CCT34/10

[2010] ZACC 21

2011 (1) SA 327 (CC)

2011 (2) BCLR 207 (CC)

Mogoeng J

23 November 2010

http://hdl.handle.net/20.500.12144/3610

Application for leave to appeal against the judgment of the Supreme Court of Appeal: Viking Pony Africa Pumps (Pty) Ltd t/a Tricom Africa, and Another v Hidro-Tech Systems (Pty) Ltd 2010 (3) SA 365 (SCA)

Application for leave to appeal centered on the correct interpretation of the preferential procurement policy contained in the Preferential Procurement Act and its Regulations. The Court held that a state organ has an obligation to investigate fronting practices in tendering processes when plausible allegations of this nature are made. The Court found that the City of Cape Town failed to properly investigate allegations made by the first respondent that the applicant's historically disadvantaged individuals were neither remunerated nor participated in the management of the applicant to the degree commensurate with their shareholding and they were mere tokens to secure tenders. The appeal was dismissed. Judgment: Mogoeng J (unanimous).