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Chogm Tour Agents (2007) (U) Ltd V Masaka Municipal Council Local Government (Civil Appeal No. 32 of 2009)

Court of Appeal · [2009] UGCA 47 · 2009 Appeal Dismissed ✦ AI-generated summary ↓ Download
Jurisdiction
Uganda
Case Type
Civil appeal from the High Court's dismissal of an application for judicial review
Decision
Appeal dismissed; High Court refusal of judicial review upheld

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Holding

The Court of Appeal dismissed the appeal against the High Court's refusal of judicial review. It held that the PPDA had statutory authority under section 91 of the Public Procurement and Disposal of Public Assets Act 2003 to halt the procurement process upon receipt of complaints, and the respondent municipality was bound to follow the PPDA's recommendations. By the time the appellant submitted its bid, the process had already been halted and no contract had been signed. Merely picking up bid forms in response to an advertisement (which is not an offer) gave the appellant no enforceable legal right capable of protection by judicial review. The PPDA's day-to-day functions could lawfully be performed by its Executive Director and staff.

Facts

Masaka Municipal Council advertised tenders for the collection of revenue from taxi parks and markets within the municipality. The appellant, together with three other firms, picked up bid forms, with opening initially set for 19 September 2008 and later extended. Following numerous complaints to the PPDA, including one from Equator Touring Services Ltd, the PPDA Executive Director convened a meeting on 22 September 2008 which resolved to halt the ongoing procurement process and extend the existing contract with Equator Touring Services Ltd. On 24 September 2008 the PPDA directed the town clerk to comply. The appellant submitted its bid on or around 29/30 September 2008, after the process had been halted. No contract was signed between Equator Touring Services Ltd and the respondent. Dissatisfied, the appellant applied to the High Court for judicial review seeking certiorari, mandamus and prohibition, which was dismissed.

Issues

  1. Whether the actions of the respondent and the PPDA in halting the procurement process and extending the existing contract were illegal.
  2. Whether the appellant, having only picked bid forms, acquired enforceable legal rights protectable by judicial review.
  3. Whether the PPDA acted unlawfully by entertaining the complaint and making its recommendation through staff rather than the board.

Orders

  • Appeal dismissed for lack of merit.
  • Costs of the appeal to the respondent.

Key headnotes

Judicial Review — Standing — Enforceable Right Required
A newspaper advertisement inviting tenders is not an offer, and a party who merely picks up bid forms acquires no enforceable legal right capable of protection by judicial review.
Public Procurement — Powers of the PPDA — Suspension of Procurement Process
Under section 91 of the Public Procurement and Disposal of Public Assets Act 2003, the Authority has power, upon receipt of a complaint, to suspend or halt a procurement process and prohibit further action by the procuring entity until the matter is settled.
Public Procurement — Delegation — Functions Exercised by Executive Director and Staff
The day-to-day functions of the PPDA may lawfully be carried out by its Executive Director and other members of staff on the board's behalf, and the exercise of those functions by staff is not contrary to the constitution of the Authority.
Public Procurement — Procuring Entity Bound by PPDA Recommendations
A procuring and disposing entity is bound to follow the legitimate recommendations of the PPDA made in the exercise of its statutory powers.

Legislation cited (6)

  • Public Procurement and Disposal of Public Assets Act 2003 s.91
  • Public Procurement and Disposal of Public Assets Act 2003 s.7
  • Public Procurement and Disposal of Public Assets Act 2003 s.8
  • Public Procurement and Disposal of Public Assets Act 2003 s.10
  • Local Government (Public Procurement and Disposal of Public Assets) Regulations 2006 reg.57
  • Local Government (Public Procurement and Disposal of Public Assets) Regulations 2006 reg.136

Cases cited (2)

  • Makula International Vs His Emminance Cardinal Nsubuga & Another [1982] HCB.11
  • Mistry Amar Sing Vs Serwano Wafura Kulubya [1963] W L R
Source: this page presents Wakilii’s issue analysis and metadata for a publicly reported Ugandan judgment. Any AI-generated summary is marked as such. Judgment text is sourced from the Uganda Legal Information Institute (ulii.org). Wakilii is not affiliated with ULII.