Tasima (Pty) Ltd v Department of Transport and Others

Tasima (Pty) Ltd concluded a turnkey agreement with the Department of Transport in December 2001 to develop, operate and maintain the electronic National Traffic Information System (eNaTIS). Although the contract was originally for five years ending in May 2007, it continued on a month-to-month basis and was later extended in May 2010 by the Director-General to April 2015. Disputes arose when the Department and the Road Traffic Management Corporation (RTMC) sought to terminate or bypass the agreement and transfer eNaTIS to RTMC, despite several court orders compelling continued performance and compliance with contractual transfer provisions. Tasima brought repeated contempt applications due to non-compliance with those orders. The Department counter-applied to review and set aside the 2010 contract extension as unlawful under procurement and public finance legislation.

The appeal was upheld with costs. The High Court order was set aside and replaced with an order declaring the Department, RTMC and certain officials to be in contempt of multiple prior court orders; interdicting any transfer of eNaTIS except in accordance with the contract; directing continued compliance with the agreement during transfer; dismissing the Department’s counter-application to set aside the extension; and ordering conditional committal to imprisonment of certain officials in the event of further breach.

The case affirms the supremacy of court orders and the rule of law in South Africa, particularly in relation to organs of state. It clarifies that alleged illegality of an administrative act or contract does not excuse non-compliance with binding court orders, and underscores the personal accountability of public officials for contempt. It is a leading authority on civil contempt involving the state and reinforces strict adherence to judicial authority.