The service provider contracted by the City of Pretoria to sell prepaid electricity has been interdicted from doing so pending an application by two losing bidders for the contract to be set aside. Cigicell and EasyPay initiated proceedings in the Gauteng High Court (Pretoria), saying it had been awarded to an inexperienced company. A Pretoria News report says the case brought by Cigicell to set aside the contract will be heard on 27 November.

The disputed tender was advertised in February and required potential bidders to be in possession of an electricity vending system or technology for selling prepaid electricity. The disgruntled companies argued that the preferred bidder, Roncon, did not meet the requirements despite scoring 75 points, which was higher than the other bidders.

Before awarding the tender to any bidder, the city was required to determine whether that service provider had the requisite expertise and technology. According to Roncon’s own version, ‘it had neither’, the applicants said in court papers.

In its ruling, the court said should the tender be implemented, a bid to have it set aside ‘is likely to prove little more than a pyrrhic victory’. It added: ‘This is because if Roncon is given the green light to start providing services, it is likely to make the submission in Part B that even if the award of the tender were to be declared invalid, appropriate relief in the circumstances should not include an order setting aside its contract with the city,’ the court said. It also said EasyPay had the right to participate in the fresh tender process, likely to be run in the event the decision to award the tender to Roncon was reviewed and set aside.

Full Pretoria News report