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- A contract to supply software to a Zimbabwean government department has been ruled illegal by the Harare High Court.
- Zimbabwe Manpower Development Fund flouted tender rules in awarding the contract.
- Twenty Third Century Systems a rival company to SAP South Africa took the matter to court.
Software giant, SAP South Africa suffered a setback in Zimbabwe when a tender awarded to its Harare partner, Tano Digital Solutions, by the Zimbabwe Manpower Development Fund (Zimdef) was declared illegal by the Harare High Court.
According to a High Court application, Zimdef floated a tender for the Provision of Systems Applications and Products (SAP) software in February last year, but said bidding companies had to be certified by SAP to get the tender, sparking a fierce fight among rival bidding companies as some were not SAP certified.
The clause on SAP formed the basis of the court application by rival company Twenty Third Century Systems (TTCS) which argued that the clause was not only restrictive but the job did not need SAP certification to offer the services.
TTCS then approached the courts arguing that Zimdef was manipulating the tender process to favour Tano. The High Court ruled in favour of TTCS.
Zimdef, the Procurement Regulatory Authority of Zimbabwe (PRAZ) and Tano were cited as respondents.
"Pending determination of HC1737/22, the execution of a tender award made by the first respondent (Twenty Third Century) in favour of the third respondent (Tano) dated the 9th of December be and is hereby stayed.
"In the event that the third respondent has initiated the tender process, that the same be stayed pending determination of HC1737/22,” High Court judge Owen Tagu ruled.
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Tagu further ordered the respondents to show cause why a final order should not be made cancelling the tender.
In the application, TTCS told the court that in October last year, ZIMDEF published a notice calling for an informal tender for the provision of SAP software application services.
Firms submitted their bids, but on 9 November 2021, TTCS submitted a notice to PRAZ challenging the tender, "... as restrictive, unreasonable and anti-competitive a condition inserted by the first respondent (ZIMDEF)".
The challenge emanated from ZIMDEF's demand for bidders to be holders of an SAP licence.
Last month, South Africa's two multimillion-rand software and support contracts between the Department of Water and Sanitation (DWS) and global giant SAP were set aside. This also led to SAP being ordered to repay R413 million.
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