2)
section 6(2)(e)(ii), the action was taken because irrelevant
considerations were
taken into account or relevant considerations
were not considered;
3)
section 6(2)(f)(ii)(aa), the action itself is not rationally
connected to the
purpose for which it was taken;
4)
section 6(2)(h), the exercise of the power or the performance of the
function
authorised by the empowering provision, in pursuance of
which the administrative action was purportedly taken, is so
unreasonable
that no reasonable person could have so exercised the
power or perform the function;
5)
section 6 (2)(i), the action is otherwise unconstitutional or
unlawful;
6)
section6 (2) (c), the action taken was procedurally unfair;
7)
section 6 (2) (a) (ii) the administrative decision was not authorised
by the
empowering provision;
[22]
Regarding the question as to what an appropriate remedy would be, the
applicant submits but for
the disqualification of the applicants, it
would have been the highest scoring tenderer, therefore if the
applicants were not disqualified
it is a foregone conclusion that the
applicants would have been appointed.
[23]
In addition to this, the Department repeatedly stated that it is of
the utmost importance that
the repairs to Du Tait's Kloof pass be
effected on an urgent basis. They submit that to commence with a new
tender process or to
refer the matter back for reconsideration by the
Department would undoubtedly cause a further delay.
[24]
They therefore seek a substitution order as contemplated in
subsection 8(1)(c)(ii)(aa) of PAJA.
In this regard they submit on the
basis of the decision of
Trencon
Construction (Pty) Ltd v Industrial Development Corporation of South
Africa Ltd and Another
[5]
,
where it was emphasised that where the court is in a good position as
the decision taker and the decision would be a foregone
conclusion,
then it would indeed constitute exceptional circumstances to justify
the granting of such an order. In this regard,
the applicants contend
the following should be regarded as exceptional circumstances:
1)
the fact that barring the disqualification, the applicants would have
been awarded
the tender was a foregone conclusion;
2)
the tender of the applicants was significantly cheaper than that of
the fourth
respondent who ultimately was awarded the tender;
3)
Section 2
(1)(f) of the
Preferential Procurement Policy Framework Act
5 of 2000
in peremptory terms provides that a contract has to be
awarded to the tenderer who scores the highest points, unless
objective
criteria in addition to those contemplated in paragraph (d)
to (e) justify the award to another tenderer;
4)
regulation 11
(2) off the Preferential Procurement Regulations, 2017
requires that such objective criteria must be stipulated in the
tender documents.
No such objective criteria were stipulated in the
tender documents;
5)
to refer the matter back to the first respondent would cause an
unnecessary delay.
[25]
The applicants further submitted in addition to the fact that the
applicants would undoubtedly
have been the highest scoring tenderer,
the Department itself has advanced reasons why there should not be
any further delay with
the implementation of the tender. It was
specifically alleged that the relevant roads require urgent
maintenance and that any referral
back to the MEC would simply cause
an unnecessary delay. In this regard they refer the court to the
decision of
BKS
Consortium v Mayor, Buffalo City Metropolitan Municipality &
Others
[6]
,
where it was found that the disqualification of a JV from a tender
should not have occurred and that had such disqualification
not
occurred, the applicants would have been awarded the contract. In
that particular case, the court set aside the tender award
and
substituted the applicant as the successful bidder for the tender.
[26]
The applicants submit that the facts before court in this particular
case is similar to the facts
in the
BKS Consortium
case; that
they have shown the exceptional circumstances exist that warrant the
court substituting the decision of the first respondent.
[27]
The Department opposes the relief sought on the basis that:
1)
the Construction Industry Development Board (CIDB's) Standard for
Uniformity
in Engineering and Construction Works Contracts empowers
the Department to require tenderers who bid as a Joint Venture to
submit
a notarised Joint Venture Agreement, and that this was a
material and mandatory condition of Tender.
2)
as the applicants' failure to comply with a material and mandatory
term of the
tender did not constitute an 'acceptable tender' for the
purposes of Section 1 of the Preferential Procurement Policy
Framework
Act 5 of 2000 (the PPPFA")", the Department was
obliged to deem their bid to be non-responsive;
3)
the Department acted in a procedurally fair manner and the decision
to exclude
the applicants is in no way contrary to any provision of
PAJA or the principle of legality;
4)
the applicants attempt to obfuscate matters by claiming that the
authentication
of a document equates the certification of a copy of a
document as a true copy by notary public or Commissioner of oaths is
without
merit;
5)
the applicants neither challenged the lawfulness of item C.2. 13.4 of
the Construction
Industry Development Board's Standards for
Uniformity in Engineering and Construction Works Contracts which
empowers the Department
to stipulate that the agreements be
authenticated, nor the lawfulness of the decision taken by the
Department to require such authentication
as a tender condition;
6)
substitution in terms of Section 8(1) (c) (ii) of PAJA is not
warranted, given
that the applicants alleged improper conduct on mala
tides and even if the applicants bid was not deemed non-responsive,
they would
not have been awarded the contract as it only scored the
second highest points, due to their B-BBEE scoring.
[28]
The Department submits that the applicants in their supplementary
founding affidavit no longer
claim that their non-compliance was due
to an 'innocent omission'. The Department submits instead, and
notwithstanding that this
change was not occasioned or justified by
any information contained in the Rule 53 record, the applicants claim
that they did not
comply as the original Joint Venture Agreement was
submitted and that there was therefore no need for it to be
authenticated.
[29]
The Department submits that the Construction Industry Development
Board's Standards for Uniformity
in Engineering and Construction
Works Contracts ("the SFU") empowers the Department to
require that tenderers who bid
as a joint venture submit a notarized
joint venture agreement and the Department included this requirement
as a tender condition.
And given the applicants' failure to comply
with the tender requirement to have the Joint Venture Agreement
authenticated by a
notary public or a commissioner of oaths, their
bid was not an acceptable tender for the purpose of the PPPFA.
[30]
According to the Department, this requirement was both a mandatory
and material requirement.
The Department therefore acted in a
procedurally fair manner and held the applicants' bid to be
non-responsive. It further
contends that the applicants
conceptually confuses certification of a copy of a document as a true
copy by a notary public or commissioner
of oaths, with the
authentication of the contents of the document by such an official.
It contends that the latter requires the
content of the document be
verified as true and correct.
[31]
According to the Department, the applicants failed to challenge both
the unlawfulness of C. 2.
13. 4 of the SFU which empowers it to
require that a Joint Venture Agreement be authenticated by a notary
public, as well as the
lawfulness of the decision taken by the
Department to require such authentication as a condition of tender.
It submits that the
decision to regard the applicants' bid as
non-responsive is lawful, rational, reasonable and in fact mandatory.
It also gives effect
to section 217 of the Constitution, the
Preferential Policy Framework Act 5 of 2000 ("the PPFA")
and its Regulations
and it is not contrary to PAJA in any respect.
[32]
The Department submits that in terms of the PPFA which gives effect
to section 217 of the Constitution
provides that a procuring entity
should only consider
'acceptable' tenders which in turn is defined
in Section 1 as '...any tender which in all respects complies with
the specifications
and conditions of tender as set out in the tender
document".
The Department contends that it was obliged to
reject the bid that was non-compliant with a material term.
[33]
It further states that its procurement policy is subject to the
provisions of the Construction
Industry Development Board Act, 38 of
2000 ("the CIDB Act") and its regulations. The Construction
Industry Development
Board was established in terms of this Act. The
CIDB Act sets out and promotes uniform and ethical standards to
regulate the actions,
practices and procedures of parties engaged in
construction contracts, within the framework of the procurement
policy of government;
it further promotes the standardisation of the
procurement process with regards to the construction industry. The
CIDB Act initiates,
promote and implement national programmes and
projects aimed at the standardisation of procurement documentation,
practices and
procedures.
[34]
In terms of these provisions the CIDB firstly enacted the SFU in 2004
to ensure uniformity in
construction contracts. According to the
Department the SFU, which was promulgated on 8 August 2019 in
Government Gazette 42622,
is the latest iteration and applicable to
this tender. In terms of item T1.2.1 of the Conditions of Tender the
SFU, as amended
by the Department is applicable to this tender. Item
1 provides that the SFU establishes requirements for engineering and
construction
works aimed at bringing about standardisation and
uniformity in construction contracts documentation practices and
procedures.
Item C.2 of the SFU under item C.2.14 stipulates that
tenderers must accept that 'tender offers, which do not provide all
the data
or information requested completely and in the form
required, may be regarded by the employer is non - responsive'. Item
C.2.18.1
empowers the Department to request notarised Joint Venture
Agreements and specifies that tenderers must be provide"... on
request by the [Department], any other material that has a bearing on
the tender offer, the tenderer's commercial position (including
notarised joint venture agreements}, preferencing arrangements, or
samples of materials, considered necessary by the [Department]
..."
[35]
The Department submits that while the formation of joint ventures
gave effect to section 217
of the Constitution and the PPFA by
allowing contractors to increase their buying capacity, pool skills
and further B-BBEE, there
are various policy reasons that the
Department requires bids by joint ventures to be accompanied by an
authenticated Joint Venture
Agreement. It also resulted in risks and
losses for tendering authorities which are as follows:
a)
allowed for fronting by joint ventures who misrepresented the
percentage participation
of each party and thereby scoring higher B
BBEE points in order to gain an unfair advantage;
b)
it became more difficult for authorities to hold individual partners
responsible
and liable for losses;
c)
it was more difficult to accurately assess the capabilities,
strengths and weaknesses
of the parties or make a full appraisal of
its functioning;
d)
joint ventures have split up midway through contacts for various
reasons, resulting
in uncompleted projects.
[36]
It was for these reasons that, since approximately 2015, the
Department, like any other organ
of state in the national, provincial
and local government spheres as well as companies, began requiring
that documents be notarised
or commissioned as a standard form in
construction tenders and contracts. Certain precautions were also
included in the Department's
supply chain management policies in
response to the alarming trend of fronting.
[37]
One of these were the insistence that notarised or commissioned Joint
Venture Agreement be included
in a tender which allowed the
Department to rely on the representations made therein, given that
criminal sanctions may result
should a misrepresentation be made in
such a document. The Department submits that without being able to
rely on the representations
being authenticated, it and the other
bidders would be severely prejudiced.
[38]
In the tender documents the Department expressly amended the SFU on
pain of being deemed non
- responsive, required that tendering as a
joint venture to submit a notarised or otherwise authenticated Joint
Venture Agreement
which specified the following:
a)
precisely the conditions under which the joint venture will function;
b)
its period of duration;
c)
the persons authorised to represent and obligated in it;
d)
explicitly indicate what the percentage participation in the joint
venture will
be of each part involved in it; and
e)
any other information necessary to permit a full appraisal of its
functioning.
[39]
The Department submits that the requirement of the tender in this
particular case which requires
that a Joint Venture Agreement be
authenticated by a notary public or other official deputed to witness
sworn statements, is a
material and mandatory tender condition. It
further submits that an acceptable tender is any tender which in all
respects, complies
with the specifications and conditions of tender
as set out in the tender document.
[40]
It further submits that non-compliance with the peremptory provision
such as in this case, and
where a tenderer failed to comply with such
a provision, such a tender should be regarded as non-responsive.
Regarding the authentication
of documents by a notary public and
commissioner of oaths, I will deal with these submissions of the
Department later in this judgment.
[41]
The Department further submits that the remedy of substitution would
be wholly inappropriate,
given the fact that it has a legitimate
governmental purpose that bids by a Joint Venture must be accompanied
by an authenticated
Joint Venture Agreement, and that the requirement
is both mandatory and material. In this regard the decision of
Dr
JS Moroka Municipality and Others v Betram (Pty) Ltd and another
[7]
,
where it was stated that unless those conditions are immaterial,
unreasonable or unconstitutional, it was for the organ of state
and
not the court to decide what should be a prerequisite for a valid
tender and a failure to comply with the prescribed conditions
will
result in a tender being disqualified as an 'acceptable tender'. They
submit therefore that the applicants are not entitled
to the relief
they are seeking.
[42]
According to the Department, the substitution sought is a drastic
remedy, which should in terms
of section 8(1) (c) of PAJA be only
granted in exceptional cases and that the applicants has not made out
a case for such an extraordinary
remedy. This is because there have
been no mala tides on the part of the officials from the Department.
Furthermore, even though
the applicants submitted the lowest bid in
light of the 8-BBEE score, it could only score the second highest
points, and even if
was not disqualified, the tender would most
likely not be awarded to it. Should the court therefore find in
favour of the applicants,
the Department submits that the court remit
the matter back to the MEC to take a decision thereon.
Analysis:
[43]
I agree with the Department that the Applicants seems to have
deviated from their initial grounds
as proffered in the interim
application as to why the decision not to award the tender should be
reviewed and set aside. The applicants'
submission that they did not
alter or amend the basis for its application but rather substantiated
and advanced the case that was
initially presented to the court is
without substance; it strikes at the heart of the question whether
there was non-compliance
with the requirement that the joint venture
agreement had to be authenticated either by a notary public or a
commissioner of oaths.
[44]
In my view, this deviation is not a mere substantiation to advance
their case because in the
interim proceedings in the founding
affidavit deposed to by Galia Motala ("Motala"), a managing
member of the second
applicant filed on behalf of the applicants; She
admitted that there was non-compliance with the requirement that the
Joint Venture
Agreement had to be authenticated, but it was as a
result of an innocent omission they did not pick it up at the time of
the tender.
[8]
This was clearly
illustrated by the submission they made during those proceedings
where they stated at that time
'.
. . In the present matter, the applicants deponent states quite
clearly that the requirement and the joint venture agreement
that had
to be annexed also had to be confirmed by a notary public, was a new
requirement, which appears to be common cause, was
something that the
applicants did not pick up at the time of the tender. All that was
required was that the officials simply request
that the document be
properly notarized'.
[45]
This version however, changed in their supplementary founding
affidavit in terms of rule 53(4),
when they stated that they were
advised because the original joint venture agreement was submitted,
it could not be authenticated.
And the joint venture has been advised
that only a copy could be authenticated. They further submitted that
on a proper interpretation,
it would only be necessary to have an
authenticated joint venture agreement if the agreement was not the
original agreement; that
could be authenticated by either a notary
public or an official deputed to witness sworn statements like a
commissioner of oaths.
[46]
The applicants' further states that the reason why they changed their
original stance was because
at the time of deposing to the founding
affidavit, it was not considered that the joint venture agreement
included in the tender
was the original. To illustrate this
discrepancy, they state...
'This
requirement, being an amendment to the Standard Conditions of Tender,
was overlooked in compiling the bid and noncompliance
can only be
couched as an innocent omission
[9]
'.
(emphasis added)
[47]
This latter version clearly seeks to make out a case that there was
not a question of any non-compliance.
And I agree with the submission
of the Department that the applicants may not on the one hand claim
that the failure was due to
an innocent omission and then
subsequently claim that it was deliberate given the fact that it was
not required to authenticate
an original document. These two versions
in my view are mutually exclusive and cannot be regarded as a mere
substantiation to advance
the case that was initially presented to
the court. Initially they admitted that due to ignorance on their
part, because of the
amendment to the Standard Conditions of Tender
that their non-compliance was due to an innocent omission.
[48]
A party in review proceedings are generally in terms of Rule 53(4)
permitted, after the record
has been made available to such a party,
to add or vary the terms of his or her notice of motion and
supplement the supporting
affidavit.
[49]
In
Lufuno
Mphaphuli and Associates (Pty) Ltd v Andrews and Another
[10]
,
the Supreme Court of Appeal held the following in this regard
:
'The grounds for any review, as well as the facts and circumstances
upon which a litigant wishes to rely, have to be set out in
its founding affidavit amplified insofar as may be necessary by
a supplementary affidavit after the receipt of the
record from
the presiding officer, obviously based
on
the new information that has since become available ... ( own
emphasis)
[50]
In her supplementary founding affidavit Motala states that
'At the
time of the deposing to the founding affidavit it was not considered
the Joint Venture Agreement included in the tender
was the original,
upon receipt of the record it was pointed out to me that the document
included in the tender was duly signed
by myself and Tolmay. It is
only realised that the original agreement was in fact included in the
tender’.
[51]
This in my view, is not new information that had become available
since the filing of the founding
affidavit. This was information that
the applications must have been aware of, because if they on their
new version had submitted
the original Joint Venture Agreement, then
they would have been in possession of a copy or copies of the
agreement, which follows
that the original was submitted. It is
inconceivable that they would have submitted copies or a copy of the
Joint Venture Agreement
for them to have realized at a later stage
that they have in fact submitted an original of the Joint Venture
Agreement.
[52]
This is in any event at odds with the case as put up in the founding
affidavit, where they acknowledged
that they did not realize that
their failure to authenticate the Joint Venture Agreement amounted to
non-compliance, which they
fully understood and subsequently implies
that they knew that the original documents were submitted but were
unaware of the amended
Standard Conditions of Tender that required
the Joint Venture Agreement to be authenticated. This raised the
question of the materiality
of the non-compliance and not the
question which they now raise, whether it amounted to a failure to
comply with the conditions
of tender, which is a totally separate
issue.
[53]
I will nonetheless proceed to consider these issues. In these
proceedings, it seems that the
case the applicants now seeks to
advance is that they do not dispute the fact that the need to
authenticate the Joint Venture Agreement
is a necessary and material
requirement. This is evident from the papers where they do not
challenge the reasons and rationality
of this requirement as advanced
by the Head of the Department. In this regard, the Department states
that in the tender documents,
it had expressly amended the SFU to, on
pain of being deemed non - responsive to require bidders tendering as
a joint venture to
submit a notarized or otherwise authenticated
Joint Venture Agreement wherein certain information essential to the
Joint Venture
is required as mentioned by the Head of Department
[11]
.
[54]
The applicants also do not challenge that a notarized or commissioned
Joint Venture Agreement
allows the Department to rely on the
representations made therein given that criminal sanctions would
possibly result should a
misrepresentation be made in such a
document. And it is also not disputed that the Department without
being able to rely on the
representations being authenticated, it and
other bidders will be severely prejudiced.
[55]
It is also not disputed that should a tenderer fail to comply, the
Department would be obliged
to regard the bid as non-responsive and
such failure would constitute a material deviation or qualification
that; (a) would detrimentally
affect the scope or performance of the
works services; (b) significantly change the Department's risks under
the contract; (c)
affect the competitive position of other tenderers
presenting responsive tenders if it were to be subsequently
rectified.
[56]
It seems that in these proceedings the applicants do not dispute that
this tender requirement
is mandatory and material. Their case is that
they have complied with this requirement and that there was no need
to have the Joint
Venture Agreement authenticated because they have
submitted an original Joint Venture Agreement and only a copy needs
to be authenticated,
as pointed out earlier.
[57]
The Department on the other hand submits that the applicants attempt
to obfuscate matters by
claiming that the authentication of a
document equates to the certification of a copy of a document as a
true copy by a notary
public or commissioner of oaths. The question
therefore, for consideration in these proceedings is to determine
what is meant by
authentication in terms of clause C2.13.4. According
to the applicants this clause is open to more than one
interpretation. They
submit the following to be reasonable
interpretations of this clause. These are:
a)
that the agreement be certified as a true copy of the original;
b)
that the information contained in the agreement be authenticated;
c)
have the signatures on the agreement be authenticated.
[58]
According to them, the only reasonable interpretation is that
'authenticated by notary public or other official deputed to
witness or statements'
is that the document must be certified as
a true copy of the original. According to them it follows naturally
that the joint venture
was not required to do so because it submitted
an original agreement.
[59]
According to the applicants, the Department should have set out
clearly and unambiguously in
the tender document, what was required.
If a notarised agreement was required, it should have been stated
clearly. Similarly, if
it was necessary to confirm the signatures on
the agreement then it should have been stated accordingly.
[60]
The applicants submit that there was no certainty about the tender
requirements and relies on
the case of
City
of Ekhurleni Metropolitan Municipality v Takubiza Trading and
Projects CC
[12]
where it was emphasized although with reference to the tender
process:
'That
certainty has to be the touchstone'
.
The applicants also rely on the decision of
Minister
of Social Development and Others v Phoenix Cash and Carry PMB CC
[13]
that reinforces the position that the public tender process should be
so interpreted and applied as to avoid both uncertainty and
undue
reliance on form.
[61]
This submission by the applicants is without merit for two reason.
Firstly, the wording of clause
C.2.13.4 is clear, and from my
understanding of the applicants' case both in the interim proceedings
as well as these proceedings,
there was no uncertainty in their
understanding of what this provision meant. During the interim
proceedings, they say they were
aware that an authenticated Joint
Venture Agreement had to be submitted but due to an innocent omission
they had not done so. In
these proceedings, the case is that there
was no need to submit an authenticated Joint Venture Agreement
because they have submitted
the original. Secondly, it seems that
this point was raised for the first time in their supplementary heads
of argument; surprisingly
it was not raised in their supplementary
founding affidavit or in their initial heads of argument.
[62]
Authentication is defined as:
'To
establish as genuine or valid or to give authority or legal
validity'
[14]
.
It is further useful to determine the real meaning of authentication
by having regard to what in general, under our law is meant
by
authentication of a document and the purpose for which authentication
of documents is required. I agree with the Department
that in the
legal context it normally means to verify a document to be genuine,
which is often done by verifying the signature
on the document. It is
also useful to have regard to provisions of rule 63 of the uniform
rules of Court although it is not applicable
in this case to
determine what is meant by authentication of a document. In this
regard, I align myself with what said in
Ex
Parte Holmes & Co
1939 MPD 301 at 307
[15]
that:
'...[A]
document authenticated in accordance with the rules, furnishes, on
its mere production from proper custody, prima facie
proof of
itself,· and that it should be in a condition to do this, is
the true purpose and effect of such authentication'.
[63]
In a more recent judgment of this court
in
Benjamin v Additional Magistrate, Cape Town and Others
[16]
authentication of a document was described as:
'...
In the legal context it normally means to verify a document to be
genuine, which is often done by verifying or "authenticating"
the signature on a document.'
It further states at paragraph 28
that under the common law:
'The
meaning of the word "authenticate" means a process by which
a document is considered to be genuine or what it purports
to be, as
will be discussed in more detail below. In practice this is usually
done by a statement (authenticating document) by
a person other than
the author of the authenticated document that a signature on the
authenticated document is a genuine signature
. There are
various ways of authenticating a document:
For example,
oral evidence might be lead that a document is a valid document.
Another example where authentication is not done with reference to
the signature is in the case of a document such as an email,
which
does not have a signature.
Someone testifying that he or
she sent an email is in effect saying that the email is genuine or
authentic
. Furthermore, not every document with a correct
signature is, however, a genuine document: a valid signature might be
obtained
by fraud, or a signature stamp might be used by someone for
fraudulent purposes.'
And
at paragraph 30 - 33 the court states: '...
[
I]t is
clear that it is the genuineness of the document that is at stake and
not just the signature on the document
.
The court in
Chopra also stated, referring to
McLeod v Gesade Holdings (Pty)
Ltd:
"...
Ramsbottom J. observed that the Rules then in force
relating to the authentication of documents were not exhaustive,
that
what the Court had to be satisfied of was that the document before it
was a genuine one, and that the signature of the person
who was said
to be the signatory thereof was indeed the signature. "
I
agree with the statement that it is the document that is important
and which must be genuine.
The reference to a signature
does not mean that the signature also has to be verified in some way
in every case.
31
Although in the majority of cases authentication is done by way of
verifying a signature,
the real issue is whether the document as a
whole is authentic, not only whether the signature is authentic
.
This authentication can be done either by saying "the signature
is the signature of X" or "this is an authentic
document"
or other words to that effect.
32
An example of a case where the authentication was not done by way of
verifying the
signature is Mountain View Hotel (Pty) Ltd v Rossouw.
In that matter the statement made was that "the person swearing
to the
affidavit is personally known to him as ...", not that he
verified the signature. The court accepted the affidavit as being
sufficiently authenticated under Uniform Rule 63(4) read with Uniform
Rule 27(3).
33
What is important is that the document is genuine
,
not whether the signature is genuine. It is theoretically possible
that a genuine signature might be obtained by fraudulent means,
which
would not make the document valid, even though the signature might be
valid.'
(own emphasis)
[64]
Authentication of a document in the legal context is not the
certification of a document to be
the true copy of an original as
contended by the applicants. It is a process whereby authentication
is usually settled by a statement
or authentication document by a
person other than the author of the document that confirms that the
signature or the content of
the document, in terms of what is stated
there in, is genuine. There are various ways of authenticating a
document, the most common
of which is during court proceedings where
a person is confronted with a document when he or she is required to
confirm the contents
thereof as correct. In other instances, the
authentication of a document is usually performed by a notary public
or a commissioner
of oaths, in the presence of the person who seeks
the authentication or commissioning thereof. The process of
authentication is
undertaken by a person other than the author or
authors of the document.
[65]
A notary public is a practicing attorney who is admitted and enrolled
to practice as a notary
in terms of
section 1
of the
Legal Practice
Act, 28 of 2014
. A notary public is a responsible officer of court in
whose solemn acts confidence is reposed.
[17]
There is a presumption that every statement contained in a notarial
deed is true, and that all proper solemnities have been observed
by
the notary. A notary public must be an independent person and in no
way have an interest in the act which he or she executes.
[66]
Our law places great score on documents and especially agreements
that are authenticated, in
this regard the following is
inter
alia
stated in
LAWSA
[18]
:
'[When]
members of the public employ a notary to draft a document, they have
the following safeguards:
There
is a high tradition of honesty and reliability attached to the office
and faithfully upheld by the majority of notaries
A
notary who does not use reasonable skill in exercising this calling,
or who draws up a document which is not legal, may be held
liable for
damages to any person who may suffer as a result thereof.
When
a document is executed before a notary there is a presumption that
every statement contained in the document is true and that
all the
proper solemnities have been observed by the notary, and this
presumption can be rebutted only by clear proof to the contrary
Although
it is not customary to execute documents notarially unless this is
especially required by law, a notary is not relieved
of his or her
professional responsibility when he or she draws a document in
underhand form. This provides a guarantee of quality
to members of
the public who engage a notary to draft a legal document. '
(Footnotes
omitted)
[67]
In the case of a commissioner of oaths in terms of
Section 7
as well
as section 9 of the Justices of Peace and Commissioner of Oaths Act
16 of 1963, a commissioner of oaths, apart from certifying
documents
as being a true copy of an original, also authenticates documents in
the manner as prescribed in the act. In terms of
the Act, the oath or
an affirmation is administered when a person makes a solemn or
attested declaration before a commissioner
of oaths.
[68]
In terms of section 9 any person who, in an affidavit, affirmation or
solemn attested declaration
made before a commissioner of oaths has
made a statement knowing it to be false, shall be guilty of an
offence and liable upon
conviction to penalties prescribed by law for
the offence of perjury. A commissioner of oaths in terms of certain
provisions of
our law. In terms of certain provisions of our law
statements other than affidavits may be required to be commissioned
by commissioner
of oaths. For example the
Wills Act 7 of 1953
,
provides that a will must be signed by a testator in the
'presence
and by direction of the testator, a commissioner of oaths certifies
that he has satisfied himself as to the identity of
the testator and
that the will so signed is the will of the testator, and each page of
the will, excluding the page on which the
certificate appears, is
also signed, anywhere on the page, by the commissioner of oaths who
so certifies ...'
[69]
Other examples where documents other than affidavits must be
commissioned by a commissioner of oaths are found
inter alia
in
section 40
of the
Local Government: Municipal Property Rates Act 6
of 2004
; and the regulations prescribed in terms of the Military
Pensions Act 84 of 1976, which requires that an application for
pension
or gratuity must be signed and attested before a commissioner
of oaths.
[70]
It is because of the consequences of a false statement being made
before a commissioner of oaths on pain of being found guilty
of an
offence and liable upon conviction to penalties prescribed by law for
the offence of perjury, that documents either by law
or in this
particular case, a Joint Venture Agreement needs to be authenticated
by a notary public or commissioner of oaths.
[71]
In this regard, as stated by the head of department, it is necessary
to have a Joint Venture Agreement authenticated as a notarized
or
commissioned Joint Venture Agreement allows the Department to rely on
the representations made therein given that criminal sanctions
may
result should a misrepresentation be made in such a document. She
stated that this was done to curtail the alarming trend of
fronting
by tenderers seeking to bypass the aims and objectives of the PPPFA
and its regulations; as well as the B-BBEE Act and
its Code when they
enter into Joint Venture Agreements to unfairly manipulate the point
scoring system. It is clear that these
provisions constitute a safety
mechanism to prevent fronting and artificial manipulation of B-BBEE
point scoring system. It requires
that the lead partner of the joint
venture shall have the higher or equal grading to all others in the
joint venture and shall
also have a higher or equal shareholding in
the joint venture. It also has as its further purpose to prevent
abuse and manipulation
which have common control shareholding by
providing that, in the event of two members of the joint venture have
common control
in shareholding to have such members, be deemed to be
a single member of the joint venture by using the CIBD and B-BBEE
grading
of the member with the higher CIBD grading. It is for these
reasons that this information that is required in the Joint Venture
Agreement has to be authenticated by a notary public or commissioner
of oaths; to ensure that the information is correct and not
misrepresented. This in my view, is a legitimate government purpose
in order to avoid fraud and corruption.
[72]
The mere inclusion of an original Joint Venture Agreement without it
being authenticated does
not mean anything, and is no guarantee that
any of the information as required, to prevent fronting and the
artificial manipulation
of the joint venture. It is to safeguard any
misrepresentation of the true purpose of a joint venture and to
ensure there are compliance
with the provisions of section 217 of the
Constitution. For all of these reasons, the applicants' contention
that the mere inclusion
of the original Joint Venture Agreement
without it being authenticated by a notary public or commissioner of
oaths in their bid
complied with the tender requirements, is without
merit. It was a material and mandatory condition which the applicants
failed
to comply with. The Department was therefore justified in
declaring their bid as non - responsive, and as a result, the
application
falls to be dismissed.
Given
these findings, there is no need for me to deal with the substitution
issue.
Costs:
[73]
The applicants submit that the court should not grant a costs order
against them because they
were vindicating their right to just
administrative action, and therefore the court should apply the
principles as said that in
the case of
Biowatch Trust v Registrar
of Genetic Resources
2009 (6) SA 232
(CC).
This
is not the typical case where the application was brought purely to
vindicate a constitutional right, but more so to fight
for the right
to acquire a tender in the course of conducting a business to gain
financially. Where the consequences would not
have led to undue
hardship but merely to miss out on a business opportunity with the
government. Furthermore, it seems that the
applicants are a business
with financial means and no case had been made out that they would
suffer unduly if a cost order were
granted against them.
Order:
In
the result therefore, I make the following order:
That
the application is dismissed with costs, including the costs of two
counsel.
R.C.A
Henney
Judge
of the High Court
Counsel
for the applicants:
Adv
APJ Els and Adv AA Basson
Instructed
by:
Thomas
& Swanepoel Inc
Counsel
for the first respondent:
Adv I
Jamie SC and Adv M R Vassen
Instructed
by:
Office
of the State Attorney
[1]
Ex
Porte Holmes & Co (Pty) Ltd
1939 NPD 301
at 307 cited with approval in
Friend
v Friend
1962 (4) SA 115
(E) at 116 D-E; Chopra V Sparks Cinemas (Pty) Ltd
1973 (2) SA 352
(D) at 358 C
[2]
(2012)
ZASCA13; 2012(4) SA 593(SCA)
[3]
(2020)
ZACC 20
; 2020(6) SA 14 (CC); 2020(10) BCLR 1173(CC) at para 52
[4]
2014(1) SA 604 (CC) at para 92("AII Pay 1")
[5]
2015 (5) SA 245 (CC)
[6]
(2013) 4 ALL SA 461 (ECG)
[7]
(2014) 1 All SA 545 (SCA)
[8]
Para 7.9 at page 21
[9]
Para 7.9 at page 16 in FA in support of the interim interdict
proceedings in Part A
[10]
2008(7) BCLR 725 (SCA) at para 15
[11]
See paragraphs 34, 35, 36 above.
[12]
[2022] ZASCA 82
(3 June 2022) at para 15
[13]
[2007] 3 ALL SA 115
(SCA) at para 2
[14]
Collins English Dictionary
[15]
Cited with approval in Friend v Friend
1962 (4) SA 115
(E) at 116 D-
G; Chopra v Sparks Cinemas (Pty) Ltd 1973(2) 352(0) at 358
[16]
(14216/2013)
[2014] ZAWCHC 115
(1 August 2014) at para 25 (footnotes
omitted)
[17]
The Transvaal Land Co Ltd v Registrar of Deeds 1909 TS 759
[18]
Paragraph 104 ,Volume 26(4), Third Edition
sino noindex
make_database footer start
Similar Cases
Quality Plant Hire CC / Expectra 388 CC Joint Venture and Others v MEC for the Department: Transport & Public Works, Western Cape Government and Others (20263/2021) [2022] ZAWCHC 121 (14 June 2022)
[2022] ZAWCHC 121High Court of South Africa (Western Cape Division)100% similar
Agri South Africa NPC v Paulsmeier (20910/2024) [2025] ZAWCHC 530 (17 November 2025)
[2025] ZAWCHC 530High Court of South Africa (Western Cape Division)98% similar
Imvusa Trading 1581 BK v Oudtshoorn Municipality (1708/2017) [2022] ZAWCHC 211 (20 October 2022)
[2022] ZAWCHC 211High Court of South Africa (Western Cape Division)97% similar
Afgri Operations (Pty) Ltd v Oberholzer and Others (1306/2020) [2022] ZAWCHC 6 (10 February 2022)
[2022] ZAWCHC 6High Court of South Africa (Western Cape Division)97% similar
ALG Boerdery (Pty) Ltd and Another v Van Heerden and Others (2699/2023) [2023] ZAWCHC 145 (14 June 2023)
[2023] ZAWCHC 145High Court of South Africa (Western Cape Division)97% similar