Case Law[2023] ZAGPJHC 437South Africa
3030 Motorbike School CC v Gauteng Department of Community Safety and Another (17608/2015) [2023] ZAGPJHC 437 (9 May 2023)
High Court of South Africa (Gauteng Division, Johannesburg)
9 May 2023
Judgment
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## 3030 Motorbike School CC v Gauteng Department of Community Safety and Another (17608/2015) [2023] ZAGPJHC 437 (9 May 2023)
3030 Motorbike School CC v Gauteng Department of Community Safety and Another (17608/2015) [2023] ZAGPJHC 437 (9 May 2023)
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sino date 9 May 2023
IN THE HIGH COURT OF SOUTH AFRICA
GAUTENG LOCAL DIVISION, JOHANNESBURG
Case No: 17608/2015
NOT REPORTABLE
NOT OF INTEREST TO OTHER JUDGES
REVISED
09.05.23
In the matter between:
3030
MOTORBIKE SCHOOL CC
Plaintiff
and
GAUTENG DEPARTMENT OF COMMUNITY
SAFETY
First
Defendant
THE
GAUTENG MEC FOR COMMUNITY SAFETY
Second
Defendant
Neutral
Citation:
3030 Motorbike School CC v
Gauteng Department of Community Safety & Another
(Case
no 17608/2015) [2023] ZAGPJHC 437 (9 May 2023)
JUDGMENT
FRANCIS J
Introduction
1.
The
plaintiff instituted an action for damages against the defendants for
outstanding fees for motorbike driving lessons and training
courses
it gave to police officers of the first defendant in terms of a
written agreement alternatively written and/or partly oral
agreement
which training had been extended.
2. The action was defended by the
defendants who denied that the plaintiff had trained 30 police
officers and pleaded that only
14 officers were trained. They
instituted a counterclaim for the sum of R160 293.12 against the
plaintiff for the overpayment
but during closing arguments this court
was notified by their counsel that they were abandoning their
counterclaim. The defendants
denied that any oral agreement was
entered between the parties.
3. Both parties called three witnesses
each in support of their case. It is not in dispute that the
parties had entered into
a written agreement for the provision of the
training of motorbike lessons for 30 police officers at an agreed
purchase price of
R300 549.60. The plaintiff was paid
R300 549.60 for the training of police officers. 21 police
officers had attended
the training and only 14 police officers
obtained their licences. What is in dispute is whether the
agreement was partly
oral.
The evidence led
4. The plaintiff’s first witness
was Chris Ndimande its managing director. He testified that he
had received a call
from the Gauteng Department of Community
Development which is the first defendant to provide motorbike
training lessons for 30
officers. He then visited the
department and met with director Mateise Matee (Matee). She had
asked him to help with
the training of 30 officers on motorbikes and
told him how the training would unfold and that the duration of the
training would
be for 5 days and would not be continuous. There would
be a break and they would return to complete the training quotation
at page
013-9 on Caselines is dated 1 November 2012 and the full
package is for a quantity of 30 at a unit price of R3 500.00 and
the total price is R300 549.60. The training started on 19
November 2012 and ended on 18 January 2013. It was initially
for 30 police officers. Annexure MS4 has the list of people who
had attended the training. Page 013-16 to 013-21 on
Caselines
contains the names of the people who had attended the training. The
register indicates that they attended the training
from 19 November
to 18 January 2013. The terms were that they would attend the
training for 5 days and there would be a break
in between. Motorbike
training is a one-day course. To the department they made it
for 3 days and they made them comfortable.
The plaintiff had
motorbikes and they rode their own motorbikes and came back and did
the K53 and a test was done. During
the training they indicated
a break and they rode their own motorbikes and told them not to do
that since they cannot ride their
own motorbikes and they needed a
full licence. The training was scheduled for 5 days i.e. 3 days
for beginners course and
they should be ready to ride their own or
company motorbikes. They rode their own motorbikes for 3 to 6
months and came back
and were now riding to do the K53 and they had
grown ready to do the test. Annexure MS2 or page 013-11 to 013-12 on
Caselines is
a purchase order and is dated 27 November 2012 which he
had received on 27 November 2012 after the training had started.
The purchase order had not been presented or explained to him when he
had entered the contract nor was the procedure explained to
him.
He was told that the purchase order would be prepared. Matee had
asked him to start the training before the purchase
order. Page
013-12 has a vendor list. It states 30 X MRC2 compliant on road
riding and K53 grounds. It has a
tracking item and training
external to spec 30. There is an advance course after a month
of training and has 30 learners
issuing fees and 30 drivers licence
issue fee.
5. Ndimande testified further that he
had issued the first invoice to the service provider in December 2012
which is invoice at
page 049-9 for R300 549.60 and the training
was still on. The training ended in January 2019 and he had
wanted to issue
an invoice and Thami Mayisea the director of the
first defendant said that another purchase order would come and he
should wait
and should put it into the next purchase order to invoice
his shortfall. He went to their offices to enquire about the
next
purchase order and was told to wait since they were still
organising it. There were various telephone calls and he was
told
that it was coming but nothing came. He then invoiced his
shortfall and tried to communicate and Matee said that it was above
R500 000.00 and she could not help them. Director Hercule
wanted to help and wanted to do a motivation and was told
to wait.
Ndimande said that he was not aware of the threshold of R500 000.00.
It was the first time that he was
dealing with the government.
No one had explained the purchase order to him. The shortfall was
going to be R1 867 320.00
as seen on page 013-36.
6. During cross examination Ndimande
said that it was the first agreement he had with the government and
the repercussions of the
purchase order was not explained to him and
there was no purchase order. It was put to him that a quotation
had been submitted
and if they look at the purchase order at page
013-11, the quotation states that the full packaging is the
description and has
the unit and quantity. He agreed. He
agreed that the number of people are 30 and the unit price is
R3 500.00.
It was put to him that if he looked at his
quotation which is page 013-9 it states that the duration is 5 days
which ties in with
page four of the purchase order. He said
that he did not see that and no duration is stated there. It
was not the first
time that he had dealt with them. They were
on par with the quotation and the quotation states 1 day and the MRC2
(motor
cycle riders course) is 2 days. The total value was
R300 549.60 which was the full package. He said that he
could
not have unlimited training and it was a limited one and
structured. They were in agreement with them. He went to
the
office and set with Mayisela and they had looked at it. It
was put to him that the training was meant for 5 days and the invoice
of 31 March became an expensive exercise and the training took longer
than it should have taken. He said that it was incorrect.
He gave them one quotation and there was no additional quotation.
He had given them an invoice for the additional training
that he had
given them. He initially dealt with Matee. She left and
he went to see Mayisela twice. Mateee had
left no invoices with
the department and Mayisela then took over and had asked for an
extension. He was asked on what basis
he had issued the
invoices and waited for the purchase order to come for 2014. He
said that he had invoiced the invoice for
2014 because the purchase
order did not come. He had discussed it with Mayisela to have
another purchase order issued.
He would include the shortfall
there and the purchase order never came and he then sent an invoice
for the shortfall. He
had brought 7 motor bikes to train the 30
employees and that was sufficient. They took into account the
leaners who never
road motor bikes and he expected them to ride a
motorbike and there was no issue with the balance. They had
used the first
defendant’s pound and later moved to Centurion
which was their own place. There were licences for 17 learners
one of
whom had failed and 2 did not attend it and 14 received their
licences. It was put to him that the training had not been
completed and he said that the department had breached the agreement
and had said that there would be 30 officers. They did
not
return 30 officers and their resources had been reserved for 30
officers.
7. During re-examination Ndimande said
that it was the first time that they had dealt with the first
defendant. They did the
training with the purchase order based
on an oral agreement with the director. It was extended with
another oral agreement
and they did it without the purchase order.
They were Mayisela and with his assistant Stephen Malherbe.
8. The plaintiff’s second
witness was Tshepiso Manyaka. He testified that he joined the
department in 2009 as a training
officer. When he joined the
department he had never ridden a motor cycle and only had training in
2012. In 2012 they communicated
that the department was looking for
volunteers for riding motor cycles and he gave his name as a
volunteer for it. There
was going to be special training by the
department whether they had or did not have licences. In 2012
he was at the head
office when he received a call from the test
handler chief programme inspector Malherbe and he was working on the
N3 at the control
centre and that his name was on the list. He
was told in November 2012 to go to the Germiston pound. His
name and signature
appears on 013-16 and this was on 19, 20, 22, 26,
29 November 2012 and on 5, 10, 12, 13, 14 and 15 December 2012 and
also on 17
and 18 January 2013. He had attended every day of the
training based on the instructions from Malherbe who was the person
responsible
and directly in charge of the officers. The chief
officer did not tell him when the training would start and end.
He
referred to the temporary licences that were issued including
his. He had obtained his driver’s licence on 14 January
2013 and continued with the training. He was told that there
would be further more advance training and the motorbike capacities
were not the same. They would be given defensive riding and
they would use state motorbikes. They were first given
training
on the plaintiff’s motorbikes and further training on the state
motorbikes.
9. During cross examination Manyaka
confirmed that he had completed the training course and got a
learner’s and driver’s
licence. There were between
4 to 6 motorbikes at the pound but he could not remember the exact
number. He was asked
if there were 30 learners. He said
that when they started people had drivers’ licences. He
was not sure if those
whose drivers’ licences were part of the
30. They were later removed as and when training was launched
for motorbikes
in March. When he got to the pound he was not
riding a motorbike. He was asked if he had seen Malherbe at the
pound
and whether he was assisting him. He said no there was a
meeting at the pound and Malherbe was there with others and the
plaintiff. The first person that he had met was Tshepo with
whom he had a conversation and training with and Malherbe came
and
then introduced himself and handed it to the plaintiff. Whilst they
were being trained there were individuals and high ranking
persons
and he reported to them. He was asked how the department had
assisted with the motorbikes. He said that they
rode the
plaintiff’s motorbikes and the department’s bigger
motorbikes. After they had obtained their licences
they rode
the motorbikes for 2 days and the training after 18 January stopped
and they returned to their normal work stations.
He is no
longer employed by the department and he had reported directly to
Godfrey Sekonyane who is a director when he joined the
unit. He
was not personally involved in the training. He left the pound
after obtaining his driver’s licence
and never proceeded with
the training and they were told that the plaintiff will take them
through with the department’s
motorbikes. That never
happened. They only drove around the pound but not on the
public road.
10. The plaintiff’s third
witness was Thabo William Masoka. He testified that he joined
the department in 2005 and left
it at the end of August 2022.
He was with the department in 2012. From 2005 to 2012 he had
received motorbike training
lessons. He did not know how to
ride a motorbike. Their directors/senior managers had asked for
volunteers, as they
had a motorbike unit and he gave his name and was
called to the Germiston pound. Mayisela and Malherbe and their
seniors
introduced them to Ndimande on training. The department
was looking for 30 riders and he was part of the first group.
He does not remember the name of the director and Mayisela was an
advocate of the department and later became a director and Malherbe
was the Chief Provincial Inspector. When asked if he was told
how long the training would be, he referred to MS4 where his
name and
signature appears for training that took place on 19, 20, 22, 26, 27,
29 and 30 November 2012 and on 5, 10, 11, 12, 13,
14, 18, 19, 20, and
21 December 2012 and from 2, 3, 4, 7, 8, 9, 10, 11, 14, 15, 16, 17
and 18 January 2013. He had attended
all the training due to
the insistence of his supervisors. His temporary driver’s
licence appears at MS5 and was issued
on 11 January 2013. He
received training after he had obtained his licence but was not
allowed to ride the department’s
motorbikes since he was told
that he was not experienced enough. He got experience from 12
January 2013 to 18 January 2013
and was riding the department’s
motorbikes on the road.
11. During cross examination Masoka
was asked if they were told about the beginners and advance training
course and he said that
it was not broken down but they were told
that they would get training and get driver’s licences to
handle the department’s
motorbikes. He was asked if he
continued to be trained after he had received his driver’s
licence. He said that
they were not trained or evaluated on the
bigger motorbikes. They were given advance training by
Ndimande. Mandla Sekonyane
was in charge of the motorbike unit
but did not train them. They would report to him as the unit
commander of the motorbike
unit and he was in control. When
asked if he had trained them he said that he was in control of the
unit and all the officers
using motorbikes reported to him and he the
witness was an official. He reported to him after he had
obtained his licence
and was appointed in the motorbike unit.
They had looked for volunteers. It stopped and they were called
to pick up
office motorbikes. He used to be at the Pretoria
regional office and then came to Johannesburg to work under
Sekonyane.
When he received the training, he was based in
Pretoria. Sekonyane was allocated the motorbikes as the unit
head. He
gave him a motorbike after obtaining his driver’s
licence and advance training. Sekonyane was not trained.
After
he had been trained, he the witness was moved to a different
department headed by Sekonyane.
12. The defendant’s first
witness was Thami Mayisela. He testified that in 2012 he was
the director of Public Transport
and Inspectorate. He managed
transport regionally. The National Road Safety and Education
Programme took place and
he had to manage it regionally. He was
responsible for the Central Gauteng Province. As a director he
was responsible
for the budget of public transport. The
motorbike unit was a new unit and had started in 2012. The
reason for its establishment
was that as more vehicles developed
there was more congestions on the free roads and provincial roads so
there was a need to establish
this new unit. It involved
escorting VIPs for major events like cricket, soccer and to
funerals. It was also for derbies
and also to ensure that they
dealt with violations and the use of cell phones and people
travelling on barrier lines. They
also escort politicians like
the president and his deputy. They did not at the time have the
capacity to train their own
bikers. They had a few and had to
outsource it. With a quotation, Supply Chain will do a request
for a proposal and
invite service providers for a quotation for work
that they needed to be done. They worked on the basis of three
quotations.
For any amount below R500 000.00 they worked
on the basis of a quotation. They would invite the service
providers
for a quotation and the lowest one would get it.
There is a CFD Data base of service providers that are registered
with the
Provincial Treasurer. Supply Chain would take it from it or
call them to provide a quotation. Annexure MS1 is a quotation.
The total price is R300 549.60 which is less than R500 000.00.
Full package means the training of officers from learners
to drivers’
licence. The purchase order is at page 033-12 by the Gauteng
Provincial Government. This means that the
purchase order is
the contract and there is no other contract unless they have another
purchase order. The quotation is part
of the agreement with the
purchase order. The purchase order is from page 033-13 to
033-14. On page 15 it is signed by S
Podile on 1 November 2012 and by
Mangesi Tshongwe the head of department on 8 November 2012.
13. Mayisela testified further that he
was a director. The chief director is responsible for the
entire programme as the programme
manager. He was the director
responsible for such a programme and all of it fell under one
programme. He is now the
chief director and his signature is
not on that page. There were 3 quotations and the plaintiff’s
quotation. Supply
Chain accepted the plaintiff’s
quotation and gave it to them because it was the lowest. He
interacted with Ndimande
and gave him a full briefing at the meeting
and was told what was expected. It was him, his colleague
Violet Mathege - the
director for administration and Ndimande was
alone from the plaintiff’s side. The briefing session is for a
tender less than
R500 000.00. If the amount is above
R500 000.00 they would invite for a tender and have a briefing
session for
everyone. They do not do it with three quotations
and they accept the lowest one. At the meeting they met and
greeted
Ndimande and gave him the scope and rational of works and
what had to be done. Ndimande knew what service he had to
provide
since he was fully briefed. It was put to him that
Ndimande said that they had entered into an oral agreement. He
replied
that they could not enter into in an oral agreement for any
amount of money. The basis of the agreement was the purchase
order. The purchase order was created on acceptance of the
quotation which quotation was submitted by the service provider.
The invoice which is annexure MS6 and is dated 31 March 2014 was
addressed to him. He does not know what he had to do with
it.
It was an invoice long after the training was done. Once the
training is done the service provider is paid.
It was put to
him that Ndimande had said that at times the officers told them to
extend it. He said that he did not enter
into an oral agreement
with him. The total amount according to the invoice was
R2 167 869.60. This is a tender
amount since it
exceeds R500 000.00 and they cannot give this without a tender
and three quotations would not work. The original
quotation was
R300 000.00 and now it was R2 000 000.00 and they
would not have accepted it. It does not make
sense. The
basis of the acceptance was that it was the lowest and they flouted
the Provincial process. Ndimande had said
that he had spoken with
Matee. The conversation with him from time to time in the
meeting was the milestone and it was brief
for example that they had
learner licences and that the training was proceeding very well and
they were being trained. The
briefing was on the programme that
was taking place. For any other purchase order to be developed
there must be a quotation
which is accepted which was the normal
process. As bidders they cannot do the work and add on to it.
There cannot be
a purchase order without a quotation. There was
no authority for it. The normal process order would be a
tender.
He would risk his job and exceed the provincial orders.
An order was issued and not communicated with him unless
Ndimande
had spoken with Matee but he was not privy to it.
There is an email dated 2 June 2019 from the plaintiff to Matee and
she
responded on the same day and had pointed out to Ndimande that
since the amount exceeded R500 000.00 in terms of the PFMA it
should have gone for tender. It is the defendants case that it
exceeds R500 000 and should have gone out on tender.
There was
no talk of extending the training and the duration was in a number of
days. They would get them licences and they
did not agree on
the duration. It was drawn on the basis of work that was done and not
on an issue of time. There were new officers
who never rode
motorbikes. This was discussed with the plaintiff and they did
not agree on the time. The quotation was the lowest and they
said that they
could do the work. It was put to him that
Ndimande had said that they would be trained until they got their
licences.
He said that no duration was mentioned and the
emphasis was the end product namely licences. It was put to him
that he had
said that the shortfall exceeded the amount. He
replied that he accepted an amount of R300 000.00 and invoice
MS6 exceeds
it. Supply Chain creates a packing order and it
must be authorised by the programme manager who is the chief
director.
He had no authority to attend to the invoice of
Ndimande. He the witness said that he reported to Podile who
was the chief
director and the chief director reported to Tshongwe.
14. During cross examination Mayisela
said that he started working for the department in 1996 and was aware
and acquainted with
the process in the department. 1996 to 2012
is more than 10 years and he was aware of the bidding and threshold
in the tender
process. It was put to him that there was an
initial briefing meeting with Ndimande and he said that he cannot
remember the
date but it was after the quotation was given. At
the time of the training, he was he was in charge of the training.
During the briefing he had discussed with Ndimande the scope of the
training. The training started on 19 November 2012 and
the
quotation was given on 1 November 2012 by Ndimande. He was
asked if the discussion took place on 19 November 2012. He
said no
and that his discussion with Ndimande had taken place after Supply
Chain told him that he was a supplier. He had
not met him
before. The initial meeting was when he was appointed. He does
not remember when he had met Ndimande but it was
before the training
had started. This was what was expected. He had met him
after he had provided the quotation which
had been accepted.
The department would call service providers to hand in quotations.
There was a request for a quotation.
When asked if it would be
in writing he said that he was not in Supply Chain and somebody from
Supply Chain could provide an answer.
He knew that no one in
the department had motorbike experience. He was aware of the
scope of training to be provided for
the training. Some had no
experience at all. To get a licence would not need extensive
training. He knew how
much money the department had and it
should not exceed R500 000.00. He did not know that
Ndimande had not worked with
the department and he did not acquaint
him of the process of payment. It was put to him that Ndimande
gave the quotation
on 1 November 2012 and started the training on 19
November 2012 and he was given the purchase order on 27 November
2012.
He said that he does not know if it is the Supply Chain
process. He said that he accepted that MS2 is dated 27 November
2012
and that the purchase order was generated after the training had
started. He was asked whether he would accept that Ndimande
would not have agreed to the training and to run it to infinity to
get licences if there was no limitation and if he knew about
the
terms of the purchase order. He said that he did not agree.
He was asked whether Ndimande if he knew about the
threshold and that
they had no riding experience at all and that the end result was to
get a training licence a reasonable business
man would have run it to
infinity until they got the licence based on a quotation. He
said that he does not know. It
was put to him that on 1
November 2012 there was no purchase order and he replied that he did
not know what he was doing.
He agreed that he gave the
quotation on 1 November 2012 and the purchase order was generated on
27 November 2012. It was
put to him that he was acquainted with
the department’s purchase order on 27 November 2012 and he said
that he does not know.
He was referred to page 033-8 and agreed
that it has a department stamp and supply signature and is dated 13
December 2012.
Page 033-9 has a department stamp at the bottom
with a signature and page 033-8 to 033-14 is the Invoice, Purchase
Order, Purchase
Request form that was signed by Podile and Tshongwe.
The supply signature at 033-8 was on 13 December 2012. It was
put to him that the plaintiff contends that he was only provided with
the full purchase order on 13 December 2012 when he signed
it.
He replied that from what is written he can see that but he was not
in Supply Chain. He agreed that he was with
the department
since 1996 and was aware of the procurement process. He was not
aware of the purchase order and the terms and conditions. He
was asked how the department
would do check and balances and know of
the process for suppliers and he said that he is not aware of it.It
was put to him that
the department knew what was expected of Ndimande
and did not inform him of the process until he had started with the
training
and he had entered into a contract that was binding without
knowing the process. He said that he does not know and does not
know what was discussed with Supply Chain and he is the end user and
was not in Supply Chain. He had met Ndimande before
the
training had started. He as a manager knew the scope of
training and what the department wanted. He knew as a manager
prior to the training that there was a certain threshold and that
there was a law to it. He was asked if he did not feel
the need
to discuss with Ndimande what was expected and not say that he was
expected to train and get licences and if they did
not get a licence
they would not foot the bill. He said he did not. He took the
quotation and understood what was expected
of the department and he
proceeded with the training at the department’s request.
It was put to him that the department
knew what it did when they had
asked for his quotation without discussing the scope. He said
yes it did not. It
was put to him that it knew that they
had no riding experience at all and would provide training up to
getting a driver’s
licence and there was no need to explain the
process of the department. He said that he was not sure if
Supply Chain discussed
it but he did not. He agreed that he as
a manager knew the rational and scope of the work. It was put
to him that he
knew that he could not enter into an oral agreement if
it surpassed R500 000.00. He replied that it had been asked many
times.
It was put to him that he had said that Ndimande briefed
him if the milestone was reached and was referred to page 013-22 and
that
the outcome for training was to obtain drivers licence and he
said that it was correct. Annexure MS4 confirms the date when
they were trained. Annexure MS5 indicates that one MD Arendse was
issued with a licence on 11 January 2013. All the dates
when
the licences were issued was before January 2013. He was
assessed for training them. He does not know why they
were
trained after they had received their licences. It was put to
him that they had reached the milestone and was asked
why he did not
ask when and why they were getting training. He said that he
did not know and he is not the operations supervisor
and have to
enquire where they were. He had received a briefing from
Ndimande. He was asked if he was not briefed and
no one had
said that they were not at work and where they were and he said no.
It was put to him that a witness said that
he got training and was
not briefed after he got the licence and he continued to receive
training to be given a certificate.
He said that he does not
know that and he did not go to that session. It was put to him
that the plaintiff had said that
on the day of the training they were
at the premises. He said that the briefing was at their
premises and he cannot speak
for the others but he did not go there.
It was put to him that the motorbike that was used for training was
different to
that of the department. He said that Ndimande told
him that at one of the briefing sessions. It was put to him
that
it was a different motorbike and that at some point he was
informed and knew that the department’s motorbike was different
to those allocated to the department and the department requested
Ndimande the training officer to train them to get their licences.
He said that he does not know and it was not brought to his
attention and if they did that, the process was not followed
and it
was unlawful. He does not know what happened after they had
received their licences. He had testified that the
director of
administration Matee was aware of the training and had met Ndimande
and does not know if she was briefed on the milestone.
15. Mayisela was referred to the email
sent on 2 June 2014 at page 049-3 by Matee to Ndimande and his
response to her in an email
of the same date. In paragraph 3
reference was made to the provisions of the PFMA. He was asked
whether he agreed that
he had alleged in correspondence from Matee
that he was not mentioned in the email. He said yes and that it
was verbal correspondence.
He was in court due to the verbal
correspondence between the two of them. It was put to him that
his client was aware of
the problem due to the verbal communications
and he had asked that his statement confirmed that he was not
involved in it and what
Matee had mentioned was not from him.
He said no he never did that. It was put to him that it was a
pattern and things
were discussed orally back and forth and at no
point from any of the department was it put to her. He said
none was done.
It was put to him that none was done because in
his testimony he said that he had approved that orally and he was
jeopardising
his work. He said yes. He said that he was
never asked to put anything in writing. He was not aware.
He
was asked that when Ndimande said in his feedback to confirm his
involvement what he Ndimande was talking about. He said that
it
was not true. It was put to him that he was referring to a
verbal agreement with the two of them which was denied and
he wanted
it in writing. He said that there was no verbal agreement
between him and Ndimande to do the work despite that
it exceeded
R500 000.00. He did not reach an agreement and no
recording was present. He is seeing this for the
first time.
She had asked him if they owed Ndimande and he had said no. It
was made on 2 June 2014 and he was not asked
if they owed Ndimande.
He was asked if he was denying that Matee prior to her writing the
said email had discussed the shortfall
with him. He said that
he was denying that she spoke about the shortfall and had asked if it
was oral and he said no and
he said that he does not agree.
There was no oral agreement. It was put to him that the
document does not state that
they did not discuss the extension but
not monetary. There was no discussion to extend it after the
licence and he said he
disagrees with it. They had a licence to
operate due to the training of the plaintiff and they had licences.
16. During re-examination Mayisela was
referred to annexure MS1 which is the plaintiff’s quotation
which states that the full
package is 30. He said 30 officers
had to be trained but 17 officers were trained. The department
had paid him for
30 officers which was the entire amount. He
does not remember what they did with the balance and Matee dealt with
it since
not all 30 officers were trained but 17 were trained.
He was asked why he was referred to the rules of procurement and he
said that they did not enter into an oral agreement and there would
have been serious repercussions had they done so. The
manager
starts as the chief provincial assistant. He is the assistant
director. There is a junior, middle and then a senior.
He
delegates his functions and there are people who are operational and
are responsible for it. Ndimande’s invoice
of M6 is dated
31 March 2014 and he did training of 17 officers and had invoiced for
it. In MS1 the duration is not spelt
out and in MS6 the days
are not spelt out. The plaintiff did not explain to him what
MRC2 entailed on annexure MS1.
MRC is day 3. He does not
know that there was a break after a month. The unit price for
MRC2 is R1 200 and for MRC3
is R1200.00.
17. The defendant’s second
witness was Jacob Stefaanus Malherbe who testified that he is
employed as the chief provincial
inspector at Gauteng procurement. In
2012 he was the chief budget and procurement inspector. He
recalls MS1 which is the
quotation. It was for training they
had to supply for services rendered. The role in procurement
was that if they needed
goods or services they would request a
quotation. Under a tender value of R500 000, RSLA1 they do
a purchase request
form which is not a purchase order. He would
complete it or other people would do so. It is for complete
services requested
and appraisal rand value and the signature is
considered. They attach three quotations. They will fill
it in when they
request service for example motorbike training.
They will request a quotation and fill it in and send it to Supply
Chain.
The quotation is received by his office by email.
The head office budget and procurement department under the traffic
section/managerial
will look at the budget for training, skills
training etc and ensure that there is a budget for it. They had
received a quotation
for it. They would contact different
motorbike entities that trains bikers. They had 3 quotations
for the request form
which they had received by email. His
section and the other departments advised them who to phone for
training. They
must be on the data base for vendors and have a
tax clearance. After they got the quotations they compiled RCL1
and sent
it for two signatures i.e. the chief director –
Stephen Kobbe and approval by advocate Tshongwe. They needed
two signatures
as delegation for up to a certain amount. For
R300 000 they needed approval. They would attach all
quotations
and send it to the community support management section
and the RSI is processed to ensure that everything was in order and
approved
and it goes through each quotation to see the vendor number
and allocate points to each and they would then get a purchase
order.
After that they supplied it to the claim managers –
RSL1 and it stays with them. After the purchase order is
generated
it will be sent to him and he would send it to the service
providers and tell them that they had been appointed and could
proceed.
Supply Chain would generate it and send it to him.
Clause 9 of the purchase order at page 14 contains a general
provision
and it states that the CPG does not accept non-deliveries
and only pays for goods supplied and/or services rendered according
to
that purchase order. The CPG is not liable towards the
supplier for any amount exceeding the price of the goods or services
as specified in the purchase order. He said that was a general
provision that was given. They paid the amount on the
quotation
in terms of the purchase order and that is all that they pay for.
There cannot be further expenditure and they
pay what is in the
purchase order and cannot exceed it. From receipt of the
quotation to the generation of the purchase order
takes up to 5/7
days and it depends on the work load. Clause 12 states that
“
This PO forms the entire agreement between the CPG and the
Supplier and any variation to this
PO
must be done in the form
of a Change Purchase Order issued by the CPG
”. He said that
no purchase order was made at all. It was a unique number
agreement with the department. Without
the purchase order they
cannot be paid. The invoice must reflect the purchase order.
It is a passport to provide services
to the department. The
training started on 19 November 2012 and the purchase order was
created on 27 November 2012 which
was 8 days after they had commenced
with the training. That is not allowed and they can only do the
training after receiving
the purchase order. MS6 is the
plaintiff’s invoice and is dated 31 March 2014 which needs to
be compared with the quotation.
The full package is everything
that has to do with motorbike training, K53 and until they received
their drivers licence. MCR2
is your beginners course and MCR3 is
outside the grounds and is the actual course. The quantity is
30 officers to be trained.
The unit price on the quotation is
for 30 officers to be trained and there is a breakdown of the unit
price. MR2 is R1 200
and MR R1 200 gives you a price. The
invoice MS6 is a description clause and MR2 is a beginners course.
The learner
is a full package officer after 3. There is no MRC3
there. Under the full package is K53 is MRC3 and is different
to
the quotation. All of it comes to R300 549.60. He
was referred to MS6 which is the unit price and includes the
duration
and was asked how they got to R540 000.00. He said that as
an original quotation there is no time frame in
the quotation and it
says what the full package is. On the MS6 it is broken down and
is calculated per day and comes to R540 000.00
and is not in the
quotation. The variation came after the fact. The
quotation was accepted by the service provider
and gave an invoice
for R300 000 and the variation was not in writing and was not
accepted. In addition, service had
to be given and a new
purchase order and it cannot be without a valid invoice. It was
already paid and a new one had to be
paid and had to go on. K53
is the number of hours and multiplied. There was no approval
for the MS6. The tender
amount above R500 000 had to go
for the tender process and he could tender for it. If he saw
that it was not an easy
transaction, he should have requested for the
purchase order to be revised and approved and it would have been
revised. If
it exceeds R500 000 they would cancel it and
it will go for a tender which did not happen at all. The tender
process
should have been followed. It was put to him that he
was required to train 30 officers and only 17 officers were trained
and he was asked what he was required to do. He said that he
was not involved in training but it can be less than that.
If
they had and were sent less than 30 they will pay for the actual
number and only 17 was sent. He was not aware of the
MS6
invoice and where it went to. The R300 000 came to them.
He was not aware of the invoice for the purchase
order. That
invoice could not be sent and it was not on a valid purchase order.
That was after the fact.
18. During cross examination Malherbe
said that 30 officers were interested when the training started and
17 had arrived and only
17 needed to be trained. He was with
the department in 2012 and was familiar with the procurement
process. An ISLO
will be completed after the quotation was
supplied. There is no standard form similar to what the
services department had
required. They would send an email with the
description of the services required. The email would set out
what was required
and based on the email they would give a
quotation. The department knows that training is within the
budget. The services
must meet the budget requirements and the
necessary services to be rendered in full. The budget is
flexible depending on
the service required and it must be under
R500 000.00. If there is no quotation with the threshold
and above R500 000.00
a tender process will have to be
followed. All the requirements will be in place and that the
vender meets the requirements.
He was asked what if he was not
familiar with the terms and conditions of tender to supply. He
said that he is not aware
of it. If he renders service as a
vendor he must be aware of the PFMA requirements etc. There
must be a purchase order
that sets out the terms and conditions.
He must know what is required because he is a vendor. Once the
purchase order
is approved the supplier would proceed. It was
put to him that the terms and conditions are at page 049-13 at page
14 and
that the training started on 19 November 2012 and the purchase
order was generated on 27 November 2012 and he signed on 13 December
2012 and whether he agreed that the department did not comply with
its own process. He said that he was not sure how he was
informed to start the training on 19 November and he cannot answer
the question. It was put to him that he must have been
told
when to start the training before the purchase order was created.
It was put to him that he was taken to MS1 and he
said that MRC2 is
day 2 or phase 3 and that he was correct and MRC2 is day 2 of the
training and he said ok. He said that
he can see from MS3 that
the training was for 26 days. He agreed that MS1 and MRC2 means
a day. He was asked if he
agrees that based on the calculation
and date of training and MRC is 15 days and the multiplication of
days training took MRC2
cost R1 200 x 26 and on the same
quotation 7 times K53 and he replied that he sees it. MS3 shows
that it took 26 days.
He was asked if he agree about the time
period it would take was stipulated as 7 days stipulated and he said
yes. He was
asked if it did not take 7 days and took 23 days
multiplied by 23 and he said it was according to that calculation.
He agreed
that he said that if the variation came after the fact a
new purchase order had to be created. He was asked that if it
came
after the invoice was settled and the purchase order it could
not be valid and he said yes. He was asked if his testimony
was
that the invoice reflect the time and effort put into training and he
said yes. It is correct to process many invoices
to reflect
invoices given. He was asked that if 17 employees attended
training and 30 had to be trained and less was given
training whether
the invoice would be less and he said yes. He was asked that if
the invoice was less and different to the
purchase order it cannot be
processed and he said that if it was less it can be processed.
He was asked if he agreed that
the process was before the
department. He said that if it was more he must get permission
to alter the training and purchase
order and quotation would have to
be amended and it was not revised in this case. He was asked
why it was not revised.
He said they did not receive one and
they had received a revised invoice in January/February and processed
it. It was put to him that the plaintiff could not know to
revise the purchase order and he replied that he was not sure if he
knew that. It was put to him that the plaintiff was given
the
purchase order on 27 November after the fact and continued to 18
December and he could not stop and had asked to be paid for
the
training for the period of training. He said that the training
could have been stopped to revise it and the process also
stopped
without the purchase order. It was put to him that the
plaintiff entered into an oral agreement with the department
to
render service and started in good faith on 19 November before new
terms and conditions of the purchase order. He said
there could
not have been a verbal agreement before receiving the purchase
order. He agreed that the services were provided
on 19
November. It was put to him that someone in the department had
given the plaintiff permission to start. He said
he does not
know the supervisor who told them to go for training.
19. The defendants third witness was
Godfrey Sekonyane. He testified that he is the deputy director
in the special Saturation
Ekurhuleni units in the Gauteng Police
forum. He is in the motorcycle unit which is his current
position. In 2012, he was
the chief provincial inspectorate and was
setting up the motorcycle vehicle unit. He was working for the
Johannesburg Metropolitan
Police and was responsible for the Free Way
Patrol and Taxi Squad and part of his duties was to train officers to
ride motorcycles
and vehicles. The unit was created in 2012 and
he was in community safety in 2007. When he got there he
started a new
unit – Special Law Enforcement Unit in 2012.
With his experience in patrolling with motorcycles which was not
present
in Gauteng he requested to start the unit and to look for
motorcycles. The riders that they had were people working in
different
regional offices and they were brought in to the unit.
He had a pound in Germiston. His office was there and his unit
reported there as well as the members. He met Ndimande towards
the end of 2012. Ndimande had come to the pound with
motorcycles and riders he could use. He thought that there were
between 2/3 motorcycles. He does not recall what was
discussed
after he met Ndimande but after that he was chosen as the service
provider. The training started at the pound and
later in
Centurion. He did not assist Ndimande to train since he was
chosen to do so. The training was later on the
road. No
advance training is done in the department and he the witness did not
do advance training. He did novice training
which is the normal
police training. He had seen the training at the pound. It
moved to Centurion and away from his
environment. He was not
trained by Ndimande and still does training. The riders came
from different regions.
He provided those working in his region
and brought them to Ndimande. There were 15 people at the pound
and 2 were licensed
riders and 1 supervisor and another based in
Pretoria. They provided 17 to be part of the motor vehicle
unit. Two were
licenced and did not need to be trained and 15
were trained and 14 got their licences and 1 had failed. They
were trained
at the Germiston pound for 9 weeks. There was no
break there and they spent the whole day there and then moved to
Centurion.
20. During cross examination Sekonyane
confirmed that he had previous riding experience. He did not
train them in 2012.
He only trained them in 2013 after they had
been trained by Ndimande who did the licence and novice training.
They were new bikers
to be used for Law and Enforcement after the
training. After the training he took employees with bikes such as
1300cc and 800cc
and Ndimande had used such bikes. He the
witness took over the training sometime in January 2013. He
said that the
last training might have been on 18 January 2013 and he
trained them thereafter.
21. The defendants closed their case.
Analysis of facts and arguments
raised
22. The plaintiff contended that
on or about November 2012, the first defendant entered into an
agreement with the plaintiff
for the provision of motorbike lessons
and training course by the plaintiff (the initial agreement).
The plaintiff issued
a quotation for the services that were requested
by the first defendant on 1 November 2012. The training
commenced on 19
November 2012 and the purchase order which serves as
proof of the initial agreement was generated on 27 November 2012.
The
plaintiff received a copy of the purchase order incorporating the
terms of the agreement on 13 December 2012, when he submitted
an
invoice for the services rendered in respect of the initial
agreement. The training continued to run until 18 January
2013.
23. The plaintiff contended that
the training was extended through an oral agreement between itself
and the first defendant
represented by Mayisela who occupied the
position of director at the first defendant at the time and was also
responsible for overseeing
the program. It claims payment for
the services rendered as a result of the extension (the shortfall).
The first initially
defendant denied that the agreement was extended
and that it owes the plaintiff any shortfall. In the contrary,
it raised
a counterclaim in which it alleges that the plaintiff was
overpaid because 30 police officers were to be trained and only 17
police
officers received training but abandoned their counterclaim.
24. The plaintiff contended that
the evidence before this court shows that the terms of the agreement
were clearly varied.
Once the horse had bolted and the first
defendant’s officials realised the implications of that
variation, it completely
denied there was any variation to the
initial agreement. But the evidence so it was contended shows
otherwise. It particularly
shows that the first defendant’s
officials were well aware of the procurement processes of the first
defendant while the
plaintiff only received the purchase order
incorporating the terms and conditions of the agreement only after it
had started rendering
services to the first defendant.
25. The plaintiff contended that
recently in
Free State Province v Terra Graphics (Pty) Ltd and
Another
2016 (3) SA 130
(SCA) the Supreme Court of appeal
admonished this type of conduct by state organs. The first
defendant had contended that
the outstanding payment due and payable
to the plaintiff exceeds the first defendant’s threshold of
R500 000.00 and
since the total amount for the service rendered
exceeded its threshold, the contract should have gone on tender.
26. The plaintiff contended
further that the first defendant in support of its contention,
maintain that the plaintiff’s
quotation which constituted a
full package did not stipulate the duration of the training between
the commencement of the training
until the end date. However,
Malherbe, the first defendant’s own witness, corroborated the
evidence of Ndimande which
was that the wording “MRC 2”
which appears on the quotation was a reference to day 2 of the
training and “MRC
3” was day 3 of the training and that
each day of training would be charged at a rate of R1 200.00.
27. The plaintiff contended that
the Supreme Court of Appeal, dealing with similar facts in
Passenger
Rail Agency of South Africa v Sbhahle Free Services CC
(230/2019)
ZASCA 90 (4 August 2020) held at para 26:
“
The
context in which the contract was concluded, the wording of the
contract and, to the extent necessary, the contra proferentem
rule,
ought to be considered in the process of interpretation. It is
commonplace that the context includes the subsequent
conduct of the
parties which would indicate how they understood their contract.
It is trite that in order to arrive at the
common intention of the
parties the contract must be interpreted as a whole.”
28. The plaintiff contended further
that the parties entered into a verbal agreement for the provision of
the services rendered,
notwithstanding the first defendant’s
procurement processes. It is on the basis of the oral agreement
that the plaintiff
commenced the training without a purchase order
and it is also on the basis of a further verbal agreement that it
agreed to vary
the terms of the former agreement. It would be
insensible to accept that the initial agreement would run for an
indefinite
period until the police officers obtained their licences
at only R300 549.60, especially while aware that some of the
first
defendant’s police officers had no riding experience at
all when the training commenced.
29. The plaintiff contended further
that the plaintiff fulfilled its obligation in terms of the agreement
entered into with the
defendant and provided services that were
requested from it. The first defendant in turn benefitted from
those services and
enjoyed the fruits of those services and refuses
to compensate the plaintiff for the services rendered. The
equitable principle
of our law that no one shall be unjustly enriched
at the expense of another has long been established and it is against
the unjust
absorption by the one party of the expenditure or of
fruits of the labour of the other party in a manner not contemplated
by the
parties to the contract.
30. The defendants contended that this
is an action brought by the plaintiff claiming the sum of
R2 167 869.60 for services
rendered in providing motorbike
lessons to riders who were employed by the first defendant. The
invoice in dispute is questionable
for a number of reasons. The
invoice in dispute basis its claim on the same quotation which
quotation it had submitted as
a service provider to the first
defendant. Payment had already been made by the first defendant
on an earlier invoice submitted
by the plaintiff. The first
invoice was based on the quotation and a purchase order. The
second and revised invoice
prepared by the plaintiff extends the
service provided in the quotation that was submitted to the first
defendant. It should
be borne in mind that the plaintiff only
submitted one quotation but submitted two invoices based on the same
quotation.
The second invoice has no purchase order
accompanying it and it is not based on a new quotation other than the
quotation relied
upon and used by the first defendant for which
payment has already been made. The second invoice is based on
an oral agreement
which is alleged by Ndimande to constitute a basis
for his invoice to be honoured.
31. The defendants contended that no
oral agreement can in any way be accepted as this is against the
rules and regulations which
require a written agreement. Since the
second invoice includes a new amount, the requirement is that a new
quotation and a purchase
order will be generated which means that
part of the procurement rules have been complied with. The
remaining section refers
to the threshold of the amount claimed which
amount in the second invoice exceeds the threshold amount. This
in itself disqualifies
the plaintiff from being paid. The new
amount claimed by the plaintiff requires that a new tender process
kicks in where
procurement rules are different to rules where
quotations are provided by service providers. On the basis of
quotations being
received, the Supply Chain Management accepts the
lowest quotation and invites successful bidder to accept the offer
made.
Finally, procurement processes, as evidenced by the first
defendant’s witnesses confirm that the plaintiff has missed
important
steps in the procurement process which are a purported oral
agreement; no quotation based on the amount of the invoice and
further
that there is no purchase order accompanying the quotation.
Moreover, the above steps could not have materialised, if complied
with, since the amount claimed in the plaintiff’s invoice
exceeds the threshold amount if using the aforesaid method of
procurement. In this regard, a completely different set of
procurement rules would apply. The plaintiff in submitting
the
new and revised invoice so it was contended remain unsuccessful on
both counts mentioned above. The above are rules required
to be
complied with, and once the rules are complied with, only then will
payment be made by a government department or entity.
The
plaintiff in its pleadings and its testimony expects the officials of
the first defendant to flout procurement rules so that
the
plaintiff’s expectation be fulfilled.
32. It was further contended by the
defendants that the first defendant’s witnesses testified that
they complied with procurement
rules and that if officials failed to
comply with its own rules and regulations, its conduct would be
tantamount to corrupt activities.
33. The defendant contended that the
issue in dispute rests on the second and subsequent invoice submitted
by the plaintiff wherein
is the amount claimed by the plaintiff.
The onus to prove the amount claimed rests squarely on the
plaintiff. The plaintiff
has based its claim on an oral
agreement with Mayisela who was the director of Community Safety at
the time in 2012 when the quotation
was provided. Ndimande who
represented the plaintiff testified that he awaited a purchase order
and when the purchase order
was not being generated by the first
defendant, the plaintiff chose, instead to submit an invoice to the
first defendant.
The plaintiff has failed to prove on a balance
of probability that the second invoice submitted for payment was
consistent with
the procurement rules: namely that the invoice was
required to be consistent with procurement rules, and secondly the
plaintiff
failed to prove that an oral agreement was the correct
approach towards acquiring a tender. Both Mayisela and Malherbe
testified
that for purposes of succeeding in a procurement process, a
bidder is obliged to comply with procurement rules when the bidder
applies to be a service provider. The entire process of bidding
is reduced to writing. Under no circumstances are oral
agreements permitted. It requested that the plaintiff’s
claim be dismissed with costs.
34. The parties stated in their
joint practice note that the issue in dispute is whether the first
and second defendant is
indebted to the plaintiff for the amount
being claimed in its particulars of claim. The defendants
disputed that the parties
entered into an oral agreement but
particularly stated that a written agreement was concluded between
the parties.
35. The main issue that this
court is required to determine is whether an oral agreement was
concluded between the parties
in this matter as contended by the
plaintiff. The court will also have to determine with who the
oral agreement was concluded
since the oral agreement cannot be
concluded with just anybody. If the court finds that no such an
agreement was concluded
that is the end of the matter for the
plaintiff and its claim stands to be dismissed. It will not
become necessary for this
court to determine the other issues raised
by the plaintiff around unjustified enrichment since that is not the
plaintiff’s
pleaded case before this court. Public funds
are involved and this is a factor that this court must take into
account when
dealing with this matter. The plaintiff bears the
onus to prove on a balance of probabilities that the agreement was
also
partly oral.
36. It is not in dispute that the
plaintiff and other service providers were approached by the first
defendant to submit quotations
for the training of police officers on
motorbikes. Service providers who were on the first defendant’s
data base were
requested to provide quotations. Three
quotations had been provided and the plaintiff’s quotation was
the lowest and
was then appointed as the service provider based on
the quotation it had provided.
37. The plaintiff’s
quotation is annexure MS1 and also appears on pages 013-9 to 013-10
on Caselines. It is dated 1
November 2012 and states that the
full package is 30 and describes what needs to be done and the total
price of the quotation is
R300 549.60. It also deals with
additional lessons etc. The first defendant’s purchase
order is dated 27
November 2012 and the total amount is R300 549.60.
It was annexed as MS2 and appears on page 013-12 to 013-14 on
Caselines.
It states that the delivery date is 27 November
2012. It provides amongst others that the plaintiff confirms
having read
and fully understood the applicable provisions of the
general conditions of contracts of the Gauteng Provincial Government
which
can be viewed electronically at
www.gautengonline.gpg.gov.za
.
Clause 9 states that the CPG does not accept over-deliveries and only
pays for goods supplied and/or services rendered according
to this
PO. The CPG is not liable toward the supplier for any amount
exceeding the price for goods or services as specified
in this PO.
Clause 12 provides that this PO forms the entire agreement between
the CPG and the Supplier and any variation to this
PO must be done in
the form of a Change Purchase Order issued by the CPG. It is
common cause that there is no Change Purchase
Order form that was
issued by the first defendant.
38. It is clear from the
evidence led and the documents that were placed before this court
that the training commenced on
19 November 2012 and ended on 18
January 2013. The training took place on 19, 20, 22, 26, 27, 29 and
30 November 2012; on 5, 10,
11, 12, 13, 14, 17, 18, 19, 20, 21
December 2012 and on 2, 3, 4, 7, 8, 9, 10, 11, 14, 15, 16, 17, 18
January 2013. There
were 17 officers that were trained if one
has regard to the attendance register provided. 14 officers obtained
licences in January
2014.
39. It is also clear from the
quotation what the duration of the agreement was and the costs to be
charged for the training.
The target was to assist the police
officers to obtain learners and driving licences. The quotation
corresponds with the
purchase order and it sets out the duration of
the agreement and the end result.
40. The plaintiff’s pleaded case
if one has regard to what is contained in its particulars of claim as
seen in paragraph 7
thereof is that on/during November 2012, the
first defendant, represented by Mateise Matee and Thami Mayisela
engaged the services
of the plaintiff for the provision of motor bike
driving lessons and training course for 30 police officers of the
first defendant.
It attached copies of the plaintiff’s
quotation and the first defendant’s purchase order to the
services.
41. In paragraph 8 which was pleaded
in the alternative to paragraph 7 of the particulars of claim the
plaintiff pleaded that on
or during 9 November 2012 and at Gauteng
the plaintiff duly represented by its managing director, Mr Chris
Ndimande and the first
defendant, duly represented by both Mateise
Matee and Thami Mayisela entered into a partly written and partly
oral agreement for
the provision of motor bike driving lessons and
training course for about 30 police officers of the first defendant
(the agreement).
42. In paragraph 9 of the particulars
of claim the plaintiff pleaded that the salient express/implied
and/or tacit terms of the
aforesaid agreement or the services were
that the plaintiff shall teach, train and provide motorbike driving
lessons to about 30
police officers of the first defendant until they
completed and obtained a valid motorbike driving licence for a period
of and
to be completed within five days; the plaintiff shall charge
an amount of R300 549.60 for each of the five days for the
services;
the first defendant shall be responsible and liable for
ensuring that all of the 30 police officers attends the training to
the
end; the first defendant shall be liable for all the cost of or
associated cost of the services until the complexation of the
services/stages
of the training as completed; the first defendant
shall be liable for any further cost/of any cost for the delays
and/or extension
of the service resulting from delays occasioned by
the conduct of the first defendant and/or any of the police officers’
failure in mastering the lessons and/or training for completion
within the anticipated period of completion of the training.
43. The plaintiff pleaded in paragraph
10 of the particulars claim that it duly rendered the services, which
were initially scheduled
for 5 days, for the period 19 November 2012
up to and including 18 January 2013, a period of 36 days, upon the
extension and request
of the first defendant.
44. The defendants admitted the
contents of paragraph 7 of the particulars of claim but denied the
contents of paragraph 8 which
dealt with the oral agreement and
denied paragraph 9 which sets out the terms of the oral agreement.
45. There is a material contradiction
between the plaintiff’s pleaded case around who the oral
agreement was concluded with
during November 2012 and the
viva
voce
evidence led before this court. In the pleadings it is
stated that the oral agreement was concluded between Ndimande for the
plaintiff and Matee and Mayisela on behalf of the defendants.
However, when Ndimande testified he said that it was concluded
between himself and Matee. There was no reference made to
Mayisela being present when the agreement was concluded. Ndimande
further testified that he had approached Mayisela after Matee had
left the first defendant and Mayisela had told him that another
purchase order would follow. Mayisela was the director
responsible for the project. Mayisela testified that he had
met
with Ndimande after they had received the quotation and the plaintiff
had been chosen as the service provider. This was
before the
training had taken place. The meeting took place and he was
with Violet Mathege the director of administration
and they had a
briefing session with the plaintiff since the amount was for less
than R500 000.00. This evidence was
not challenged by the
plaintiff. Mayisela testified further that no oral agreement
could be entered into for any amount and
the purchase order was the
agreement. He later met with the plaintiff when the milestones
were discussed. He testified
that since the amount involved
exceeded the threshold of R500 000 a different process would
follow namely a tender.
46. It is also significant that the
oral agreement was pleaded in the alternative. I simply do not
know how there could be
a written agreement and at the same time an
oral agreement concluded in November 2012 when the plaintiff had
given a quotation
for the services that it was going to render.
The plaintiff could not indicate when exactly the oral agreement was
entered
into and what the precise terms of the oral agreement was.
There was a threshold of R500 000 and if the amount exceeded
R500 000 it had to go out on a tender. The plaintiff’s
quotation was the lowest amongst the three bids that the defendants
had received hence their appointment as service providers.
47. The plaintiff was on the data base
of the first defendant. It is of no moment for the plaintiff to
contend that it was
not aware of the process to be followed. The
purchase agreement was the basis of the agreement. I find it
rather astonishing
that the training would have commenced without the
purchase order. No plausible explanation was given why the
training had
to proceed without the purchase order. I also find it
odd that after the purchase order was handed to the plaintiff on 13
December
2012 and after training had proceeded that it did not stop
with the training until the entire issue was dealt with.
48. It is clear from the
documentary evidence that the training of 30 officers by the
plaintiff was quoted to be R300 549.60.
What should be
kept in mind is the evidence of the defendants namely that three
quotations were obtained and the
work was given to the company that had
provided the lowest quotation namely the plaintiff. The
quotation is annexure MS1 and
comprises of 2 pages. The date of the
plaintiff’s quotation is dated 1 November 2012 and it makes it
clear that the full
package for 30 officers is a unit price of
R3 500.00 totalling R105 000.00. There is MRC2
(motorcycle rider course)
advance beginner and on road riding for a
quantity of 30 at a unit price of R1 200.00. It then sets
out MRC3 company
bike on road riding and K53 grounds for 30 at a unit
price of R1 200.00. It also provides for advance riding course
due after
one month of riding for 30 at R1 200.00 unit price.
There is also a 7 X K53 preparation lessons on grounds for 30 at
a
unit price of R1 400.00. There is a learners issuing fee
for 30 officers at unit price of R60.00. and drivers issuing
fee for
30 officers at R228.00. This quotation makes it quite
clear what the plaintiff was bidding for. In other
words, the
document or quotation speaks for itself.
49. The purchase order was generated
by the first defendant based on the quotation of the plaintiff and is
dated 27 November 2012
and is annexure MS2 and it comes to
R300 549.60. Clauses 9 and 12 states that “
The
CPG does not accept over-deliveries and only pays for goods supplied
and/or services rendered according to the PO. The
CPG is not
liable toward the Supplier for any amount exceeding the price for
goods or services specified in this PO. Clause 12.
This PO
forms the entire agreement between the CPG and the Supplier and any
variation to this PO must be done in the form
of a Change Purchase
Order issued by the CPG”.
50. It is unclear why the
plaintiff had commenced with the training before it had received the
purchase order. It is
clear from clause 12 of the purchase
order that the variation of the purchase order must be in writing and
could only be varied
in terms of a change of purchase order.
There is no such change of purchase order.
51. Ndimande as stated earlier
testified that he had met with Matee when they had discussed the
training and when the oral agreement
was concluded. One would
have expected there to have been correspondence between the plaintiff
and Matee about the oral agreement
that was concluded with her.
Evidence was led before this court about an email that was sent to
Matee dated 2 June 2013 by
Ndimande. Ndimande wrote a
letter that appears at page 049-4 on Caselines. It states that
inter alia
that the training was scheduled from 19 November
2012 until 18 January 2013 and subsequent payment followed the
invoice for R300 549.60.
He states the following:
“
Kindly take notice that the training was scheduled for 5
(five) days however, same was extended by 36 days. As indicated
the
original period of training was the abovementioned (5) days and
the extension was necessary. As you see we are all aware that
you cannot train a person from being a non-rider to a fully licensed
rider within 5 days and we as a training company would not
leave the
training half-way which will be risky for both officers and fellow
road users and the school were are task as per contract
to train them
from the beginning until they get their licences, and it was
communicated to Director Thami Mayisela. As a
result there is a
shortfall in the sum of R1 867 320.00.”
This
letter was addressed to Matee. There is also a letter of
demand dated 14 June 2012 from LegalWise that were representing
the
plaintiff and it confirmed
inter alia
that it was for 5 days
but extended by 36 days. In Mattee’s email dated 2
June 2014 to Ndimande she states that
Mayisela said that Ndimande did
not discuss the monetary part with him. He had met with him and
had discussed other issues
and not the extension and monetary part.
It was improper to any manager to give verbal consent in relation to
procuring services
without necessary protocols followed. She
said she was not sure how she could assist him because there is no
written consent
and proper channels were not followed. According to
the PFMA Act that governs government spending any amount above
R500 000.00
should go for tender, in his case the amount far
exceeds the amount and should have gone for a tender. Ndimande
in an email
on the same day thanked Matee for the feedback.
52. There is no reference made in any
of the correspondence by Ndimande about who the person is with whom
the contract was extended.
This is rather strange because if
this was done with Mayisela or Matee one would have expected him to
have said so. It is
further not stated when the agreement was
amended or when the oral agreement was entered into.
53. The plaintiff has failed to prove
that the written agreement as referred to in the purchase order was
amended. It is clear
that he was dealing with somebody but is
unclear who that person but it was certainly not Matee or Mayisela.
54. The action stands to be dismissed.
55. I do not believe that this is a
matter where costs should follow the result bearing in mind that the
first defendant had benefitted
from the services that were rendered
by the plaintiff. A just order as far as costs are concerned is
that each party is to
pay its own costs.
56. In the circumstance I make the
following order:
56.1 The plaintiff’s action is
dismissed.
56.2 Each party is to pay its own
costs.
FRANCIS J
JUDGE OF THE HIGH COURT
FOR
PLAINTIFF:
S
LINAKWE INSTRUCTED BY
MORWASEHLA ATTORNEYS
FOR
DEFENDANTS:
M
ALLY INSTRUCTED BY STATE
ATTORNEY
DATE
OF HEARING:
31 OCTOBER 2022, 1, 2 NOVEMBER 2022
DATE
OF JUDGMENT:
9
MAY 2023
This judgment was handed down
electronically by circulation to the parties’ and/or parties’
representatives by email
and by being uploaded to CaseLines. The date
and time for hand-down is deemed to be 10h00 on 09 May 2023.
sino noindex
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