Altech Radio Holdings (Pty) Limited and Others v City of Tshwane Metropolitan Municipality

The City of Tshwane embarked on a large municipal broadband network project intended to develop a ‘smart city’. After a tender process restarted in 2014, Altech Radio Holdings (Pty) Ltd was awarded the tender in June 2015. A special purpose vehicle, Thobela Telecoms (RF) (Pty) Ltd, was created to implement the project, funded largely through loans from ABSA Bank Ltd and the DBSA. The City and Thobela concluded a Build-Operate-and-Transfer (BOT) agreement in May 2016, followed by a Tripartite Agreement with ABSA in August 2016. Following municipal elections in August 2016, a new DA-led City administration came into power. Despite continuing with the project for several months, the City launched a legality review application in August 2017 seeking to set aside the tender award and related agreements, alleging procurement irregularities and maladministration. The Gauteng High Court upheld the review and set aside the tender and agreements. Altech, Thobela and ABSA appealed to the Supreme Court of Appeal, primarily on the basis of the City’s unreasonable delay in instituting the review.

The appeal was upheld with costs, including the costs of two counsel. The High Court’s order was set aside and replaced with an order dismissing the City’s review application with costs.

This judgment is a leading authority on delay in legality reviews, particularly in the context of state self-review of procurement decisions. It reinforces the principle that organs of state are bound by the rule of law to act promptly and cannot rely on political changes to excuse inaction. The case strengthens legal certainty in public procurement and limits opportunistic attempts by new administrations to undo concluded contracts after long delays.