Majomatic 115 (Pty) Limited v Kouga Municipality and Others

Kouga Municipality advertised certain municipal immovable properties for sale in November 2003 and concluded a contract of sale with Majomatic 115 (Pty) Ltd. The advertisement and tender process did not comply with the procedural requirements of sections 124(1)–(2) and 172 of the Municipal Ordinance 20 of 1974 (Cape), particularly regarding public notice, objections, and prescribed time periods. Majomatic sought to enforce the sale, contending that the Ordinance had been impliedly repealed by the Constitution and thus no longer governed the alienation of municipal property.

The appeal was dismissed with costs. The order of the High Court was set aside and replaced with an order dismissing the plaintiff’s action with costs.

The case is significant for confirming the continued force of pre-Constitution municipal legislation under Item 2 of Schedule 6 to the Constitution and clarifying that such legislation may survive in a constitutionally ‘pruned’ form. It affirms the mandatory nature of procedural safeguards governing the alienation of municipal property and reinforces principles of transparency and public participation in local government disposals.