Case Law[2025] ZAGPPHC 395South Africa
South African Tourism Board v Letsema Consulting and Advisory (Pty) Ltd and Others (64334/2021) [2025] ZAGPPHC 395 (22 April 2025)
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# South Africa: North Gauteng High Court, Pretoria
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## South African Tourism Board v Letsema Consulting and Advisory (Pty) Ltd and Others (64334/2021) [2025] ZAGPPHC 395 (22 April 2025)
South African Tourism Board v Letsema Consulting and Advisory (Pty) Ltd and Others (64334/2021) [2025] ZAGPPHC 395 (22 April 2025)
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sino date 22 April 2025
IN
THE HIGH COURT OF SOUTH AFRICA
GAUTENG DIVISION,
PRETORIA
(1)
REPORTABLE: NO
(2)
OF INTEREST TO OTHER JUDGES: NO
(3)
REVISED.
22
April 2025
K. La M Manamela
CASE NO: 64334/21
In
the matter between:
SOUTH
AFRICAN TOURISM BOARD
Applicant
and
LETSEMA
CONSULTING AND ADVISORY (PTY) LTD
First Respondent
TOURISM
BUSINESS COUNCIL OF SOUTH AFRICA
Second Respondent
DATE
OF JUDGMENT:
This judgment is issued by the Judge whose name is
reflected herein and is submitted electronically to the parties/their
legal representatives
by email. The judgment is further uploaded to
the electronic file of this matter on Caselines by the Judge’s
secretary. The
date of the judgment is deemed to be 22 April 2025.
JUDGMENT
(APPLICATION
FOR LEAVE TO APPEAL)
Khashane
Manamela, AJ
Introduction
[1] On 06 December
2024, I handed down a judgment in the legality review application
(‘the main application’)
substantially in favour of the
South African Tourism Board (‘SA Tourism’) against
Letsema Consulting and Advisory (Pty)
Ltd (‘Letsema’) in
the following terms (‘the Judgment’):
[1.1] that,
the decisions taken by SA Tourism in March and in August 2020 to
appoint Letsema as a service provider are
declared unlawful,
constitutionally invalid and are reviewed and set aside;
[1.2] that,
the appointments which came into existence pursuant to the decisions,
envisaged in [1.1] above, are declared
unlawful and constitutionally
invalid and are set aside;
[1.3] that,
subject to what is stated in [1.4] below, it is declared that
payments made by SA Tourism to Letsema pursuant
to the appointment
are unlawful;
[1.4] that,
as just and equitable remedy:
[1.4.1] it is declared
that the payments made by SA Tourism to Letsema pursuant to the
appointments in the amount of R10 130 269,
59 should not
include monies representing profits on the payment received from the
appointment;
[1.4.2] Letsema is
directed to provide SA Tourism with a detailed breakdown of its
reasonable expenses with supporting vouchers
relating to the monies
received by Letsema from SA Tourism pursuant to the appointment and
file same with this Court within sixty
(60) days from the date of the
order, being 06 December 2024;
[1.4.3] SA Tourism shall,
within thirty (30) days thereafter, verify the details provided by
Letsema in terms of the order and file
the verification with this
Court;
[1.4.4] this Court will
thereafter determine the amount to be paid by Letsema to SA Tourism.
[1.5]
each party shall be responsible for its own costs, including costs
occasioned by the joinder of the second respondent
and postponement
of the application on 21 November 2023.
[1]
[2]
On 28 December 2024, Letsema launched this application for leave to
appeal (‘Leave to Appeal’) against the
Judgment or part
of it, on the grounds set out below.
[2]
Essentially, Letsema is dissatisfied about the just and equitable
remedy granted in terms of the Judgment.
[3]
The
Leave
to Appeal is opposed by
SA
Tourism.
[3]
The Leave to Appeal was heard virtually or remotely on 28 February
2025. As in the main application,
Mr K Tsatsawane
SC and Ms N Makhaye appeared for SA Tourism, and Mr G Budlender SC
and Mr W van Aswegen appeared for Letsema. I
reserved this judgment.
Letsema’s
grounds of appeal
[4]
The L
eave to
Appeal is sought to the Supreme Court of Appeal, alternatively a full
court of this Division, against the orders in the
Judgment concerning
the just and equitable remedy and costs.
[5]
The grounds of appeal set out in the notice for the Leave to Appeal
include the following:
Reasonable prospects
that a Court on appeal would come to a different conclusion
1.
…
2.
Letsema acted reasonably in relying on the
assurances and representations by
SA Tourism’s Chief
Executive Officer (Mr Ntshona) that the services would be contracted
for and paid for by the Second Respondent,
the Tourism Business
Council of South Africa (TBCSA).
3.
It was never SA Tourism’s case that
if Letsema was under the genuine belief
that its appointment and
payment were to originate from the Second Respondent, the TBCSA, it
was nonetheless obliged to question
whether a public procurement
process was necessary.
4.
Letsema was misled by the deliberate
misrepresentation by Mr Ntshona that it
was being appointed and
would be paid by the TBCSA.
5.
It was not unreasonable for Letsema to be
deceived by this misrepresentation.
6.
SA Tourism’s own Executive Committee
was similarly misled by Mr Ntshona’s misrepresentation to it
that Letsema’s
appointment was being made and would be funded
by the TBCSA.
7.
Letsema did not engage in any wrongdoing.
It was SA Tourism, acting through
Mr Ntshona, that
initiated the transaction and breached the principle of legality in
taking the impugned decisions and concluding
the transactions that
followed.
8.
The deliberate misrepresentation by SA
Tourism misled Letsema and induced the contract.
9.
It could not be either just or equitable to
permit SA Tourism, an organ of state,
to make
misrepresentations through its CEO, act unlawfully, and then, as a
result of an order of court, benefit from that conduct
by receiving
the services in question at a reduced price.
10. The Court
misdirected itself and erred by failing to find that a just and
equitable
remedy required that a
declaration of invalidity would not have the effect of divesting
Letsema of rights to which it would otherwise
have been entitled, but
for the declaration of invalidity.
11. SA
Tourism’s application for review was cynical and self-serving
in that
11.1. the review
was initiated because Letsema required payment of the outstanding
amount for the admittedly highly effective
services which
Letsema had provided; and
11.2. SA Tourism
attempted to profit from its own unlawful conduct by not only
refusing to pay the outstanding amount, but
by seeking an order that
Letsema repay everything SA Tourism had paid it – in other
words, an order that SA Tourism should
receive the services of
Letsema for free.
…
14. As
to the costs of the application: the Court with respect misdirected
itself by failing to have regard or
proper regard to the facts that:
14.1. Letsema
achieved substantial success, as SA Tourism failed in its attempt to
obtain an order that in effect would have
required Letsema to render
its services for free …
Compelling reasons why
the appeal should be heard
15. …
16.
This matter raises a significant question about the nature of just
and equitable
remedies under section
172(1)(b) of the Constitution in cases of unlawful state
procurement,
on which there has not been any authoritative pronouncement by the
courts. The question is whether, and if so to what
extent, a
“no-profit” principle should apply in circumstances such
as this, where the innocent party was deliberately
misled by
misrepresentations made by an organ of state …
[4]
[6] But when
appearing at the virtual hearing of the Leave to Appeal, Mr G
Budlender SC did not appear to be forceful about
his client
dissatisfaction with the costs order made. But, I will nevertheless
consider all grounds in the Leave to Appeal, as
appearing above.
Submissions on
behalf of Letsema
[7]
At the hearing of the Leave to Appeal t
he oral
submissions by counsel for Letsema were naturally pivoted upon the
grounds of appeal, referred to above. I refer to some
of these
submissions under this part.
[8]
Letsema is dissatisfied with paragraphs 122(c) (i.e. the declaration
of unlawfulness of the payments it received from
SA Tourism)
[5]
and
122(d) (i.e. just and equitable remedy)
(‘the
Orders’),
[6]
as
well as paragraph 122(e) (i.e. Cost Order)
[7]
.
It
is submitted on behalf of Letsema that there is a reasonable prospect
that an appellate court will find that this Court misdirected
itself,
especially by adopting a wrong principle with regard to the just and
equitable remedy granted. Letsema finds the Orders
for the remedy to
be depriving it of profits for the work performed whilst SA Tourism
benefits from its own unlawful conduct by
only paying a reduced price
for the services received. The Orders, according to Letsema, are
based on an incorrect principle which
is anything but just and
equitable.
[9]
Counsel for Letsema referred to instances where the courts have
applied the just and equitable principle or remedy envisaged
in
section 172(1)(b) of the Constitution of the Republic of South
Africa, 1996 (‘the Constitution’), where a procurement
decision has been partly or fully implemented and, subsequently, it
is established that the decision was invalid in terms of PAJA.
Further, counsel cited the following
dicta
from
Allpay
Consolidated Investment Holdings (Pty) Ltd and Others v Chief
Executive Officer, South African Social Security Agency and
Others
(‘
Allpay
’):
[8]
It is true that any
invalidation of the existing contract as a result of the invalid
tender should not result in any loss to Cash
Paymaster. The
converse, however, is also true. It has no right to benefit
from an unlawful contract. And any benefit
that it may derive should
not be beyond public scrutiny.
[footnote omitted]
[10]
Counsel, further, relied on a triad of judgments of the
Constitutional Court which, it is submitted, demonstrate clearly
that
it is not impermissible for a successful tenderer to benefit from the
implementation of the contract.
[9]
What, actually, is meant is that a successful tenderer does not have
the right to benefit from the unlawful contract, but it may
still
benefit. The inquiry in this regard concerns what is just and
equitable and the contractor may still receive full payment
for the
work done, despite the invalidity of the contract. At the hearing for
the Leave to Appeal and, perhaps, even the main application,
counsel
for Letsema referred to the incorrect application of the views from
Allpay
to
have resulted in the coinage of the so-called ‘no profit’
principle in this type of matters.
[11]
The material part of the Orders, counsel’s submissions
continued, were not just and equitable when consideration
is given to
the following circumstances in this matter: (a) who was primarily to
blame for the fact that the award was invalid;
(b) the assurances
given and misrepresentations by Mr Ntshona, the then CEO of SA
Tourism; (c) the fact that Letsema properly performed
its obligations
under the contract, and (d) whether it should be just and equitable
for an organ of state, which was responsible
for the invalid award,
to benefit from its own unlawful conduct. The Orders effectively
serve as punishment of Letsema and reward
of SA Tourism as the full
price for the services rendered will not be paid, contrary to the
triad of Constitutional Court decisions,
referred to above.
[10]
This may also create an incentive for organs of state to enter into
invalid contracts motivated by the fact that they will only
be liable
for a reduced price, which is contrary to public interest.
[12] Under the
circumstances, the submissions conclude, leave to appeal ought to be
granted, preferably to the Supreme Court
of Appeal, due to the
greater need for clarity and certainty, as well as authoritative
pronouncement on the material issues of
public importance.
Opposition
to the Leave to Appeal (and submissions on behalf of SA Tourism)
[13] In its
opposition of the Leave to Appeal, SA Tourism, predominantly disputes
the appealability of the Orders, including
the Cost Order, and points
to the absence of reasonable prospect of success.
[14]
It is submitted on behalf of SA Tourism that the just and equitable
order in the Judgment is not final in effect, and
it is not in the
interests of justice to appeal against it at this stage. This is so,
as this part of the Orders does not prescribe
the amount which
Letsema ought to repay to SA Tourism, but only a procedure to be used
by the Court to determine the
quantum
of the repayment.
[11]
Once the
amount to be repaid is determined, which would constitute a final
order, an appeal would be competent. For, this Court
may still decide
that nothing should be repaid by Letsema to SA Tourism.
[15]
Counsel for SA Tourism cited authorities in support of their client’s
ground of opposition that an appeal is not
competent at this stage.
Counsel referred to the decision in
International
Trade Administration Commission v SCAW South Africa (Pty) Ltd
[12]
by
the Constitutional Court that the correct approach to appealability
is to have regard to the interests of justice.
[13]
Appealability
does not depend any longer ‘largely on whether the interim
order appealed against has final effect or is dispositive
of a
substantial portion of the relief claimed in the main application’,
as that ‘is now subsumed under the constitutional
interests of
justice standard’.
[14]
In determining appealability or whether to grant leave to appeal the
interests of justice prevail over any impediments to the contrary
which may arise from pre-Constitution common-law.
[15]
But this does not suggest the jettisoning of the common law
principles which should only yield to the interests of justice where
the
circumstances
of a matter so dictate.
[16]
This means that the durable principles in
Zweni v Minister
of Law and Order
(‘
Zweni
’)
[17]
remain
applicable as they retain a gravitational pull on appealability of
orders amidst ‘
the
capacious remit of the interests of justice’
.
[18]
One
of the principles or attributes in
Zweni
is that the high court seized with a matter ought to bring finality
to the matter.
[19]
The
mischief guarded against is appealing on a piecemeal basis to an
appellate court, which is inherently not cost-effective and
lead to
the delay in the resolution of high court litigation.
[20]
[16] It is further
argued by Mr K Tsatsawane SC for SA Tourism that the Orders are not
final in nature and, thus, not appealable.
The declaration of
unlawfulness of the payments (in paragraph 122(c)) is ‘subject
to’ the order in paragraph 122(d),
thus, the issues in the
latter have to be determined (in favour of SA Tourism, that is) for
the declaration to come into effect.
Otherwise, Letsema would not
have to make any payment to SA Tourism, the argument concludes. Also,
that Letsema has not established
that it is in the interests of
justice to grant leave to appeal against the Orders. This is borne by
the fact that: (a) the Orders
have not finally disposed of the
important issues in dispute between the parties regarding the
declaration of unlawfulness of the
payments made to Letsema by SA
Tourism, and the amount to be repaid by Letsema to SA Tourism, if
any; (b) in the event of an appeal
at the instance of Letsema being
successful, following the granting of leave to appeal, the parties
ought to return to this Court
for the remainder of the just and
equitable relief, which would delay the finalisation of the matter,
and (c) an appellate court
cannot concern itself with appeals against
conditional orders, as in the Orders and, thus, this Court ought to
wrap up the just
and equitable remedy, before any appeal is
competent.
[17] The opposition
by SA Tourism is also on the basis that the intended appeal by
Letsema has no reasonable prospect of success.
On the one hand, the
Orders are non-appealable in nature on the grounds already stated
above. On the other hand, there is no misdirection
on the part of
this Court on the basis alleged by Letsema, as this Court – in
recognition of the fact that Letsema may be
entitled to keep the
monies received from SA Tourism, deferred the issue for later
determination. Evidence subsequently gathered
may reveal that nothing
is repayable to SA Tourism by Letsema.
[18]
Counsel for SA Tourism disputes that the triad of cases, relied upon
by Letsema,
[21]
serve as
authority for a view that the private party to an impugned
procurement ought to receive full payment in terms of
the impugned
contract. The cases, it is submitted, did not deal with divesting a
private party to a contract of the monies received
in terms of a just
and equitable remedy granted by the Court in terms of section
172(1)(b) of the Constitution.
[22]
In contrast the vexed question which faced this Court was whether
Letsema should be divested of the monies paid to it as part of
the
just and equitable remedy. The Orders are consistent with section
172(1)(b) as they do not deprive Letsema from retention of
monies it
received, but only create a procedure in terms of which this Court is
to determine just and equitable amount to be retained
by Letsema or
repaid to SA Tourism.
[19]
In what resembles a contest of virtue (obviously of a million
proportions, if it is) SA Tourism denies that Letsema is
an innocent
party in this matter. Counsel for SA Tourism argued that Letsema has
always known that its appointment was not by Tourism
Business Council
of South Africa
(‘TBCSA’), the
second respondent in the main application,
and,
in fact, Letsema did not have dealings with TBCSA. Letsema also knew
that any appointment by SA Tourism could only be in terms
of a public
procurement exercise. Granted Mr Ntshona may have misled Letsema, but
the latter knew that TBCSA was not involved.
The latter issue is the
very basis of the institution of the judicial review by SA Tourism,
the submission concludes.
[20] SA Tourism
also criticises Letsema’s dissatisfaction with the Cost Order
in the Judgment and for including same
as a ground of appeal. The
Cost Order made, it is submitted by counsel for SA Tourism, was
correct as Letsema was not successful.
Therefore, any intended appeal
against the Cost Order has no factual and legal basis, as an
appellate court would not interfere
with the discretion of this Court
in this regard. Such interference would be only appropriate in the
event of: (a) the discretion
not exercised judicially; (b) the
exercise of the discretion influenced by wrong principles or
constituting a misdirection on the
facts, or (c) the decision not
having been reasonably made by this Court properly directing itself
to all the relevant facts and
principles. Consequently, there is no
basis for any interference in this matter.
Applicable
legal principles for applications for leave to appeal
[21]
I have referred to most of the legal principles cited on behalf of
the parties in support of their respective cases,
this or the other
way. But the
legal principles central to an
application for leave to appeal are premised on the provisions of the
Superior Courts Act 10 of 2013
.
[22]
Section 17(1)
of the
Superior Courts Act is
pertinent in this regard and reads as
follows in the material part:
(1) Leave to
appeal may only be given where the judge or judges concerned are of
the opinion that—
(
a
) (i) the
appeal would have a reasonable prospect of success; or
(ii) there is some other
compelling reason why the appeal should be heard, including
conflicting judgments on the matter under consideration
…
[23]
In
Democratic
Alliance v President of the Republic of South Africa
and Others
,
[23]
a full court of this Division made the following observation
regarding the test for
leave
to appeal:
[4] The
test as now set out in
s
17
constitutes
a more formidable threshold over which an applicant must engage than
was the case. Previously the test was whether there
was a reasonable
prospect that another court might come to a different
conclusion… The fact that the
Superior
Courts
Act now employs
the
word “would” as opposed to “might” serves to
emphasise this point. As the Supreme Court of Appeal said
in Smith
v S
2012
(1)
SACR 567 (SCA) at para 7:
‘
More
is required to be established than that there is a mere possibility
of success, that the case is arguable on appeal or that
the case
cannot be categorised as hopeless. There must in other words be a
sound, rational basis for the conclusion that there
are prospects of
success on appeal.’
[5] …
[6] The second basis
upon which leave should be granted is that there is a compelling
reason, that is apart from the existence
of conflicting judgments on
the matter under consideration which require clarification from a
higher court. In essence the compelling
reason is whether the case
raises issues of significant public importance.
[24] The above
legal principles do not profess to constitute a compendium of all
legal principles currently finding application
in respect of leave to
appeal. But they – together with case law cited above, courtesy
of counsel in this matter - will provide
useful aids in the
discussion to follow on the grounds of the intended appeal.
Grounds of appeal
and submissions (for and against the granting of leave to appeal) -
discussed
General
[25] Letsema has
raised a number of grounds for its intended appeal against the
Judgment. Equally, a number of issues have
been raised on behalf of
SA Tourism in opposition to Letsema’s case in the Leave to
Appeal.
[26]
Some of these grounds or issues deserve specific attention due to
their impact on the disposition of this
application. In some
instances the issues or grounds are discussed jointly due to
interlinkages which may be apparent from the
subheadings. But, as I
consider the Judgment comprehensive in nature and extent, I intend to
strive for brevity in the discussion
of these issues.
Letsema is innocent
and reasonably relied on assurances and representations by Mr Ntshona
[27]
Letsema’s primary point of contestation has been and remains
that it acted reasonably in relying on the assurances
and
representations by Mr Ntshona, the then CEO of SA Tourism, that TBCSA
would contract for and pay for the services by Letsema.
Letsema,
similarly to the Executive Committee of SA Tourism, was misled by Mr
Ntshona’s deliberate misrepresentations, the
assertion
continues. According to Letsema it did not engage in any wrongdoing
and, thus, it is an innocent party in this matter.
This is disputed
by SA Tourism.
[28]
I did not directly rule on Letsema’s self-proclaimed innocence
in the Judgment. Such ruling or finding was unnecessary
amidst my
findings of Letsema’s knowledge of the absence of the requisite
competitive procurement process relating to its
appointment.
[24]
I also rejected the so-called ‘assurances’ given by Mr
Ntshona to Mr Harris of Letsema.
[25]
Reliance on such ‘assurances’ under the
circumstances of this matter was always devoid of any reasonableness
and inimical to Letsema’s claim of innocence. Therefore, I
search in vain for merit in this part of the grounds for the intended
appeal.
Not just and equitable
for SA Tourism to receive services at a reduced price
[29] It is further
argued on behalf of Letsema that SA Tourism, as an organ of state,
should not benefit – by receiving
services in question at a
reduced price – when its own CEO acted unlawfully by making the
misrepresentations which led to
the delivery of the material
services.
[30]
It is also submitted in this regard that this Court misdirected
itself and erred by failing to find that a just and equitable
remedy
required that a declaration of invalidity would not have the effect
of divesting Letsema of rights to which it would otherwise
have been
entitled, but for the declaration of invalidity. But I do not agree
that this is an outcome cast in stone for this type
of judicial
reviews, otherwise the objective would be lost. Why should the organs
of state and the courts go into the trouble of
reviewing the unlawful
procurement when the outcome is always certain: no interference with
the private party’s rights. The
remedy imposed in the Judgment
sought to balance the rights of both the organ of State, being SA
Tourism, and Letsema, the private
party. The Judgment does not
interfere with payment made by SA Tourism for the services rendered
by Letsema up to the reasonable
cost of such services and nothing
more or less.
[26]
I agree with
counsel for SA Tourism that the case law relied upon by Letsema do
not support the proposition advanced in this regard.
[31]
Also, any anxieties regarding forensic accounting which would be
required to give effect to the Orders cannot serve as
a basis to
appeal against the Orders or the Judgment. I did not see any other
way of subjecting the unlawful payments made to Letsema
to scrutiny
without requiring Letsema to provide SA Tourism ‘with a
detailed breakdown of its reasonable expenses with supporting
vouchers relating to the monies received’.
[27]
Besides, it is not unreasonable to expect that any objective and
competitive public procurement process of the same services would
have required similar details to be set out in the bids, including by
Letsema, for assessment by SA Tourism before awarding the
tender.
Competitive bids factor-in value relating to ‘intellectual
capital, expertise, and intangible contributions’
in a manner
‘reasonably susceptible to quantification as profits’.
They ought to, lest the figures or details provided
would not comport
with a ‘fair, equitable, transparent, competitive and
cost-effective’ procurement, required for organs
of state.
[28]
Therefore, there is nothing impractical and inequitable about this
pending exercise in terms of the Orders.
[32] I agree that
the just and equitable remedy proposed or the part relating to
quantification exercise was not ventilated
in the main application.
But, I also agree with submissions on behalf of SA Tourism that the
nature and extent of the possible
repayment by Letsema is not yet
known and, therefore, Letsema’s quest to embark on an appeal
may be a fault start. The latter
issue, actually, takes me to the
next issue for discussion: is it not premature to appeal the Orders.
Is it not premature to
appeal the Orders?
[33]
SA Tourism says that the Orders, particularly the just and equitable
relief granted, is not final in effect, and, therefore,
it is not in
the interests of justice to appeal against same at this stage. The
Court is still to determine the amount repayable
by Letsema to SA
Tourism, if any. The latter would constitute a final order which
would be competent of an appeal.
[34]
I agree with counsel that the current position of the law is that
appealability of an order or judgment of the Court
is to be decided
on the basis of the interests of justice.
[29]
And that the common law requirements of whether an order sought to be
‘
appealed
against has final effect or is dispositive of a substantial portion
of the relief claimed’ are not irrelevant to
the determination,
but only subsumed by the constitutional standard of interests of
justice.
[30]
Part of the focus
of the Court in this regard is to
guard
against the pursuit of appeals on a piecemeal basis, which would be
inherently not cost-effective and delay finalisation of
litigation.
[31]
The latter
eventualities do not serve the interests of justice.
[35]
Counsel for Letsema argued at the hearing of the Leave to Appeal that
paragraph 122(d)(i) of the Judgment, declaring
that the payments made
by SA Tourism to Letsema pursuant to the unlawful appointments
‘should not include monies representing
profits on the payment
received from the appointment’,
[32]
is final in effect and would not be dealt with in the subsequent
process in terms of the Orders. I agree. Although, this part of
the
Orders - as correctly pointed out by counsel for SA Tourism is still
dependent in effect on the determination of the monies
possibly
repayable by Letsema to SA Tourism – paragraph 122(d)(i) of the
Judgment by and of itself is final.
The
form or appellation of the order should yield to the effect of the
order in this regard.
[33]
I
also find that it would not be in the interests of justice to allow
the remainder of the just and equitable remedy, envisaged
in
paragraph 122(d)(ii)-(iv), to unfold on the basis or trigger of
paragraph 122(d)(i) when the latter part of the order is clearly
operative and final.
Costs order unfair and
appealable
[36]
Letsema is also dissatisfied with the Costs Order that ‘each
party shall be responsible for its own costs’.
[34]
Letsema contends that it was substantially successful in fending off
SA Tourism’s ‘cynical and self-serving’
application
for review. In the main, Letsema points to the fact that this Court
did not accede to SA Tourism’s attempts to
cause Letsema to be
ordered to repay everything received from SA Tourism. Therefore, the
Court misdirected itself by awarding costs
on the basis done in the
Judgment, the contention on behalf of Letsema concludes.
[37] Letsema’s
contentions are disputed by SA Tourism including on the basis that
the Cost Order is correct, as Letsema
was not successful. And, that
there is no factual and legal basis warranting interference by an
appellate court with the exercise
of discretion by this Court. I
conclude on these and other issues above, next.
Conclusion and
Costs
[38]
Although I have sought to allow Letsema to retain part of the monies
paid by SA Tourism representing vouched ‘reasonable
expenses’,
[35]
it is
clear from the rest of the Judgment that I have denied Letsema
anything suggestive of ‘profits’ from the monies
received.
[36]
This represent
the so-called ‘no profit principle’ whose origin now
appears to be of legendary. Counsel for Letsema
was emphatic in
pointing out that the ‘no profit principle’ did not arise
from
Allpay
although
it may be from misapplication of the call in that case to subject
benefit
derived by a private party not beyond public scrutiny.
[37]
This seems probable.
[39]
I am, therefore, convinced that the appeal intended by Letsema would
have a reasonable prospect of success.
[38]
Further,
current case law on the issue of the nature and extent of curtailment
of the rights acquired by a private party in procurement
declared
unlawful by the Court is unclear. I have in mind the vexed question
whether the private party may be stripped of all or
part of what may
represent profit from the services rendered or product delivered in
terms of the procurement or appointment found
unconstitutional and
unlawful. This represents ‘some other compelling reason
why the appeal should be heard’.
[39]
[40] But, I find
myself unable to draw the same conclusion with regard to the intended
appeal against the Cost Order. Nonetheless,
as the Cost Order is
intricate to (and natural consequence of) the Orders, the appellate
court seized with the prospective appeal
may consider it warranted to
address all issues as part of the determination on the just and
equitable remedy granted by this Court.
Therefore, I will refrain
from restraining the parameters of the appeal on any basis, including
the Cost Order.
[41] Consequently,
I would grant the Leave to Appeal. And due to the greater need for
clarity and certainty, as well as authoritative
pronouncement on the
material issues of public importance, I will grant Letsema leave to
appeal to the Supreme Court of Appeal.
The costs of this Leave to
Appeal shall be costs in the appeal.
Order
[42]
In the premises, I make the following order:
a)
leave to appeal to the Supreme Court of Appeal is
granted, and
b) costs of this
application for leave to appeal is to be costs in
the appeal.
Khashane
La M. Manamela
Acting
Judge of the High Court
Dates
of Hearing:
28 February 2025
Date
of Judgment:
22 April 2025
Appearances
:
For
Applicant (SA Tourism):
Mr K Tsatsawane SC (with Ms
N Makhaye)
Instructed
by:
Diale Mogashoa Inc, Pretoria
For
the First Respondent (Letsema): Mr G
Budlender SC (with W van Aswegen)
Instructed
by:
Phatshoane Henney Inc, Bloemfontein
c/o
Tiaan Smuts Attorneys, Pretoria
[1]
South
African Tourism Board v Swift Thinking (Pty) Ltd and Another
(64333/21;
64334/21) [2024] ZAGPPHC 1311 (6 December 2024) par [122] which was
a joint judgment of this and another related matter
of
SA
Tourism v Swift Thinking
under
case number: 64333/21
.
In
the latter matter, leave to appeal was sought in terms of notice
dated 02 January 2025, but was subsequently withdrawn on 28
January
2025.
[2]
Pars
[4]-[6] below.
[3]
Par
[1.4] above, for the terms of the just and equitable remedy in the
Judgment.
[4]
Leave
to Appeal, CaseLines 0-2 to 0-5.
[5]
Par
[1.3] above.
[6]
Par
[1.4] above.
[7]
Par
[1.5] above.
[8]
Allpay
Consolidated Investment Holdings (Pty) Ltd and Others v Chief
Executive Officer, South African Social Security Agency and
Others
2014
(4) SA 179
(CC) (‘
Allpay
’)
[67].
[9]
State
Information Technology Agency SOC Ltd v Gijima Holdings (Pty)
Ltd
2018
(2) SA 23
(CC) (‘
Gijima
’);
Buffalo
City Metropolitan Municipality v Asla Construction (Pty) Ltd
2019
(4) SA 331 (CC)
(‘
Buffalo
City
’);
Greater
Tzaneen Municipality v Bravospan 252 CC
2025
(1) SA 557
(CC) (‘
Bravospan
’).
[10]
Ibid.
[11]
Paragraph
[122](d) of the Judgment, paraphrased in par [1.4] above.
[12]
International
Trade Administration Commission v SCAW South Africa (Pty) Ltd
2012
(4) SA 618
(CC) (‘
SCAW
’).
[13]
SCAW
at
[41].
[14]
Tshwane
City v Afriforum and another
2016 (6) SA 279
(CC) [40].
[15]
Tshwane
City v Afriforum
2016 (6) SA 279
(CC) [41].
[16]
Minmetals
Logistics Zhejiang Co Ltd v The Owners and Underwriters of the MV
Smart and another
[2025]
1 All SA 60
(SCA);
2025 (1) SA 392
(SCA) (‘
Minmetals
’)
[32].
[17]
Zweni v
Minister of Law and Order
1993
(1) SA 523
(A) at 532-533.
[18]
TWK
Agriculture Holdings (Pty) Ltd v Hoogveld Boerderybeleggings (Pty)
Ltd and Others
2023
(5) SA 163
(SCA) (‘
TWK
’)
[30];
Minmetals
[32].
[19]
Zweni
at
532-533.
[20]
TWK
[21];
Minmetals
[33];
Zweni
at
532-533.
[21]
Par
[10] above.
[22]
It
is submitted on behalf of SA Tourism that in
Gijima
the Court declared the contract invalid, but did not set it aside
and preserved the right of Gijima to sue, in an arbitration,
which
may be due to it under the invalid contract. The same was ordered in
Buffalo
City
.
In the recent case of
Bravospan
the Court invoked the interests of justice to prevent the
Municipality from paying Bravospan ‘fairly for the services
that it has taken from Bravospan’. Counsel for SA Tourism
argues that it is still to be determined what constitutes ‘paying
Bravospan fairly’.
[23]
Democratic
Alliance v President of the Republic of
South Africa and others
(21424/2020)
[2020] ZAGPPHC 326 (29 July 2020) (
coram:
Mlambo
JP, Davis JP and Molefe J).
[24]
Pars
[109]-[110] of the Judgment, CaseLines 00-38 to 00-39.
[25]
Par
[110] of the Judgment, CaseLines 00-39.
[26]
Pars
[115]-[116] of the Judgment, CaseLines 00-40 to 00-41.
[27]
Par
[122]d)ii) of the Judgment, CaseLines 00-44.
[28]
Section
217(1) of the Constitution.
[29]
SCAW
at
[41]. See par [15] above, for further discussion.
[30]
SCAW
at
[56];
Tshwane
City v Afriforum
2016 (6) SA 279
(CC) [40];
Eskom
Holdings Soc Ltd and another v Sonae Arauco (Pty) Ltd
(1018/2023) [2024] ZASCA 177 (18 December 2024)
[36].
See also
Government
of the Republic of South Africa and Others v Von Abo
2011
(5) SA 262
(SCA);
[2011] 3 All SA 261
(SCA) [17] and
par
[15] above, for further discussion.
[31]
TWK
[21];
Minmetals
[33];
Zweni
at
532-533;
Eskom
Holdings v Sonae Arauco
[2024]
ZASCA 177
[35].
See also
Government
of the Republic of South Africa v Von Abo
2011
(5) SA 262
(SCA);
[2011] 3 All SA 261
(SCA) [17].
[32]
Judgment par [122]d)i), CaseLines 00-44.
[33]
SCAW
at
[53];
United
Democratic Movement and another v Lebashe Investment
Group (Pty) Ltd and others
2022
(12) BCLR 1521
(CC);
2023 (1) SA 353
(CC) [41].
[34]
Judgment
par [122]e), CaseLines 00-44.
[35]
Judgment
par [122]d)ii), CaseLines 00-44.
[36]
Judgment pars [115]-[116], CaseLines
00-40
to 00-41.
[37]
Allpay
Consolidated Investment Holdings (Pty) Ltd and Others v Chief
Executive Officer, South African Social Security Agency and
Others
2014
(4) SA 179
(CC) (‘
Allpay
’)
[67].
[38]
Section
17(1)(a)(i)
of the
Superior Courts Act. See
pars [22]-[23] above.
[39]
Section
17(1)(a)(ii)
of the
Superior Courts Act. See
pars [22]-[23] above.
sino noindex
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