Case Law[2025] ZASCA 35South Africa
Western Cape Provincial Government and Others v D C Security (Pty) Ltd t/a D C Security and Others (971/2023) [2025] ZASCA 35 (1 April 2025)
Supreme Court of Appeal of South Africa
1 April 2025
Headnotes
Summary: Administrative law – review and setting aside – tender – Promotion of Administrative Justice Act 3 of 2000 – whether appeal has been rendered moot in circumstances where contracts concluded at the heart of review applications have come to an end – whether court should exercise a discretion to hear appeal despite mootness – no discrete legal question of law found to exist.
Judgment
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## Western Cape Provincial Government and Others v D C Security (Pty) Ltd t/a D C Security and Others (971/2023) [2025] ZASCA 35 (1 April 2025)
Western Cape Provincial Government and Others v D C Security (Pty) Ltd t/a D C Security and Others (971/2023) [2025] ZASCA 35 (1 April 2025)
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sino date 1 April 2025
THE SUPREME COURT OF
APPEAL OF SOUTH AFRICA
JUDGMENT
Not reportable
Case no: 971/2023
In the matter between:
WESTERN CAPE
PROVINCIAL
GOVERNMENT
FIRST APPELLANT
ACTING DIRECTOR:
SUPPLY
CHAIN
MANAGEMENT
SECOND APPELLANT
ACCOUNTING OFFICER OF
THE
DEPARTMENT
OF FINANCE,
WESTERN CAPE
PROVINCIAL
GOVERNMENT
THIRD APPELLANT
HEAD OF DEPARTMENT OF
COMMUNITY SAFETY,
WESTERN CAPE
PROVINCIAL
GOVERNMENT
FOURTH
APPELLANT
and
D C SECURITY (PTY) LTD
t/a D C SECURITY
FIRST RESPONDENT
SECHABA PROTECTION
SERVICES
WESTERN CAPE (PTY)
LTD
SECOND RESPONDENT
DELTA CORPORATE
SECURITY
SERVICES
(PTY) LTD
THIRD RESPONDENT
Neutral
citation:
Western Cape
Provincial Government and Others v D C Security (Pty) Ltd t/a D C
Security and Others
(971/2023)
[2025]
ZASCA 35
(01 April 2025)
Coram:
MBATHA and BAARTMAN JJA and WINDELL, MODIBA and
NORMAN AJJA
Heard:
4 March 2025
Delivered:
This judgment was handed down electronically by
circulation to the parties’ representatives by email,
publication on the Supreme
Court of Appeal website and released to
SAFLII. The date and time for hand-down of the judgment is deemed to
be 11h00 on 01 April
2025
Summary:
Administrative law – review and
setting aside – tender –
Promotion of Administrative
Justice Act 3 of 2000
– whether appeal has been rendered moot
in circumstances where contracts concluded at the heart of review
applications have
come to an end – whether court should
exercise a discretion to hear appeal despite mootness – no
discrete legal question
of law found to exist.
ORDER
On
appeal from:
Western Cape Division of
the High Court, Cape Town (Martin AJ, sitting as court of first
instance):
The
appeal is dismissed with costs, including costs of two counsel where
applicable.
JUDGMENT
Mbatha JA (Baartman JA
and Windell, Modiba and Norman AJJA concurring):
[1]
The central issue in this appeal is whether the
appeal is moot. If it is, the question then arises whether the court
should exercise
a discretion in the interest of justice to determine
the appeal.
[2]
In November 2017, the Western Cape Provincial
Government (the provincial government) issued a call for bids for the
framework agreement
for transversal provision of security services
for the 13 departments of the Western Cape (the tender). The process
comprised of
two main stages. First, the establishment of a panel of
services providers who meet the qualification criteria set in the bid
document.
This process included the ranking of service providers
according to the type of services, risk rating and geography. Second,
the
conclusion of various transversal agreements between the
departments and the services providers on the panel. It was a
material
term of the bid that the contracts would come into existence
as and when the services of the service provider would be required.
This was initiated through a procedure referred to as the ‘call-off’
system.
[3]
The provincial government adopted the direct
selection process in implementing the call-off system. The process
involved the selection
of a service provider from the list of
shortlisted service providers based on their ranking. The first
available contract was assigned
to the highest ranked and eligible
provider. Once the initial allocation had been exhausted, it was
envisaged that the ranking
will align with the contract value of the
work completed in the initial round of the call-offs. Consequently,
the service provider
ranked lowest in contract value would be awarded
the highest contract value. This procedure initiated the
establishment of a security
contract with the various provincial
departments.
[4]
Dissatisfied with the outcome of the process
and the allocations in terms of the call-off process, three service
providers brought
the application for review before the high court.
The review applications were brought by Distinctive Choice Security
(Pty) Ltd
t/a DC Security (DC), Sechaba Protection Services Western
Cape (Pty) Ltd t/a Sechaba Protection Services (Sechaba) and Delta
Corporate
Security Services (Pty) Ltd (Delta). The applications were
consolidated and heard together.
[5]
The Western Cape Division of the High Court,
Cape Town, on 1 July 2022 (per Martin AJ) (the high court), granted
the following orders
against the provincial government:
‘
1.
Bid No WCPT- TR 01/2017/2018 and all decisions made in terms of it
are hereby declared invalid;
2.
All contracts awarded in terms of Bid No WCPT-TR 01/2017/2018, are
hereby declared invalid, subject to
part 3
of this order;
3.
All contracts concluded by the Western Cape Provincial Department of
Community Safety pursuant to Bid No WCPT-TR 01/2017/2018
shall remain
in full force and effect until their termination dates as if the
court had not made
parts 1
and
2
of this order;
4.
The Provincial Government shall constitute, a fresh bid for the
procurement of security services and, subject to part 3 of this
order, commence the bid process
de novo
;
5.
The Provincial Government shall pay the costs of all three
Applicants, including the costs of two counsel where applicable, but
excluding any costs Distinctive Choice may have incurred in obtaining
expert opinion.’
[6]
Dissatisfied with the outcome of the review
application, the appellants, Western Cape Provincial Government,
Acting Director: Supply
Chain Management, Accounting Officer of the
Department of Finance, Western Cape Provincial Government and the
Head of the Department
of Community Safety, Western Cape Provincial
Government sought leave to appeal the judgment and orders of the high
court (the appellants
will be referred to individually by their names
or collectively as the provincial government). The matter serves
before us with
leave of this Court.
[7]
On the eve of the hearing of this appeal, the
appellant filed a supplementary record. This became the 12
th
volume of the record. The applications for condonation for the late
filing of the supplementary record, the record of appeal and
the
reinstatement of the appeal by the provincial government and the late
filling of the heads of argument by Delta were granted,
with costs.
[8]
The first point of enquiry is whether the
appeal is moot.
Section 16(2)
(a)
(i)
and (ii) of the Superior Courts Act 10 of 2013 (the
Superior Courts
Act) governs
such issues. It provides that:
‘
(i)
When at the hearing of an appeal the issues are of such a nature that
the decision sought will have no practical effect
or result, the
appeal may be dismissed on this ground alone.
(ii)
Save under exceptional circumstances, the question whether the
decision would have no practical effect or result is to
be determined
without reference to any consideration of costs.’
[9]
The issue of mootness loomed large at an early
stage. This occurred during the application for leave to appeal
before the high court.
At all times, the provincial government was
firm in its view that the appeal would not be moot by the time it is
heard. At that
stage and later on before this Court, it lamented the
unfortunate delays by the high court in delivering the main judgment
and
the judgment in the application for leave to appeal. However, I
have noted that there were also delays in filing of the appeal
record, which is understandable given its voluminous nature.
[10]
It is therefore imperative to begin by
examining the chronological sequence of events in this matter. The
bid provided that the
contracts would endure for a period of three
years commencing from 1 November 2018, with an option for a one-year
extension. The
period envisaged for the completion of the contracts
meant that the contracts were to end during 2022. The contract
concluded with
Delta commenced in 2019 and ended in March 2022. The
Delta contract was extended for a period of one year to 31 March
2023. It
was further extended to 30 June 2023.
[11]
It is common cause that, by the time the
provincial government’s application for leave to appeal was
lodged with the high
court, the Department of Health (DOH) had
already exited the framework agreement. By then, the DOH, a major
contractor for security
services within the province, had issued a
new bid for security services. This occurred five months
after the delivery of the high court
judgment. By the time the application for leave to appeal was heard
by the high court, it had
already cancelled the previously advertised
bid and re-advertised a new one, calling for bids by 9 June 2023.
[12]
The application for leave to appeal filed with
the high court on 15 May 2023 was still pursued. It was, however,
unsuccessful. This
Court granted the application for leave to appeal
on 30 August 2023. The notice of appeal was filed by the provincial
government
on 28 September 2023 and the record of appeal on 12 April
2024. The provincial government maintained its stance, even at this
juncture,
that only the DOH, had exited the framework agreement. As a
result, 13 departments, remained bound by the framework agreement and
in that regard had to proceed with the appeal.
[13]
On 20 December 2024, after the appeal had been
set down for hearing, Delta’s attorneys of record addressed a
letter to the
registrar of this Court, which categorically stated
that it believed that the appeal should not be heard because it was
moot. On
the other hand, the provincial government persisted in
prosecuting the appeal. It even proposed that the issue of mootness
be determined
separately from the merits of the appeal. This Court
was disinclined to proceed with the appeal on a piecemeal basis. It
was not
surprising that, upfront, the heads of argument filed by the
parties dealt with the issue of mootness of the appeal. On the date
of the hearing, counsel for the provincial government informed the
Court that the rest of the departments had exited the framework
agreement and conceded that the appeal is moot.
[14]
This did not come as a surprise as the
provincial government’s heads of argument had stated that the
provincial treasury,
at the time of filing thereof, was in the
process of initiating a new procurement process which would replace
the current framework
arrangements, the subject of this appeal.
Irrespective of these developments, though conceding the mootness of
the appeal, it maintained
that the transversal agreements remained of
considerable interest to the provincial government for use in the
future. Against this
backdrop, counsel for the provincial government
persisted with the argument that issues raised in the appeal remained
relevant
and important to the provincial government. It persisted in
pursuing the appeal on the purported public interest grounds. Despite
the concession made by counsel for the provincial government, I have
decided to explore the issue of mootness.
[15]
The most trenchant criticism from which there
is no escape for the provincial government, is that the order of the
high court, which
is the subject of the appeal, on its own rendered
the appeal moot. The effect of the order was that the contracts
remained extant
until their termination dates, irrespective of the
finding of invalidity. The effect was that it did not adversely
affect the material
rights of the contractors and those of the
provincial government. The contractual period to Delta ended on 30
June 2023. This was
the case with other contractors. In blunt terms,
no further purpose was served by the filing of the appeal. This made
the appeal
academic. The provincial government went on a frolic of
its own in pursuing the appeal.
[16]
On the provincial government’s version,
the largest contractor for security services, the DOH, had long
exited the framework
agreement. In addition, the heads of argument
filed by the provincial government on 28 June 2024, succinctly
indicated that the
provincial government was in a process of
initiating a new procurement process, but it consciously persisted
with the appeal on
the abandoned procurement process. These
developments should have sent the red signal to the provincial
government that the nature
of the relief sought by the provincial
government on this appeal is purely academic, as no live issue
existed. It was also no surprise,
on the day of the hearing, to learn
that the other 13 departments had exited the framework agreement.
[17]
The
circumstances of this appeal are such that, it was inappropriate for
the provincial government to proceed with the appeal. In
National
Coalition for Gay and Lesbian Equality and Others v Minister of Home
Affairs and Others
,
[1]
the Constitutional court had this to say:
‘
A
case is moot and therefore not justiciable, if it no longer presents
an existing or live controversy which should exist if the
court is to
avoid giving advisory opinion on abstract propositions of law.’
The
Constitutional Court, in
Minister
of Tourism and Others v Afriforum NPC and Another
,
[2]
held that:
‘
A
case is moot when there is no longer a live dispute or controversy
between the parties which would be practically affected in
one way or
another by a court’s decision or which would be resolved by a
court’s decision.
A case is also
moot when a court’s decision would be of academic interest
only.
’
I,
therefore, conclusively find that there was no live issue for the
determination of appeal.
[18]
Nevertheless,
I proceed to the next stage of the enquiry. It is trite that a court
may exercise a discretion, if it is in the interest
of justice to do
so and determine the issues in terms of
s 16(2)
(a)
of
the
Superior Courts Act. In
Pheko
and Others v Ekurhuleni Metropolitan Municipality
,
[3]
the Constitutional Court held that for the court to exercise its
discretion there must be a discrete legal issue of public importance
which is likely to affect matters in the future. This Court, in
Qoboshiyane
NO and Others v Avusa Publishing Eastern Cape (Pty) Ltd and
Others
,
[4]
stated that:
‘
The
court has a discretion in that regard and there are a number of cases
where, notwithstanding the mootness of the issue as between
the
parties to the litigation, it has dealt with the merits of an appeal.
With those cases must be contrasted a number where the
court has
refused to deal with the merits. The broad distinction between the
two classes is that in the former a discrete legal
issue of public
importance arose that would affect matters in the future and on which
the adjudication of this court was required,
whilst in the latter no
such issue arose.’
[19]
I have some difficulty accepting the
submissions made on behalf of the provincial government regarding the
purported discrete legal
issues, namely, non-compliance with the
mandatory bid requirements, adequacy of reason, the methodology of
awarding call-offs and
the 180-day period to launch a review in terms
of the
Promotion of Administrative Justice Act 3 of 2000
. The
question that remains to be considered, is whether the said issues
raise discrete legal issues of importance that they warrant
this
Court’s adjudication for the benefit of future matters. I am
not persuaded that they do.
[20]
The premise from which the provincial
government’s submissions operate are factually flawed. The
facts show that, by and large,
these are not legal questions of law.
It is so because, the main argument relied upon by the provincial
government, was that the
court found the transversal agreements
unsuitable and flawed. Adverse findings made by a court are not
discrete legal points of
law.
Besides
that, the appeal rests only on the order of the court and not the
reasons for judgment. In addition, the high court merely
applied the
trite principles applicable to public procurement cases in the
adjudication of the issues before it.
[21]
Logically,
none of the purported legal issues will affect the provincial
government in the future. The said issues are fact based
and
determinable through the trite principles of law. Consequently, there
are no factors that are relevant to the exercise of the
Court’s
discretion. In
Agribee
Beef Fund (Pty) Ltd and Another v Eastern Cape Development Agency and
Another,
[5]
the Constitutional Court listed the factors that bear consideration
when determining whether it is in the interests of justice
to hear a
moot matter. They include:
“
(a)
whether any order which it may make will have some practical effect
either on the parties or on others;
(b)
the nature and extent of the practical effect that any possible order
might have;
(c)
the importance of the issue;
(d)
the complexity of the issue;
(e)
the fullness or otherwise of the arguments advanced; and
(f)
resolving disputes between different courts.”.’
None
of the aforementioned issues have been raised by the provincial
government.
[22]
I do not intend to delve into the merits of the
appeal, despite the provincial government’s attempt to draw us
into them.
I can only emphasise that the lifespan of the tender is
over, no acquired rights were lost when the tender was reviewed and
set
aside, all the issues raised are academic and will have no
practical effect, there are no conflicting judgments raised in the
provincial
government papers, and no discrete legal issues were
raised.
[23]
The
appeal was purely brought for advice and clarification of the
erstwhile framework transversal agreement. As this Court pertinently
pointed out, in
Radio
Pretoria v Chairperson of Independent Authority of South Africa
,
[6]
that ‘[c]ourts of appeal often have to deal with congested
court rolls. They do not give advice gratuitously. They decide
real
disputes and do not speculate or theorise . . .’. For the
aforementioned reasons, I find that there is no basis for
this Court
to exercise the discretion to hear the appeal despite its mootness.
[24]
For the reasons set out in this judgment, the
appeal cannot succeed. Accordingly, I make the following order:
The
appeal is dismissed with costs, including costs of two counsel where
applicable.
Y
T MBATHA
JUDGE OF APPEAL
Appearances
For
the appellant:
H
De Waal SC with A Christians and A Toefy
Instructed
by:
State
Attorney, Cape Town
State
Attorney, Bloemfontein
For
the third respondent:
R
Stelzner SC
Instructed
by:
Bossr
Inc, Durbanville
Lovius
Block Attorneys, Bloemfontein.
[1]
National
Coalition for Gay and Lesbian Equality and Others v Minister of Home
Affairs and Others
[1999] ZACC 17
;
2000 (2) SA 1
;
2000 (1) BCLR 39
para 21 at footnote
18.
[2]
Minister
of Tourism and Others v Afriforum NPC and Another
[2023] ZACC 7
;
2023 (6) BCLR 752
(CC) para 23.
[3]
Pheko
and Others v Ekurhuleni Metropolitan Municipality
[2011] ZACC 34
;
2012 (2) SA 598
(CC);
2012 (4) BCLR 388
(CC) para
29-30 and footnote 23.
[4]
Qoboshiyane
NO and Others v Avusa Publishing Eastern Cape (Pty) Ltd and Others
[2012] ZASCA 166
;
2013 (3) SA 315
(SCA) para 5. Also see
Centre
for Child Law v The Governing Body of Hoerskool Fochville
[2015] ZASCA 155
;
[2015] 4 All SA 571
(SCA);
2016 (2) SA 121
(SCA)
para 11.
[5]
Agribee
Beef Fund (Pty) Ltd and Another v Eastern Cape Development Agency
and Another
[2023] ZACC 6
;
2023 (5) BCLR 489
(CC);
2023 (6) SA 639
(CC) para 24.
[6]
Radio
Pretoria v Chairperson of Independent Authority of South Africa and
Another
[2004] ZASCA 69
;
[2004] 4 All SA 16
(SCA);
2005 (1) SA 47
(SCA) para
41.
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