News / Local
Court dismisses tender dispute over servicing of Emhlangeni stands
29 Jun 2013 at 07:21hrs | Views
THE Administrative Court has thrown out the case of a tender dispute involving the Bulawayo City Council and two contractors, AP Glendining and Stelix Investment (Pvt) Limited over the servicing of Emhlangeni stands, arguing that it does not have jurisdiction to deal with the matter.
Early this year council awarded a tender for the servicing of 391 stands at the newly established Emhlangeni medium density suburb to Stelix Investment.
However, AP Glendining, one of the bidders challenged the council's decision at the Administrative Court in Harare.
The move left councillors divided as some defended the awarding of the tender while some said the whole process was fraught with irregularities.
According to court papers, the Administrative Court president, Mr Michael Majuru, referred the matter back to the council's procurement committee, saying his court did not have jurisdiction to preside over the matter.
The case was set down for hearing on 21 June after postponement on three occasions.
"Upon close consideration of the matter, it has become clear that what is at issue is the procurement by the City of Bulawayo in terms of the Urban Councils Act, Chapter 29:15.
"Whereas the procurement which the appellant is aggrieved by is not in terms of the Procurement Act Chapter 22:14," read part of the court document dated 18 June 2013.
"This court is a creature of statute. It regrettably does not have jurisdiction to deal with disputes arising from statutes, which do not specifically confer jurisdiction on it.
"The Urban Councils' Act,Chapter 29:15 does not. Accordingly the matter cannot properly be dealt with by this court. In view of the above comments by the Honourable judge president, the matter set down for hearing on the 21st June 2013 has been removed from the roll."
Mr Mkhululi Nyathi of Mabhikwa, Hikwa and Nyathi Legal Practitioners who was representing Stelix Investment said he was not at liberty to comment on the matter.
"Our company policy is that we do not discuss issues of our clients with the media even if they are in the public domain," said Mr Nyathi without elaborating.
Comment could not be obtained from AP Glendining.
The court decision comes at a time when there is agitation by the residents who bought the stands last year who are accusing council of playing delaying tactics in servicing their stands.
The stands, which were sold for about $8 000 each, have not been serviced due to a dispute over the awarding of the tender.
Some councillors have defended the awarding of the tender, arguing that Stelix Engineering was relatively cheaper and the firm had offered favourable payment terms compared to other bidders.
There have also been reports that some senior council officials clashed with councillors who are accusing them of conniving with the bidders who reportedly bribed them in order to win the tender.
The residents have said they were ready to build their houses and accused council of failing to put its house in order.
The council's senior public relations officer, Mrs Nesisa Mpofu, had not responded to questions sent to her for comment on Wednesday.
In March this year the Town Clerk, Mr Middleton Nyoni, posted a notice in the Press stating that council was not in a position to service the stands until the legal processes were brought to finality.
The council was represented by Coghlan and Welsh Legal Practitioners.
Early this year council awarded a tender for the servicing of 391 stands at the newly established Emhlangeni medium density suburb to Stelix Investment.
However, AP Glendining, one of the bidders challenged the council's decision at the Administrative Court in Harare.
The move left councillors divided as some defended the awarding of the tender while some said the whole process was fraught with irregularities.
According to court papers, the Administrative Court president, Mr Michael Majuru, referred the matter back to the council's procurement committee, saying his court did not have jurisdiction to preside over the matter.
The case was set down for hearing on 21 June after postponement on three occasions.
"Upon close consideration of the matter, it has become clear that what is at issue is the procurement by the City of Bulawayo in terms of the Urban Councils Act, Chapter 29:15.
"Whereas the procurement which the appellant is aggrieved by is not in terms of the Procurement Act Chapter 22:14," read part of the court document dated 18 June 2013.
"This court is a creature of statute. It regrettably does not have jurisdiction to deal with disputes arising from statutes, which do not specifically confer jurisdiction on it.
"The Urban Councils' Act,Chapter 29:15 does not. Accordingly the matter cannot properly be dealt with by this court. In view of the above comments by the Honourable judge president, the matter set down for hearing on the 21st June 2013 has been removed from the roll."
Mr Mkhululi Nyathi of Mabhikwa, Hikwa and Nyathi Legal Practitioners who was representing Stelix Investment said he was not at liberty to comment on the matter.
"Our company policy is that we do not discuss issues of our clients with the media even if they are in the public domain," said Mr Nyathi without elaborating.
Comment could not be obtained from AP Glendining.
The court decision comes at a time when there is agitation by the residents who bought the stands last year who are accusing council of playing delaying tactics in servicing their stands.
The stands, which were sold for about $8 000 each, have not been serviced due to a dispute over the awarding of the tender.
Some councillors have defended the awarding of the tender, arguing that Stelix Engineering was relatively cheaper and the firm had offered favourable payment terms compared to other bidders.
There have also been reports that some senior council officials clashed with councillors who are accusing them of conniving with the bidders who reportedly bribed them in order to win the tender.
The residents have said they were ready to build their houses and accused council of failing to put its house in order.
The council's senior public relations officer, Mrs Nesisa Mpofu, had not responded to questions sent to her for comment on Wednesday.
In March this year the Town Clerk, Mr Middleton Nyoni, posted a notice in the Press stating that council was not in a position to service the stands until the legal processes were brought to finality.
The council was represented by Coghlan and Welsh Legal Practitioners.
Source - chronicle