Case Law[2024] ZAGPPHC 598South Africa
Merlog Foods (Pty) Ltd v Minister of Agriculture, Land Reform and Rural Development and Others (2023/99867) [2024] ZAGPPHC 598 (19 June 2024)
Headnotes
a decision to reject five consignments of frozen pork imported by the applicant.
Judgment
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# South Africa: North Gauteng High Court, Pretoria
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## Merlog Foods (Pty) Ltd v Minister of Agriculture, Land Reform and Rural Development and Others (2023/99867) [2024] ZAGPPHC 598 (19 June 2024)
Merlog Foods (Pty) Ltd v Minister of Agriculture, Land Reform and Rural Development and Others (2023/99867) [2024] ZAGPPHC 598 (19 June 2024)
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sino date 19 June 2024
IN THE HIGH COURT OF
SOUTH AFRICA
GAUTENG DIVISION
PRETORIA
1.
REPORTABLE:
NO
2.
OF
INTEREST TO OTHER JUDGES: NO
3.
REVISED
19 June 2024
Case Number:
2023-99867
MERLOG FOODS (PTY)
LTD
Applicant
and
THE MINISTER OF
AGRICULTURE, LAND REFORM AND RURAL DEVELOPMENT
and five others
Respondents
SC VIVIAN AJ
1.
The
applicant seeks to review and set aside a decision of the Minister of
Agriculture, Land Reform and Rural Development
[1]
in which she upheld a decision to reject five consignments of frozen
pork imported by the applicant.
2. The applicant
was granted import permits for each consignment. After the frozen
pork arrived at the Port of Durban, removal
permits were issued to
the applicant, permitting it to remove the consignments to its
premises. The removal permits each contained
a condition that the
seal on the containers was to be broken by an inspector.
3. The applicant
broke the seal without an inspector present. It explained that its
receiving team overlooked this due to
the volume of containers it
received.
4. A State
Veterinarian then issued notices of rejection for each consignment
because the conditions of removal were not adhered
to.
5. The applicant
asked the National Executive Officer (“the NEO”) and the
Director of Animal Health (“the
Director”) to reconsider
this decision.
6. When that
failed, the applicant lodged an appeal and objection with the
Minister. The applicant’s challenge was confined
to the
decision uphold the decision to issue the rejection notices. The
applicant did not challenge the decision to impose the
conditions.
The Minister refused the appeal and objection and upheld the
rejection notices.
7. The applicant
then approached this Court. The primary relief sought is that the
Court review and set aside the decision
of the Minister. The
applicant then seeks substitutionary relief. As appears below, the
applicant raised several grounds on which
it sought to overturn the
rejection notices.
8. In my view, the
applicant has not made out a case to review and set aside the
decision of the Minister. It is accordingly
not necessary to consider
substitutionary relief.
9.
There are
few factual disputes in this matter. However, where there are
disputes, my analysis of the facts arises from an application
of the
Plascon-Evans rule to the affidavits filed in this matter. Where
matters are heard on motion, disputes of fact are resolved
in terms
of the Plascon-Evans rule
[2]
,
which has been explained in many judgments. Simply put, if there are
factual disputes between the versions of the parties, I must
accept
the respondents’ version unless it is “…
'fictitious'
or so far-fetched and clearly untenable that it can confidently be
said, on the papers alone, that it is demonstrably
and clearly
unworthy of credence.
”
[3]
10.
The
applicant cited six respondents. It cited the Minister of
Agriculture, the Department of Agriculture, Land Reform and Rural
Development,
[4]
the NEO, the
Director of Animal Health in the Department of Agriculture, the
Minister of Home Affairs and the Commissioner of the
Border
Management Authority.
11. This is
contrary to the provisions of Section 2(1) of the State Liability Act
(Act 20 of 1957), which provides that in
any proceedings instituted
against a national or provincial department, the executive authority
of the department concerned must
be cited as a nominal defendant or
respondent.
12. The first to
fourth respondents opposed the application. The Minister of Home
Affairs and the Commissioner of the Border
Management Authority did
not participate in the litigation.
The legislative
framework
13.
The
applicant’s business includes importing and distributing frozen
foods in and around South Africa and neighbouring countries.
It
particularly focuses on importing and distributing frozen meat, a
range of frozen vegetables, potato products and processed
meats. This
matter concerns the importation of frozen pork.
14. There are two
statutes that are relevant to
the importation of
frozen pork, namely
the Meat Safety Act (Act 40 of 2000; “the
MSA”) and the Animal Diseases Act (Act 35 of 1984; “the
ADA”).
15. Section
13(1)(a), read with Section 5(a) of the MSA, requires an importer to
apply for and be granted an import permit
before importing a
consignment of meat into South Africa. These permits are issued by
the NEO. Section 13(5)(c) provides that they
are generally valid for
one consignment only.
16. The NEO is
appointed by the Minister of Agriculture in terms of Section 2(1) of
the MSA. The person appointed must be
an officer of the Department of
Agriculture and a veterinarian.
17. The NEO may
delegate any power and assign any duty imposed on the NEO in terms of
the MSA in terms of Section 3(1)(a)
of the MSA. Under Section 3(2),
the NEC must issue written authorisation to the person to whom the
power is delegated or the duty
is assigned. Section 3(2) provides
that when exercising a power or performing a duty delegated or
assigned the person must produce
a copy of the authorisation at the
request any person.
18. Section 13(6)
provides:
“
(6) Meat
in respect of which an import permit has been issued-
(a) may only be
introduced into the Republic through the place of entry specified in
the permit;
(b) must be
introduced within the period specified in the permit;
(c) may only be
off-loaded at the place of entry if all the conditions specified in
the permit have been complied with;
(d) must be
stored in the prescribed manner at a facility approved by the
national executive officer until the prescribed
veterinary procedures
or other acts specified in the permit have been performed; and
(e) must be
available for inspection, sampling and testing by the national
executive officer.
”
19. Section 13(7)
provides that if the NEO has knowledge of meat being brought into the
Republic contrary to the provisions
of the MSA or an import permit,
the NEO may direct that the meat not be off-loaded without the NEO’s
written consent or that
it may be off-loaded subject to such
conditions as may be necessary.
20. Section 13(8)
provides that no person may remove any meat stored in a facility
contemplated in Section 13(6)(d) from that
facility unless the NEC
has authorised the removal thereof.
21. Section 22 of
the MSA empowers the Minister of Agriculture to promulgate
regulations. The relevant regulations are the
Red Meat Regulations,
published in GN 1072 in GG 26779 of 17 September 2004, as amended by
GN R350 in GG 27464 of 15 April 2005
and GN 513 in GG 31021 of 9 May
2008.
22. Part X of the
Red Meat Regulations contains the import regulations. The relevant
part reads as follows:
“
(
2)
The manner in which imported meat that has been offloaded in
the Republic must be stored as contemplated in section 13(6)(d) of
the Act is-
(a) the imported
meat must be stored in such a way as to ensure-
(
i)
that no contamination, soiling or deterioration thereof in any way
may take place; and
(ii) such
imported meat cannot possibly contaminate other products in the cold
store;
(b) that
security measures must be in place to prevent any part of the
consignment being removed before final release thereof;
and
(c) that all
documentation relevant to a consignment must be held by the owner of
the cold store for inspection by the national
executive officer.
(3) The
veterinary procedures to be performed while the meat is stored as
contemplated in subregulation (2) are to-
(a)
confirm a positive link between the meat and the import permit as
well as all other documentation pertaining to the inspection;
(b)
examine the maintenance of the temperature of the meat during
transportation;
(c)
confirm that no soiling, contamination or deterioration of the meat
in any way took place during transportation prior
to storage;
(d) remove
samples for examination;
(e) examine test
results pertaining to samples taken from the consignment;
(f) confirm that
all other conditions stated on the import permit have been complied
with; and
(g) conduct any
other action necessary to ensure that the meat is safe and suitable
for human consumption and poses no threat
of transmitting a
contagious animal disease.
”
23. Section 18 of
the MSA provides that any person dissatisfied with the decision of,
inter alia
, the NEO or an assignee may appeal against that
decision to the Minister of Agriculture. Regulation 131 of the Red
Meat Regulations
further regulates the procedure to be adopted in
such appeals. A person who wants to appeal must lodge the appeal
within 30 days
of being informed of the decision.
24. The applicant’s
counsel, Mr Mostert, submitted that the MSA was the only applicable
statute. However, Mr Matebese
SC, who appeared for the first to
fourth respondents, submitted that both the MSA and the ADA were
applicable to the importation
of pork. I agree with the latter
submission for reasons that will become apparent when I analyse the
facts. It is accordingly necessary
to consider the structure of the
ADA.
25. Section 2(1) of
the ADA provides that the director of the Directorate of Animal
Health in the Department of Agriculture
(“the Director”)
exercises the powers and performs the duties conferred or imposed on
the Director in terms of the
ADA. The Director must be a
veterinarian.
26. Section 2(3) of
the ADA provides that any power conferred or duty imposed upon the
Director may be exercised by the Director
personally or by an officer
under a delegation of the Director. Section 2(3)(b) provides that any
decision made by an officer under
such delegation may be withdrawn or
amended by the Director.
27. Section 6 of
the ADA deals with the importation of,
inter alia
, any animal
into the Republic of South Africa. The word “animal” is
defined to include any mammal and the carcass of
any mammal.
28. Section 6(1)(a)
prohibits the importation of,
inter alia
, any animal except
under the authority of a permit and in compliance with any condition
in the permit.
29. Section 6(1)(b)
provides that a permit is to be obtained before the animal is
imported into South Africa. Section 6(1)(c)
allows for the Director
to issue a permit to cover consecutive consignments of animals.
30. In terms of
Section 6(2)(c), any animal in respect of which a permit has been
issued must be detained in the prescribed
manner at the relevant
place of entry and made available to the Director for the purposes of
the performance of controlled veterinary
acts. Sub-section (d)
provides that the animal shall not, without the written authority of
the Director, or contrary to any condition
in the authority referred
to in Section 8(1)(a), be removed from such place.
31. Section 6(3)
provides
inter alia
that if the Director knows or on
reasonable grounds suspects that any animal, contrary to any
provision of the ADA or any condition
of a permit, forms part of a
consignment which is being or has been brought or sent by any person
in the Republic, the Director
may direct that the animal or
consignment shall not be imported into the Republic.
32. Section 8(1)(a)
of the ADA provides that no person shall, without written authority
of the Director or contrary to any
condition imposed by the Director
in granting such authority, remove any imported animal detained in
terms of Section 6(2)(c).
33. Section 23(1)
of the ADA provides that a person who feels aggrieved by the decision
of,
inter alia
, the Director, may lodge an objection with the
Minister of Agriculture. The objection must be submitted to the
Director-General,
who must then submit it together with the
Director-General’s report to the Minister for a final decision.
34. The Animal
Diseases Regulations were promulgated in terms of Section 31 of the
ADA in GN R2026 in GG 10469 of 26 September
1986. They have since
been amended on a number of occasions. The most recent amendment was
published in GN 2318 in GG 47133 of
29 July 2022.
35. Regulation 33
deals with the procedure for objections. Objections must be lodged
within 90 days of the date on which such
decision was given or steps
taken.
The relevant facts
36. The applicant
explained in its founding affidavit that it holds FSSC 22000
certification, a globally recognised food safety
management system.
37. The applicant
follows a standard operating procedure for receiving imported product
into its cold store. This includes
maintaining a shared document
called the container planning report. This documents details
containers and arrival dates. It is
used to plan collections from the
port.
38. Prior to
importation of frozen meat, the applicant applies for an import
permit. In this case, the applicant applied for
an was issued five
import permits. The import permits were for raw frozen pork. The
import permits expressly record that they are
issued in terms of the
ADA and the MSA. They were issued by the Director: Animal Health and
the NEO. Each import permit was signed
“pp”. The
signature is not legible, but the parties both accepted the validity
of the import permits.
39. A bill of entry
is a legal document submitted to customs authorities by importers or
customs clearing agents. It is normally
submitted on or before
arrival of the ship carrying the imported goods.
40. The applicant
explains that once the bill of entry is released, it is submitted
with other supporting documents to the
Border Management Authority
(BMA) to apply for a removal permit. The phrase “once the bill
of entry is released” is
not explained by the applicant. I
assume it means the customs authorities have reviewed and approved
the bill of entry.
41. The original
removal permits are collected from the BMA office. In this case, the
removal permits were signed by an officer
who is not identified in
the affidavits.
42. Each removal
permit records that it is issued in terms of the ADA and is subject
to the conditions in the permit. The
conditions are variously
recorded as:
42.1. “
Detain
for V.P.H. inspection #Inspector to break seal #Thermograph required
”
(on two of the removal permits)
42.2. “
Detain
for Inspection #Inspector to break seal #Thermograph required
”
42.3. “
Hold
state vet inspection #unrestrited
[sic]
#Thermograph required
#Inspector to break seal
”
42.4. “
Detain
for inspection by V.P.H.O #Inspector must break seal #Thermograph
required
”
43. The applicant
expressly refrained from challenging the validity of the removal
notice, although in this Court it sought
to challenge the imposition
of the conditions. This is dealt with below.
44. I do not detail
the procedure for collection of the containers from the port as this
is not relevant to the present application.
However, there are tight
controls in place, which for purposes of this application I accept
ensure that the container moves from
the port to the applicant’s
premises with minimal risk of being tampered with.
45. When the
container arrives at the applicant’s premises, it is allocated
an off-loading bay and reversed into position.
Thereafter, the whole
process is recorded on security cameras. The footage is recorded.
46. An employee of
the applicant designated as a Receiving Supervisor uses the container
planning report to filter by containers
and prints the removal
permit.
47. Another
employee designated as a Receiving Checker matches the container
number and seal number on the container to the
removal permit. This
is verified by the Receiving Supervisor. The seal is then broken and
attached to the printed removal permit.
It is filed in the cold
store.
48. The product is
then removed from the container and stacked on the receiving
platform.
49. The applicant
uses an automated system to allocate the stock to a pallet position
in the frozen storage warehouse. This
warehouse accommodates
approximately 10 500 pallets. It is fully automated. Pallets are
placed in the correct position using
an automated crane that receives
its instructions from a stock management application known as Wamas.
50. The product
cannot be sold until it has been inspected and released by the state
veterinarian. Wamas allocates all products
requiring veterinary
inspection to a virtual warehouse. They are not available for sale on
the applicant’s stock system.
51. Veterinary
inspections are booked three times per week. Usually, the inspector
visually inspects a sample of pallets pulled
from the cold store. The
inspector may require a microbiological test, in which case samples
are drawn under the inspector's supervision
and retained for
collection by the laboratory.
52. The inspector
then completes a container release form detailing all the containers
that have been inspected and released.
The stock is then transferred
from the virtual veterinary inspection warehouse to the wholesale
stock warehouse in the Wamas system,
allowing it to be picked for
sale.
53. Reverting to
the five consignments that are the subject matter of this
application, it will be noted that the removal
permits each contained
a requirement to the effect that the inspector must break the seal.
54. The applicant
explains that it has been importing frozen foods into South Africa
for the last three decades. Special instructions
on removal permits
were only issued in exceptional circumstances. There was never a
previous instruction from the Department imposing
additional
requirements to the procure of receiving and unpacking import
consignments. The applicant describes the condition that
the
inspector must break the seal as “…
a new and novel
condition, purportedly introduced, without written notice or advice
of introduction by the Inspection authority,
NEO or director.
”
55. However, the
applicant concedes that it did receive special instructions from time
to time. This increased from 1,65%
of consignments in 2022 to 4,2% of
consignments during the period January to August 2023.
56. The applicant
contends that the official who imposed the conditions was not
empowered to impose conditions. This is dealt
with below. However,
the applicant does not contend that the condition imposed on these
five consignments is in and of itself unlawful.
57. Instead, the
applicant explains in its founding affidavit that the condition was
overlooked by its employees because they
were not properly informed
of the purported changing removal conditions and were not looking out
for the new condition in order
to ensure compliance.
58. The seals were
broken without an inspector being present.
59. As a result, on
30 January 2022, Dr T Pillay, a state veterinarian, issued notices of
rejection/order for removal in respect
of the five consignments. The
notices record that the consignment described in the notice had been
rejected in terms of the MSA
and the ADA and that it would not be
allowed entry into South Africa.
60. The reason
given in each notice was that the conditionals of removal were not
adhered to, the seals were broken and the
contents unpacked without
direct supervision of an inspector.
61. The notices
recorded the right of the importer to appeal the decision within 14
days.
62. The applicant’s
initial response was to send a letter to the NEO requesting a
reconsideration of the decision. The
initial explanation was that the
applicant’s standard operation procedure states that the
Receiving Manager must check documentation
before a container is
opened, An email is then sent to the SHEQ department (presumably the
applicant’s Safety, Health and
Quality Department) for
verification. Only then can a container be opened.
63.
In its
letter to the NEO, the applicant explained that this step (presumably
verification by the SHEQ department) had been overlooked
by its
receiving team “… due to the volume of containers that
were received and the pressure of chasing turn in dates
for the
return of empty containers.
”
64. The applicant
told the NEO that it had since redone training for all personnel
involved in receiving and that disciplinary
action had been taken. A
third step had been added to internal procedures to avoid recurrence.
The operations manager would now
verify via email whether a seal
could be broken or not.
65. The applicant
explained that it had full camera footage of the containers from
receipt, breaking of the seals to offloading.
66. Based on these
facts, the applicant asked the Department to reconsider rejecting the
containers. Reference was made to
email correspondence sent to Dr
Pillay, but this has not been produced in these proceedings.
67. The letter to
the NEO and the request that the Department reconsider the decision
show confusion between the NEO's and
the Director's roles. The NEO's
powers and functions are set out in the MSA, while the director’s
are set out in the ADA.
68. The Director
rejected the request for reconsideration in a letter dated 17
February 2023. The reason given for the Director’s
decision was
non-compliance with the conditions imposed in terms of Section
6(1)(a) of the ADA.
69. There is no
explanation on the papers as to why the Director made a decision to
reject the request for reconsideration
that had been addressed to the
NEO. In the founding affidavit, the applicant said that the
Department had upheld the rejection
notices. That is not what the
letter says. The letter is signed by the Director and records that
the Director upholds the rejection
notices.
70. On 10 March
2023, the applicant sent a letter to the Director. Again, the
founding affidavit refers to this as a letter
to the Department. But
it is expressly addressed to the Director.
71. Significantly,
the applicant conceded: “
In our request for reconsideration
dated 31 January 2023, it was acknowledged that there had been an
error in that the container
seals had been broken (in error) and the
containers and pack by our receiving personnel without the inspector
present …
This was due to both the level of pressure on the
receiving department to unpack a huge number of containers and return
the empty
containers to the shipping lines to avoid unnecessary
additional demurrage costs, and more importantly that this was a new
requirement
being applied to import containers containing pork.
”
72. The applicant
again requested reconsideration of the decision.
73. In a letter
dated 24 March 2024, the Director informed the applicant that the
decision to uphold the rejection was maintained.
The Director
informed the applicant of its entitlement in terms of Section 23 of
the ADA to lodge an objection against the decision.
Again, the
respondent refers to this as a decision made and communicated by the
Department. It was not. It was a decision made
by the Director. I
refer to this as “
the 24 March decision
”.
74. It is
noticeable that the initial reaction of the applicant was to
apologise and attribute the failure to comply with
the conditions to
internal pressures. The applicant, with decades of experience in the
importation of pork, acknowledged that it
ought to have complied with
the conditions.
75. The applicant
explains in the founding affidavit that this approach was before it
obtained legal advice on what it now
contends are the
ultra vires
nature of the removal conditions.
76. Having obtained
legal advice, the applicant lodged an appeal under section 18 of the
MSA and an objection under section
23 of the ADA on 23 April 2023.
Prima facie
, this was outside the 30 day period provided for
in Regulation 131 of the Red Meat Regulations. However, for purposes
of this judgment,
I will assume that the appeal was timeously noted.
The appeal and objection was against the 24 March decision.
77. On 29 August
2023, the Minister rejected the appeal and objection and upheld the
rejection of the consignments.
78. The applicant
caused this application to be issued on 3 October 2023. It is brought
in terms of the Promotion of Administrative
Justice Act (Act 3 of
2000; “PAJA”).
79. The relief
sought is, first, that the Minister’s decision be reviewed and
set aside. Second, the applicant seeks
an order substituting this
Court’s decision for that of the Minister. Third, the applicant
seeks an order for inspection
of the frozen pork within 10 days of
the order. A fourth prayer for damages has sensibly been abandoned.
The grounds on which
the appeal/objection was advanced
80. The notice of
appeal and objection recorded that the applicant appealed against the
decision of the Directorate: Animal
Health, dated 24 March 2023, in
which the Directorate is said to have upheld its decision to uphold
the rejection notice issued
by the Directorate: Inspection Services,
Durban, issued on 30 January 2023.
81. Accordingly,
the decision that was subject to the appeal and objection was the 24
March decision. The decision was made
by the Director, not the
Directorate. The Director has the power under Section 2(3)(b) of the
ADA to reconsider a decision made
by an officer.
82. The 24 March
decision maintained the Director’s decision of 17 February
2023. The Minister was accordingly correct
that the decision to
uphold the rejection notices was communicated in the letter of 17
February 2023. However, the Minister elected
to deal with the
substance of the appeal and objection, namely the decision to
maintain Dr Pillay’s decision to issue the
rejection notices.
83. The Minister
further noted that the appeal was outside of the 30 days prescribed
in the Red Meat Regulations. However,
in the interests of justice,
she considered the appeal on the merits.
84. The applicant
informed the Minister that it brought its appeal on three bases:
84.1. The decision
to reject the consignments was not reasonable and rational;
84.2. The decision
is disproportionate (and punitive) and failed to consider relevant
factors that ameliorate the Department’s
concerns; and
84.3. The decision
is
ultra vires
.
85. The Minister
noted the bases of appeal and added a fourth basis, namely that the
decision was not one which a reasonable
decision maker could reach.
86. The Minister
considered the bases of appeal. She noted that the applicant
submitted in its appeal and objection that it
had taken mitigating
measures to ensure that the commission of the non-compliance does not
recur in the future. However, she pointed
out that these measures
applied to the future and that, as much as they are noted and
appreciated, they fall outside the scope
and determination of the
five rejected consignments.
87. The Minister
pointed out that the integrity and security of the commodity being
traded are of paramount significance.
One measure to achieve this is
the sealing of containers and trucks for transporting high-risk
commodities. This principle applies
to the international trade of
products of animal origin.
88. The Minister
held that removing the products from the containers in the absence of
official inspectors creates a serious
gap in the confirmation of a
positive link between the meat and the import permit and all of the
documentation pertaining to the
inspection. She pointed out that it
is incumbent on any trader to comply with the requirements of the
permit insofar as they relate
to seals.
89. The Minister
further held that the measures that the applicant proposed to give
the Department the required level of comfort
to allow for the
inspection and release of the consignment, which included inspection
of CCTV footage, inspection of the pallet
tracking system and packing
slip information, and performing physical inspection and on
thermographs, would not completely mitigate
against the possible risk
of introduction of infectious agents that would compromise both human
and animal health.
90. The Minister
further considered the
ultra vires
basis of the appeal. I deal
with this more fully below. In essence, the applicant relied on a
proclamation issued by the President
of the Republic of South Africa
on 30 August 2020 in which the administration of and functions
contained in certain defined sections
of the MSA and ADA were
transferred from the Minister of Agriculture to the Minister of Home
Affairs. According to the applicant’s
notice of appeal and
objection, a decision issued by the Department of Agriculture is
accordingly
ultra vires
.
91. The Minister
understood this as challenging her authority to determine the appeal
and objection. She held that the functions
transferred to the Border
Management Authority did not include the handling of appeals and
objections under the MSA and ADA.
92. The Minister
accordingly upheld the rejection of all five consignments.
The review application
93. In this Court,
the applicant initially raised two grounds of review. First, it
contended that the Minister’s decision
was unreasonable,
irrational, harsh and failed to take into account relevant
considerations. Second, it submitted that the imposing
of the new
condition, the original decision to reject the consignment, and the
Minister’s decision were all
ultra vires
.
94. After the
record of the Minister’s decision had been produced, the
applicant delivered an amended notice of motion
and supplementary
affidavit in terms of Rule 53(4). In the amended notice of motion,
the applicant sought costs against the Minister
and the Department
personally and on a punitive scale. It was not explained to me how a
department can pay costs personally.
95. In its
supplementary affidavit, the applicant contended that the Minister’s
decision was taken because of the authorised
and unwarranted dictates
of other persons, namely the NEO and the Director. It was further
contended that the decision was taken
in a manner that was
procedurally unfair, that it was taken in bad faith, and that it was
taken for an ulterior purpose or motive.
96. There are
accordingly three broad grounds of review. I deal with these in turn.
97. It is common
cause that the Minister’s decision is administrative decision
and subject to review in terms of PAJA.
98. In considering
the grounds of review, I must take into account the constitutional
principle of separation of powers. The
Court must be careful not to
usurp the functions of the Minister under the MSA and the ADA. As
O’Regan J explained in
Bato Star
:
“
What will
constitute a reasonable decision will depend on the circumstances of
each case, much as what will constitute a fair procedure
will depend
on the circumstances of each case. Factors relevant to determining
whether a decision is reasonable or not will include
the nature of
the decision, the identity and expertise of the decision-maker, the
range of factors relevant to the decision, the
reasons given for the
decision, the nature of the competing interests involved and the
impact of the decision on the lives and
well-being of those affected.
Although the review functions of the Court now have a substantive as
well as a procedural ingredient,
the distinction between appeals and
reviews continues to be significant. The Court should take care not
to usurp the functions
of administrative agencies. Its task is to
ensure that the decisions taken by administrative agencies fall
within the bounds of
reasonableness as required by the
Constitution
.”
[5]
99. The legislature
entrusted appeals under the MSA and objections under the ADA to the
Minister. The Court should not lightly
interfere in the Minister’s
decision, but should also not simply rubber-stamp an unreasonable
decision.
100. Again, the
judgment of O’Regan J in
Bato Star
gives guidance:
“
In treating the
decisions of administrative agencies with the appropriate respect, a
Court is recognising the proper role of the
Executive within the
Constitution. In doing so a Court should be careful not to attribute
to itself superior wisdom in relation
to matters entrusted to other
branches of government. A Court should thus give due weight to
findings of fact and policy decisions
made by those with special
expertise and experience in the field. The extent to which a Court
should give weight to these considerations
will depend upon the
character of the decision itself, as well as on the identity of the
decision-maker. A decision that requires
an equilibrium to be struck
between a range of competing interests or considerations and which is
to be taken by a person or institution
with specific expertise in
that area must be shown respect by the Courts. Often a power will
identify a goal to be achieved, but
will not dictate which route
should be followed to achieve that goal. In such circumstances a
Court should pay due respect to the
route selected by the
decision-maker. This does not mean, however, that where the decision
is one which will not reasonably result
in the achievement of the
goal, or which is not reasonably supported on the facts or not
reasonable in the light of the reasons
given for it, a Court may not
review that decision. A Court should not rubber-stamp an unreasonable
decision simply because of
the complexity of the decision or the
identity of the decision-maker.
”
[6]
101. Similarly, in
Bel Porto
, Chaskalson CJ held:
“
The fact that
there may be more than one rational way of dealing with a particular
problem does not make the choice of one rather
than the others an
irrational decision. The making of such choices is within the domain
of the Executive. Courts cannot interfere
with rational decisions of
the Executive that have been made lawfully, on the grounds that they
consider that a different decision
would have been preferable.
”
[7]
102.
In
Phambili
,
Schutz JA quoted with approval the first edition of Hoexter’s
Administrative Law in South Africa, where the learned author
said:
“
The
important thing is that Judges should not use the opportunity of
scrutiny to prefer their own views as to the correctness of
the
decision, and thus obliterate the distinction between review and
appeal.
”
[8]
First Ground
103. In its
founding affidavit, the applicant contended that the Minister’s
decision was unreasonable, irrational, harsh
and failed to take into
account relevant considerations. The applicant relied on sections
6(2)(d), 6(2)(e)(iii) and 6(2)(e)(vi)
of PAJA.
104. Section 6(2)
provides for the circumstances in which a court has the power to
judicially review an administrative action.
105. Section
6(2)(d) provides that a court may review an administrative action
that was materially influenced by an error
of law. Although the
applicant refers to this subsection in her founding affidavit under
the subheading “absence of rationality
and reasonability”,
it appears from its heads of argument that the error of law contended
for relates to the
ultra vires
ground. I accordingly deal with
it under that subheading.
106. Section
6(2)(e)(iii) provides that a court may review an administrative
action because irrelevant considerations were
taken into account or
relevant considerations were not considered.
107. Section
6(2)(e)(vi) provides that a court may review an administrative action
that was taken arbitrarily or capriciously.
108. I deal first
with Section 6(2)(e)(iii).
109.
In
Dumani
,
the SCA considered the parameters of material error of fact as a
ground of review. Material error of fact applies under Section
6(2)(e)(iii)
[9]
and Section
6(2)(i).
[10]
Cloete JA
explained:
“
In our law,
where the power to make findings of fact is conferred on a particular
functionary — an 'administrator' as defined
in PAJA — the
material-error-of-fact ground of review does not entitle a reviewing
court to reconsider the matter afresh
… The ground must be
confined to the situation, … to a fact that is
established in the sense that it is uncontentious
and objectively
verifiable.
”
[11]
110. What then are
the material errors of fact that show that irrelevant considerations
were taken into account or relevant
considerations were not
considered?
111. The applicant
points out that it clearly conceded that the seals were broken and
explained the circumstances in which
this happened. The Minister took
this into account in her reasons.
112. The applicant
says that inspectors would have been able to inspect the
consignments, still frozen solid, in the same
packaging in which they
arrived in South Africa. The only difference was that the
consignments were no longer in the original shipping
containers. The
applicant points out that the consignments were under constant CCTV
surveillance from the moment they arrived and
says that it would
therefore easily be established that no part of the consignments were
added to that nothing was removed therefrom.
It listed the
information that it had tendered.
113. The applicant
submitted that the Minister specifically failed to have regard to the
fact that the measures proposed by
it would have enabled the
inspectors to determine whether the imported commodities were safe
for consumption by the public and
met the requirements of the import
permits.
114. Again, the
Minister did take these measures into account. She held that the
measures would not completely mitigate against
the possible risk of
introduction of infectious agents that would compromise both human
and animal health.
115. The Minister
did not take into account irrelevant considerations and did not fail
to consider relevant considerations.
The applicant’s complaint
is really that the Minister took into account relevant
considerations, namely its contention that
the concerns about the
breaking of the seal were mitigated by the information tendered by
it, but failed to place sufficient weight
on this. The applicant
disagrees with the Minister’s conclusion that the measures
would not completely mitigate against the
possible risk. If this is a
factual error, it is not uncontentious and objectively verifiable.
116. The applicant
accordingly does not make out a case under Section 6(2)(e)(iii).
117. The second
basis is Section 6(2)(e)(vi). Was the Minister’s decision taken
arbitrarily or capriciously?
118.
A decision
taken without all the necessary information being available is
arbitrary and capricious.
[12]
In
SARIPA
,
Jafta J held that:
“
While there may
be an overlap between arbitrariness and rationality these are
separate concepts against which the exercise of public
power is
tested.
Arbitrariness
is established by the absence of reasons or reasons which do not
justify the action taken.
Rationality does not speak to justification of the action but to a
different issue. Rationality seeks to determine the link between
the
purpose and the means chosen to achieve such purpose. It is a
standard lower than arbitrariness. All that is required for
rationality to be satisfied is the connection between the means and
the purpose. Put differently, the means chosen to achieve a
particular purpose must reasonably be capable of accomplishing that
purpose. They need not be the best means or the only means
through
which the purpose may be attained.
”
[13]
(my underlining)
119. Arbitrariness
accordingly focuses on the reasons given for the action and whether
these justify the action. In this case,
the question is whether the
reasons given by the Minister justify her decision to reject the
appeal and objection.
120. The applicant
says that the Minister overemphasised the conditions of the removal
permit. It is so that the Minister
relied on the conditions. However,
the conditions were on the permits, and it is justifiable to rely on
the conditions. Indeed,
the applicant’s initial reaction to the
condition was not to complain that the conditions were irrational or
senseless. Indeed,
the applicant’s initial reaction was to
apologise for its oversight, retrain and discipline its employees and
improve its
standard operating procedures. Even in the appeal and
objection, the applicant did not challenge the lawfulness or
rationality
of the conditions.
121. The applicant
says that the Minister imposed a wholly disproportionate and punitive
sanction when less drastic measures
could have been adopted.
122. The Minister
did not impose the sanction. She upheld the decisions of the NEO and
the Director not to overturn Dr Pillay’s
decision to reject the
consignments. The statutes vested the discretion in these officials.
The Minister was called upon to consider
their exercise of that
discretion.
123. The sanction
is authorised by the statutes. It certainly has significant
commercial consequences for the applicant. But
against this, the
officials and, ultimately, the Minister had to balance the
requirement that conditions imposed in removal permits
must be
obeyed. The Minister explained in her answering affidavit that the
sealing of a container is a measure to counter intentional
hazards or
contamination. A seal is an assurance from an official in the country
of origin to another official in the country of
destination that the
product is safe and is according to the approved standards.
124. The Minister
referred the Court to the purpose of the procedures as set out in
Regulation 126(3) of the Red Meat Regulations.
She pointed out that
the removal permit may have conditions attached, and these conditions
are risk-based. The Minister said that
tampering with a seal is a
criminal offence in terms of Section 19(1)(k) of the MSA. However, as
Mr Mostert pointed out, Section
19(1)(k) only applies to seals
attached in terms of Section 16(1)(g) and is accordingly not
applicable.
125. The Minister
explained that the respondents do not employ pre-determined and
inflexible criteria to manage and regulate
the testing and granting
of permission to import meat products but approach each consignment
on a risk-based assessment or decision-making
process. This affords
the decision maker a discretion.
126. The Minister
decided to uphold the decision to reject the consignments. Her reason
for upholding the sanction is justified
by the reasons that she gave
for doing so. I do not consider that this decision was arbitrary or
capricious.
127. Accordingly,
the applicant has failed to demonstrate that the Minister’s
decision was unreasonable, irrational,
harsh or failed to take into
account relevant considerations.
Second Ground
128. In this Court,
the applicant contended that the condition imposed in the removal
conditions was
ultra vires
. This argument is raised in the
founding affidavit and developed in its heads of argument.
129.
As Hoexter
explains, although Courts still use the term “
ultra
vires
”,
its meaning has changed fundamentally under our Constitutional
dispensation. Conduct is
ultra
vires
where the actor has acted outside the law and the Constitution.
[14]
130. In PAJA, this
is subsumed in, at least, Section 6(a)(i) and (ii). The Court has the
power to review a decision taken
by an administrator who was not
authorised to do so by the empowering provision or acted under a
delegation of power which was
not authorised by the empowering
provision. The applicant also relies on Section 6(2)(e)(i), which
relates an action taken for
a reason not authorised by the empowering
provision. That does not appear to be apposite to this ground of
review. Section 6(2)(d)
may be applicable, but the complaint fits
more neatly in Section 6(a)(i) and (ii).
131. On 30 August
2022, the President issued Proclamation 89 of 2022 transferring
administration powers or functions entrusted
by legislation to
certain Cabinet members in terms of section 97 of the Constitution.
132. Section 97
provides:
“
The President
by proclamation may transfer to a member of the Cabinet-
(a)
the administration of any legislation entrusted to another member; or
(b)
any power or function entrusted by legislation to another member.
”
133. In terms of
the Proclamation, the President transferred the administration and
the powers or functions to be exercised
or performed within the
border enforcement area and at ports of entry, as defined in the
Border Management Authority Act (Act 2
of 2020) to the Minister of
Home Affairs. The details of the specific sections and statutes where
the administration and the powers
or functions are transferred are
set out in a schedule to the Proclamation.
134. The applicant
relied on the transfer of the administration, powers and functions of
Section 6 of the ADA and Sections
13(1)(6), (7) and (8) of the MSA to
the Minister of Home Affairs.
135. It is common
cause that the Port of Durban is a port of entry.
136. The applicant
submits that the removal permits were issued either in terms of
Section 6 of the ADA or Section 13(6) of
the MSA. Accordingly, the
applicant submits that because the functions and powers under these
sections were transferred to the
Minister of Home Affairs, BMA
officials are the only persons empowered to issue permits allowing
the removal of imported meats
from ports of entry. The Minister of
Agriculture and the Department of Agriculture have, according to the
applicant, been relieved
of any power or authority to issue removal
permits, impose conditions in removal permits or authorise the
removal of imported meat.
137.
The
applicant further contends that the Border Management Authority Act
has its own provisions relating the review of or appeals
against
decisions of its own officers. The applicant referred me to Section
29(2) of the Border Management Authority Act. The Minister’s
decision is, according to the applicant, a
brutum
fulmen.
This
argument is clearly wrong. The applicant overlooks Section 29(1). It
is only a decision made by an officer in terms of Border
Management
Authority Act that can be reviewed or appealed in terms of Section
29(2). Where a person is aggrieved by a decision
or steps taken in
terms of the ADA, its remedy is to lodge an objection to the Minister
of Agriculture in terms of Section 29(1)
of the ADA. Where a person
feels aggrieved by a decision in terms of the MSA, its remedy is to
lodge an appeal to the Minister
of Agriculture in terms of Section
18(1) of the MSA. Neither of these sections is referred to in the
Proclamation. The argument
is also self-defeating – the
applicant lodged its appeal and objection with the Minister of
Agriculture. If her decision
is a
brutum
fulmen
(an ineffective act), then there is no purpose in reviewing it.
[15]
138. The applicant
sought to bolster its case in relation to the
ultra vires
ground in a supplementary replying affidavit delivered on 28 February
2024. Mr Matabese SC noted his client’s objection the
the
supplementary replying affidavit. The primary purpose of the
affidavit was to place a letter dated 23 February 2024 before
the
Court. This was a letter from the Border Management Authority (“BMA”)
addressed to all importers. The letter refers
to the decision of this
Court in
Excellent Meats
and says that the BMA obliged to
comply with the Court order. I do not consider this to be of any
relevance. Insofar as the BMA
was purporting to interpret the law or
the judgment of this Court, that is a function of the Court. I
agree with Mr Matabese’s
submission that the BMA’s
subjective view is irrelevant.
139. The respondent
also sought to refer to a document that appears to be the Department
of Agriculture’s Procedural
Manual for the inspection procedure
for imported meat. The manual is dated 23 April 2008. The applicant
offers no explanation as
to why it only sought to place this before
the Court days before the hearing. The introduction of the manual
would constitute raising
new matter in reply. The respondents have
not had an opportunity to deal with this manual.
140. I accordingly
decline to permit the filing of the supplementary replying affidavit.
It is to be treated as being
pro non scripto.
141.
I have
considered the decision in
Excellent
Meats
.
It is a decision of this Court and is binding on me unless I find it
to be clearly wrong. In the decision, Botha AJ held that
the
Department was obliged to comply with the Red Meat Regulations and
the MSA and “
to
act accordingly as dictated by the Procedure Manual
.”
[16]
142. Botha AJ
refers to the “Procedure Manual”: Microbiological
Monitoring of Imported Meat, dated 21 October
2011. The applicant
refers to this document in its founding affidavit. It points out that
the document does not refer to any requirement
pertaining to the
attendance of inspectors at the time of breaking the seals.
143. It is correct
that the Procedure Manual does not refer to the breaking of seals. It
also does not refer to conditions
under which a removal permit is
issued. These are matters outside the scope of the Procedure Manual.
If this argument were to be
taken to its logical conclusion, it would
prohibit the imposition of any condition in a removal permit, even
though removal permits
are not referred to in the Procedure Manual.
144. In
Excellent
Meats
, the applicant lodged appeals against the rejection of
certain consignments. The appeals were attended to by officials in
the Department
on the basis that they were requests for
reconsideration. They were not dealt with by the Minister. Botha AJ
held that the MSA
and its regulations do not provide for a
reconsideration.
145. It appears
that Botha AJ’s attention was not drawn to Section 18(4). The
NEO may amend or withdraw any decision
made or instruction given
under a delegation unless the decision has been communicated to the
person in respect of which the decision
applies, in which case the
decision may be amended or withdrawn only if the amendment or
withdrawal is to the benefit of that person
or that person consents
to the amendment or withdrawal. This plainly gives the NEO the power
to reconsider a decision such as a
rejection.
146. However, on
the facts in
Excellent Meats
, the applicant had lodged
appeals. Accordingly, I respectfully agree with Botha AJ that, in
that case, the applicant’s appeals
were not adjudicated in
accordance with Section 18.
147. In this case,
the 24 March decision was not taken by the NEO. It was taken by the
Director (as was the 17 February decision).
The Director’s
power to reconsider a rejection notice is found in Section 2(3)(b) of
the ADA.
148. Although the
applicant conflates the powers of the NEO and the Director, it
plainly accepted that the decision to exercise
the rejection notices
could be reconsidered. It asked for reconsideration, and when the
Director upheld the rejection decision,
it approached the Minister
both under the MSA and the ADA. The Minister considered the appeal
and objection. She made a decision.
These facts are accordingly
distinguishable from
Excellent Meats
.
149. Reverting to
the case as made out in the founding affidavit and in the heads of
argument, the applicant now says that
the imposition of the condition
in the removal permits was
ultra vires
. It says that the
official who issued the removal permits and imposed the condition was
not authorised to do so.
150. In its appeal
and objection, the applicant told the Minister that “
a
decision issued by the Department of Agriculture … is ultra
vires, and must be remitted back to the relevant parties for
consideration.
” The decision that was the subject of the
appeal was the decision of 24 March 2023 to maintain the decision to
uphold the
rejection notices.
151. Accordingly,
the applicant’s case before the Minister was that the decision
that was
ultra vires
was the reconsideration decision. The
applicant did not say that the original decision to issue the
rejection notices was
ultra vires
. It also did not say that
the decision to impose the conditions on the removal notices was
ultra vires
.
152.
The removal
permits were issued between 22 December 2022 and 4 January 2023.
[17]
The applicant did not challenge the removal permits when they were
issued. At the time when the rejection notices were issued,
the
applicant did not suggest that the officials who issued the removal
permits did not have the power to do so. Even when the
applicant
lodged its appeal and objection, it did not say that the officials
who issued the removal permits did not have the power
to do so.
153. Mr Matabese
submitted that the applicant does not want to argue that the decision
to issue the removal permits was
ultra vires
because this
would mean that the applicant unlawfully removed the frozen pork from
the storage facility at the port. He pointed
out that, if the
official was not empowered to impose the condition because this
function had been transferred to the BMA, then
the official equally
did not have the power to issue the removal permit.
154. In reply, Mr
Mostert said that the permits stand until set aside. He said that the
challenge to the permits was in the
appeal, but that the applicant
does not challenge the entire permit, it only challenges the
imposition of the condition. He accepted
that a BMA official could
impose the condition. However, he said that a Department of
Agriculture official could not do so.
155. I cannot agree
that the applicant can challenge the decision to impose the condition
but not the decision to issue the
removal permit. The removal permits
were issued in terms of Section 8(1) of the ADA. The removal permit
is written authority to
remove and is subject to any condition
imposed by the Director or delegee. The decision to permit removal
and the decision to impose
conditions are part of a single decision.
156. Having elected
not to challenge the validity of the removal permits, the applicant
cannot challenge only the imposition
of the condition.
157. If it were
possible to challenge only the decision to impose the conditions,
then the applicant ought to have filed an
objection in terms of
Section 23 of the ADA because the conditions were imposed in terms of
Section 8(1) of the ADA. The applicant
has not exercised its internal
remedies in respect of the conditions. Section 7(2) of PAJA prohibits
the Court from reviewing administrative
action where internal
remedies have not been exhausted. The Court must direct that the
person concerned must first exhaust such
remedy before instituting
proceedings in a court or tribunal for judicial review in terms of
this Act.
158. However, the
difficulties for the applicant go further than the failure to exhaust
its internal remedies. The relief
it seeks in the notice of motion is
focused on the Minister’s decision. The Court is not asked to
review the decision to
impose the conditions.
159.
Mr Mostert
is correct that the removal permit stands until it is set aside. This
is the result of the
Oudekraal
principle
[18]
as explained by
Cameron J in
Kirland
.
[19]
Cameron J pointed out that even action not authorised by the
empowering provision is administrative action under PAJA. He
explained
that: “
In
our post-constitutional administrative law, there is no need to find
that an administrator lacks jurisdiction whenever she fails
to comply
with the preconditions for lawfully exercising her powers. She acts,
but she acts wrongly, and her decision is capable
of being set aside
by proper process of law.
”
[20]
160. Cameron J
continued:
“
The essential
basis of Oudekraal was that invalid administrative action may not
simply be ignored, but may be valid and effectual,
and may continue
to have legal consequences, until set aside by proper process. The
court expressed it thus:
'For those reasons it
is clear, in our view, that the Administrator's permission was
unlawful and invalid at the outset. . . . But
the question that
arises is what consequences follow from the conclusion that the
Administrator acted unlawfully. Is the permission
that was granted by
the Administrator simply to be disregarded as if it had never
existed? In other words, was the Cape Metropolitan
Council entitled
to disregard the Administrator's approval and all its consequences
merely because it believed that they were invalid
provided that its
belief was correct? In our view, it was not. Until the
Administrator's approval (and thus also the consequences
of the
approval) is set aside by a court in proceedings for judicial review
it exists in fact and it has legal consequences that
cannot simply be
overlooked. The proper functioning of a modern State would be
considerably compromised if all administrative acts
could be given
effect to or ignored depending upon the view the subject takes of the
validity of the act in question. No doubt
it is for this reason that
our law has always recognised that even an unlawful administrative
act is capable of producing legally
valid consequences for so long as
the unlawful act is not set aside.'
”
[21]
161. The decision
to issue the permits with the condition exists as a fact. It has
factual consequences, including that the
failure to comply with the
condition is a ground to issue the rejection notice.
162. The notices of
rejection were issued by Dr Pillay. By then, the frozen pork was at
the applicant’s premises. It
was no longer at the port of
entry. Accordingly, the transfer of powers under the Proclamation
does not apply.
163. The decision
that was the subject of the appeal was the decision to uphold the
notices of rejection. That decision was
made by the Director. In so
doing, the Director was exercising a power given to him in Section
2(3) of the ADA. This power was
not transferred in the Proclamation
and remains vested in the Director.
164. In its appeal
and objection, the applicant challenged the decision to uphold the
rejection notices. The Proclamation
did not transfer the Minister of
Agriculture’s functions and powers under either Section 23 of
the ADA or Section 18 of the
MSA to the Minister of Home Affairs.
165. There is
accordingly no basis for the
ultra vires
ground of review.
Third Ground
166. The applicant
contends that the Minister’s decision was taken as a result of
the unauthorised and unwarranted dictates
of the NEO and the
Director. It contends that the decision was procedurally unfair as
contemplated in Section 6(2)(c) of PAJA,
was taken in bad faither as
contemplated in Section 6(2)(e)(v) of PAJA and was taken for an
ulterior motive as contemplated in
Section 6(2)(e)(ii) of PAJA.
167. The evidence
of the alleged interference is that on 11 August 2023, the NEO
circulated an internal email recording that
the NEO had communicated
with the applicant because there was no response coming from the
Minister. The email recorded that the
Minister’s advisor had
advised the NEO to resist communicating with the applicant as it
could be misconstrued as the Director
and NEO being the one
considering the appeal and objection. This this was wise advice. It
certainly is not evidence of interference
by the NEO.
168. Two days
later, the advisor circulated an internal email in which he recorded
that they (presumably the office of the
Minister) had had engagements
with the NEO and the team. An electronic communication had been
received and the office of the Minister
was still in a process of
carefully considering the matter. If technical input was required,
the advisor would advise the colleagues
accordingly. On 14 August
2024, the advisor addressed an email to,
inter alia
, the NEO
and the Director. An urgent meeting was requested to clarify certain
unspecified issues.
169. On 16 August
2023, the NEO sent an email to the advisor. The applicant relies
heavily on this letter. It suggests that
this email shows that the
NEO effectively decided the appeal. The material portion of the email
reads:
“
Please find the
draft letter to Merlog as discussed. I have tried my best to include
every aspect I could think about.
Relating to the
submission, I propose that the letter for the Minister in case she
sets aside the decision, not contain all the
background information
that supports upholding of the decision, otherwise the decision might
contradict the evidence as scripted
in the letter. We can also not
fabricate/dilute the argument for the upholding of the decision in
order to validate the setting
aside.
I/We I are still
worried though that this matter will create precedent in that we did
not enforce the law scripted in terms of the
30 days period within
which to lodge an appeal. My other worry is that the setting aside of
the rejections, without putting the
reasons why such a decision has
been set aside, would also create an impression that all the
narrative in their appeal/objection
are valid, and thereby creating
precedent. I can, however, not draft a letter that would negate that
and invalidate reasons why
we uphold the rejections.
I will leave this to
you to take over.
”
170. According to
the applicant, it is evident from this email that the NEO, and not
the Minister, drafted the Minister’s
rejection of the
applicant’s appeal. The applicant says that, at best for the
respondents, it is clear that the NEO had a
substantial say in the
determination of the appeal to the Minister. Seemingly considering
repetition to be the best way to make
its point, the applicant
repeats its quotation of the second paragraph quoted above. The
applicant says that this shows that the
NEO cautioned that certain
information should withheld from the rejection letter.
171. The high point
of this argument is that the NEO prepared at least one draft letter.
But it is apparent from the paragraph
repeatedly quoted by the
applicant that the NEO was referring to a letter upholding the appeal
and objection – the letter
in case the Minister sets aside the
decision
.
172. The applicant
further referred to a memorandum prepared by the Chief Director:
Animal Production and Health and the Director
General of the
Department. The memorandum records its purpose as being to brief the
Minister in respect of the appeal and objection
and to request the
Minister to make a determination and sign one of the attached
response letters, depending on the decision made.
173. I have read
the memorandum. It is so that, in the memorandum, it is argued that
there are no grounds to submit that the
decisions made by the
Director and the NEO were unreasonable or irrational or that the
sanction is disproportionate relative to
the non-compliance. However,
the facts are set out in detail, as is the relevant legislation. The
Minister is left to make her
own decision. The recommendations at the
end of the memorandum are first that the Minister takes notice of the
briefing and second
that she signs one of the response letters,
depending on the decision made. Two draft letters are attached to the
memorandum, one
upholding the rejection notices and one overturning
the rejection notices.
174. It will be
noted from my recitation of the facts that, although the applicant
avers that the decision was taken as a
result of the interference of
the NEO and the Director, the applicant can point to no alleged
interference by the Director. Yet,
despite the confusion in the
applicant’s papers, the 24 March decision was made by the
Director, not the NEO.
175. The Minister
deposed to the answering affidavit. She pointed out that she did not
have personal knowledge of the underlying
facts and had to obtain
information from the officials who were privy to the matter regarding
what transpired during the process.
Had she not done so, her decision
would have been uninformed. She said that she made the decision
herself. She pointed out that
Section 18(3)(a) of the MSA expressly
provides that the Minister may designate one or more independent
senior officers to investigate
and report on the grounds of appeal.
She said that this cannot be interpreted as having delegated her
power to them.
176. Importantly,
the Minister explained that two draft letters were prepared for her:
one upholding the appeal and the other
dismissing it. Depending on
her decision, she had to choose to sign one of the letters. This was
done for convenience and nothing
else. She said that it could not be
interpreted as an attempt to influence her or dictate to her what
decision to take. This is
borne out by the memorandum attached to the
supplementary founding affidavit.
177. The Minister
denied that the NEO had a substantial say in the determination of the
appeal. She pointed out that his decision
was the subject of the
appeal, and that she accordingly had to hear his side on the grounds
of appeal before making a decision.
178. In reply, the
applicant referred to a letter from the State Attorney dated 11
December 2023. The two letters referred
to in the memorandum were
attached to the State Attorney’s letter. The applicant seeks to
make much of this, contending that
these letters constitute
additional documents. This is surprising given that they were
attached to the memorandum that was in turn
attached to the
supplementary founding affidavit.
179. In the letter,
the State Attorney also clarified that the memorandum was sent to the
Minister unsigned due to the urgency
of reaching a decision.
180. In the
replying affidavit, the applicant argues that the Minister repeated
the content of the letters “
almost verbatim
”. That
is not correct. There were two draft letters. One provided for the
appeal to be upheld. The Minister’s letter
communicating her
reasons for rejecting the appeal is similar, though not identical, to
the unsigned draft letter.
181. In reply, the
applicant insists that the involvement of the NEO and the Director
went further than merely supplying the
minister with salient
information. It says that the Minister failed to provide proof or
confirmation that she independently considered
the matter and applied
her mind thereto. The applicant asserts that the NEO clearly drafted
the Minister’s purported rejection
of the applicant’s
appeal, or at very least had substantial say therein. The applicant
says that the Minister’s decision
shows that she relied heavily
on the memorandum.
182. The high point
of this argument is that the NEO appears to have prepared a draft of
at least one the two draft letters.
This was not sent directly to the
Minister, but was sent to the advisor. Two draft letters were then
attached to the memorandum,
which, although unsigned, purports to
have been approved by the Chief Director: Animal Production and
Health and by the Director-General.
The Minister then signed a letter
that contained minor amendments to one of the draft letters.
183. Applying the
Plascon-Evans rule, I accept that the Minister did apply her mind to
the matter. It is so that she obtained
information from various
sources, including the NEO and the Director. It is so that her
letter explaining the reasons for
the letter is very similar to the
draft letter provided to her and may have been based on a draft
prepared by the NEO and forwarded
to the advisor. But that does not
mean that she did not apply her mind to the matter. She was briefed
on the matter and asked to
make a decision, which she duly made.
184. In the
applicant’s heads of argument, it is submitted that the
Minister breached the
audi alteram partem
rule by engaging in
one-sided engagement with one of the parties whose decision was under
scrutiny. Reliance is place on Section
18(3) of the MSA. Section
18(3)(a) provides that the Minister may designate one or more
independent senior officers to investigate
and report on the grounds
of the appeal. Section 18(3)(b) provides that,
inter alia
the
NEO, the assignee and the appellant may appear or be requested to
appear at an investigation in terms of Section 18(3)(a).
Section
18(4) empowers the Minister, after considering the report and other
documents relating to the appeal, to confirm, set aside
or amend the
decision or issue such order as may be fit.
185. The
investigation is conducted by the senior official or officers
designated by the Minister. They may question,
inter alia
the
NEO, the assignee and the appellant. This does not take place in
front of the Minister. It is a fact finding exercise.
186. The applicant
also conflates the appeal with the objection. Section 18(3) of the
MSA is applicable to the appeal. The
appeal is misplaced because the
decision complained of was made by the Director. The correct
procedure was the objection under
Section 23 of the ADA.
187. An objection
under Section 23 of the ADA is required to be submitted to the
Director-General. The Director-General is
required to submit the
objection and his representation to the Minister for a final
decision.
188. Section 23(3)
provides that the Director-General may appoint one or more senior
officers in the Department to investigate
and report on the
complaint. Such officers may not be the Director or any officer
involved in the decision or steps that are the
subject of the
complaint. The person who lodged the objection may, at their own
request or at the request of the officer or officers
submit oral or
written representations. The applicant does not suggest that it
requested an opportunity to submit further representations.
It had
already done so.
189. In this case,
the applicant was represented by attorneys. It submitted a
comprehensive appeal and objection. What needed
to be obtained was
the other side of the story – the version of the NEO, the
Director and other officials.
190. Whether in
terms of Section 18 of the MSA or Section 23 of the ADA, the process
remains a fact finding exercise. The
officials gathered the necessary
information and put it in the memorandum. There are no material facts
that were excluded. The
applicant’s version was before the
Minister.
191. I accordingly
find that the decision was not procedurally unfair as contemplated in
Section 6(2)(c) of PAJA. There is
also no basis to find that the
decision was taken in bad faith or for an ulterior motive.
Conclusion
192. I find that
the applicant has not made out a case for the relief sought in the
notice of motion. Therefore, the application
should be dismissed.
193.
The first
to fourth respondents seek an order for the costs of two counsel.
Given the complexity of the matter, such an order is
justified. It is
not necessary to consider the appropriate scale of costs in terms of
Rule 67A read with Rule 69. The new rules
came into effect on 12
April 2024. This matter was argued before that date. In
Mashavha
,
Wilson J held that the amendments operate prospectively.
[22]
I agree.
194. I accordingly
order as follows:
194.1. The
application is dismissed.
194.2. The
applicant is to pay the first to fourth respondents’ costs,
including the costs of two advocates where so
employed.
Vivian, AJ
Acting Judge of the
Gauteng Division of the High Court of South Africa
APPEARANCES:
For the
Applicant:
ZZ Matebese SC and B J Nodada
For the Respondents:
M Mostert
Date of
hearing:
5 March 2024
Date
Delivered:
19 June 2024
[1]
For
ease of reference, I abbreviate this to the Minister or the Minister
of Agriculture in this judgment.
[2]
Deriving
from the judgment of Corbett JA in Plascon-Evans Paints Ltd v Van
Riebeeck Paints (Pty) Ltd
[1984] ZASCA 51
;
1984 (3) SA 623
(A) at 634 to 635
[3]
Fakie NO v CCII Systems (Pty) Ltd
[2006] ZASCA 52
;
2006 (4) SA 326
(SCA) at para 56
[4]
For
ease of reference, I abbreviate this to the Department or the
Department of Agriculture in this judgment.
[5]
Bato Star Fishing (Pty) Ltd v Minister of Environmental Affairs and
Tourism and Others
[2004] ZACC 15
;
2004 (4) SA 490
(CC) at para 45. See also para 46
[6]
Bato Star Fishing (Pty) Ltd v Minister of Environmental Affairs and
Tourism and Others,
supra
at para 48
[7]
Bel Porto School Governing Body and Others v Premier, Western Cape,
and Another
[2002] ZACC 2
;
2002 (3) SA 265
(CC) at para 45
[8]
Minister of Environmental Affairs and Tourism and Others v Phambili
Fisheries (Pty) Ltd; Minister of Environmental Affairs and
Tourism
and Others v Bato Star Fishing (Pty) Ltd
2003 (6) SA 407
(SCA) at
para 52
[9]
Chairpersons' Association v Minister of Arts and Culture and Others
2007 (5) SA 236
(SCA) at para 48
[10]
State Tender Board v Digital Voice Processing (Pty) Ltd; Chairman
State Tender Board v Sneller Digital (Pty) Ltd and Others
2012 (2)
SA 16
(SCA) at para 34
[11]
Dumani v Nair and Another
2013 (2) SA 274
(SCA) at par 32
[12]
Lebotsa and Another v Minister of Correctional Services and Others
(6478/2009) [2009] ZAGPPHC 126;
2010 (1) SACR 379
(GNP) (29 October
2009) at para 22 – the Court used the term “prescribed
information” because of the context
of the matter. However, I
am of the view that the same would apply even where the required
information is not prescribed, but
is necessary.
[13]
Minister of Justice and Another v SA Restructuring and Insolvency
Practitioners Association and Others
2018 (5) SA 349
(CC) at para 55
[14]
Hoexter,
Administrative Law in South Africa, 3
rd
Ed., page 148
[15]
For
the reasons set out below, the Minister’s decision is
administrative action and exists as a fact. It cannot be a
brutum
fulmen.
[16]
Excellent Meat International Trading (Pty) Ltd v Minister of
Agriculture, Land Reform and Rural Development and Others
(27708/2021)
[2023] ZAGPPHC 1989 (11 December 2023) at para 6.6
[17]
The
applicant points out that the date stamp on the last permit
erroneously has the year “2022”. This is clearly an
error. The correct date is 4 January 2023.
[18]
Oudekraal Estates (Pty) Ltd v City of Cape Town and Others
2004 (6)
SA 222
(SCA)
[19]
Mec for Health, Eastern Cape and Another v Kirland Investments (Pty)
Ltd t/a Eye & Lazer Institute 2014 (3) SA 481 (CC)
[20]
At
para 98
[21]
Kirland,
supra
at para 101 quoting from Oudekraal,
supra
at para 26
[22]
Mashavha v Enaex Africa (Pty) Ltd (2022/18404) [2024] ZAGPJHC 387
(22 April 2024) at para 12
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