Case Law[2025] ZAGPPHC 1070South Africa
Institute of Market Agents of South Africa v City of Johannesburg Metropolitan Municipality and Others (2023-114530) [2025] ZAGPPHC 1070 (29 September 2025)
High Court of South Africa (Gauteng Division, Pretoria)
29 September 2025
Judgment
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# South Africa: North Gauteng High Court, Pretoria
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## Institute of Market Agents of South Africa v City of Johannesburg Metropolitan Municipality and Others (2023-114530) [2025] ZAGPPHC 1070 (29 September 2025)
Institute of Market Agents of South Africa v City of Johannesburg Metropolitan Municipality and Others (2023-114530) [2025] ZAGPPHC 1070 (29 September 2025)
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sino date 29 September 2025
REPUBLIC
OF SOUTH AFRICA
IN
THE HIGH COURT OF SOUTH AFRICA
GAUTENG
DIVISION, PRETORIA
Case Number:
2023-114530
(1)
REPORTABLE: YES
(2)
OF INTEREST TO OTHER JUDGES: YES
(3)
REVISED: YES
DATE
2025-09-29
SIGNATURE
In
the matter between:
INSTITUTE
OF MARKET AGENTS OF SOUTH AFRICA
Applicant
and
CITY
OF JOHANNESBURG METROPOLITAN MUNICIPALITY
First Respondent
JOBURG
MARKET (SOC)
LTD
Second Respondent
MINISTER
OF PUBLIC WORKS AND INFRASTRUCTURE
Third Respondent
MINISTER
OF PROVINCIAL AND LOCAL GOVERNMENT
Fourth Respondent
MINISTER
OF LABOUR AND EMPLOYMENT
Fifth Respondent
MINISTER
OF HEALTH AND FAMILY WELFARE
Sixth Respondent
NATIONAL
TREASURY/MINISTER OF FINANCE
Seventh Respondent
MINISTER OF JUSTICE
AND CONSTITUTIONAL
DEVELOPMENT
Eighth Respondent
AGRICULTURAL
PRODUCE AGENTS COUNCIL
Ninth Respondent
This
judgment was prepared and authored by the 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 for
handing down is deemed to be 29 September te2025.
JUDGMENT
POTTERILL
J
Introduction
[1]
The applicant, the Institute of Market Agents of South Africa [IMASA]
seek an order directing
the first respondent, the City of
Johannesburg Metropolitan Municipality [COJ], the second respondent,
Joburg Market (SOC) Ltd
[ Joburg market SOC] and the third
respondent, the Minister of Public Works and Infrastructure [the
Minister] to submit a Precinct
Plan in respect of the Johannesburg
Market Precinct [Joburg Market] which shall include a risk assessment
and recovery plan/report.
[2]
This draft precinct plan is to be submitted within 60 days of the
order and a final plan within
120 days. The COJ must be ordered
to include in the plan a risk assessment and recovery report
concerning the Joburg Market
with a focus on maintenance, upgrades,
health and safety, quality and financial management, and details
about the rollout and responsible
parties. Furthermore, repairs
and compliance pertaining to cold room storage, fire safety,
electrical systems, security and
lift and sanitation facilities must
be implemented 60 days from the final plan being provided.
Also, the COJ must allocate
an additional R20 million to the current
annual budget for both capital and operational expenditure to
implement the Precinct Plan
including provisions for annual budget
assessments as part of the Integrated Development Process. The
COJ must also adopt
and implement an immediate Code of Conduct or
Code of Good Practice.
[3]
Alternative relief is also sought, but I do not expand thereon in
this introduction.
The parties
[4]
It is common cause that the COJ is an organ of state that is obliged
to provide municipal services.
It has “transferred”
its obligation to the Joburg Market SOC, a company formed with the
COJ being its only shareholder.
The COJ has filed a notice to
abide the Court’s decision. Counsel for the Joburg Market
SOC accordingly, contrary to
what was argued in Court, did not
represent both COJ and Joburg Market SOC, that would constitute a
conflict of interest simply
because Joburg Market SOC opposes the
relief and COJ does not. Furthermore, the argument presented on
behalf of the Joburg
Market SOC, that COJ agrees with its contentions
“as it concurs with the issues raised by the Second Respondent
and is satisfied
with the Second Respondent’s answering to the
application encapsulating the extended views of the First Respondent
…”
is also wrong. In a carefully worded
confirmatory affidavit, the only confirmation is “in so far as
they concern the
First Respondent, the Second Respondent and/or the
First and Second Respondent’s relationship.” There
is simply
no confirmation of the issues raised as opposition. What is
disturbing is that the COJ as an organ of state does not file an
answering
affidavit.
[5]
IMASA is a non-profit voluntary organisation that advances the
interests of the market agents
and represents its members in various
organisations including the Agricultural Products Agents Council
[APAC].
[6]
The other respondents did not partake in the proceedings.
Common cause facts
[7]
The COJ has a Constitutional and statutory obligation to provide
basic municipal services. The
COJ “transferred” its
duties towards Joburg Market to the Joburg Market SOC. The COJ could
not have entered the MOI
and SDA if it did not have the duty to
manage the Joburg Market. The COJ is the only shareholder of the
Joburg Market SOC. In terms
of the memorandum of incorporation [MOI]
of the Joburg Market SOC the main purpose and object of the Joburg
Market SOC is to provide,
manage and operate the Market on behalf of
the COJ. A service delivery agreement [SDA] was concluded between the
COJ and the Joburg
Market SOC. The Joburg Market SOC has as its main
purpose to provide, manage and operate a fresh produce market in
accordance with
the Johannesburg Metropolitan Council social
responsibility obligations as well as Broad Based Black Empowerment
Policies. The
MOI also provides that the Joburg SOC must provide any
other municipal services assigned to it in terms of the SDA. In
its
own words it “functions as an external mechanism for
delivery of municipal services as contemplated in Section 76(b) of
the
Systems Act.”
[8]
The Joburg Market SOC has to date had 38 CEO’s that manifestly
contributed to operational
challenges. The market has an annual
turnover of approximately R500 billion per year from which the COJ
receives R5 million per
year. This is not taxpayers’ money but
derives from sales commission payable to the relevant market agency
and a levy payment
of 5% which must be paid to the COJ.
[9]
The Joburg Market is the stock exchange of the fresh produce
industry. Between 9 500
and 11 000 buyers visit the
Joburg Market daily. Various areas of the market are leased to
wholesalers and traders by
the Joburg Market SOC. A wide array
of produce is sold at the market through various market agents.
Market floor space
is allocated based on agency volume and turnover.
Cold rooms are assigned on a pay-as-you-use basis with costs
recovered
from the market agents. Farmers and producers supply
fresh produce to the licensed market agents, who must have licences
to trade at the Market.
[1]
IMASA’s members collectively account for close to 90% of the
market’s revenue.
Locus standi
[10] A
serious attack on many fronts was made against IMASA’s lack of
locus standi
. There is no merit in these arguments.
The correspondence attached to the founding affidavit reveals that
IMASA has
acted on behalf of its member for many years. IMASA also is
a community as a body of persons comprising of rate payers, civic
organisations
or bodies that are involved in local affairs within the
municipality as defined in S1of Act 32 of 2000.
[11]
The argument by the Joburg Market SOC that IMASA set out that it
represents the APAC while also citing the
APAC as a respondent is
meritless and rejected. On no interpretation did IMASA aver it
was acting on behalf of APAC, but
that it “represented its
members in various organisations including APAC.” It thus
represented its members also when
dealing with the APAC.
[12] It
is disturbing that the Joburg Market SOC relies on the By-laws and
the APAC’s Rules of Conduct pertaining
to renewal of the
Fidelity Certificates, but as the entity having to run the market,
does not know, or understand Rule 14 of the
Rules regarding Fresch
Produce Agents only requiring fidelity fund certificate holders to
pay a fee to maintain its certificate;
there is no renewal. It
could not be denied that all IMASA’s members are in good
standing with the APAC.
[13] It
is frowned upon by this Court that the Joburg Market SOC would submit
that the IMASA’s members do
not hold licences when it is within
their own knowledge that they in fact hold licences.
[14]
IMASA has
locus
standi,
has
litigated in this Court
[2]
as a
party and this point
in
limine
is
dismissed.
The Court’s lack of
jurisdiction
[15] On
behalf of Joburg Market SOC it was argued that the Court lacks
jurisdiction because IMASA has not “followed”
internal
remedies, it should have sought relief through the Ombudsman. I
cannot find that there were internal remedies that
needed to be
exhausted before IMASA could approach the Court. Reliance on
lease agreements between the Market Agents and
the Joburg Market SOC
are irrelevant to the declaration sought in this matter. Those
lease agreements pertain to the rental
of office space by the market
agents and not to the floor space allocated to each market agency
based on volume and turnover. There
is simply no internal procedure
to exhaust before approaching this Court on the issues raised.
[16]
The argument pertaining to the CEO not cited does not pertain to
jurisdiction of a Court and is not addressed
under this incorrect
heading. Furthermore, alleging that there is a prerequisite
that the COJ must first institute proceedings
against the Joburg
Market SOC before IMASA can, is bad in law. This argument would
lead to absurdities that if the COJ does
not sue, no person or entity
would ever be able to institute action against the Joburg Market SOC,
an effective exclusion mechanism
offending section 34 of the
Constitution.
Non-joinder
[17] On
behalf of the Joburg Market SOC it was argued that the application
must be dismissed because the complaints
relate largely to
infrastructure and maintenance, hygiene, health and safety and
security and for the period of the complaints,
2017 to 2023, service
providers were appointed by Joburg Market SOC by means of service
level agreements. Suggesting that
these service providers must
be cited is again untenable. The Joburg Market SOC can
seemingly not fulfil its obligation to
the COJ to run the market and
therefore appoints subcontractors. There is no duty on IMASA to hold
the subcontractors to account,
the Joburg Market SOC is the “main
contractor”, and it must be held liable. IMASA was not aware of
these contractors
and have no relationship or contracts with these
contractors. The contractors do not have a direct and
substantial legal
interest of the subject matter of the litigation,
and they will in no way be prejudiced by the judgment of the court
ordering the
COJ and the Joburg Market SOC to submit a precinct
plan. No remedy is sought against them. The Joburg Market SOC
should hold
the these contractors liable if it so wishes, but IMASA
need not.
Mootness of the relief
sought
[18]
The argument went that the Inception and Concept Design Report, the
Maintenance Plan and the Integrated Report
has resolved the
controversy and there is no live dispute before the Court.
[19] I
am mystified with this argument; having plans but not successfully
implemented and executed the plans to
address the complaints can
never render a matter moot before this Court. This argument would
lead to absurdities; any organ of
state can then put up a defence of
“I have a plan to fulfil my constitutional duties” but
never be held accountable
for not actually positively fulfilling
their constitutional duties.
Non-citation of the CEO
[20]
Another argument was that the Court could not usurp the functions of
the CEO and Board. Allocating
a budget for the implementation
of the Precinct Plan is the function of the CEO and cannot be ordered
by a Court.
[21] In
oral argument the argument was expanded on that in fact IMASA should
have held the different CEOs accountable
by instituting legal
proceedings against them.
[22]
This argument is rejected. Asserting that the appointed CEO for every
period he or she was appointed is to
be held liable is so untenable
that it need not even be addressed.
[23] As
for the usurping of the functions of the Joburg Market SOC this will
be addressed when addressing the
remedy sought.
The merits of the
application
[24]
IMASA set out the general breakdown in the entire infrastructure of
the Joburg market. Specifically, was
highlighted the poor state in
the sales halls resulting in flooding and damage to produce in the
halls. The unsealed basin drainpipes
resulting in water spillage on
the platforms causing slippery and dangerous conditions for
forklifts. The forklifts and cleaning
machines supplied by the Joburg
market SOC never being in a working condition forcing the market
agents to procure and operate
their own forklifts without being
reimbursed. Furthermore, the constant interrupted power supply and
power outages and a defective
ammonia plant causing a health risk and
damage to fresh produce. Pertaining to the cold room there is
inadequate cold room space
and continuous cold room failures. There
is a complete lack of security, and the conditions inside the market
halls are generally
unsafe. The market is unsanitary, filthy
rendering the building not fit for human habitation with an added
risk of contamination.
The ripening rooms and the floor space, where
cleanliness is paramount, is non-existent.
[25]
IMASA attached to the founding affidavit a plethora of correspondence
and agendas of meetings wherein complaints
were lodged or discussed
pertaining to the highlighted infrastructure problems above. Despite
these attempts nothing has been addressed
or rectified. Photographs
were attached depicting the state of the Joburg market. A newspaper
article was also attached quoting
from responses received setting out
that in essence the Joburg market is in serious trouble.
[26]
The answer to these detailed complaints is surprising to say the
least. It is averred that the complaints
were already resolved or are
being addressed. To sustain this averment reference is made to a
plethora of reports, plans, medium
term operating and capital
budgets, a maintenance plan dated 2023 outlining the plan for
maintenance and repairs and three Johannesburg
Market Consignment
Audit Function and Reconciliation reports dated 2017. If this is the
answer to the complaints raised, then there
is no factual dispute;
the complaints are real and have not been resolved.
[27]
The Joburg Market SOC relies on the Inception plan dated 9 November
2022 “dealing, in substance, with
the issues largely raised in
the notice of motion of the Applicant.” And further “It
is therefore unclear what the
Applicants case is about as the very
issues they are complaining about are being addressed albeit in
stages as required in the
Engineering Act.” I reiterate, there
are no factual disputes as the complaints are as claimed and has not
been addressed
from 2017 to 2025. The Joburg Market SOC further
sets out that the “Inception stage is the beginning stage any
refurbishment
project and it is the first report which lays out the
plan of the project”. There has simply been no implementation
of the
plan, let alone execution of the plan since 2022. The Joburg
Market SOC has got no further than the inception for three years.
This despite the clear evidence of non-compliance with basic hygiene
for a food market, in fact the building being unfit for its
purpose
and dysfunctional. In the answering affidavit no timelines are set
out for its proposed “plan”. It is not the
function of
this Court to troll through reports to ascertain when implementation
will take place, let alone execution.
[28]
The further answer to the relief sought is that there is a duty on
the market agents in terms of the by-laws
regarding its employees.
They thus have a reciprocal duty not only to the Joburg market but
also their employees. This leads to:
“It is thus disputed
material fact the obligations alleged to entitle the Applicant to the
relief sought are unilateral in
nature, only to be furthered by the
second respondent.” This is a non-sensical conclusion. If the
argument relates to the
averred blockages caused by the employees of
the market agents themselves and the changing rooms being abused,
both are red herrings.
IMASA denies that the blockages are caused by
their employees and in fact classifies this averment as preposterous
because the
“blockages” are due to the lack of
maintenance of the dilapidated infrastructure. Raising the changing
rooms is not
an answer to the operational requirements of the market,
no relief is sought thereon and most certainly will not prevent any
relief
being granted.
[29] I
find the statement under oath of the acting CEO of the Joburg Market
that the complaints raised are merely
consumer related issues that
should be addressed to the Consumer Ombudsman disturbing. The market
agents are its clients that need
to be served, this attitude displays
a disregard for their duties towards IMASA, the farmers, producers
and the man in the street.
As much as the Joburg Market SOC
seems to want to distance itself from IMASA as having no duty to
IMASA, such a stance is factually
and legally wrong.
Is the relief sought
legally competent?
[30] It
is beyond debate that the COJ has a constitutional duty to provide
basic municipal services and municipal
services which are
environmentally sustainable as provided for in the
S1
of the
Local
Government Municipal Systems Act 32 of 2000
. The Joburg Market SOC
has taken over this function to provide the “functions as an
external mechanism for delivery of municipal
services as contemplated
in Section 76(b) of the Systems Act.”
[31]
The Constitution lists three relevant local government competencies
namely trading regulations, markets and
street trading. Pertaining to
markets Municipalities must regulate and operate food markets and
fresh produce markets. Municipalities
must realise the strategic
importance of fresh produce markets in the food value chain of access
to healthy food particularly for
lower income communities.
[3]
Municipalities must use these markets and trading regulations
competencies to regulate trading practices in and around fresh
produce markets. The COJ and the Joburg Market SOC thus has a
constitutional duty to fulfil their duties in delivering this
service.
[32]
The COJ and the Joburg market SOC has not fulfilled this duty. The
Joburg Market SOC has 300 employees that
presumably are salaried.
Despite this workforce contractors have been appointed to execute
nearly every function complained of
not being fulfilled. Neither the
COJ or Joburg Market SOC, not fulfilling their constitutional duties
themselves, have ensured
that the passed-on responsibilities have
been fulfilled by the contractors, The COJ and Joburg Market SOC must
be held accountable
for not fulfilling their constitutional duties.
These obligations entail the maintenance, upgrade and promotion of a
safe and healthy
environment and conditions at the market. The COJ
and Joburg Market SOC must uphold, maintain, and improve health,
safety, water
supply, electricity, security, and all related services
and facilities at the Market. Proper facilities, including cold
storage
and ripening facilities, must be provided, ensuring they are
fit for human consumption, safe, and hygienic. Furthermore, the
obligations
include upholding the rights of its community and develop
a culture of governance that complements the rights of its citizens
within
its executive and legislative authority. They must facilitate
effective and functional trading and business activities at the
market
for the local community including IMASA and its members, the
other agents and the public. The COJ and Joburg Market SOE must
develop
and maintain mechanisms, processes, and procedures to enhance
the services and infrastructure at the Market premises. The
Municipality
is required to provide services as detailed in Chapter
8
of the MSA and develop systems for their provision.
[33]
In 2015, IMASA attempted, in conjunction with the COJ to prepare a
code of best practice for
national fresh produce markets, a Code
of
Conduct
.
The initiatives therein addressed were
simply ignored and never implemented.
What is just and
equitable relief?
[34]
In terms of S172 of the Constitution the Courts can grant just and
equitable relief to best address any conduct
that is inconsistent
with the Constitution. When organs of state have failed to fulfil
their obligations in terms of the Constitution,
Courts in terms of
s165 of the Constitution are obliged to make such a finding. Courts
must then grant relief that will protect
and enforce the
Constitution. “
Depending
on the circumstances of each particular case the relief may be a
declaration of rights, an interdict, a mandamus or such
other relief
as may be required to ensure that the rights enshrined in the
Constitution are protected and enforced. If it is necessary
to do so,
the courts may even have to fashion new remedies to secure the
protection and enforcement of these all-important rights.
[4]
[35]
The argument on behalf of Joburg Market SOC that there would be an
unreasonable overreach is based thereon
that there exists an
Integrated report dated 30 November 2023, an Inception and Concept
Design Report dated 9 November 2022 and
a Johannesburg Market
Consignment Audit and Reconciliation function dated November 2017.
The Inception report deals in substance
with the issues raised in the
notice of motion and a “Precinct Plan” would be an
overreach. Although only at the Inception
stage the time frames are
based on the Engineering Act and must be executed in six stages.
Furthermore, the budget that is sought
is far below the billion rand
the project will cost and this relief sought is moot because it has
been budgeted.
[36]
Granting such relief is not an overreach as it is mandated by the
Constitution itself ensuring
that all branches of Government act in
accordance with the supreme law of the Constitution and the doctrine
of legality, which
is part of that law. Having plans only shows
intentions but is not fulfilling of Constitutional obligations.
Planning without executing
the plans from 2017 to 2025 is futile and
has left the Joburg Market unhygienic, unsafe and ineffective. Not
being hampered by
budget restraints is miraculous and the budget
sought can be made available for the budget already allocated for the
Joburg Market
maintenance and upgrade. IMASA basically seeks
immediate action to “fix” problems at the market for
operational effectiveness,
cleanliness and safety, not elaborate
expansions worth billions requiring six stages that has not passed
the inception stage. It
seeks a plan to address maintenance to all
cold room storage facilities, fire and smoke detection and equipment
compliance, electrical
connectivity, security and checkpoint
management, lift and hoist facility compliance and damage to all
sanitation facilities. This
is not rocket science, but maintenance,
and the time frames sought within which to comply is not unreasonable
in view of the undertakings
sought that never came to fruition in
maintaining the market. The name of the plan is irrelevant, “
a
rose by any other name would smell as sweet”.
[5]
[37]
As I am granting the main relief sought, I do not address the
alternative relief. I have fashioned
the following relief to ensure
the COJ and The Joburg SOC fulfils its constitutional obligations
towards the Joburg Market.
[38]
I make the following order:
[38.1]
That the first and second respondents are directed to submit a
Precinct Plan in respect of the Johannesburg Market
Precinct which
shall include a risk assessment and recovery plan/report in respect
of the market premises which shall include,
but not be limited, to
the following:
1.1
all aspects pertaining to the maintenance, upgrade and improvement
of
the market;
1.2
occupational health and safety management process;
1.3
quality management;
1.4
financial management;
1.5
details of the date of the roll-out and implementation of the plan;
1.6
details of the person/party responsible for implementing and
overseeing
the plan.
[38.2]
The plan/report referred to in paragraph 1
supra,
must be
submitted to the applicant and the fourth to nineth respondents by
way of a draft plan, which shall be submitted within
60 days of this
order, and a final plan which shall be submitted within 120 days of
this order.
[38.3]
To implement the contents of the approved precinct plan in respect of
repairs and/or implementation of:
3.1
all cold room storage facilities;
3.2
fire and smoke detection and equipment compliance;
3.3
electrical connectivity and facility compliance;
3.4
security and checkpoint management;
3.5
lift and hoist facility compliance;
3.6
damage to all sanitation facilities;
which
must be implemented/repaired/effected within 90 days of the date
detailed in paragraph 2
supra.
[38.4]
That the first and second respondents allocate a budget of R20
million, in addition to the current annual budget, alternatively
such
amount, as detailed in the Precinct Plan, alternatively that has
already been budgeted for maintenance which amount must be
ringfenced
specifically to be utilised for both capital expenditure and
operational expenditure to implement the Precinct Plan.
[38.5]
That budgets must be determined annually as part of the Integrated
Development Process to assess future budgets to
be allocated and
implemented in respect of the market premises/precinct.
[38.6]
To implement the Code of Conduct/Code of Good Practice
compiled/prepared by the applicant/IMASA annexed marked “A”
to the notice of motion.
[38.7]
The first and second respondents are ordered to pay the applicants’
costs of this application which costs shall
include the costs
occasioned by the employment of two counsel on Scale C.
S. POTTERILL
JUDGE OF THE HIGH
COURT
GAUTENG DIVISION,
PRETORIA
CASE
NO:
2025-114530
HEARD
ON:
6
August 2025
FOR
THE APPLICANT:
ADV.
J. DE BEER SC
ADV.
B. LEDWABA
INSTRUCTED
BY:
Lötz
Baloyi Horn Inc
FOR
THE 1
st
and 2
nd
RESPONDENTS:
ADV.
L. MAUNATLALA
ADV.
S.P. MHLONGO
INSTRUCTED
BY:
Wakaba
and Partners Inc
DATE
OF JUDGMENT:
29
September 2025
[1]
Section
4(1) of the Market By-law
[2]
Institute
of Market Agents of South Africa v City of Tshwane Metropolitan
Municipality and Others
(2120/2022)
[2025] ZAGPPHC 871 (11 August 2025)
[3]
Chonco,
T (2015) An analysis of municipal regulation and management of
markets as an instrument to facilitate access to food and
enhance
food security LLM Thesis, University of the Western Cape at p 88
[4]
Fose
v Minister of Safety and Security
1997
(3) SA 786 (CC)
[5]
William
Shakespeare
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