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ARTICLE · 19 MARCH 2014

A Taxing Problem In Procurement

Our courts have recently started to emphasise the importance of tenderers complying with the tender rules laid down by organs of State.

South AfricaReal Estate and Construction
Alastair Hay
Alastair Hay

Introduction

Our courts have in their recent pronouncements on public procurement processes started to emphasise the importance of tenderers complying with the tender rules laid down by organs of State.

The motivation for this is probably to try and create a more certain climate around procurement and also to try and stem the flood of cases relating to the review of tender awards.

Many such challenges involve tenderers whose prices may be the lowest, and sometimes significantly so, but who have failed to comply with one or other of the formalities laid down in the tender conditions.

At the end of November 2013 the Supreme Court of Appeal in Bloemfontein ("SCA") had to apply its mind to whether the rejection of a tender due to the tenderer failing to have submitted an original tax clearance certificate was justified.1

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