Johannesburg High Court
By Central News
The Johannesburg High Court has ruled that the National Treasury acted lawfully and fairly in awarding the RT4-2023 tender for emergency vehicle lights and equipment, dismissing allegations of favoritism and irregularity raised by a losing bidder, Thru Rainbow. Below is a detailed explanation of the ruling, the tender process, and its implications.
What Was the Tender About?
The tender, officially titled RT4-2023, was for the supply and delivery of emergency and rescue equipment to the state over a five-year period, from 2023 to 2028. The equipment included:
- Specialized flashing lights
- Sirens
- Fittings for police vehicles, ambulances, and fire response vehicles
This tender has a national scope, suggesting a significant financial commitment by the state, though the exact value has not been disclosed. A total of 251 line items were included, with contracts awarded to 23 suppliers for different components.
Why Was the Case Brought to Court?
Thru Rainbow, a company that bid for the tender but lost, accused the National Treasury of irregularities in awarding parts of the tender to two companies: Eresa Africa and Torinet. Their allegations included:
- Collusion between Eresa Africa and Torinet
- Fronting of black ownership (misrepresenting ownership to meet empowerment criteria)
- Failure to meet key tender requirements
Thru Rainbow asked the court to cancel and reissue the tender based on these claims. The case was heard by Judge Leicester Adams at the Johannesburg High Court.
What Did the Court Find?
The court dismissed Thru Rainbow’s application, ruling that the National Treasury’s actions were lawful and fair. Here’s a breakdown of the key findings:
- No Evidence of Wrongdoing
• Judge Adams stated: “There is no direct evidence to support the assertion that there was collusion between Eresa Africa and Torinet or price-fixing or bid-rigging by these two bidders.”
• Both companies shared the same wholesale supplier, but the court found this insufficient to prove any misconduct.
• The allegations were deemed speculative and based on inferential reasoning rather than facts. - Tender Award Breakdown
• Eresa Africa and Torinet were each awarded contracts for 16 line items out of the 251 total.
• The awarded items included emergency lighting systems, flashing beacons, siren setups, and other critical equipment for state vehicles. - Thru Rainbow’s Elimination
• The National Treasury used a five-phase evaluation process:
1. Prequalification
2. Administrative screening
3. Technical compliance
4. Pricing
5. B-BBEE (Broad-Based Black Economic Empowerment) scoring
• Thru Rainbow was eliminated at the technical stage because it failed to submit compliant samples in multiple categories. - No Material Irregularities
• Despite Thru Rainbow raising concerns about similar pricing, shared addresses, and the use of the same supplier by Eresa Africa and Torinet, the court found these did not meet the threshold for disqualification or legal sanction.
Key Legal Principles Upheld
The ruling reinforced the limited powers of courts to interfere in procurement decisions. Judge Adams emphasized:
- “This court cannot and should not reject the respondents’ version out of hand.”
- Courts will only intervene if material irregularities are proven, not based on speculation.
The decision also aligned with Section 217 of the South African Constitution, which requires public procurement to be: - Fair
- Equitable
- Transparent
- Competitive
- Cost-effective
Implications of the Ruling
- Endorsement of Treasury’s Process
• The judgment is a strong endorsement of the National Treasury’s procurement protocols, confirming they meet constitutional standards. - Precedent for Future Cases
• This ruling sets a high bar for evidence in future challenges to tender awards, requiring direct proof rather than assumptions or inferences. - Public Confidence
• By upholding the integrity of the tender process, the decision aims to maintain public trust in how the state manages procurement.
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