The Johannesburg High Court has ruled that National Treasury acted lawfully and fairly in awarding a contentious tender for emergency vehicle lights and equipment — a judgment that clears the department of allegations of favouritism and irregularity.
The tender, officially titled RT4-2023, was for “the supply and delivery of emergency and rescue equipment to the state” over a five-year period, from 2023 to 2028.
The equipment includes specialised flashing lights, sirens, and fittings used by police, ambulances, and fire response vehicles.
Accused Treasury of tender irregularities
Judge Leicester Adams handed down the ruling this week after a losing bidder, Thru Rainbow, asked the court to cancel and reissue the tender.
The company accused Treasury of unlawfully awarding parts of the tender to two companies — Eresa Africa and Torinet — claiming they had colluded, fronted black ownership, and failed to meet key requirements.
But the court dismissed the application, finding the allegations to be speculative and unsupported.
“This court cannot and should not reject the respondents’ version out of hand,” Judge Adams ruled.
No such evidence found
“There is no direct evidence to support the assertion that there was collusion between Eresa Africa and Torinet or price-fixing or bid-rigging by these two bidders. Both Torinet and Eresa Africa have the same wholesale supplier.”
“The applicant’s allegations are nothing more than speculation supposedly based on inferential reasoning.”
The judgment confirms that Eresa Africa and Torinet were each awarded contracts for 16 of the tender’s 251 line items. In total, 23 suppliers were appointed to deliver different components of the tender.
The awarded items included emergency lighting systems, flashing beacons and siren setups. Also other critical equipment required for official state vehicles.
Its national scope and five-year duration suggest it represents a significant financial commitment by the state. Although the full value of the tender has not been made public.
Five-phase evaluation process
According to the judgment, National Treasury applied a five-phase evaluation process that included prequalification, administrative screening, technical compliance, pricing, and B-BBEE scoring.
Thru Rainbow was eliminated at the technical stage for failing to submit compliant samples in multiple categories.
The court found that none of the complaints met the threshold for disqualification or legal sanction. This despite raising red flags around similar pricing, shared addresses, and the use of the same third-party supplier.
Limited powers of courts
The ruling also reaffirmed the limited powers of courts to interfere in procurement decisions. Unless material irregularities are proven.
The decision is seen as an important endorsement of Treasury’s procurement protocols. Its protocols must align with Section 217 of the Constitution. This requires public contracts to be awarded through a system that is “fair, equitable, transparent, competitive and cost-effective”.
