A Johannesburg-based bus company owner has taken North West Transport MEC Wessels Morweng and his department officials to the Mahikeng High Court to interdict the award of a lucrative contract to a more expensive competitor, after his own cheaper bid with a superior service rating was passed over.
Mohamed Essop’s Sizanani Mazulu Transport secured a place on the panel of four
approved service providers to transport the province’s citizens.
However, the company discovered that despite being ranked as the top bidder with the lowest price of R22 per kilometre, the department awarded the most profitable routes exclusively to Ikhwezi and Tasmica, a joint venture that had submitted a significantly higher bid of R39 per kilometre.
Aggrieved by the decision, Essop approached the high court on Friday, raising concerns about wasteful expenditure and potential bias.
He noted that the Ikhwezi and Tasmica JV was ranked last among the four successful bidders on pricing.
“Yet, only the JV, ranked last and lowest of the successful bidders, received an award to the exclusion of and without notice to the other successful bidders,” Essop protested in his affidavit.
The dispute intensified with the revelation that Ikhwezi and Tasmica JV received an appointment letter dated April 23, selecting them as the sole operators for district commuter services effective May 1.
Crucially, this letter was issued before the official bid closing date of August 4, suggesting that JV’s selection was predetermined and undermined the tender process’s fairness and
transparency.
The situation escalated when Essop learnt of an October 1 media report in which Morweng announced the JV’s appointment. The report highlighted JV’s capacity to provide safe and reliable transport but failed to explain why it was chosen over other successful bidders, particularly Sizanani, which had offered the most competitive pricing.
Before the court action, Essop’s legal representatives, A Mothilal Attorneys, sent a letter to the department on Wednesday. It demanded an explanation by Thursday for awarding the contract to JV and requested details on how work would be equitably allocated among the four successful bidders.
Having received no response, Essop proceeded to the high court to seek a temporary order halting the contract.
The company argues that the award to the JV was unlawful, irrational and biased, violating the principles of fair, equitable, transparent, competitive, and cost-effective procurement outlined in Section 217 of the South African Constitution.”
Sizanani has also launched another lawsuit to challenge the legality of the JV’s contract in a lower court, requesting a full review and cancellation of the department’s decision, or order the department to re-advertise the tender fairly and openly.
