Calibre Clinical Consultants (Pty) Ltd v National Bargaining Council for the Road Freight Industry

The National Bargaining Council for the Road Freight Industry, a statutory bargaining council established under the Labour Relations Act 66 of 1995, sought to appoint a service provider to manage and administer an HIV/AIDS wellness programme funded by compulsory employer and employee contributions under an extended collective agreement. The appellants, comprising a partnership involving Calibre Clinical Consultants and a consortium led by Right to Care, submitted bids and were initially shortlisted. Following financial and operational due diligence conducted by auditors, concerns arose regarding the insolvency of one bidder, the consortium’s reliance on a single individual and funding source, and a potential restraint of trade affecting a key individual. The council ultimately decided not to appoint either bidder, mandated KPMG to identify alternative providers, and appointed HIV Managed Care Solutions (Careworks). The appellants sought to review and set aside the council’s decisions under the Promotion of Administrative Justice Act 3 of 2000 (PAJA).

The appeal was dismissed with costs, including the costs of two counsel. The decisions of the bargaining council were not set aside.

The case is a leading authority on the limits of administrative-law review under PAJA in South African law. It clarifies that not all decisions of statutory bodies are reviewable administrative action and reinforces a functional, context-based approach to determining whether conduct constitutes the exercise of public power or performance of a public function.