Tenders

Introduction

Usually tenders are attacked by an aggrieved tenderer who believes that the award made was wrong due to either procedural irregularities, corruption or otherwise.

What is the position if the organ of State who made the award itself recognises that it acted wrongly in making the award? Can it correct its mistake?

In December last year the Supreme Court of Appeal ("SCA") delivered a judgment¹ which provides the answer to this question.

Background

In November 2008 the North-West Department of Health and Social Development ("the Department"), represented by its then acting head, Ms Kgasi, entered into a five year lease with TEB Properties CC ("TEB"), represented by its managing member, Mr T E Bozwana, for office accommodation at a monthly rental of R3,2m excluding VAT.