Aurecon South Africa (Pty) Ltd v City of Cape Town

The City of Cape Town awarded a tender for the decommissioning of the Athlone Power Station to Aurecon South Africa (Pty) Ltd in October 2011. Aurecon had previously been involved, through a joint venture, in a prefeasibility study and preparation of a draft scope of work for the project. After the award, concerns were raised by councillors and in the media alleging corruption and irregularities, particularly that Aurecon’s prior involvement gave it an unfair advantage. The City commissioned a forensic investigation by Ernst & Young, which identified several alleged procurement irregularities. Relying on this report, the City sought to review and set aside its own tender award more than 180 days after the decision. Aurecon opposed the review and launched a counter-application seeking a declaration that it was not precluded from bidding for the tender or similar future tenders.

The appeal was upheld with costs. The High Court’s order was set aside and replaced with an order dismissing the City’s review application with costs, declaring that Aurecon was not precluded from bidding for the tender or related tenders, and ordering the City to pay the costs of Aurecon’s counter-application.

The case is a leading authority on delay in administrative review under PAJA, particularly where an organ of state seeks to review its own decision. It affirms the importance of finality in administrative decisions and clarifies that the 180-day period runs from when the decision and its reasons were known or ought to have been known, not from when irregularities are later discovered. It also underscores that only material procurement irregularities justify setting aside tender awards.