Case Law[2025] ZAGPPHC 945South Africa
Integrity Forensic Solutions CC v Minister of Water and Sanitation and Another (2024-956869) [2025] ZAGPPHC 945 (1 September 2025)
High Court of South Africa (Gauteng Division, Pretoria)
1 September 2025
Headnotes
that: ‘[i]n this case what triggered a withdrawal of the application was a response by the respondent which satisfied the relief sought in a way that exonerated the Court from making a determination whether or not the passport and temporary resident certificate should be returned to the applicant. .... It seems to me that the Court is not confronted with an ordinary situation of a concession on the merits made through the withdrawal of the application. That the withdrawing party should bear the costs cannot be regarded as a hard and fast rule in the circumstances of this case. The Court has a general jurisdiction to make a proper allocation of costs in the exercise of its judicial discretion ..’.
Judgment
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# South Africa: North Gauteng High Court, Pretoria
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## Integrity Forensic Solutions CC v Minister of Water and Sanitation and Another (2024-956869) [2025] ZAGPPHC 945 (1 September 2025)
Integrity Forensic Solutions CC v Minister of Water and Sanitation and Another (2024-956869) [2025] ZAGPPHC 945 (1 September 2025)
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sino date 1 September 2025
REPUBLIC
OF SOUTH AFRICA
THE
HIGH COURT OF SOUTH AFRICA
GAUTENG
DIVISION, PRETORIA
CASE NR: 2024-056869
(1)
REPORTABLE:
YES
/
NO
(2)
OF INTEREST TO OTHER JUDGES
YES
/
NO
(3)
REVISED:
DATE:
01/09/2025
SIGNATURE:
In
the matter between:
INTEGRITY
FORENSIC SOLUTIONS CC
APPLICANT
and
THE
MINISTER OF WATER AND SANITATION
FIRST
RESPONDENT
THE
UMNGENI UTHUKELA WATER BOARD
SECOND RESPONDENT
Delivered:
This judgment was prepared and authored by
the Acting Judge whose name is reflected and is handed
down
electronically by circulation to the Parties / their legal
representatives by email and by uploading it to the electronic
file
of this matter on CaseLines. The date of the judgment is deemed to be
01 September 2025.
JUDGMENT
MARUMOAGAE
AJ
1.
The
Applicant brought an application to compel the First Respondent to
decide whether to investigate the Second Respondent’s
accounting authority in terms of the relevant provisions of the
Public Finance Management Act.
[1]
The Applicant further sought an order that, should the First
Respondent decline to investigate the Second Respondent’s
accounting
authority, the First Respondent must communicate her
reasons to the Applicant. This Application was brought in May 2024.
2. On
13 June 2024, through the office of the State Attorney, the First
Respondent wrote a letter to the Applicant
indicating that she will
investigate the allegations made by the Applicant against the Second
Respondent’s accounting authority.
On 1 August 2024, the First
Respondent personally wrote a letter to the Applicant, advising that
the issue raised by the Applicant
is being investigated and that she
will consider the matter after the completion of the investigation.
The First Respondent opposed
this Applicant and filed its answering
papers in September 2024.
3.
Since the First Respondent advised the Applicant that she decided to
investigate the allegations made by the
Applicant, the matter has
become moot, and there is no need to consider the merits of the
application. However, the Applicant argues
that it is entitled to be
awarded costs of this application because the First Respondent
decided to investigate only after this
application had been
instituted. The First Respondent is of the view that it should not be
ordered to pay the Applicant’s
costs. The issue is whether the
First Respondent should be ordered to pay the Applicant’s costs
of this application.
4. The
Applicant also brought an application for leave to deliver the letter
of appointment of Nexis Forensic
Services (Pty). It was argued on
behalf of the Applicant during the oral hearing that the purpose of
this letter is to provide
the court with the chronology of events.
The First Respondent did not oppose the filing of this letter.
5.
The reason
the parties agree that it is unnecessary to determine the merits of
this application is not because the Applicant withdrew
the
application. Had the Applicant withdrawn the application, costs would
have been granted against it. This is what transpired
in
Serwada
v
Minister of Home Affairs for RSA
,
[2]
where the Applicant brought an urgent application seeking an order
declaring the seizure of his passport and a temporary residence
permit to be unlawful. However, before the matter could be heard, the
Minister of Home Affairs returned the Applicant’s passport
and
a temporary residence permit to him leading to the Applicant to
withdraw the application.
6.
The court
in
Serwada
noted that ‘
[o]rdinarily
a party who withdraws his/her application is considered as having
conceded the merits and, thus, is obliged to make
a tender of the
costs’
.
[3]
However, in ordering the Minister of Home Affairs, who was the
Respondent, to pay the Applicant’s costs, the court
convincingly
held that:
‘
[i]n this case
what triggered a withdrawal of the application was a response by the
respondent which satisfied the relief sought
in a way that exonerated
the Court from making a determination whether or not the passport and
temporary resident certificate should
be returned to the applicant.
.... It seems to me that the Court is not confronted with an ordinary
situation of a concession on
the merits made through the withdrawal
of the application. That the withdrawing party should bear the costs
cannot be regarded
as a hard and fast rule in the circumstances of
this case. The Court has a general jurisdiction to make a proper
allocation of
costs in the exercise of its judicial discretion ..’.
7.
Similarly,
in
VDM v
VDM
,
[4]
the owner of the property sought an order directing the tenant to
vacate his property as a matter of urgency. By the time
the
application was called in the urgent court, the tenant had vacated
the premises. In awarding the property owner costs against
the
tenant, who was the Respondent in the matter, the court held that:
‘
[t]he position
is consequently that the applicant has brought an application of
undisputed urgency, which was justified and well-founded,
in order to
address unlawful action on the part of the respondent. The
respondent, by his actions, has essentially conceded the
application.
The usual rule in such circumstances is that an applicant should be
awarded costs. I see no reason to depart from
that’.
8. In
Sapirstein and Others v Anglo African Shipping Co (SA) Ltd,
the Appellate Division (as it then was) held that:
‘
[g]enerally
speaking, awards of costs are, of course, in the discretion of the
Court and that discretion must be judicially exercised
whenever the
need arises’.
[5]
9.
Prithilal v Akani Egoli (Pty) Ltd and Another
, the
Constitutional Court held that
‘
[t]he judicial
power to order costs requires the court to exercise a discretion.
Unless a judicial officer gives reasons,
it is impossible to know
whether the discretion was exercised at all or, if it was, whether it
was exercised properly.
[6]
10. In
Hull v Free
Market Foundation (Southern Africa) and Others,
it was held that
where the court is not obliged to consider the merits of the
application because the Respondent had substantially
complied with
the orders sought by the Applicant even before the court determined
the matter:
‘…
the
relevant considerations in such a case are (a) the merits of the
application; (b) the manner in which the parties conducted
themselves
… and (c) whether any party took unnecessary steps or adopted
a wrong procedure’.
[7]
11. It appears that
even though the matter has become moot. There is no need to ‘reflect’
on the possible outcome
of this case had the First Respondent not
decided to investigate the Second Respondent. The fact is that there
is no longer a dispute
on the merits. However, in light of
Hull
,
there is nothing that precludes the court from considering the merits
of the case.
12. On 26 February
2024, the Applicant delivered a charge to the First Respondent
against the Second Respondent’s accounting
authority. The
charge related to various complaints of misconduct allegedly
committed by the Second Respondent’s board.
13. The Applicant alleges
that it has
locus standi
in this matter because it is an
interested party and the relevant provisions of the Public Finance
Management Act do not define
the class of persons who may proffer a
charge against the accounting authority. They merely outline the
procedure to be followed
when a charge of financial misconduct is
made against the accounting authority. Once a charge of financial
misconduct is alleged,
the First Respondent is compelled to
investigate.
14. According to the
First Respondent, the Applicant sought a
mandamus
or mandatory
final interdict without addressing and satisfying any of its
requirements in his founding papers, but only belatedly
and
insidiously attempted to do so in reply.
15. The First Respondent
further submitted that the relevant provisions of the Public Finance
Management Act vest the power to institute
the charge against the
Board on the Second Respondent and not the Applicant. Further, the
Second Respondent never refused to hold
the Board of the Second
Respondent accountable. The First Respondent is continuing with her
investigations, which she had decided
to undertake. There was never a
cause of action for this application.
16. It was further
submitted that the statutory scheme of the Public Finance Management
Act does not entitle the Applicant to compel
the First Respondent to
investigate. It was argued on behalf of the First Respondent that the
Applicant failed to establish a case
that would have made it possible
for it to be awarded costs.
17. Furthermore, it was
argued that the First Respondent did not act because of any
application brought by the Applicant. The court
was informed that the
First Respondent had never been opposed to an investigation being
conducted against the Second Respondent.
It is for these reasons that
the First Respondent contends that the Applicant is not entitled to
costs in this application.
18. It was argued on
behalf of the Applicant that the basis for the opposition to the
Applicant’s request for costs is baseless.
I agree with this
submission. The First Respondent’s approach in opposing the
Applicant’s argument on costs seeks to
invite this court to
determine the merits and decide the Applicant’s entitlement to
bring this application and whether the
requirements of an interdict
have been established. In my view, since the First Respondent has
substantially complied with the
First Respondent’s main prayer
in the notice of motion, there is no need to do this.
19. It was correctly
argued on behalf of the Applicant that, in light of the First
Respondent’s decision to investigate the
Second Respondent
after this application had been brought, the Applicant has been
substantially successful because that is the
order that the Applicant
sought from the court.
20. In my view,
there is no need for this court to pronounce itself on the merits.
The fact is that there was a reason for
the Applicant to bring an
application against both Respondents. At the time the matter was
issued in court and served on the parties,
a live dispute existed
that required adjudication by the court.
21. It is a common cause
that the First Respondent received a charge in February 2024 and did
not take any action that could have
prevented the Applicant from
instituting this Application. The First Respondent only reacted after
the Application was instituted,
first with a letter from the State
Attorney and secondly, a letter that came directly from her. Both
these letters were served
on the Applicant after this Application was
lodged. For this reason, it is difficult not to conclude that the
Applicant’s
application prompted the First Respondent’s
decision to investigate the Second Respondent.
22. Following the
Applicant’s application, the First Respondent decided to
investigate the Second Respondent even before the
court could hear
the application. This means that she conceded the merits of the
Applicant’s case, making it unnecessary
for the Applicant to
proceed with its case. If the First Respondent believed in the facts
that were advanced in opposition to the
Applicant’s case and
her interpretation of the relevant provisions, she ought not to have
acted in accordance with what the
Applicant sought in its notice of
motion.
23. In relation to the
First Respondent’s conduct, the facts of this case illustrate
that she had enough time to decide to
investigate after receiving the
charge from the Applicant in February 2025. But she did not do so.
Even after receiving the application
papers in May 2025, she could
have initiated negotiations with the Applicant to halt this
litigation, but she failed to do so.
24. The First Respondent
decided to inform the Applicant that she decided to investigate a
month after receiving the papers for
this Application. This was also
an opportune time to engage the Applicant to prevent this litigation
from proceeding. However,
she decided to oppose this application even
though she had already decided to investigate.
25. This led to the
Applicant delivering its replying affidavit and application for leave
to submit further evidence, as well as
the preparation of practice
notices and heads of argument. These are costs that ought to have
been avoided. The conduct of the
First Respondent directly led to the
Applicant incurring unnecessary costs in this litigation, which is
regrettable. By opposing
the application after having decided to
institute an investigation against the Second Respondent, the First
Respondent took an
unnecessary step.
26. The facts
of this case and the chronology of events that preceded the hearing
of the matter justify costs being
awarded against the First
Respondent. In other words, the Applicant is entitled to the costs of
this application.
ORDER
27. In the premises, I
make the following order:
27.1.
Leave to file the letter of appointment of Nexis Forensic
Services (Pty) is granted.
27.2.
The First Respondent is to pay the costs of the application on
a party and party basis, including counsel’s fees on Scale B.
C MARUMOAGAE
ACTING
JUDGE OF THE HIGH COURT OF SOUTH AFRICA
GAUTENG DIVISION
PRETORIA
Counsel
for the Applicant :
Adv I
Veerasamy
Instructed
By :
Norton
Rose Fulbright South Africa Inc.
Counsel
for the First Respondent :
Adv
SBW Nhantsi
Instructed
By :
State
Attorneys
Date
of Hearing
:
30
May 2025
Date
of Judgment
:
01
September 2025
[1]
1 of 1999.
[2]
[2011] JOL 27643
(ECM).
[3]
Ibid para 3.
[4]
(16838/2024)
[2024] ZAWCHC 210
(6 August 2024).
[5]
1978(4) SA 1 (A) at 14.
[6]
(CCT 290/24)
[2025] ZACC 5
;
2025 (8) BCLR 921
(CC) (24 April 2025)
para 8. This principle was quoted with approval in
Intercontinental
Exports (Pty) Ltd v Fowles
[1999] 2 All SA 304
(A) para 24 and
Road
Accident Fund and Others v Hlatshwayo and Others
[2025] 2 All SA 333
(SCA) para 24.
[7]
(2021/39680) [2023] ZAGPJHC 103 (8 February 2023) para 26.
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