Case Law[2023] ZAWCHC 258South Africa
Ampcor Khanyisa (Pty) Ltd v City of Cape Town and Others (21512/2021) [2023] ZAWCHC 258 (18 October 2023)
High Court of South Africa (Western Cape Division)
18 October 2023
Judgment
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# South Africa: Western Cape High Court, Cape Town
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## Ampcor Khanyisa (Pty) Ltd v City of Cape Town and Others (21512/2021) [2023] ZAWCHC 258 (18 October 2023)
Ampcor Khanyisa (Pty) Ltd v City of Cape Town and Others (21512/2021) [2023] ZAWCHC 258 (18 October 2023)
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sino date 18 October 2023
FLYNOTES:
ADMINISTRATIVE – Tender –
Vagueness
of requirements
–
Complaint
about lack of clarity – City called on applicant to provide
certain accreditation – Repeated requirements
of tender –
Gave no further clarity as to what City regarded as acceptable
qualification – Erred in material
way in taking such
approach – Ought to have been clear to everyone about what
it regarded as equivalent – City’s
lack of clarity
resulted in tender that was vague and process that was unfair –
Left applicant uncertain about what
was required of it to meet
requirements – Decision to disqualify bid declared invalid.
REPUBLIC
OF SOUTH AFRICA
IN
THE HIGH COURT OF SOUTH AFRICA
(WESTERN
CAPE DIVISION, CAPE TOWN)
Case
No. 21512/2021
Before:
The Hon. Ms Acting Justice Hofmeyr
Date
of hearing: 15 August 2023
Date
of judgment: 18 October 2023
In
the matter between:
AMPCOR
KHANYISA (PTY) LTD
Applicant
and
THE
CITY OF CAPE TOWN
First
Respondent
THE
BID ADJUDICATION COMMITTEE:
CITY
OF CAPE TOWN
Second
Respondent
THE
CITY MANAGER: CITY OF CAPE TOWN
Third
Respondent
JT
MARITZ ELECTRICAL CC
Fourth
Respondent
ELEX
UMBANE (PTY) KTD
Fifth
Respondent
JAKE
TRADING CC
Sixth
Respondent
JUDGMENT
Judgment
handed down electronically by circulation to the parties’ legal
representatives on email and released on SAFLII
HOFMEYR
AJ:
Introduction
1
On 25 September 2020, the City of Cape Town
published advertisements calling for bids for a tender to provide
construction works
for the installation and replacement of certain
electrical equipment and infrastructure.
2
The applicant,
Ampcor
Khanyisa (Pty) Ltd, submitted a bid for the tender.
3
It was, however, disqualified because it was found
by the Bid Evaluation Committee, and then confirmed by the Bid
Adjudication Committee,
to have been non-responsive. The effect of
this finding was that the bid did not proceed to the next stage for
competitive assessment
on price. It has brought review proceedings to
impugn the decision to disqualify it.
4
The applicant’s disqualification related to
a single issue. In all other respects, the bid was responsive.
5
The non-responsiveness related to the supporting
documents submitted for one of the semi-skilled workers (handymen)
that the applicant
said it would have working on the project.
According to the City, one of the applicant’s handyman, Mr Amon
Farmer, did not
submit a document showing that he had a minimum of an
“ELCONOP 2 or similar electrical construction
training/accreditation”.
6
It is common cause that Mr Farmer did not have an
ELCONOP 2 accreditation. However, he did have another qualification
(a single
phase testing certificate) that, it is also common cause,
was “similar to” and ELCONOP 2 accreditation. So he
had the accreditation that the City was looking for but the applicant
did not submit that certificate with its tender. It would
have been a
very simple matter for the necessary document to be provided.
7
The applicant contends that the tender
requirements were never clearly enough stated to make it apparent
that it needed to supply
the City with a single phase testing
certificate for Mr Farmer. The applicant says it never understood
this to be required because
it had, in fact, provided a more recent,
superior accreditation for Mr Farmer. It therefore never realised
that what was required
of it was to submit proof of a different,
lesser, accreditation.
8
The City disputes whether Mr Farmer’s other,
more recent accreditation was applicable to this tender. It
emphasises that the
tender had a key construction aspect and Mr
Farmer’s more recent accreditation did not have a clear
construction training
component. The City also says that it is the
expert decision-maker and it should be left free to determine what
accreditation and
training, it regards, as adequate for its purposes.
A court should not impugn its decisions based on questions of fact
unless those
facts are objectively verifiable and uncontentious.
9
The issues for determination in this review are
therefore twofold:
9.1
Was there a reviewable irregularity in the City’s
decision making processes; and
9.2
If there was, what remedy should this court grant?
Reviewable
irregularity
10
By the time that the issues in this case had
crystalised for argument, it was clear that the mainstay of the
applicant’s attack
on the impugned decisions relied on the
vagueness of the tender requirements and the attendant consequences
that this vagueness
had for procedural fairness in the process.
11
The applicant appears to have been moved to place
this emphasis on its review grounds because of the entirely correct
submission
from the City that, in the absence of objectively
verifiable facts regarding the superiority of Mr Farmer’s other
qualification
and what counts as accreditation/training sufficiently
similar to ELECONOP 2, this court ought not to review the City’s
decisions.
12
The
City was correct in this submission because our courts have been at
pains to demarcate a limited area for judicial review based
on errors
of fact. This demarcation is important because, unless a line is
maintained between the types of factual errors that
will result in a
decision being reviewed and set aside by a court, there is a risk
that the important distinction between appeals
and reviews will be
collapsed.
[1]
The
test that has been set for reviewable errors of fact is that they
must be objectively verifiable and uncontentious.
[2]
13
This court must therefore respect the expert
decision-making of the City. It determined that Mr Farmer’s
other qualification
did not contain a construction component
sufficient for the work required on the tender. Whether the City’s
determination
on this issue is correct is hotly contested by the
applicant but that makes the answer to the question the antithesis of
objectively
verifiable. Whether Mr Farmer’s other qualification
provided sufficient training in construction to be similar enough to
the ELCONOP 2 accreditation is not uncontentious in the way required
for this court to step in and impugn the City’s decision.
14
So, unless the applicant had pivoted away from the
question whether Mr Farmer’s other qualification was superior
or not to
the ELCONOP 2 accreditation, it would not have been
successful in its review.
15
But it did pivot.
16
The applicant’s attack on the City’s
decision-making shifted to focus on a different aspect of its review.
The applicant
emphasised that it was never made clear to it during
the course of the City’s decision-making that what the City
required
from the applicant was that it submit proof of Mr Farmer’s
single phase testing accreditation. In order to understand its
argument on this score it is necessary to trace some of the stages of
the City’s decision-making.
The tender
requirements
17
The tender itself required bidders to submit proof
that its semi-skilled workers (or handymen) had a “ELCONOP 2”
qualification
“or similar electrical
construction/accreditation”.
18
This requirement, on its own terms, introduced an
evaluative element into the decision-making. The City had indicated
that it was
willing to accept accreditations different to ELCONOP 2
but it specified that anything else that was submitted would have to
be
“similar” to ELECONOP 2.
The clarification
letter
19
After the bids were submitted, the City sent a
letter to the applicant and drew attention to the tender requirement
of an ELCONOP
2 or similar accreditation for semi-skilled workers and
then said that the applicant had “
failed
to submit accompanying documents as proof of competencies
”
.
It then asked the applicant to submit “ELCONOP 2 or similar
electrical training/accreditation” for the three semi-skilled
workers of which Mr Farmer was one.
20
The applicant did not understand this request to
be a request for a single phase testing certificate to be produced
for Mr Farmer.
On the contrary, the applicant thought that Mr
Farmer’s higher qualification of an NRS040 certificate was
sufficient to qualify
him to perform the work covered by an ELCONOP 2
accreditation.
21
But that is not what the City was after. The City
had made a determination that there was a special component of
construction training
that workers, who had received the ELECONP 2
certificate, would have covered in their course and this was a key
element that it
was looking for in the suitability of a bidder’s
handymen.
22
As I have set out above, the City knew what it
wanted for this project and it is the expert decision-maker to which
deference is
owed when it determines what will satisfy it as a
qualification similar to ELCONOP 2. However, precisely because this
is its domain
and it must be granted a measure of deference on the
question of what qualifies as an equivalent qualification, it ought
to have
ensured that its tender requirements and communications with
bidders made this clear.
23
As Mr Borgström, who appeared for the
applicant with Mr Lubbe, stressed during argument, the Constitutional
Court has previously
held that that tenders ought not to be designed
in such a way that they are awarded only to those bidders who are
“clever”
enough to decipher an otherwise unclear tender
requirement.
24
In
AllPay1
,
the Constitutional Court emphasised that vagueness and uncertainty
are grounds of review under the Promotion of Administrative
Justice
Act 3 of 2000 (PAJA).
[3]
The
Court also explained that vagueness can produce an element of
procedural unfairness in a process because if the requirements
are so
unclear that a bidder simply does not know the case it must meet in
order to be responsive to a tender, then the process
will not have
been a fair one.
[4]
25
Writing
for the Court, Justice Froneman held that “
the
purpose of a tender is not to reward bidders who are clever enough to
decipher unclear directions
”
.
On the contrary, the purpose is to ensure a process that elicits the
best solution through a process that is fair, equitable,
transparent,
costeffective and competitive.
[5]
26
At the stage that the City sent the letter to the
applicant calling for it to submit the ELCONOP 2 or similar training
/accreditation
for its three semi-skilled workers, the Bid Evaluation
Committee of the City had already met and reviewed the documents
submitted
for Mr Farmer. It had formed the view that his other
qualification was not suitable and it knew that it was looking for an
accreditation
with a particular emphasis on construction training,
for which a single phase testing certification would be adequate. But
it did
not say this in its letter to the applicant. Instead, it
simply stated vaguely that the applicant had “
failed
to submit accompanying documents as proof of competencies
”
.
It called on the applicant to provide an ELCONOP 2 or similar
training/accreditation. But that just repeated the requirement of
the
tender. It gave no further clarity as to what the City regarded as a
qualification sufficiently similar to ELCONOP 2 to be
acceptable.
27
The City’s retort to this complaint about a
lack of clarity was twofold.
27.1
First, it maintained that the tender requirement
was clear so its mere repetition in the clarification letter was
adequate. However,
as I have already highlighted above, the tender
requirements were set in such a way as to introduce an evaluative
element. The
City is entitled to use its expertise to assess what is
suitably equivalent to an ELCONOP 2 qualification to be adequate but
precisely
because this requires a measure of evaluation, it needs to
be clear about what it will regard as a sufficiently similar
qualification.
27.2
Second, the City resisted the applicant’s
complaint that it was incumbent upon it to set out in the
clarification letter
why
the
City had formed the view that the documents already submitted for Mr
Farmer were not sufficiently “similar” to an
ELCONOP 2
qualification, by saying that it could not have done so because this
would have amounted to giving the applicant “a
helping hand of
the kind not given to any other bidder”. The City was emphatic
about this. It said that “the purpose
of the clarification
letters is not to provide tenderers an unfair chance or to give them
an opportunity to enhance an otherwise
non-responsive bid”.
27.3
But the City erred in a material way in taking
this approach. It cannot possibly amount to an unfair advantage to a
bidder if the
City is simply clear about what it regards as a
sufficiently similar qualification to ELCONOP 2 for the requirements
of a particular
project. Provided this clarity is given to all
bidders similarly situated, there can be no unfairness that arises.
The City is
merely clarifying to bidders what it regards as
equivalent training/accreditation.
27.4
The
City’s approach on this issue appears to have been informed by
a genuine concern not to be advantaging one bidder over
another in
the decision-making process. It should be commended on its efforts to
ensure parity of treatment.
[6]
27.5
But it erred in doing so because it thought that
the way to achieve this was to keep everyone equally in the dark
about what it
would regard as an equivalent qualification. It ought,
instead, to have been clear to everyone about what it regarded as
equivalent.
If its position was that it did not regard qualifications
without a construction training component as sufficiently similar to
ELCONOP 2, then it should have said this, clearly. But simply
repeating that a similar qualification must be provided does not give
the necessary clarity because those who have submitted higher
qualifications will not know what specific element of training the
City is looking for.
28
The City’s lack of clarity in its own
“clarification” letter therefore resulted in a tender
that was vague and
a process that was unfair because they left the
applicant uncertain about what was required of it to meet the tender
requirements.
29
This unfairness was not remedied on appeal.
The appeal
30
After the applicant’s bid was rejected as
non-responsive, it lodged an appeal.
31
At the stage that it did so, it still did not know
why the documents it had submitted with its tender and in response to
the clarification
letter were inadequate. It was told that the reason
it had been disqualified was because it had “only submitted
some of the
accompanying documents”. But it was still in the
dark about the fact that the City did not regard the qualification
that
had been submitted for Mr Farmer as sufficiency similar to
ELCONOP 2 to meet the requirements of the tender because it did not
have an adequate construction training aspect to it.
32
This was
the
reason why the tender had been rejected as
non-responsive but
it
was
never conveyed to the applicant. It was, however, conveyed to the
City Manager during the appeal process.
33
It appears from the record of proceedings that
during the appeal process, the City Manager called for input from the
BEC in order
to understand why it had decided that the documents
submitted for Mr Farmer were not adequate. The BEC sent a detailed
email to
the City Manager setting out precisely why it did not regard
Mr Farmer’s other NRS040 qualification as sufficiently similar
to ELCONOP 2. The BEC explained to the City Manager that the NRS040
qualification did not have the construction training component
that
the City was after.
34
At no point in the appeal process was this
reasoning from the BEC shared with the applicant. That, too, was a
material procedural
irregularity in the context of this case. The
reason for this is that, by the time of the appeal, the applicant had
still not been
told in clear terms why Mr Farmer’s submitted
qualifications were deemed inadequate by the City. During the appeal
process,
this clarity was provided to the appeal decision-maker –
the City Manager – but no opportunity was afforded to the
applicant to address it.
35
It would have been the simplest thing to address.
As I set out at the beginning of this judgment, Mr Farmer in fact had
the necessary
certificate that the City was looking for all along.
But the City did not make it clear to the applicant that the reason
its bid
was regarded as non-responsive was because it was looking for
a single phase tester certificate and Mr Farmer’s later
qualification
did not have the key element of construction training
that the City required.
36
I therefore conclude that the City’s
decision that the applicant’s bid was non-responsive was
procedurally unfair.
37
The next question is one of remedy.
Remedy
The amended notice of
motion
38
The applicant initially launched this application
for relief that would only impact its own rights. It sought to review
and set
aside the City’s decisions (initially and on appeal)
that its bid was non-responsive and then to obtain a declarator that
its bid was responsive. It also sought relief that would have placed
it on the list of approved service providers and allowed the
City to
evaluate its tender on the basis that it was deemed to be responsive.
39
It cited the three bidders who had been successful
in the tender as the fourth to sixth respondents. None of them
opposed the application.
40
However, after it had received the record from the
City, the applicant filed a supplementary founding affidavit and a
substantially
amended notice of motion. In the amended notice of
motion, the City sought the same review relief and declarator that
its bid was
responsive. But then the relief went on. It sought:
40.1
further declarators that the successful bidders
(the fourth to sixth respondents in the review) had failed to meet
the responsiveness
requirements of the tender;
40.2
orders setting aside the decisions to award the
tender to the fourth to sixth respondents;
40.3
orders reviewing and setting aside all the
contracts concluded with the fourth to sixth respondents; and
40.4
a remittal of the matter to the Bid Adjudication
Committee to reconsider the applicant’s bid.
41
At the hearing of the matter, I was concerned
about the extent to which the first notice of motion and the amended
notice of motion
differed in respects that had a material impact on
the rights of the fourth to sixth respondents. I therefore sought
confirmation
from the applicant’s counsel that the amended
notice of motion had been served on the fourth to sixth respondents.
42
I was informed that it had been served on the
fourth and fifth respondents but not the sixth respondent. I was
further informed
that, despite receiving the amended notice of
motion, the fourth and fifth respondents had not decided to oppose
the application.
However, the attitude of the sixth respondent to the
amended relief is not known to the court.
43
This is an issue of significance because the
amended notice of motion differed in material respects from the
original notice of
motion. The main difference, as far as the fourth
to sixth respondents were concerned, is that the first notice of
motion sought
relief that would not have affected their contracts.
Indeed, the founding affidavit that accompanied the original notice
of motion
said in underlined text: “
no
relief of substance is sought [against the fourth to sixth
respondents]
”
. But, in the
amended notice of motion, those contracts were sought to be set
aside.
44
It was therefore incumbent upon the applicant,
after amending the relief in such material respects, to ensure proper
service on
all of the respondents. It did not do so in relation to
the sixth respondent. When I raised this concern during the hearing,
the
applicant did not seek an opportunity to ensure proper service of
the amended notice of motion on the sixth respondent.
45
The sixth respondent’s decision not to
oppose this application was therefore based only on the version of
this case that it
was presented with when the case was initially
launched. That original notice of motion gave it no warning that the
applicant was
seeking to set aside its own contract.
46
In the absence of proper service of the amended
notice of motion on the sixth respondent, I am not satisfied that it
has been alerted
to the relief sought against it. I do not know its
attitude to that relief.
47
The constitutional right of access to court
entitles those involved in legal proceedings before a court to a fair
determination
of disputes that can be resolved by the application of
law.
48
In
Stopforth
Swanepoel
,
the Constitutional Court held that one of the foundational aspects of
the right of access to courts is its concern with fairness.
Fair
procedure is designed to prevent arbitrariness in decision-making.
[7]
In
De
Lange
,
the Constitutional Court explained how fairness in adjudicative
processes guards again arbitrary decision-making:
“
(
t)he
time-honoured principles that no-one shall be the judge in his or her
own matter and that the other side should be heard [audi
alteram
partem] aim toward eliminating the proscribed arbitrariness in a way
that gives content to the rule of law. They reach
deep down into the
adjudicating process, attempting to remove bias and ignorance from
it. . . .
Everyone
has the right to state his or her own case, not because his or her
version is right, and must be accepted, but because,
in evaluating
the cogency of any argument, the arbiter, still a fallible human
being, must be informed about the points of view
of both parties in
order to stand any real chance of coming up with an objectively
justifiable conclusion that is anything more
than chance
.
Absent these central and core notions, any procedure that touches in
an enduring and far-reaching manner on a vital human interest
. . .
points in the direction of a violation
.”
[8]
49
In
Stopforth
Swanepoel
, the Constitutional Court set
aside an order of the Supreme Court of Appeal that had been granted
against certain conveyancing
attorneys who had initially been joined
in an action for recovery of monies but against whom the plaintiff
had later withdrawn
its case. The attorneys played no part in the
appeal because, by that stage, the case against them had been
withdrawn. Despite
this, however, and despite the fact that the
Supreme Court of Appeal had therefore not heard from the attorneys in
the appeal before
it, the Court granted an order that materially
affected the attorney’s legal rights. They were order to repay
certain amounts
and interest.
50
The
Constitutional Court upheld an appeal by the attorneys against the
order on the basis that their rights of access to courts
had been
violated because an order had been granted against them without them
having been given an opportunity to be heard.
[9]
51
Although in the present case there was no
withdrawal of the proceedings against the sixth respondent, and in
that sense it is still
a party to the application, I am still
confronted with a situation in which relief is sought against a party
who has not been heard
and who has not been afforded a proper
opportunity to indicate whether it wishes to oppose the relief.
Granting relief that would
impact on the sixth respondent’s
rights in circumstances where it does not know that there is pending
litigation that would
have that effect on its rights is, in my view,
the antithesis of fairness. It is akin to granting an order in
unopposed court without
service having been effected on the
respondent. Such an result would infringe the respondent’s
constitutional right under
section 34 of the Constitution.
52
I shall return at the end of the judgment to the
significance of this finding for the appropriate remedy in the case.
However, before
doing so, I shall deal with the relief sought against
the fourth and fifth respondents.
The fourth and fifth
respondents
53
The fourth and fifth respondents are in a
different position to that of the sixth respondent. They were served
with the amended
notice of motion and decided not to file any
answering affidavits. In the circumstances, I must determine the
merits of the applicant’s
case for setting aside their
contracts and the underlying decision-making that produced them on
the applicant’s and the City’s
versions.
54
The applicant advanced two grounds of review for
setting aside the awards to the fourth and fifth respondents and then
a further
ground of review that applied only to the fifth respondent.
55
I deal with each of these in turn below.
First ground of review
– pricing
56
The applicant’s first ground of review of
the fourth and fifth respondents’ awards related to the manner
in which the
City assessed their pricing. However, this critique of
the City’s processes was misdirected because the relief that
the applicant
sought, in relation to the City’s decisions to
award contracts to the fourth and fifth respondent, was to have those
decisions
set aside because the fourth and fifth respondents’
tenders were non-responsive. In other words, it was the
non-responsiveness
of the fourth and fifth respondents’ bids
that was to be the legal basis for their contracts being set aside.
57
But pricing evaluation was not a qualifying
criteria of the tender process. Price was only assessed for bids that
were found to
be responsive. So the first ground of review of the
fourth and fifth respondents’ awards, does not tie up with the
basis
on which they were sought to be impugned by the applicant.
58
The first ground of review in relation to the
fourth and fifth respondents’ awards must therefore fail.
Second ground of
review – cable jointers
59
The applicant’s next attack on the decision
to award the tender to the fourth and fifth respondents was that both
of them
had submitted a tender in which they indicated that they
employed the same cable jointers.
60
According to the applicant, this was not compliant
with the tender requirements because the tender did not permit the
same personnel
to be used by different bidders.
61
But that is not what the tender said. The tender
said that bidders were required to have cable jointers in their
employment at the
close of the tenders and for the duration of the
contract. As the City pointed out in its answer, it is possible for
individuals
to be employed by more than one employer at a time. The
tender did not stipulate that cable jointers had to be in the
sole
employ of the bidder who listed them as employees.
62
I therefore find that there is no merit in this
review ground.
Third ground of review
– jack hammers
63
The applicant also sought to impugn the award of
the tender to the fifth respondent on the ground that the technical
specifications
of the tender required each bidder to declare that it
owned or had entered into contracts of hire for three jack hammers
but the
fifth respondent’s bid specified that it had only two
jack hammers.
64
However, as the City pointed out in answer, the
fifth respondent’s own tender documents were not clear about
whether it had
two or four jackhammers. This confusion arose because
of the way in which it had described the jack hammers in two
different ways
in its bid. At one point, it described the two jack
hammers as “jackhammers complete with compressions”,
whereas elsewhere
it had described the two as “PETROL JACK
HAMMERS”. This left the City unclear as to whether this was two
ways of describing
the same two jackhammers or a description of four
jackhammers.
65
It therefore sought clarification from the fifth
respondent on whether it had declared two or four jackhammers in its
bid. The fifth
respondent’s answer was that it had declared
four jackhammers. So it met the technical specification of no less
than three
jackhammers.
66
Despite this clarification from the fifth
respondent, the applicant still maintained that it ought to have been
disqualified. Its
reason for saying so is, however, ironic in the
face of its own main ground of review in this application. According
to the applicant,
the City was not permitted to ask the fifth
respondent whether it had declared two or four jackhammers because to
do so meant that
it would be providing the fifth respondent “an
unfair opportunity” to “transform its non-responsive bid
into
a responsive one”.
67
This critique alone gives some further insight
into how difficult the City’s decision making is in these
processes. It has
to tread a very careful line between seeking
clarifications from bidders when these are required, on the one hand,
but knowing,
on the other hand, that the moment it does so, a
disgruntled bidder is likely in due course to criticise it for
affording an unfair
advantage to one of the bidders.
68
In this particular case, the applicant’s
criticism of the City is unfortunate because the applicant’s
whole case to
review and set aside the City’s decision that its
bid was non-responsive is premised on the fact that it ought to have
been
given a proper opportunity to place before the City the single
phase tester certificate for Mr Farmer. It says it deserved to be
properly informed by the City that this is what it was looking for.
But then, in the same breath, it criticises the City for seeking
to
clarify from another bidder whether it had declared two or four
jackhammers in its bid.
69
If the applicant is correct (as I have found that
it is) that the City ought to have given it an opportunity to submit
Mr Farmer’s
single phase tester certificate in order to ensure
compliance with the qualifying criteria of the tender, the City was
certainly
within its rights to have given an opportunity to another
bidder to clarify whether it had declared two or four jackhammers in
its bid.
70
I therefore find that there is no merit in this
review ground.
Conclusion on the
fourth to sixth respondents
71
I have found that none of the grounds of review in
terms of which the fourth and fifth respondents’ awards have
been challenged
is sustainable. However, according to the applicant,
the fact that the review of the awards to the fourth and fifth
respondents
may fail, should not prevent the court from granting it
the relief it seeks of having the whole matter remitted to the City
to
be determined afresh.
72
The applicant makes this submission on the basis
that, even if the awards to the fourth to sixth respondents were
valid, the only
way in which to ensure that its right to have
participated in a fair tender adjudication process is vindicated,
would be to remit
the whole tender process to the City. In order to
ameliorate the harsh consequences of this relief on the fourth to
sixth respondents,
the applicant proposes suspending the setting
aside of their contracts until the remittal process is completed.
73
At the hearing of the matter, it became clear that
the proper ventilation of these aspects of the remedy had not been
canvassed
in the papers. So I invited the parties to provide me with
supplementary submissions on the length of time it would likely take
for the City to run a remitted tender process in the event that I was
inclined to grant the remedy of remittal.
74
The further submissions I received reveal a
disagreement between the parties about precisely how long the City
needs to run a new
adjudication process. The City says it will
require 5 months; the applicant says it can be completed in a maximum
of 6 weeks. The
current tender only runs until 3 September 2024. So
the question of the utility of running the tender process afresh
becomes a
very real issue in the light of the limited remaining life
of the tender.
75
There is a great deal to be said for the
applicant’s contention that the proper vindication of its right
to a fair tender
process requires that this matter be remitted for
redetermination by the City. A substantial amount of time has,
however, passed
since the original award of the tender in 2021. There
are now less then eleven months to run. Nonetheless, provided that a
remittal
could still have resulted in the award of fresh contracts
with some meaningful time still to be implemented, I would have been
inclined to grant that relief in all the circumstances of the case.
But there is an obstacle standing in the way of that remedy.
It
is the applicant’s own failure to ensure that the amended
notice of motion was properly served on the sixth respondent.
76
I have already explained that, in the absence of
proper service, this court does not know the sixth respondent’s
attitude
to the amended relief and it is relief that has a material
bearing on it legal rights. Ordinarily, such a default in
proper
service could be cured by a postponement of the matter in
order to afford a period of time for the sixth respondent to be
served
with the papers and for it to oppose and file an answering
affidavit if it so wished. However, the applicant did not seek any
such
postponement when the issue of service on the sixth respondent
was raised at the hearing of the matter.
77
In the absence of the sixth respondent’s
attitude to a remedy that may result in its contract being set aside,
I have found
that I cannot grant such relief.
78
But
that then begs the question whether I can set aside only two of the
three contracts and require the City to run a fresh tender
process
with one contract remaining in place. There are at least two problems
with granting relief of this nature. The first is
that the applicant
did not seek this relief. It came to court to have all three
contracts set aside and the matter remitted to
the City for fresh
determination on a clean slate. Our highest courts have consistently
emphasised that it is for the parties to
define the nature of their
dispute and it is for the court to adjudicate upon those issues.
[10]
79
The second problem is that because the applicant
did not seek this as alternative relief, I do not have before me any
evidence about
whether it is feasible for the City to keep in place
one of the contracts but run a tender process for the remainder.
Because this
relief was not sought, I have not received the City’s
submissions on its appropriateness.
80
It is, therefore, as a result of the applicant’s
own failure to ensure proper service on the sixth respondent that I
am not
in a position to grant it all the relief that it seeks.
81
Nonetheless, the applicant has succeeded in
establishing that the decision to disqualify it because its bid was
non-responsive was
unfairly made. I shall therefore declare the
decision invalid. However, because of the problem of non-service on
the sixth respondent,
I cannot grant further relief that will impact
on its contract and because I do not have the parties’
submissions on the
appropriateness of setting aside only two of the
three contracts and running a tender process afresh, I have decided
that remittal
is not an appropriate remedy. I shall therefore suspend
the order of invalidity to allow the fourth to sixth respondents’
contracts to run to their expiry on 3 September 2024.
82
In so far as costs are concerned, the applicant
has achieved success in showing that the impugned decision was
reviewable but ultimately
not succeeded in achieving the outcome it
desired. This tends to indicate a measure of success for the City
because it is not going
to be ordered to rerun the tender process
afresh. However, that “success” is mostly a product of
the applicant’s
own failure to have served the amended notice
of motion on the sixth respondent. It is therefore not correct, in my
view, to regard
the court’s decision on remedy as a “success”
for the City. The result is that the applicant has been substantially
successful and is therefore entitled to its costs.
Order
83
I therefore make the following order:
(a)
The decision of the second respondent taken on or
about 5 June 2021, finding that the applicant’s bid in tender
number 82Q/2020/21
was non-responsive and excluded from further
consideration is declared to be invalid;
(b)
The decision of the third respondent taken on or
about 1 September 2021 dismissing the applicant’s internal
appeal against
the BAC’s responsiveness decision and confirming
the BAC’s responsiveness decision is declared to be invalid;
(c)
The declarations of invalidity in a) and b) above
are suspended until 4 September 2024.
(d)
The first to third respondents are to pay the
applicant’s costs, including the costs of two counsel.
K HOFMEYR
ACTING JUDGE OF THE
HIGH COURT
APPEARANCES
Applicant’s
counsel:
Adv D
Borgström and Adv D Lubbe
Applicant’s
attorneys:
Dirk
Kotze Attorneys
First
to Third Respondents’ counsel:
Adv N
de Jager and Adv M Tsele
First
to Third Respondents’ attorneys:
Van
der Spuy Attorneys
[1]
Hoexter
& Penfold
Administrative
Law in South Africa
3
rd
edition
137;
Bato
Star Fishing (Pty) Ltd v Minister of Environmental Affairs
2004
3 SA 490
(CC) para 46;
Rustenberg
Platinum Mines Ltd (Rustenberg Section) v Commissioner for
Conciliation, Mediation and Arbitration
2007
(1) SA 576
(SCA) para 32
[2]
Airports
Company South Africa v Tswelokgotso Trading Enterprises CC
2019
(1) SA 204
(GJ) paras 8 to 12
[3]
AllPay
Consolidated Investment Holdings (Pty) Ltd and Others v Chief
Executive Officer, South African Social Security Agency and
Others
2014
(1) SA 604
(CC) para 87
[4]
AllPay1
para
88
[5]
AllPay1
para
92
[6]
AllPay1
para
40;
Premier,
Free State, and Others v Firechem Free State (Pty) Ltd
2000
(4) SA 413
(SCA) para 30;
Steenkamp
NO v Provincial Tender Board, Eastern Cape
2007
(3) SA 121
(CC) para 50
[7]
Stopforth
Swanepoel & Brewis Inc v Royal Anthem (Pty) Ltd and Others
2015
(2) SA 539
(CC) para 19
[8]
De
Lange v Smuts NO and Others
[1998] ZACC 6
;
1998
(3) SA 785
(CC) para 131 (emphasis added and footnotes omitted)
[9]
Stopforth
Swanepoel & Brewis Inc v Royal Anthem (Pty) Ltd and Others
2015
(2) SA 539
(CC) para 26
[10]
This
has been recently restated by the Supreme Court of Appeal in
Mucavele
and Another v MEC for Health, Mpumalanga Province
(899/2022)
[2023] ZASCA 129
(11 October 2023) para 15
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