In Nelson Mandela Bay Metropolitan Municipality and Another v MTN Service Provider and Others (Case No. 1661/12, Eastern Cape Division, Port Elizabeth), the High Court considered an application to review and set aside an award of a tender for the provision of mobile voice and data services.

Eight bids were received by the Municipality. A pre-evaluation committee met, found that six of the eight bids were unresponsive, disqualified them, and sent the remaining two bids to the bid evaluation committee (BEC). The BEC did not consider the bids that had been disqualified by the pre-evaluation committee.

The High Court held that no provision was made in the Supply Chain Management Policy (SCMP) of the Municipality for a pre-evaluation committee. It had no lawful existence. Furthermore, it had no lawful authority, in terms of the SCMP or otherwise, to disqualify the bids in question.

Accordingly, the High Court reviewed and set aside the award of the tender to MTN, with costs.