African Information Technology Bridge 1 (Pty) Ltd v The Member of the Executive Council for Infrastructure Development, Gauteng Province

The Gauteng Department of Transport and Public Works invited three tenders (GC 1417/05/2006, GC 1418/05/2006 and GC 1419/05/2006) following a successful pilot project completed by a joint venture between African Information Technology Bridge (Pty) Ltd (African Bridge) and iNathi Technology Holdings (Pty) Ltd. African Bridge could not lawfully bid because one of its directors was related to a senior departmental official. To overcome this, Mr Tucker, a director of African Bridge, changed the name of another company, Crestwell Trading 9 (Pty) Ltd, to African Information Technology Bridge 1 (Pty) Ltd (AITB 1) shortly before tender submission. The tenders were submitted in the name of AITB 1, but relied almost entirely on African Bridge’s credentials, experience, statutory registration numbers and representations. The Department believed it was contracting with African Bridge (as part of a joint venture with iNathi) and awarded the tenders on that basis. After award, letters were irregularly amended to reflect AITB 1 without a fresh decision by the Departmental Acquisition Council. Disputes arose, and the Department later realised it had not intended to contract with AITB 1. AITB 1 claimed damages for alleged breach of contract relating to the three tenders.

The appeal was dismissed with costs, including the costs of two counsel. The High Court’s limited award to AITB 1 in respect of partially completed work under tender 1417 remained undisturbed.

The case affirms South African law on unilateral mistake (error in persona) in contract formation, particularly in the context of public procurement. It underscores that contracts arising from tender processes require true consensus as to the identity of the contracting party, and that deliberate misrepresentation or confusion in tender submissions can render purported contracts void ab initio. The judgment also reinforces strict compliance with procurement governance structures such as Departmental Acquisition Councils.