Road Traffic Management Corporation v Waymark Infotech (Pty) Limited

The Road Traffic Management Corporation (RTMC), a national public entity, invited bids in 2008 for the development of an Integrated Enterprise Resource Planning system. Waymark Infotech (Pty) Ltd submitted a successful bid, and the parties concluded a three‑year service level agreement on 31 March 2009 with a ceiling price of approximately R33.7 million. The agreement was concluded following a proper procurement process, but without seeking or obtaining prior approval from the Minister of Finance. Performance commenced in 2009. In 2010 the RTMC unilaterally suspended the contract and later refused to proceed. After protracted litigation, Waymark claimed damages for breach. RTMC counterclaimed, arguing that the contract was void under sections 66 and 68 of the Public Finance Management Act 1 of 1999 (PFMA) because it bound the RTMC to future financial commitments without ministerial approval.

Leave to appeal was granted, but the appeal was dismissed with costs, including the costs of two counsel.

The case provides authoritative Constitutional Court guidance on the interpretation of sections 66 and 68 of the PFMA. It clarifies that properly procured multi‑year contracts do not automatically require ministerial approval merely because they extend beyond a single financial year. The judgment prevents an overly expansive reading of section 66 that would paralyse government procurement and affirms a purposive, constitutionally consistent approach to public finance legislation.