SAAB Grintek Defence (Pty) Ltd v South African Police Service and Others

The South African Police Service (SAPS), acting through the State Information Technology Agency (SITA), issued a tender for an integrated mobile vehicle data command and control solution. SAAB Grintek Defence (Pty) Ltd (SAAB) was shortlisted and later recommended by bid committees as the preferred bidder after multiple extensions of the bid validity period and price negotiations. Despite this, SAPS cancelled the tender in May 2012, citing delays in the evaluation process and changes in its business requirements. SAAB was only informed of the cancellation months later and was not afforded an opportunity to make representations. SAAB applied to the High Court to review and set aside the cancellation and the alleged decision not to award the tender, relying on the Promotion of Administrative Justice Act 3 of 2000 (PAJA) and, alternatively, the principle of legality. The High Court dismissed the application, and SAAB appealed to the Supreme Court of Appeal (SCA).

The appeal was dismissed with costs, including the costs of two counsel.

The case confirms that a decision by an organ of state to cancel a tender because it no longer wishes to procure the relevant goods or services is an exercise of executive authority, not administrative action reviewable under PAJA. It reinforces and applies the principle established in Tshwane City v Nambiti Technologies, drawing a clear distinction between decisions within an ongoing tender adjudication process and high-level decisions to terminate procurement altogether.