City of Tshwane Metropolitan Municipality v Nambiti Technologies (Pty) Ltd

The City of Tshwane invited tenders for SAP support services under tender CB204/2012. Nambiti Technologies, the incumbent service provider, submitted a bid. After the appointment of a new Group Chief Information Officer, the City reassessed its technological needs and concluded that the tender specifications and three-year duration no longer aligned with its requirements. The Bid Adjudication Committee resolved to cancel the tender and to re-advertise with revised specifications. Nambiti was informed of the cancellation and its existing contract expired by effluxion of time in December 2012. In the interim, another service provider (EOH) was appointed lawfully to provide SAP support services. Nambiti launched review proceedings challenging both the cancellation of the tender and the interim appointment. The High Court set aside the cancellation and ordered the City to adjudicate the cancelled tender. The City appealed to the Supreme Court of Appeal.

The appeal was upheld with costs. The High Court’s order was set aside and replaced with an order dismissing Nambiti’s application with costs.

This is a leading South African case on the reviewability of tender cancellations. It establishes that the cancellation of a tender before adjudication does not ordinarily constitute administrative action under PAJA and affirms the autonomy of organs of state in procurement decisions. The case also reinforces separation of powers principles by limiting judicial interference in municipal procurement choices.