Municipal Tender Awards and Internal Appeals by unsuccessful Bidders


  • Phoebe Bolton Stellenbosch University



Appeals, bid committee system, competitive bidding, Constitution, dispute resolution, Local Government, Municipal Systems Act, procurement, South Africa, tender.


In recent years, bidders aggrieved by municipal tender awards are increasingly resorting to Section 62 of the Local Government: Municipal Systems Act[1] for relief. The application of this provision to tender processes is however strictly confined, and in most instances bidders find that they have no option but to approach the courts for the judicial review of tender awards. In this article, the application of Section 62 to a municipality’s tender processes and decisions is critically analysed in the light of recent court judgments. Attention is also given to the relation between Section 62 and dispute resolution procedures in place under the Supply Chain Regulations,[2] enacted under the Local Government: Municipal Finance Management Act.[3] It is argued that at present, internal appeal and dispute resolution processes do not afford unsuccessful bidders adequate protection.



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Bolton 2009 PER

Bolton P "The committee system for competitive bids in local government" 2009 PER 12(2) 56–96

Quinot 2008 JQR

Quinot G "Public procurement" 2008 JQR 3rd issue, accessible at

Steytler and De Visser Local Government Law

Steytler N and De Visser J Local Government Law of South Africa (LexisNexis Butterworths South Africa 2007)

Register of legislation

Constitution of the Republic of South Africa, 1996

Local Government: Municipal Finance Management Act 56 of 2003

Local Government: Municipal Systems Act 32 of 2000

Promotion of Access to Information Act 2 of 2000

Promotion of Administrative Justice Act 3 of 2000

Register of government publications

GN 868 in GG 27636 of 30 May 2005

Register of cases

CC Groenewald v M5 Developments (283/09) [2010] ZASCA 47 31 March 2010

Koyabe v Minister for Home Affairs Case CCT 53/08 [2009] ZACC 23 25 August 2009

Loghdey v Advanced Parking Solutions CC Case 20766/2008 (W) [2009] ZAWCHC 15 25 February 2009 (unreported)

Lohan Civil-Tebogo Joint Venture v Mangaung Plaaslike Munisipaliteit Case 508/2009 (O) [2009] ZAFSHC 21 27 February 2009 (unreported)

M5 Developments (Cape) (Pty) Ltd v CC Groenewald NO Case 6277/08 [2009] ZAWCHC 3 12 February 2009

Mohammed Zunade Loghdey v City of Cape Town; Advanced Parking Solutions CC v City of Cape Town Case 100/09 [2010] ZAWCHC 25 20 January 2010

Moseme Road Construction CC v King Civil Engineering Contractors (Pty) Ltd (385/2009) [2010] ZASCA 13 15 March 2010

Municipality of the City of Cape Town v Reader 2009 1 SA 555 (SCA)

Nichol v Registrar of Pension Funds 2008 1 SA 383 (SCA)

Oudekraal Estates (Pty) Ltd v City of Cape Town 2004 6 SA 222

Reader v Ikin 2008 2 SA 582 (CPD)

Reed v Master of the High Court of South Africa [2005] 2 All SA 429 (E)

Robcon Civils/Sinawamandla 2 Joint Venture v Kouga Municipality 2010 3 SA 241 (ECP)

Syntell (Pty) Ltd v The City of Cape Town Case 17780/07 (CPD) [2008] ZAWCHC 120 13 March 2008 (unreported)

Total Computer Services (Pty) Ltd v Municipal Manager, Potchefstroom Local Municipality 2008 4 SA 346 (T)



How to Cite

Bolton, P. (2017). Municipal Tender Awards and Internal Appeals by unsuccessful Bidders. Potchefstroom Electronic Law Journal, 13(3), 55–82.




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