Case Law[2024] ZAGPJHC 47South Africa
Air Chefs SOC Limited v Public Protector of the Republic of South Africa and Others (31083/2020) [2024] ZAGPJHC 47 (26 January 2024)
Headnotes
Summary: Administrative law – Chapter 9 institutions – Public Protector report – review of – application for review and setting aside – under the doctrine of legality and the principles relating to irrationality – Public Protector's report that followed investigation into allegations of irregularity during public procurement processes – as well as allegations of maladministration, corruption and improper conduct by State entity –
Judgment
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# South Africa: South Gauteng High Court, Johannesburg
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## Air Chefs SOC Limited v Public Protector of the Republic of South Africa and Others (31083/2020) [2024] ZAGPJHC 47 (26 January 2024)
Air Chefs SOC Limited v Public Protector of the Republic of South Africa and Others (31083/2020) [2024] ZAGPJHC 47 (26 January 2024)
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sino date 26 January 2024
REPUBLIC OF SOUTH AFRICA
IN THE HIGH COURT OF SOUTH
AFRICA
GAUTENG DIVISION, JOHANNESBURG
CASE
NO
:
31083/2020
DATE
:
26
th
January
2024
(1)
NOT
REPORTABLE
(2)
NOT
OF INTEREST TO OTHER
JUDGES
In
the matter between:
AIR
CHEFS SOC
LIMITED
Applicant
and
THE
PUBLIC PROTECTOR OF
THE
REPUBLIC OF SOUTH
AFRICA
First Respondent
MANTELL
,
SIMON t/a MANTELLI BISCUITS
Second Respondent
SOUTH
AFRICAN AIRWAYS SOC LIMITED
Third Respondent
Neutral Citation
:
Air
Chefs v The Public Protector and Other (31083/2020)
[2024]
ZAGPJHC ---
(26 January 2024)
Coram:
Adams J
Heard
:
11 October 2023
Delivered:
26 January 2024 – This judgment was handed down
electronically by circulation to the parties' representatives by
email, by
being uploaded to
CaseLines
and by release to
SAFLII. The date and time for hand-down is deemed to be 12:30 on 26
January 2024.
Summary:
Administrative law – Chapter 9
institutions – Public Protector report – review of –
application for review
and setting aside – under the doctrine
of legality and the principles relating to irrationality –
Public Protector's
report that followed investigation into
allegations of irregularity during public procurement processes –
as well as allegations
of maladministration, corruption and improper
conduct by State entity –
Court finding Public Protector’s
findings to be justified and rational insofar as they relate to
maladministration and improper
conduct – no foundation for
findings of dishonesty or fraud – report, and the findings
therein and the remedial action
taken, held to be rational –
Judicial review of Public Protector’s
remedial action – legality doctrine and the principle of
rationality – Public
Protector’s powers – to take
appropriate remedial action – s 182(1)(c) of the
Constitution – s 6(4)
and (5) of the Public Protector Act –
remedial action aimed at curing incidents of impropriety, prejudice,
unlawful enrichment
or corruption in government circles –
relief sought by second respondent – wholly incompetent –
in the nature
of a judicial review of an administrative decision, in
which is sought an exceptional substitution order – Public
Protector
does not have judicial review powers – investigation
by Public Protector not a process to recover contractual or delictual
damages –
Application and counter-application
dismissed –
ORDER
(1)
The applicant’s judicial review application
be and is hereby dismissed.
(2)
The second respondent’s judicial review
counter-application is dismissed.
(3)
Each party shall bear its/his own costs.
JUDGMENT
Adams J
:
[1].
On 7 April 2013 the applicant (Air Chefs), a state-owned company,
published
‘Request for Bid (RFB)’ number GSM 025/2013
(‘the RFB), ‘inviting suppliers to Bid for the supply of
the
following: … Purchase of various types of dry snacks’.
The submissions for the said bid were to close at 11:00 on 29
April
2013. The different products for the dry snacks tender were contained
in a document attached to the bid documents, which
inter alia
described one of the products – the savoury crackers – as
‘
Wheatsworth Crackers
(3 in 1)’. The tender
allowed for a manufacturer to submit a bid for one or more products
and for this reason specialised
manufacturers submitted bids for
particular products.
[2].
On 26 April 2013 the second respondent (Mantelli’s), a sole
proprietorship,
submitted its Bid by hand delivering same in
accordance with the RFB and by complying, in all other respects, with
the tender requirements.
Mantelli’s tendered for one specific
product, that being ‘Savoury Crackers (3 in 1)’,
and it referred
to the product tendered as ‘Mantelli’s
Wheat Crackers’. On 21 February 2014 Mantelli's tender was
apparently
accepted by Air Chefs, which had addressed a letter to
Mantelli’s dated 17 February 2014, in which Mantelli’s
was congratulated
‘on being awarded the tender for dry snacks’.
[3].
As the saying goes, so far, so good. However, a few days later, on 24
February
2014, Air Chefs seemingly had a complete change of heart and
made a 180 degree turn. They advised Mantelli’s telephonically
that it was in fact not a tender that had been awarded, but instead
that, despite the clear and explicit wording of the communiqué
dated 17 February 2014, Mantelli’s had only been appointed as a
‘preferred supplier’. They were also informed
that
another bidder, Ciro Beverages Solutions (Pty) Limited (Ciro), would
continue to supply its
Wheatsworth
brand of crackers to meet
all the requirements of South African Airways (SAA), the third
respondent, which constituted more than
95% of Air Chef's savoury
cracker procurement. Mantelli's nevertheless signed and returned the
Letter of Award (LoA) and awaited
the supplier agreement from Air
Chefs, which never arrived.
[4].
In a letter to Mantelli’s dated 11 March 2014, Air Chefs, after
having
formally ‘withdrawn’ the previous LoA and
confirming in writing their aforegoing stance, congratulated
Mantelli’s
on being selected as one of the panel of suppliers
to supply dry snacks to Air Chefs. The intention, as clearly
indicated in the
covering email from Air Chefs, was to replace the
LoA of 17 February 2014 with ‘the correct wording’ as per
the LoA
dated 11 March 2014. It later transpired that Mantelli's was
the only successful bidder in the various categories of dry snacks
to
be placed on a panel of suppliers. All the SAA savoury cracker
business was to remain with Ciro, which was more than 95% of
all Air
Chefs savoury cracker procurement, which meant that there was
effectively no business for Mantelli's.
[5].
Aggrieved by this stance adopted by Air Chefs and believing its
behaviour to
have been unreasonable and improper, Mantelli’s
lodged a formal written complaint with the first respondent (the
Public Protector)
on 25 March 2014, which complaint was registered by
the Public Protector's office on 7 April 2014. Subsequently, and over
the next
three years, Mantelli’s supplied further documentary
evidence to the Public Protector to allow her office to reach a
comprehensive
understanding of what had transpired in what Mantelli’s
believed was illegal and ultimately fraudulent conduct on the part
of
many parties associated with this matter.
[6].
On 31 January 2020, the Public
Protector finally, and rather belatedly, published her final report
in this matter, which incorporated
her findings and recommendations
relating to certain remedial action to be taken mainly by Air Chefs
and the third respondent (SAA).
In a nutshell, the Public Protector
found that the decision by Air Chefs ‘to revise’ the LoA
dated 17 February 2013
was irregular and thus constituted improper
conduct and/or maladministration in terms of section 6(5)(a) of the
Public Protector
Act
[1]
.
In coming to this conclusion, the Public Protector found that RFB
number GSM 025/2013 was a request for a tender to provide services
and not an invitation for a bidder to become one of the panellists of
service providers. It was also found by the Public Protector
that the
Acting Chief Executive Officer of Air Chefs, in supposedly
‘correcting’ the wording of the first LoA by substituting
same with the second LoA, acted improperly as envisaged by s
182(1)(a) of the Constitution and had made himself guilty of
maladministration
in terms of section 6(5)(a) of the Public Protector
Act.
[7].
A number of other findings of irregular conduct were also made in
relation
to conduct on the part of SAA subsequent to the aforesaid
irregular acts by Air Chefs, notably SAA’s non-implementation
of
and their delay in providing Mantelli’s with some of the
investigation reports. Lastly, the Public Protector made the finding
that the aforesaid unlawful conduct on the part of Air Chefs and SAA
resulted in Mantelli’s being unlawfully and improperly
prejudiced as envisaged in s 6(5)(d) of the Public Protector Act.
This prejudice, so it was found by the Public Protector, was
in the
form of financial loss or expenses incurred in preparing and
submitting the bid documents as well as other related expenses.
[8].
As regards the Remedial Action, with a view to remedying the improper
conduct
and the maladministration referred to in her report, the
Public Protector directed the Chairperson of the SAA Board of
Directors
to apologise to Mantelli’s and its proprietor within
ten working days of the issue of her report for subjecting them
(Mantelli’s)
to unnecessary litigation attributable to the
unlawful conduct on the part of Air Chefs and SAA. The Public
Protector furthermore
directed the Chairperson to ensure that
Mantelli’s be reimbursed, within thirty working days from the
date of her report,
for all proven out-of-pocket expenses relating to
meetings, travelling, accommodation, exchange of correspondence with
SAA, seeking
legal opinion and representation in his longstanding
dispute with SAA.
[9].
The Public Protector also directed the
CEO’s of both Air Chefs and SAA to have regard to the findings
in the report by National
Treasury (NT) and the report by Indyebo and
the procurement shortcomings identified in those reports, and to
address those shortcomings
and gaps by the introduction of more
stringent policies, prescripts and practices in line with s 217 of
the Constitution, the Public
Finance Management Act (the PFMA)
[2]
and the National Treasury Regulations.
Additionally, the CEO’s were also directed to take appropriate
disciplinary action
against any official of Air Chefs and SAA found
to have been responsible for the misconduct and the maladministration
referenced
in her report. In sum, Air Chefs and SAA were directed to
take appropriate disciplinary action against any and all officials
found
to have been complicit in any acts of maladministration and
improper conduct referred to in the Public Protector’s report.
[10].
It is this report by the Public Protector, and the findings and the
recommendations made therein,
which Air Chefs is aggrieved by and
which it requires to have judicially reviewed and set aside in this
opposed Special Motion,
which came before me on 11 October 2023. The
relief sought by Air Chefs is essentially for an order reviewing and
setting aside
the report, the findings and the remedial action of the
Public Protector, as per her report dated 31 January 2020, on the
basis
of principle of irrationality and on the basis of the legality
doctrine.
[11].
For his part, Mantelli’s has preferred a counter-application
against Air Chefs, and seeks
an order reviewing the findings and
portions of the remedial action of the Public Protector in her above
report dated 31 January
2020. The said report, as already alluded to
supra
, is ‘on an investigation into allegations of
procurement irregularities and maladministration regarding the
irregular termination
of Air Chefs tender number GSM 025/2013 by the
SAA after its award to Mantelli's’.
[12].
Mantelli’s, in particular, seeks an order supplementing the
findings of the Public Protector
that he was improperly prejudiced by
the conduct of Air Chefs and SAA, as envisaged in s 6(5)(b) of the
Public Protector Act. In
that regard, Mantelli’s
counter-applies for an order reviewing and setting aside the Public
Protector's remedial action relating
to the payment by Air Chefs and
SAA of his proven out-of-pocket expenses and by substituting that
portion of the remedial action
with one in terms of which Air Chefs
and SAA are directed to pay Mantelli’s damages in the amount of
R5 298 783,84.
[13].
Furthermore, Mantelli’s applies for an order reviewing and
setting aside the Public Protector’s
failure, as he puts it, to
act in terms of s 6(4)(c)(i) of the Public Protector Act by referring
the matter to the National Prosecuting
Authority for the criminal
prosecution of individuals implicated in what he perceives to be
criminal conduct on the part of such
persons.
[14].
The important part of Mantelli’s counter-application is however
his prayer that this court
substitutes a portion of the remedial
action by the Public Protector with an order that Air Chefs and SAA
pay to him ‘damages’
in an amount of about R5 million. At
first blush, the relief sought by Mantelli’s is wholly
incompetent for the simple reason
that his counter-application is in
the nature of a judicial review of an administrative decision, in
which is sought an exceptional
substitution order. The Public
Protector does not have the power to judicially review administrative
decisions. Moreover, Mantelli’s,
in his counter-application
applies for the judicial review of a ‘decision’ of the
Public Protector, who is not a respondent
in the counter-application.
The notice of counter-application was not even addressed to the
office of the Public Protector. I shall
revert to these aspects of
the matter later on in this judgment.
[15].
Air Chefs contends that the findings by the Public Protector, and the
Remedial Action recommended
by her, incorporated into her report of
31 January 2020, should be declared unlawful, reviewed and set aside
on the basis that
it is irrational as the findings cannot be
reconciled with the objective material that was placed before her.
[16].
It is the case of Air Chefs that the bid was adjudicated, but due to
inherent errors and flaws
in the bid specifications (which rendered
the bid inconsistent with the applicant's business processes), a
fundamentally flawed
and impractical decision was issued by it.
Whilst Air Chefs accepts that, as per their communiqué dated
17 February 2014,
Mantelli’s was awarded the bid for savoury
snacks 3 in 1, the said award was vitiated by material flaws and
errors in the
bidding process as well as by the impracticality of the
implementation of the 17 February 2014 decision. This, so it is
contended
by Air Chefs, entitled them to withdraw the lawfully
awarded tender and to replace same with a different one, which fits
in with
their business model.
[17].
These flaws and errors in the tender, according to Air Chefs, were
systemic and their existence
were confirmed in the report by National
Treasury. The said report indicated, so the case on behalf Air Chefs
goes, that there
were discrepancies in the bid specifications in that
they failed to indicate that the bid was for a panel of suppliers,
instead
of a tender that would be awarded to individual suppliers
with a guaranteed number of orders post the award.
[18].
All of the aforegoing, so Air Chefs avers, was explained to the
Public Protector, who chose
to ignore these contentions when she
finalised her report. The point made by Air Chefs is that the second
letter sought to correct
the patent error in the tender processes,
which had led to the confusion and misunderstanding of the true
intention of the RFB.
This letter was, however, not issued to other
bidders who were already doing business with them, as these bidders
knew how their
business process worked. Due to Mantelli being the
only newcomer to the process, the second letter was only sent to him.
Other
bidders knew that the tender was for a panel who were only
going to get orders at the whim of the airlines that are the clients
of Air Chefs.
[19].
Air Chefs therefore contends that there is no basis for the finding
that they and SAA were guilty
of maladministration when the flaw,
through no fault of the then CEO, was in the drawing up of the bid
specifications. If the bid
process was flawed from inception, so the
contention on behalf of Air Chefs goes, there is no basis for finding
that the corrective
measures pursued by them thereafter constitutes
maladministration. As a result, there has not been any ongoing
prejudice to Mantelli’s
as the tender was due to the inherent
flaws identified.
[20].
Air Chefs accordingly contend that the withdrawal of the letter of 17
February 2014 was not
steeped in malfeasance or maladministration. It
was a correction of a patent error in the bidding process. It was
also not informed
by any malice but by a procedural flaw in the
specifications of the bid, which was not aligned with the business
processes of Air
Chefs. What was irregular, so the contention
continues, was the entire bid process and Mantelli’s, together
with other successful
bidders, ought not to have derived any benefit
from the flawed bidding process.
[21].
Accordingly, so the argument on behalf of Air Chefs is concluded, the
Public Protector, in ignoring
the aforegoing explanation by it, had
acted irrationally in that her findings and remedial action were not
rationally connected
to the information that was before her when she
published her report at the end of January 2020.
[22].
Importantly, so Air Chefs contends, the finding by the Public
Protector that Mantelli’s
was prejudiced by the conduct of Air
Chefs and SAA in not adequately or timeously providing him with
information pertaining to
the investigation is equally irrational and
unfounded. Consequently, the remedial action ordered by the Public
Protector flowing
from the irrational findings should suffer the same
fate in that it is irrational and baseless as the objective facts
demonstrate
that the tender process that Mantelli’s complains
about, was fundamentally flawed and unlawful.
[23].
I disagree with these contentions on
behalf of Air Chefs. The salient fact in this matter, as alluded to
in more detail
supra
,
is that a tender was lawfully awarded to Mantelli’s, which
ought to have resulted in an agreement being concluded between
him
and Air Chefs. The acceptance of the tender was thereafter withdrawn
unlawfully. As correctly found by the Public Protector,
Air Chefs
could not and should not have withdrawn the award of the tender. Such
award was an administrative act, and it could not
simply have been
undone – it stood until set aside by a Court of law. As was
held by the Full Court of this division in
SITA
(SOC) Limited v Vox Orion (Pty) Ltd
[3]
,
‘[i]n law, the relevant organ of state which took the
administrative action under consideration, is entitled, and at times
obliged, to approach the court with an application to review and set
aside its own administrative action’. Importantly, the
court
also held as follows: -
‘
3. Once
the [state organ or state entity] had awarded the tender, it was not
competent for [it] to seek
to revoke the award because it was
functus
officio
.
4. For the
same reason, it was not competent for the [state organ / entity] to
commission a later evaluation
of the bids of [a tenderer], after the
award had been made.’
[24].
On the basis of this authority, I am of the view that Air Chefs and
its CEO, in withdrawing
the award of the tender, had performed an
unlawful administrative action. This, I believe, is the very
definition of an irregularity
and amounts maladministration, as
envisaged by s 6 of the Public Protector Act, which provides, in the
relevant part, as follows:
-
‘
(4)
The Public Protector shall, be competent –
(a) to
investigate, on his or her own initiative or on receipt of a
complaint, any alleged –
(i)
maladministration
in connection with the affairs of government
at any level;
(ii)
abuse or unjustifiable exercise of power or unfair, capricious,
discourteous
or other improper conduct or undue delay by a person
performing a public function;
(iii)
… … …
(v)
act or omission by a person in the employ of government at any level,
or a person performing a public function, which results in unlawful
or improper prejudice to any other person;
… … …
(c)
at a time prior to, during or after an investigation-
(i)
if he or she is of the opinion that the facts disclose the
commission
of an offence by any person, to bring the matter to the notice of the
relevant authority; and charged with prosecutions;
or
(ii)
if he or she deems it advisable, to refer any matter which has a
bearing
on an investigation, to the appropriate public body or
authority; and affected by it or to make an appropriate
recommendation regarding
the redress of the prejudice resulting
therefrom or make any other appropriate recommendation he or she
deems expedient to the
affected public body or authority.
(5)
In addition to the powers referred to in subsection (4), the Public
Protector
shall on his or her own initiative or on receipt of a
complaint be competent to investigate any alleged-
(a)
maladministration
in connection with the affairs of any
institution in which the State is the majority or controlling
shareholder or of any public
entity as defined in section 1 of the
Public Finance Management Act, 1999 (Act 1 of 1999);
(b)
abuse or unjustifiable exercise of power or unfair, capricious,
discourteous or other improper
conduct or undue delay by a person
performing a function connected with his or her employment by an
institution or entity contemplated
in paragraph (a);
(c)
improper or unlawful enrichment or receipt of any improper advantage,
or promise of such
enrichment or advantage, by a person as a result
of an act or omission in connection with the affairs of an
institution or entity
contemplated in paragraph (a); or
(d)
act
or omission by a person in the employ of an institution or entity
contemplated in paragraph (a), which results in unlawful or
improper
prejudice to any other person
.
… … …’
.
[25].
Accordingly, I reject the contention by Air Chefs that the Public
Protector's report is unlawful
in that it is irrational as offending
against the principle of legality as enunciated in our Constitution.
On the contrary, there
is indeed a rational connection between the
objective facts placed before the Public Protector and the findings
and the remedial
action that she has ordered. The simple point is
this: withdrawal of the award of the tender = unlawful administrative
action =
maladministration.
[26].
Having said that, I accept the explanation proffered by Air Chefs
that after the first LoA was
sent to Mantelli’s, it dawned on
Air Chefs that the award of the tender was problematic in that its
implementation would
result, from a practical point of view, in
difficulties. They then realised that the tender processes were
flawed and that they
would be ill-advised to implement the award of
the bid. This did, however, not entitle them to simply withdraw the
award of the
tender – that conduct, as I have already
indicated, was unlawful and such conduct cannot be countenanced,
especially not
from a government institution. What Air Chefs ought to
have done was to apply to Court for a review and the setting aside of
the
award – the so-called ‘self-review’.
[27].
I do not agree with the submissions on behalf of Mantelli’s
that Air Chefs and its management
acted dishonestly. There is no
evidence in support of such a finding.
[28].
I reiterate that the conduct of Air Chefs amounted to
maladministration and, as a result of
such maladministration
‘unlawful or improper prejudice to’ Mantelli’s
resulted. It was therefore appropriate
for the Public Protector to
order the remedial action that she did, notably that Air Chefs was to
reimburse Mantelli’s direct
out of pocket losses.
[29].
For all of these reasons, the judicial review application of Air
Chefs falls to be dismissed.
Second Respondent’s
Counter-Application
[30].
The counter-application for the
judicial review of portions of the Public Protector’s report is
brought in terms of the common
law under the principle of legality
and not in terms of Promotion of Administrative Justice Act
(PAJA)
[4]
.
[31].
First, Mantelli’s seeks the review of the Public Protector’s
failure to find that
the improper conduct and maladministration by
SAA improperly prejudiced Mantelli’s, as contemplated in
section 6(5)(d) of
the Public Protector Act. Having found
improper conduct and maladministration on the part of both Air Chefs
and SAA and having
found that Air Chefs’ improper conduct and
maladministration improperly prejudiced Mantelli’s, so the
contention on
behalf of Mantelli’s goes, the Public Protector’s
decision not to make this finding in respect of SAA is so
unreasonable
that no reasonable person in her position would have
failed to make it.
[32].
I give short shrift to this part of the review application as there
is no merit in same. When
adjudicating the bids pursuant to RFB
025/2013, SAA was acting, as its ‘Holding Company’, on
behalf of Air Chefs. Any
contractual arrangement following on the
award of the tender, would have been with Air Chefs. The simple point
is therefore that
any possible prejudice to Mantelli’s would
have resulted from a collapse of such a contractual arrangement and
therefore
as a result of the unlawful conduct on the part of Air
Chefs and not SAA. The Public Protector was therefore correct in not
finding
that SAA’s maladministration improperly and unlawfully
prejudiced Mantelli’s.
[33].
Second, Mantelli’s seeks the review of the Public Protector’s
failure to act in
terms of section 6(4)(c)(i) of the Public Protector
Act, which relates to bringing the matter to the notice of the
relevant authority
charged with prosecutions if the Public Protector
is of the opinion that the facts disclose the commission of any
offence by any
person.
[34].
In that regard, I am of the view that there was no credible evidence
before the Public Protector
suggesting criminality on the part of any
individual. As already indicated
supra
, I have no reason to
reject the explanation by Air Chefs in relation to why they retracted
the first LoA. Such explanation is eminently
plausible. Mantelli’s
suggestions of malfeasance and dishonesty on the part of Air Chefs
and SAA are speculative at best.
Accordingly, the review in respect
of this aspect should therefore also fail.
[35].
Thirdly and importantly, Mantelli’s seeks the review and
setting aside of the Public Protector’s
decision directing SAA
to pay Mantelli’s proven out-of-pocket expenses. In that
regard, it is the case of Mantelli’s
that there was clear
evidence of fraud and dishonesty on the part of Air Chefs and SAA
officials, and that the Public Protector
failed to direct remedial
action in the form of damages.
[36].
In support of the aforegoing relief
sought by him, Mantelli’s relies heavily on the decision in
South African Post Office v
De Lacy and Another
[5]
,
in which it was held that irregularities falling short of dishonesty,
incompetence on the part of those who evaluated the tenders,
and even
conduct that amounted to negligence, would not found a claim for
damages at the hands of an unsuccessful tenderer. A claim
would lie
only if it were established that the award of the contract to the
rival was brought about by dishonest or fraudulent
conduct on the
part of one or more of the officials for whose conduct the public
entity was vicariously liable, but for which the
contract would have
been awarded to the complainant. The onus rests upon a tenderer to
establish, as a matter of probability, that
the award of the contract
was brought about by conduct of that kind, and, if that onus were not
discharged, the claim would have
to fail.
[37].
In that case, which had commenced as an action by the tenderer
against the Post Office, it was
furthermore held that there might
well have been irregularities, incompetence and negligence on the
part of the Post Office and
the complainant might even have been more
worthy of being awarded the contract, but none of that was enough.
[38].
In casu
, as I have alluded to
supra
, there is no such
credible evidence of dishonest or fraudulent conduct on the part of
Air Chefs and SAA officials. Mantelli’s
contends that the
backdating of the tender register by SAA officials, the withdrawal of
the letter of award of the tender to Mantelli’s
by Mr Kemp,
the then CEO of Air Chefs, and its replacement by Mr Kemp with a
panel letter, the conduct of SAA Legal officials
in supressing and
then misrepresenting the findings and recommendations of the Indyebo
report and the subsequent business supply
arrangements reached
between Air Chefs, CIRO and a supplier disqualified in the tender for
the purposes of circumventing the tender
process, all amount to fraud
and dishonesty, which caused Mantelli’s financial loss. I
reject these contentions as misguided.
As I have already indicated, I
cannot reject without more the explanation given by Air Chefs for the
retraction of the first LoA.
As for the other accusations, they are
based at best on flimsy and speculative assertions and assumptions.
[39].
For the aforegoing reason alone, the counter-application should
fail.
[40].
There is however another reason why the application should fail even
if my estimation of the
evidence that was before the Public Protector
is wrong. And that relates to the nature of the proceedings which are
the subject
of the judicial review application.
[41].
Mantelli’s seeks the substitution of the decision that SAA pay
its out-of-pocket expenses
with one directing Air Chefs and SAA to
pay it damages in the amount of R5 298 783.84 jointly and
severally. In other
words, Mantelli’s case is that the Public
Protector, in giving directions in relation to her remedial action,
should have
directed Air Chefs and SAA to pay to him ‘contractual
damages’ or ‘delictual damages’ of about R5 million
based on the alleged dishonest and fraudulent conduct on the part of
officials of Air Chefs and SAA. This, in effect, amounts to
an
application for the judicial review and the setting aside of the
decision by Air Chefs to withdraw the first LoA, with and exceptional
substitution remedy.
[42].
The Public Protector does not have
judicial review powers. As can be seen from the extract from the
Public Protector Act, quoted
supra
,
read with s 128(1) and 128(2) of the Constitution, the Public
Protector’s main function is to investigate and to report
on
maladministration, and then to take appropriate remedial action, in
connection with the affairs of any State institution or
on the abuse
of power or unfair, capricious, discourteous or other improper
conduct or undue delay by a person performing a function
connected
with his or her employment by such State institutions. Similarly, the
Public Protector’s powers are limited to
her
investigating
and reporting on
maladministration
or such other misconduct by a person in the employ of a State
institution, ‘which results in unlawful or
improper prejudice
to any other person’
[6]
,
and then to take ‘appropriate remedial action’.
[43].
As was held by the Constitutional
Court in
Economic Freedom
Fighters v Speaker, National Assembly and Others
[7]
,
s 182(1)(c) of the Constitution provides that the 'Public Protector
has the power, as regulated by national legislation …
to take
appropriate remedial action'. The court went on to hold as follows: -
‘
The power to take remedial
action is primarily sourced from the supreme law itself. Complaints
are lodged with the Public Protector
to cure incidents of
impropriety, prejudice, unlawful enrichment or corruption in
government circles. This is done not only to
observe the
constitutional values and principles necessary to ensure that the
“(e)fficient, economic and effective use of
resources [is]
promoted”, that accountability finds expression, but also that
high standards of professional ethics are promoted
and maintained. To
achieve this requires a difference-making and responsive remedial
action. Besides, one cannot really talk about
remedial action unless
a remedy in the true sense is provided to address a complaint in a
meaningful way.’
[44].
The point of these extracts is that the remedial action taken by the
Public Protector, which
must be suitable and effective, is binding
and aimed primarily at helping to uproot prejudice, impropriety,
abuse of power and
corruption in state affairs, all spheres of
government and state-controlled institutions. It is not intended as a
means or a procedure
to recover damages of possible damages suffered
by an aggrieved complainant.
[45].
The directions which Mantelli’s contends should have been
issued by the Public Protector
could not and should not have been
made by her. Had the Public Protector granted such directions she
would in effect have judicially
reviewed and set aside an
administrative decision, which is a process which falls squarely and
exclusively in the province of a
Court of Law. I reiterate that it
would have been incompetent for the Public Protector to have issued
such orders. Those are the
type of orders that can be granted only by
a Court hearing a judicial review application or seized with a
damages claim based on
contract or delict.
[46].
That, in my view, spells the end of Mantelli’s
counter-application.
[47].
I am bolstered in my aforegoing
conclusion by the fact that any and all of the case authorities
relied on by Mr Elliot SC, Counsel
for Mantelli’s, in support
of his argument that this court should substitute the Public
Protector’s remedial action
with what is in effect a damages
award, relates to judicial review applications. Those cases include
Vox Orion
referred to supra,
Gauteng
Gambling Board v Silverstar Development Ltd and Others
[8]
and
Trencon
Construction (Pty) Limited v Industrial Development Corporation of
South Africa Limited and Another
[9]
.
[48].
I therefore conclude that the counter-application of Mantelli’s
should be dismissed. And
in view of such finding it is not necessary
for me to deal with any of the other issues which arose in this
matter, including Mantelli’s
application for condonation of the
late filing of his answering affidavit, which application, in my
view, should be granted.
[49].
In sum, I intend to dismiss
both the applicant’s judicial review application and the second
respondent’s counter-application.
Costs
[50].
The general rule in matters of costs is that the
successful party should be given his costs, and this rule should not
be departed
from except where there are good grounds for doing so.
[51].
In this matter the second respondent has been
successful in its opposition to the applicant’s judicial review
application.
Conversely, the applicant has successfully opposed the
second respondent’s counter-application. In the end, it can
therefore
be said that the applicant and the second respondent were
both successful in this matter and neither of them are entitled to a
costs order. The other parties – the Public Protector and SAA –
played no part in these proceedings and I assume that
their intention
is to abide the judgment of this court.
[52].
I am of the view that each party should, in the
circumstances, bear his/its own costs.
Order
[53].
In the result, I make the following order:
(1)
The applicant’s judicial review application
be and is hereby dismissed.
(2)
The second respondent’s judicial review
counter-application is dismissed.
(3)
Each party shall bear its/his own costs.
L R ADAMS
Judge of the High Court
Gauteng Division, Johannesburg
HEARD ON:
11
th
October 2023
JUDGMENT DATE:
26
th
January 2024 –
Judgment handed down electronically
FOR THE APPLICANT:
Advocate M Majozi, together with
Advocate Sihawu
INSTRUCTED BY:
Motalane Incorporated,
Waterkloof Ridge, Pretoria
FOR
THE FIRST RESPONDENT:
No
appearance
INSTRUCTED
BY:
No
appearance
FOR
THE SECOND RESPONDENT:
Advocate
Guy Elliot SC
INSTRUCTED
BY:
Francis
Thompson & Aspden, Cape Town
FOR
THE THIRD RESPONDENT:
No
appearance
INSTRUCTED
BY:
No
appearance
[1]
Public Protector Act,
Act 23 of 1994.
[2]
Public Finance
Management Act, Act
1 of 1999.
[3]
SITA (SOC) Limited v
Vox Orion (Pty) Ltd
2015
JDR 1335 (GP).
[4]
Promotion of
Administrative Justice Act, Act 3 of 2000.
[5]
South African Post
Office v De Lacy and Another
2009
(5) SA 255 (SCA).
[6]
S 6(5)(d) of the Public
Protector Act.
[7]
Economic Freedom
Fighters v Speaker, National Assembly and Others
2016 (3) SA 580 (CC).
[8]
Gauteng
Gambling
Board
v
Silverstar
Development
Ltd
and
Others
2005
(4) SA 67 (SCA).
[9]
Trencon Construction
(Pty) Limited v Industrial Development Corporation of South Africa
Limited and Another
2015
(5) SA 245
(CC).
sino noindex
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