The High Court in Polokwane dismissed a review case brought by KPMM against the Roads Agency Limpopo (RAL) on Friday, 24 February.
In 2015, RAL awarded a tender to 4-Arrows Ruwacon Construction JV for the construction of the P277/1 road from Makuya to Masisi, as well as the P135/1 road from the N1 between Musina and Pafuri. KPMM had submitted a bid for this contract; however, its bid was disqualified for non-compliance with the mandatory conditions of the tender. It had failed to supply tax-clearance certificates of its intended subcontractors. Dissatisfied with RAL's decision, KPMM then turned to the court to set aside the awarding of the tender, arguing that the tender should have been awarded to it instead.
KPMM argued in court that, instead of disqualifying its bid, RAL should have invited it to submit the required tax-clearance certificates of its subcontractors. It further argued that, unlike the successful bidder, it was an experienced company and had won tenders around the country without submitting its subcontractors' tax-clearance certificates.
The High Court found in favour of RAL and dismissed KPMM's application with costs.
Following the court judgement, RAL issued a press release wherein they welcomed the decision. "This decision has implications that are much broader and wider than victory of one party over another in a small court duel. The case was a litmus test for RAL's implementation of a constitutionally sound supply-chain process. In my view, the court has vindicated RAL's procurement processes and endorsed the manner in which these are implemented," commented the RAL's attorney, Mr Amos Vilakazi.
RAL CEO Mr Maselaganye Matji also commented, stating that RAL was committed to clean business practices. "We will not, as KPMM wanted us to do, give any particular bidder an unfair advantage over other bidders. Potential bidders must not expect that RAL will help them by reminding them of tender requirements. Doing so would be irregular, illegal and unfair, and that will not happen on my watch," said Matji. He added that the court judgment would allow RAL to focus on completing the project and delivering the much-needed road infrastructure to the people of Limpopo.