Mogale City Municipality v Fidelity Security Services (Pty) Ltd and Others

Mogale City Municipality issued a tender for security services for three years. Fidelity Security Services, the incumbent provider, and Red Ant Security Services scored the highest in the bid evaluation process. Fidelity’s bid was later excluded by the Bid Adjudication Committee on the basis that one of its directors had been listed on the National Treasury’s database of prohibited persons at the time of tender submission, despite Fidelity being unaware of the listing and the director having resigned shortly thereafter. The tender was ultimately awarded to Mafoko Security Services. Fidelity challenged the award after Red Ant withdrew its initial review application, alleging irregularities in the tender process, including unlawful exclusion of its bid and improper evaluation of Mafoko’s bid.

The appeal was dismissed with costs. The tender award to Mafoko was reviewed and set aside, the contract declared invalid, and the Municipality ordered to re-evaluate the bids within two weeks. The declaration of invalidity was suspended for three weeks to avoid disruption of security services.

The case reinforces strict compliance with fairness and legality in public procurement processes and clarifies the application of PAJA to tender reviews. It also affirms the courts’ discretion to craft just and equitable remedies, including suspension of invalidity, and warns public officials of potential personal cost orders for serious procurement misconduct.