Department of Transport and Others v Tasima (Pty) Limited

In 2001 the Department of Transport awarded Tasima (Pty) Ltd a five‑year turnkey contract to operate the electronic National Traffic Information System (eNaTIS), expiring on 31 May 2007. After expiry, Tasima continued operating eNaTIS on a month‑to‑month basis pending transfer to the state. In May 2010, the Director‑General purported to extend the expired contract for a further five years without following a competitive tender process, contrary to section 217 of the Constitution, the PFMA, and Treasury Regulations. The Auditor‑General later declared the extension irregular. When the Department sought to terminate the extension and take over eNaTIS, Tasima approached the High Court, which granted interim relief enforcing the extended contract and later held officials in contempt for non‑compliance. The Supreme Court of Appeal upheld much of that relief. The Department and others appealed to the Constitutional Court.

Leave to appeal was granted. The appeal was upheld in part. The SCA order was set aside and replaced with an order directing Tasima to hand over eNaTIS to the Road Traffic Management Corporation within 30 days in accordance with the contractual migration plan. The prior finding of contempt was upheld only for the period before the counter‑application succeeded and lapsed thereafter. Each party was ordered to pay its own costs.

The case is a leading authority on unlawful public procurement, reactive challenges by the state, and the limits of interim relief. It affirms that courts may not enforce or perpetuate unconstitutional government contracts and underscores the primacy of section 217 procurement principles and the rule of law in state contracting.