The Supreme Court of Appeal had to recently consider whether an unsuccessful tenderer could claim damages for loss of profits as a result of an Organ of State’s breach of its constitutional duties. The tender concerned the award of a contract to a joint venture in 2010 for the Nsami Water Treatment Works in Guyani. 

Litigation History 

Esorfranki Pipelines contended that the Municipality had deliberately manipulated the selection process to advantage a tenderer that did not meet the tender requirements and that the award of the tender was dishonest and fraudulent. The matter had a long and frustrating litigation history for Esorfranki, who initially brought an urgent application in Pretoria to interdict the implementation of the award and the Court later granted a consent order setting aside the award of the tender and directing that the tender be re-adjudicated.

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