Tender awards and internal appeal processes

In Evaluations Enhanced Property Appraisals (Pty) Ltd v The Buffalo City Metropolitan Municipality and Others, Case No. EL 1544/12, ECD 3561/12, Eastern Cape Division, Grahamstown (still unreported), a full bench considered an appeal in relation to the review of a tender award. The tender was for the compilation and maintenance of the general valuation roll and asset register of the Buffalo City Metropolitan Municipality.

An unsuccessful bidder, Evaluations Enhanced Property Appraisals (Pty) Ltd, applied for the review and setting aside of the award. However, a single judge postponed the review proceedings, pending the outcome of an internal appeal that EEPA was directed to pursue in terms of section 62(1) of the Municipal Systems Act 32 of 2000 (the MSA).

On appeal, the full bench considered the application of the Promotion of Administrative Justice Act 3 of 2000 (PAJA) to the circumstances. In this regard, the full bench held that a party may only institute review proceedings once one of two requirements had been met: either all internal remedies (e.g. the internal appeal process in terms of section 62(1) of the MSA) had been exhausted or exemption from this requirement had been obtained. A party was prohibited from commencing with review proceedings in the High Court until it had met one of the above requirements.

The full bench upheld the appeal with costs.

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