Public Procurement and Disposal of Public Assets Act
Arbitration Act
Public Procurement and Disposal of Public Assets Act
ai analysis
Case Summary
Key Issues
{"issue_text":"Whether the contract of procurement was approved by PRAZ in terms of s 15(1) of the Act","issue_type":"mixed","dispositive":"yes","related_facts":"6 November 2019 letter from PRAZ CEO, contract formation, arbitration award"}
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background
Facts of the Case
Background
The appellant, a Zimbabwean state-owned pharmaceutical company, entered into a procurement contract with the Swiss respondent for medical supplies. After receiving most supplies, the appellant refused to pay US$210,000 worth, claiming the contract lacked required PRAZ approval under s 15 of the Public Procurement Act. Arbitrators declared the contract illegal, but the High Court set aside this award as contrary to public policy, finding PRAZ had in fact approved the contract through a 6 November 2019 letter.
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