Manong and Associates (Pty) Ltd v City of Cape Town and Another

Manong and Associates (Pty) Ltd, an engineering firm headed by Mr Manong, lodged complaints in the Equality Court alleging that the City of Cape Town and its predecessor discriminated against it on the ground of race by excluding it from municipal engineering contracts in Khayelitsha, and that Futuregrowth Property Development Company (Pty) Ltd unfairly excluded it from the Khayelitsha CBD development and from the Setsing Project in the Free State. The firm alleged that a municipal official, Mr Barnard, motivated by racism, fabricated performance complaints and conspired with others to deny it work. The Equality Court upheld the general Khayelitsha discrimination complaint but dismissed the CBD claim, found misjoinder regarding the Setsing Project, and made no costs order. Both sides appealed to the Supreme Court of Appeal.

The appellant’s appeals were dismissed. The City of Cape Town’s cross-appeal was upheld, setting aside the Equality Court’s finding of general racial discrimination. The cross-appeals on costs were upheld, and the appellant was ordered to pay the respondents’ costs, including the costs of two counsel and wasted costs caused by a postponement.

The case clarifies the proper approach to proof and onus in Equality Court proceedings, particularly in claims of racial discrimination in public procurement. It affirms that courts must guard against unfounded accusations of racism and confirms that constitutional litigation does not immunise litigants from adverse costs where proceedings are abusive or ill-founded.