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[2023] ZAECELLC 26
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SKG Africa (Pty) Ltd v South African Local Government Association and Others (1282/2023) [2023] ZAECELLC 26; 2024 (3) SA 540 (ECEL) (19 September 2023)
SAFLII
Note:
Certain
personal/private details of parties or witnesses have been
redacted from this document in compliance with the law
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Policy
IN THE HIGH COURT OF
SOUTH AFRICA
(EASTERN CAPE
DIVISION, EAST LONDON CIRCUIT COURT)
CASE NUMBER.:
1282/2023
In
the matter between:
SKG
AFRICA (PTY) LTD
Applicant
And
SOUTH
AFRICAN LOCAL GOVERNMENT ASSOCIATION
First
Respondent
THE
INFORMATION OFFICER OF THE SOUTH AFRICAN
LOCAL
GOVERNMENT ASSOCIATION
Second
Respondent
STHATHU
FUNDING (PTY) LTD
Third
Respondent
JUDGMENT
Beshe
J
[1]
Applicant approaches this court on an urgent
basis for an order in the following terms:
“
1. That the
Applicant’s non-compliance with the rules of the above
Honourable Court relating to service, time periods and
form be
condoned, and that the application be disposed of forthwith as a
matter of urgency in terms of the provisions of Rule 6(12)
read with
Rule 2(2) of the Promotion of Access to Information Rules;
2. That the 90-day
time period referred to in Section 5(2) of the Promotion of
Administrative Justice Act No. 3 of 2000 (“PAJA”)
within
which the First Respondent is to furnish reasons to the Applicant be
reduced, in terms of Section 9(1) of PAJA.
3. That the First
Respondent provides adequate written reasons to the Applicant on or
before
5 September 2023
, why:
3.1 the tender
“request for provision of office accommodation for its Eastern
Cape office in East London for a period of five
years, Bid No.:
SALGA/20/2022” (the “tender”) was awarded to a
Sthathu Funding (Pty) Ltd.
4. That the First
Respondent, alternatively the Second Respondent, further
alternatively the First and Second Respondents jointly,
be ordered to
produce for inspection and collection by the Applicant, within 48
(forty-eight) hours of service of this order on
the First and Second
Respondents, copies of the following documents in relation to the
tender, in terms of Section 82 of PAIA:
4.1 A copy of all bids
submitted;
4.2 A copy of all
agendas, recordings, minutes, recommendations, and reports of the Bid
Specification, Bid Evaluation and Bid Adjudication
committees;
4.3 A copy of all
evaluation and adjudication reports, including any risk analysis
and/or application of objective criteria;
4.4 A copy of the
First Respondent’s supply chain management policy;
4.5 A copy of the
First Respondent’s internal appeal process, if any;
4.6 The results of the
risk analysis, if any, in respect of the Applicant, Sthathu Funding
(Pty) Ltd and all other bidders;
4.7 A copy of the
results of the site inspections conducted on all bidders; and
4.8 A copy of the
letter of award of the tender.
5. That the First
Respondent be ordered to pay the Applicant’s taxed or agreed
costs, unless the Third Respondent elects to
oppose this application,
in which event the costs of this application shall be paid by the
opposing Respondents, jointly and severally,
the one paying the other
to be absolved, together with the First Respondent.
6. That the Applicant
be granted such further and/or alternative relief as this Honourable
Court may deem fit.”
The
Parties
[2]
The parties are described in the founding
affidavit as being:
“
1. The Applicant
is
SKG AFRICA (PTY) LIMITED
, a private company, registered in
accordance with the company laws of the Republic of South Africa with
registration number 2015[…].
It has its registered address and
principal place of business within the jurisdiction of the above
Honourable Court at 2
nd
Floor, SKG Building, Beacon Bay
Crossing, Beacon Bay, East London.
2. The First Respondent
is:
2.1 the
SOUTH AFRICAN
LOCAL GOVERNMENT ASSOCIATION
(“
SALGA
”);”
2.2 an autonomous
association of all 257 South African local governments, comprising of
a national association, with one national
office and nine provincial
offices;
2.3 established in terms
of Section 163 Constitution of the Republic of South Africa 1996
(“Constitution”);
2.4 an “
organ of
State”
;
2.5 a “public body”
as defined in Section 1 of the Promotion of Access to Information Act
No. 2 of 2000 (“
PAIA
”);
3. The Second Respondent
is the
INFORMATION
OFFICER OF SOUTH AFRICAN LOCAL GOVERNMENT ASSOCIATION
and is cited herein
nominee
officii
in
such capacity and situated at Menlyn Corporate Park, Block B, 175
Corobay Avenue, Cnr Garsfontein and Corobay, Waterkloof Glen
Ext 11,
Pretoria. According to the First Respondent’s PAIA manual, the
information officer is Mr Xolile George. His email
address is
x[...]@salga.co.za
.
A copy of the relevant page of the First Respondent’s PAIA
manual, reflecting Mr George as the information officer is attached
marked “
FA2
”.
4. The Third Respondent
is
STHATHU FUNDING (PTY) LTD
(“
STHATHU
”), a
private company registered and incorporated in accordance with the
company laws of the Republic of South Africa, with
registration
number 2004[…], having its registered address at Unit 5G and
G6 Stellenpark Business, Corner of R44 and School
Street,
Stellenbosch, Western Cape, and its principal place of business at 3
Berea Terrace, East London. No relief is sought against
the Third
Respondent, save for in the event of unsuccessful opposition, and it
is cited for its interest in this matter as the
successful bidder in
bid number SALGA/20/2022.
The
Application
[3]
This application was placed on the Motion
Court roll for hearing on 29 August 2023, papers having been
issued
on the 16 August 2023 and having been served on first and second
respondents on the 17 August 2023. They were required to
signify
their intention to oppose, if any, on the following day the 18 August
2023 and three court days later file an answering
affidavit.
Opposition
[4]
The application is only opposed by the first
and second respondents.
Applicants’
Case
[5]
The founding affidavit is deposed to by Ms
Riana Odendaal-Botha who described herself as a businesswoman
and
applicant’s Executive Manager. It appears to be common cause
that applicant submitted tenders to the first respondent
for the
provision of office accommodation for first respondent in the Eastern
Cape for a period of five years. It is further common
cause that the
applicant was unsuccessful in its bid tender in respect of which the
closing date was 22 December 2022. Applicant
was notified on the 30
May 2023 that its proposal was not successful. On the 23 June 2023
first respondent provided the applicant
with a screenshot of the
award from which it is apparent that the successful tender’s
pricing was higher than that of the
applicant. Giving the applicant
the notion that its bid should have been successful. On the 27 June
2023 applicant’s attorney
addressed a letter to the first
respondent requesting various documents and information to be
provided to it. The letter is annexed
as FA8. Paragraph 6 thereof
records that:
“
6. In the
circumstances, we address this letter to you in terms of Section 5(1)
of the Promotion of Administrative Justice Act No.
3 of 2000 (“
PAJA
”)
and section 18(1) of the Promotion of Access to Information Act No. 2
of 2000 (“
PAIA
”).”
The list of documents and
information required is the full record of the decision as well as
items the list of which runs into ±
two pages. Paragraph 9
records that:
“
9. Whilst SALGA
is ordinarily afforded 90 days to provide our client with the written
reasons on terms of PAJA, our client nevertheless
requests SALGA to
agree, in writing, to the reduction of the 90-day period to a period
of 7 (seven) days in accordance with Section
9(1) of PAJA. To the
extent that SALGA objectively believes that the proposed period of 7
days is insufficient, our client invites
SALGA to advise us of
suitable period for our client’s consideration.”
[6]
FA9 to the founding affidavit contains the
formal request for access to the record on terms of
Section 18
(1) of
the
Promotion of Access to Information Act (PAIA
)
[1]
.
The covering letter of which is dated the 27 June 2023. This was
promptly followed by a reminder on the 4 July 023. It was only
on the
17 July 2023 after yet another reminder that respondents responded
that their legal department was handling the request
for information.
Ms Odendaal-Botha asserts that the 30-day period prescribed by
Section 25
(1) of the PAIA for a decision to be made expired on the
27 July 2023 and the second respondent is deemed to have refused
applicant’s
request. On the 1 August 2023 the applicant was
advised that a Mr Boshoff was the contact person in respect of the
matter. On the
7 August 2023 the respondents’ attorney
seemingly gave the applicant an update that they were attending to
the matter/request.
On the following day, the 8 August 2023, he wrote
to the respondents, giving them an ultimatum to provide the
information by close
of business on the 11 August 2023 failing which
the applicant will proceed with this urgent application.
[7]
Applicant bemoans the fact that the 30-day
period for the provision of the information in terms of
PAIA has
passed. The 90-days provided for PAJA
[2]
in this respect ends on 27 September 2023. Further that there is no
indication from the respondents as to when the requested information
will be provided. The point is made that the respondents do not have
an appeal procedure to be exhausted before a party can approach
the
court.
[8]
It is asserted that applicant requires the
information to assess the merits of an application for review
and
setting aside of the respondents’ decision to award the tender
to third respondent.
[9]
Regarding urgency, it is asserted
inter
alia
that:
More than a month and a
half have passed since the request was made. The respondents have
refused alternatively failed to provide
same to the applicant; If the
matter proceeds in the normal course and is opposed, it could take up
to a year to finalise;
If reviewable
irregularities have occurred, applicant is entitled to initiate
review proceedings;
If the successful
tenderer has begun executing the award, he may be in a position to
claim prejudice if the award is set aside;
If the applicant launches
the application in long form in the ordinary course, it would be
exposed to the prospect of not being
in a position to avoid the
implementation of the tender by third respondent, despite it being
set aside due to lapse of time;
Since the applicant is
only entitled to claim damages from first respondent in the case of
fraud, applicant is exposed to irreparable
financial prejudice if
this application is not heard as a matter of urgency.
[10]
These grounds, it would appear, also apply in
support of applicant’s prayer for the reduction of the
90-day
period provided for in PAJA for first respondent to provide the
information requested.
Respondents’
Opposition
[11]
As would appear from what I said earlier in this
judgment, the factual background of this matter is common
cause
between the parties. I understand the main thrust of respondents’
case to be that the respondents are intent on providing
the applicant
with a substantive response as soon as it is reasonably possible and
within the 90-day period. This period is provided
for in
Section 5
(2) of PAJA. Respondents complain that applicant’s founding
affidavit straddle two pieces of legislation, each prescribing
a
different manner and period in which a request for information should
be dealt with. That as early as 27 July 2023 the applicant
threatened
to lunch an urgent application which they only launched on the 16
August 2023. Respondents contend that applicant is
alive to the fact
that its request falls within the ambit of
Section 5
(2) of PAJA.
Even though applicant is aware of this, it made a demand for the
information to be provided within seven days of its
request.
Respondents contend that a large chunk of the information required
belongs to third parties. In terms of
Section 47
of PAIA the first
respondent is required to engage with them before providing the said
information.
[12]
Respondents deny that a decision has been taken to
refuse applicant’s request or that applicant’s
right to
just administrative action has been infringed. They further deny that
Section 25
(1) of PAIA does not apply to applicant’s request.
[13]
Respondents also pour water on applicant’s
reasons for believing that it has
prima facie
grounds to
review and set aside first respondent’s decision.
[14]
Respondents also assert that the applicant has not made out a case
for the truncation of the 90-day period
it seeks in its second prayer
in the notice of motion. The first prayer being the one for
condonation of failure to comply with
orders of court relating to
service of papers etc.
Replying
Affidavit
[15]
Applicant remains adamant that the second
respondent is deemed to have refused the applicant’s request
in
terms of
Section 27
of PAIA. Further that
Section 5
of PAIA does not
find application to the matter because respondents are not private
bodies.
Legal
Framework
[16]
As pointed out by the respondents, applicant’s
case straddle both PAIA and PAJA. Condonation for failure
to comply
with the Rules of Court is sought in terms of
Rule 6
(12), read with
Rule 2
(2) of PAIA. The application for the reduction of 90-day
period in terms of
Section 9
(1) of PAJA. It is clear which provision
the applicant places reliance for prayer 3 namely: that respondents
be directed to provide
adequate written reasons why the tender was
awarded to third respondent. In respect of prayer 4, applicant list
documents that
the respondents are required to produce in terms of
Section 18
(2) of PAIA. Applicant has also asserted that
Section 25
(1) of PAIA does not apply in this matter.
[17]
The implicated provisions are to the following
effect:
Section 5
(1) of PAJA
provides that:
“
(1) Any person
whose rights have been materially and adversely affected by
administrative action and who has not been given reasons
for the
action may, within 90 days after the date on which that person became
aware of the action or might reasonably have been
expected to have
become aware of the action, request that the administrator concerned
furnish written reasons for the action.”
Section 9
(1) in turn
provides that:
“
(1) The period
of ̶
(a)
90 days referred to in
section 5
may be reduced; or
(b)
90 days or 180 days referred to in
sections 5
and
7
may be
extended for a fixed period, by agreement between the parties or,
failing such agreement, by a court or tribunal on application
by the
person or administrator concerned.
(2)
The court or tribunal may grant an application in terms of
subsection (1) where the interests of justice so require.”
It is trite that the
objective of the PAIA Act is to give effect to the constitutional
right of access to any information held by
the State and any
information that is held by another person and that is required for
the exercise or protection of any rights,
and to provide for matters
connected therewith.
Section 11 (1) (a)-(b)
provides:
11 Right of access
to records of public bodies
“
(1) (a) that
requester complies with all the procedural requirements in this Act
relating to a request for access to that record;
and
(b)
access to that record is not in terms of any ground for
refusal contemplated in Chapter 4 of this Part.”
Section 25 (1) of PAIA
provides that:
“
(1) Except if
the provisions regarding third party notification and intervention
contemplated in Chapter 5 of this Part apply, the
information officer
to whom the request is made or transferred, must, as soon as
reasonably possible, but in any event within 30
days, after the
request is received ̶
(a)
decide in accordance with this Act whether to grant the
request; and
(b)
notify the requestor of the decision and, if the requester
stated, as contemplated in section 18(2)(e), that he or she wishes to
be informed of the decision in any other manner, inform him or her in
that manner if it is reasonably possible.”
Section 18 (2) provides
for the manner in which the request for access should be made.
Section 78 (2) (c) of PAIA provides that:
“
(2) A requester
̶
(c) aggrieved by a
decision of the information officer of a public body referred to in
paragraph (b) of the definition of ‘public
body’ in
section 1 ̶
(i) to refuse a
request for access; or
(ii) taken in terms of
section 22, 26(1) or 29(3) may, by way of an application, within 30
days apply to a court for appropriate
relief in terms of section 82.”
Lastly, Section 82 of
PAIA provides that:
“
The
court hearing an application may grant any order that is just and
equitable, including orders –
(a)
confirming, amending or setting aside the decision which is the
subject of the application concerned;
(b)
requiring from the information officer or relevant authority of a
public body or the head of a private body to take such action
or to
refrain from taking such action as the court considers necessary
within a period mentioned in the order;
(c)
granting an interdict, interim or specific relief, a declaratory
order or compensation.”
Discussion
[18]
As rightly pointed out by the respondents, the
application straddles two pieces of legislation albeit both
human
rights pieces of legislation that are mandated by the Constitution,
so as to give effect to the constitutional rights to
administrative
justice, access to information and equality. This is made plain even
in applicant’s heads of argument under
the heading
Nature of
Relief Sought
paragraph 14 where it is submitted that:
- The applicant
requested adequate written reasons in terms of PAJA from first
respondent for certain of its decisions in relation
to the tender;
- Requested access to
certain documentation in the possession of first respondent from
second respondent in terms of PAIA.
The time period within
which the information requested should be provided is different in
terms of each of these acts. A reading
of applicant’s papers
leads one to the conclusion that it is acknowledged that respondents
have 90 days within which to provide
reasons for the decision hence
the prayer for the truncation of the period from 90 days. Once again,
a letter was addressed to
the respondents which they received on 28
June 2023, at paragraph 6 the following is recorded:
“
6. In the
circumstances, we address this letter to you in terms of Section 5(1)
of the Promotion of Administrative Justice Act No.
3 of 2000 (“
PAJA
”)
and section 18(1) of the Promotion of Access to Information Act No. 2
of 2000 (“
PAIA
”).”
At paragraph 9 of the
same letter applicant acknowledges that first respondent is
ordinarily afforded 90 days to provide reasons
for its decision and
requests first respondent to agree to the reduction of the
90-day
period to 7 days
. [my underlining]
[19]
The reasons cited for urgency and for truncation
of the 90-day period within which the information requested
should be
provided are said to be the same. In other words, the reason why the
applicant submits the matter should be heard on
an urgent basis and
the reasons why the 90-day period should be reduced are said to be
the same. They are briefly stated that:
In terms of the PAIA, the
respondent is deemed to have refused the requests for information
because 30 days has elapsed since the
request was made.
[3]
If the matter proceeds in the normal way, it could take up to a year
to finalise. If reviewable irregularities have occurred, the
applicant is entitled to initiate review proceedings. And if the
successful tenderer has begun to execute the award, it may be
in a
position to claim prejudice if the award were to be set aside. The
applicant can only recover damages from first respondent
only if
fraud has been committed. So, the applicant is exposed to irreparable
financial prejudice if the application is not heard
as a matter of
urgency. The applicant may well be deprived of business which should
have been allocated to it.
[20]
Respondents highlight the fact that even though applicant had
threatened to launch an urgent application
for respondents to be
ordered to provide the information requested as far back as the 27
June 2023, the urgent application was
only launched on the 16 August
2023. Presumably suggesting that the urgency is self-created.
[21]
As indicated earlier, respondents assert that
Section 25 (1) of PAIA is not applicable to the application,
namely
the 30-day period. This being so, so it was submitted due to the fact
that part of documents or information that is required
by the
applicant relates to third parties. Namely that the applicant
requires information / documents of other bidders. This necessitates
that they be notified of applicant’s request. See in this
regard Section 47 of PAIA.
[4]
Applicant also describes first respondent as a public body.
[5]
[22]
It may be so that the application straddles two
pieces of legislation, but it would seem applicant seeks
both the
reasons for first respondent’s decision to award third
respondent with the tender in question. This is provided
for by PAJA.
In particular Section 5 thereof and these have to be provided within
90 days after the date upon which that person
became aware of the
action / decision. We know that the 90 days has not yet expired.
Hence the prayer that the court directs a
truncation period within
which the respondents should provide the reasons. The request for
documents falls under the ambit of Section
25 (1) of PAIA read with
Sections 11 and 18. As indicated earlier in terms of Section 27 if
the information is not provided within
30 days as provided for in
Section 25 above, the information officer, in this case second
respondent is for purposes of this Act
deemed to have refused the
request.
[23]
In my view, the applicant was justified in
approaching the court for its intervention in this regard. Applicant
has complied with the procedural requirement of the Act relating to a
request for access to the record. I have already alluded
to the
objectives that I meant to be served by the Act to enable the
requester of the information to exercise or protect their
right to
fair administrative action. The information will enable applicant to
make an election whether to apply for the review
and setting aside of
first respondent’s decision to award the tender to third
respondent. The applicant is thus entitled
to an order in terms of
prayer 4 for the notice of motion.
Urgency
[24]
Due to the failure to provide the applicant with
the requested documents / information, it is difficult
for the
applicant to tell how imminent the implementation of the award is.
But common-sense dictates that every day that goes by
brings the
implementation of the award closer. That in my view renders the
matter to be urgent. This is the case in particular
to the provision
of the information that the applicant is entitled to, barring valid
reasons for refusal, within 30 days of becoming
aware of the decision
concerned.
The
Condonation Application
[25]
Applicant contends that it will be in the interest
of justice that court reduces the 90-day period in terms
of Section 9
(1) of PAJA because the matter is urgent. Applicant acknowledges that
the reasons must indicate how the decision was
arrived at and must
not only amount to conclusions. And that full reasons will enable the
person affected thereby to decide whether
or not the decision was
justified.
[26]
We know that the respondents have undertaken to
substantively respond to applicant’s request as soon
as it was
reasonably possible but within the 90-day period. We know that they
have appointed legal representatives to deal with
applicant’s
request although respondents seem to deal with applicant’s
request as one.
[27]
I am however not persuaded that the applicant has
shown that it will be in the interest of justice to truncate
the
90-day period the respondents are entitled to make use of to provide
full and adequate reasons for the decision to award the
bid to third
respondent.
Costs
[28]
As far as costs are concerned, I am not aware of
any reason or conduct on the part of the respondents that
warrants a
punitive costs order. In light of the order that I propose to issue
the appropriate order for costs to make will be
for each party to pay
its own costs because applicant only succeeded partially.
Order
[29]
Accordingly, the following order will issue:
1. That the
applicant’s non-compliance with the rules of the above
Honourable Court relating to service, time periods and
form be
condoned, and that the application be disposed of forthwith as a
matter of urgency in terms of the provisions of Rule 6(12)
read with
Rule 2(2) of the Promotion of Access to Information Rules.
2. That the first
respondent, alternatively the second respondent, further
alternatively the first and second respondents jointly,
be ordered to
produce for inspection and collection by the applicant, within 48
(forty-eight) hours of service of this order on
the first and second
respondents, copies of the documents listed in paragraph 4 of the
notice of motion, in terms of Section 82
of PAIA.
3. Each party to pay
its costs.
N G BESHE
JUDGE OF THE HIGH
COURT
APPEARANCES
For
the Applicant:
Adv:
S Sephton
Instructed
by:
BAX
KAPLAN RUSSELL INC.
34
Pearce Street
Berea
EAST
LONDON
Ref:
J De Klerk/sd/MAT63331
Tel.:
043 – 706 8400
For
the Respondents :
Adv:
T C Tshavhungwa
Instructed
by:
KHAMPHA
ATTORNEYS INCORPORATED
C/o
MABENTSELA & ASSOCIATES
2A
Berea Terrace
Berea
EAST
LONDON
Ref:
AK/SALGA-SKG-AFRICA/2023
Tel.:
043 – 050 6099
Date
Heard:
28
August 2023
Date
Reserved:
28
August 2023
Date
Delivered:
19
September 2023
[1]
Act
2 of 2000.
[2]
Promotion
of Administration of Justice Act 3 of 2000.
[3]
As
provided for in Section 27 of PAIA which provides that “If an
information officer fails to give the decision on a request
for
access to the requester concerned within the period contemplated in
section 25(1), information officer is, for the purposes
of this Act,
regarded as having refused the request.”
[4]
Section
47 provides that “
The
information officer of a public body considering a request for
access to a record that might be a record contemplated in section
34(1), 35(1), 36(1), 37(1) or 43(1) must take all reasonable steps
to inform a third party to whom or which the record relates
of the
request.
”
[5]
Paragraph
6.7 of founding affidavit page 9 of the indexed papers.