Case Law[2024] ZAGPPHC 601South Africa
Chess South Africa v South African Sports Confederation and Olympic Committee and Another.rtf (62189/2023) [2024] ZAGPPHC 601 (25 June 2024)
High Court of South Africa (Gauteng Division, Pretoria)
25 June 2024
Headnotes
with the Deputy Judge President, and a provisional date for the hearing of Part A was set for 2 February 2024. On 30 October 2023 Chess SA’s attorneys wrote to the Deputy Judge President proposing that, instead of Part A being heard on 2 February 2024, that a date be allocated for the hearing of Part B in March 2024.
Judgment
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# South Africa: North Gauteng High Court, Pretoria
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## Chess South Africa v South African Sports Confederation and Olympic Committee and Another.rtf (62189/2023) [2024] ZAGPPHC 601 (25 June 2024)
Chess South Africa v South African Sports Confederation and Olympic Committee and Another.rtf (62189/2023) [2024] ZAGPPHC 601 (25 June 2024)
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sino date 25 June 2024
IN THE HIGH COURT OF
SOUTH AFRICA
GAUTENG DIVISION,
PRETORIA
Case number:
62189/2023
Date of hearing: 4
June 2024
Date delivered: 25
June 2024
1.
REPORTABLE: YES/NO
2.
OF INTEREST TO OTHERS JUDGES: YES/NO
3.
REVISED
In the matter of:
CHESS SOUTH
AFRICA
Applicant
and
SOUTH AFRICAN SPORTS
CONFEDERATION AND
OLYMPIC
COMMITTEE
First Respondent
THE MINISTER OF SPORT,
ART
AND
CULTURE Second
Respondent
JUDGMENT
SWANEPOEL
J
:
BACKGROUND
[1] This is an
application brought in two parts. In Part A the applicant (“Chess
SA”) sought a suspension of a
decision of the first
respondent’s (“Sascoc”) Board, taken on 10 March
2023, to provisionally suspend Chess SA.
It also sought a suspension
of the decision of the general assembly of Sascoc to finally suspend
Chess SA on 22 April 2023, and
it sought ancillary relief related to
the awarding of national colours. Part A of the application was
brought on a semi-urgent
basis, but was never heard. In Part B of the
application the applicant seeks to review and set aside the
aforementioned decisions
in terms of the Promotion of Administrative
Justice Act, 3 of 2000 (“PAJA”). It is Part B that is now
before me.
[2] The following
is the brief general background to the matter:
[2.1] Sascoc
is the national multi-coded controlling body for sport in South
Africa, controlling the presentation and
performance of multi-coded
events such as the Olympic and Paralympic Games, the Commonwealth
Games, All Africa Games, and the like.
Although there was some
controversy relating to Sascoc’s constitution, I accept
Sascoc’s version that it is governed
by a constitution that was
adopted on 26 November 2022.
[2.2]
The National Sport and Recreation Act, 110 of 1998 (“the Sport
Act”) is aimed at promoting and developing
sport and recreation
in South Africa, and at coordinating the relationships between the
Sport Confederation and the National Department
of Sport and
Recreation (“the Department”), and between the Department
and national sport federations. It provides
for the recognition by
the second respondent of a sport confederation that “
will
be the national coordinating macro body for the promotion and
development of high performance sport in the Republic”
.
[1]
Chess SA alleges that Sascoc is the sports confederation referred to
in section 2 of the Sport Act, and that it has been recognized
in
writing by the second respondent, as required by the Sport Act. I
will deal with this averment hereunder when I consider Sascoc’s
status.
[2.3] Chess
SA is a national sport federation that controls the sport of chess in
South Africa. It is a member of Sascoc,
albeit that its membership
has been suspended.
[2.4
Chess SA launched this application on 30 June 2023, whereafter it
approached the Deputy Judge President seeking
a date for the hearing
of Part A as a special allocation. The 5
th
October 2023
was allocated. Shortly before the hearing of the matter, on 29
September 2023, Sascoc delivered the supplementary
affidavits of four
chess players in which Sascoc sought to show that chess activities in
South Africa had not been disrupted by
Chess SA’s suspension.
It also delivered an ‘explanatory’ affidavit which
explained that the transcript of the
proceedings of the general
meeting previously filed were incomplete, and the complete transcript
was attached.
[2.5] Chess
SA took the view that the late delivery of these affidavits did not
leave it with sufficient time to respond,
and it sought a
postponement of the matter. On 5 October 2023 Part A of the matter
was postponed, certain directives were given
as to the delivery of a
further affidavit in response to Sascoc’s supplementary
affidavits, and the costs of Part A were
reserved for later
determination.
[2.6] A
further management meeting was held with the Deputy Judge President,
and a provisional date for the hearing
of Part A was set for 2
February 2024. On 30 October 2023 Chess SA’s attorneys wrote to
the Deputy Judge President proposing
that, instead of Part A being
heard on 2 February 2024, that a date be allocated for the hearing of
Part B in March 2024.
[2.7] A
further case management meeting followed on 23 January 2024. At that
meeting Chess SA proposed that instead
of Part A being heard,
timelines rather be set for the hearing of Part B. The result was
that Part B of the matter was set down
for hearing on 3 June 2024,
and Part A was never heard.
[3] The above is a
brief timeline of the matter. Before I deal with the merits of the
matter, it is necessary to consider
Sascoc’s striking out
application. However, in order to do so, the history of the matter is
important to show the context
within which the averments that are
sought to be struck out were made.
[4] Chess SA has
been a member of Sascoc for a number of years. As I have said, it is
the national controlling body for chess
in South Africa. It is
governed by a National Council and an executive board (“Exbo”),
in accordance with its constitution.
Its members are the various
provincial chess associations that are in turn governed in accordance
with their own constitutions.
[5] Chess SA says
that upon the death of its erstwhile president in 2017 a faction of
members was born which aimed to ‘capture’
Chess SA. It
says that from approximately 2018 onwards, this faction pushed for
the inclusion of unlawfully elected provincial
representatives in the
voting process, and the suspension of some of the provincial members.
That led, ultimately, to the election
on 1 July 2018 of one Mr.
Mahomole as president of Chess SA, and the appointment of a new Exbo.
As a result, one of the provincial
members, Gauteng Chess, brought an
application against a number of the provincial chess bodies, against
Chess SA and against a
number of individuals, including Mr. Mahomole,
attacking the suspension of the provincial members, and the
consequent election
of Mr. Mahomole as president of Chess SA.
[6] On 17 August
2018 the suspension of the provincial members and the resolutions
taken at a special general meeting were
set aside by Desai J in the
Western Cape High Court. It was directed that a further special
general meeting should be held on 25
August 2018, and that the
persons appointed to the Exbo on 1 July 2018 were not to act as the
Exbo pending the further special
general meeting.
[7] An interim Exbo
was elected on 24 August 2018, and an annual general meeting (”AGM”)
was arranged for 8 December
2018. In an attempt to oust the competing
members, Mr. Mahomole produced a list that reflected all nine
provincial members as not
being in good standing and therefore not
entitled to participate in the AGM. Two urgent applications were then
brought by Gauteng
Chess and the Players’ Commission
respectively, seeking declaratory orders that they were in good
standing and eligible to
vote at the AGM. Both applications were
heard together and resulted in an order by Siwendu J to the effect
that the applicants
in those applications were entitled to vote at
the AGM on 8 December 2018.
[8] On 8 December
2018 the deponent to the founding affidavit, Mr. Du Toit, was elected
as president of Chess SA, and a new
Exbo was elected. Despite the
appointment of the new Exbo in accordance of the order of Siwendu J,
the Mahomole faction refused
to accept the outcome of the meeting,
and refused to hand over assets and financial documents to the new
Exbo.
[9] As a result,
the new Exbo brought an application for a declaratory order to the
effect that it was the legitimate board
of Chess SA. The Mahomole
faction brought a counter-application seeking to rescind the Siwendu
J judgment. Yacoob J granted the
counter-application and the Mahomole
faction effectively continued to govern Chess SA.
[10] Chess SA says
that it called upon Sascoc on numerous occasions to arrange a meeting
to discuss the impasse between the
factions. A meeting was eventually
held on 5 June 2019 at which both the Exbo and the Mahomole faction
were present. Not much needs
to be said about the meeting save that
nothing was resolved. On 7 June 2019 Sascoc wrote to Chess SA
advising it that until the
impasse had been resolved, Chess SA was
not welcome to attend Sascoc’s general meeting. What the legal
basis was for this
de facto
suspension is unclear, but that
remained the position until the events that led to this application
unfolded.
[11] Sascoc
continued to adopt the stance that it could not determine who was
Chess SA’s legitimate leadership. At a
hearing of the
Parliamentary Committee on Sport, Arts and Culture on 3 November 2020
Sascoc told the committee that it considered
the Mahomole faction to
be in control of Chess SA, as it had caused the continental
structures to recognize South African chess
players, whilst, on the
other hand, it realized that Du Toit and his group were regarded by
the International Chess Federation
(“FIDE”) to be the
true leadership of Chess SA.
[12] Despite having
taken the decision that Chess SA could not participate in Sascoc
meetings, the Mahomole faction was invited
to Sascoc’s general
meeting that was held on 4 November 2020.
[13] On 24 January
2022 FIDE appointed a ‘reverse delegate’ with a mandate
to oversee a process of reconciliation
between the factions, and the
holding of elections. On 16 February 2022 a Full Court upheld the
appeal of Chess SA against the
order of Yacoob J. The Full Court
replaced the Yacoob J order with the following order:
[13.1] That the
appeal is upheld;
[13.2] That the
counter-application is dismissed with costs;
[13.3] That the
executive board was comprised of the persons elected on 8 December
2018;
[13.4] The Mahomole
faction was interdicted from acting or purporting to act as
representatives of Chess SA or its interim
executive board, and from
accessing Chess SA’s First National Bank and ABSA Bank accounts
or from transacting on the accounts.
The individuals who formed the
‘board’ of the Mahomole faction were ordered to pay the
costs of the appeal on a punitive
scale.
[14] Chess SA says
that during the Mahomole regime great harm was done to Chess SA. It
alleges that there was a complete failure
in corporate governance, no
financial statements were prepared, and democratic elections were not
held. It also accuses the Mahomole
faction of excessive spending and
of boycotting chess tournaments. Once the Full Court judgment had
been handed down the recognized
Exbo tried to take control of the
business of Chess SA through the reverse delegate appointed by FIDE.
Nevertheless, the Mahomole
faction refused to accept the Full Court
judgment, and continued to refuse to hand over Chess SA’s
financial and governance
documents to the Exbo.
[15] Chess SA
alleges that during this time Sascoc supported the Mahomole faction
and that it showed a clear bias against
the Exbo. On 10 July 2022
FIDE recognized the Exbo as the legitimate leadership of Chess SA.
Sascoc was advised of this decision.
On 18 August 2022 Du Toit
communicated the FIDE decision to the chess community at large, and
set out the intentions of the Exbo
going forward. Having ignored a
number of requests by the Exbo to meet, Sascoc then agreed to meet on
21 September 2022.
[16] Chess SA says
that it conveyed to Sascoc at the meeting of 21 September 2022 that
the financial statements for the 2017
to 2022 financial years had yet
to be completed, and that it was experiencing difficulties in
compiling the statements due to problems
with accessing source
documents. The minutes of the meeting do not bear out that
contention. The following day Sascoc wrote to
Chess SA demanding
various documents, including minutes of annual general meetings and
attendance registers, audited financial
statements, annual reports
and various documents relating to governance matters.
[17] On 4 October
2022 the Department invited Chess SA to give a presentation at a
meeting of the parliamentary portfolio
committee which was to be held
on 18 October 2022 regarding “the annual report and related
matters”. The presentation
was to be submitted by Chess SA to
the Department by 11 October 2022. Mr.Du Toit was unable to comply
with the timelines set. As
a result, he sought a postponement of the
meeting and for sufficient time to prepare a presentation which
request was granted.
Sascoc continued to enquire about the documents
demanded in its letter of 22 September 2022.
[18] Du Toit
replied to Sascoc’s letter of 22 September 2022 by email on 23
January 2023. He placed the following on
record:
[18.1] That Chess
SA was experiencing a difficult time as ‘certain elements’
were refusing to adhere to the constitution,
which caused a drain on
its time and resources;
[18.2] That Chess
SA had difficulty understanding some of Sascoc’s requirements
as it had been previously excluded from
Sascoc meetings;
[18.3] That the
previous treasurer was refusing to cooperate and to provide source
documents to the Board;
[18.4] That legal
action would follow if the treasurer did not cooperate;
[18.5] That members
who were non-compliant with Chess SA constitutional requirements had
been suspended but had been afforded
an opportunity to rectify their
standing by the end of February 2023
[19] One Andre
Lewaks had, in the meantime, written to Sascoc on behalf of the
National Council of Chess to alert it to the
fact that the affairs of
Chess SA were not in order, and he demanded that the Exbo be
dissolved. At the AGM held on 10 December
2022 representatives of
provincial members attended. They demanded that the Exbo resign and
they refused to acknowledge the Du
Toit Exbo. They were asked to
present their credentials to prove that they represented the
provinces, but refused to do so. The
provincial members who could not
show that they were in good standing were suspended, and afforded an
opportunity to fulfil the
requirements to become in good standing by
the end of February 2023. Chess SA did not deal squarely with the
events that occurred
at the AGM, and specifically whether a new Exbo
was elected.
THE STRIKING -OUT
APPLICATION
[20] It is largely
the above history that Sascoc seeks to have struck out. It has
applied to have the majority of the contents
of paragraphs 3, 6, 7
and 8 of the founding affidavit struck out. It alleges that the
contents of those paragraphs are scandalous,
vexatious or irrelevant
to the issues in the matter. It also argues that the averments sought
to be struck are disparaging and
scandalous as regards the Mahomole
faction.
[21] Rule 6 (15)
provides that a court may on application order any matter struck from
any affidavit, if such matter is scandalous,
vexatious or irrelevant,
but it may only do so if the court is satisfied that the applicant
will be prejudiced if the application
is not granted. The question
whether matter should be struck is therefore a dual one, firstly,
whether the matter is either scandalous,
vexatious or irrelevant, and
secondly, whether Sascoc would be prejudiced in its case if the
matter were not struck.
[22]
Matter is scandalous if it is worded in such a manner as to be
abusive or defamatory, whether it is relevant or not.
[2]
The word ‘abusive’ is defined in the Oxford Dictionary as
“extremely offensive and insulting” and “involving
injustice or illegality”. In the Merriam-Webster dictionary it
is defined as “harsh or insulting language”. It
seems
that it is the manner in which the words are used, more than simply
the content of the words, that cause the words to be
‘abusive’.
[23] Allegations
are often made in papers that have the result of harming the other
party’s reputation. The mere fact
that an averment is damaging
to the offended party’s reputation is not sufficient to render
an allegation “defamatory”.
For instance, in a case for
the return of property unlawfully removed by a party, it would not be
inappropriate to say that the
property was stolen. That averment
would have the result of harming the offended party’s
reputation, but would be reasonable
in the circumstances. However, to
gratuitously add, for instance, that the thief is also a sexual
offender would be scandalous
and also irrelevant. The test whether
allegations are scandalous are fact specific, and must be decided on
the circumstances in
each case.
[24] The same
approach may be taken in considering whether allegations are
vexatious, which Erasmus defines as “allegations
that may or
may not be relevant, but are so worded as to convey an intention to
harass or annoy”. It is not so much the allegation
that is
offensive, but the wording thereof and the context within which it is
made that is offensive.
[25]
Irrelevant matter is matter that does not have a bearing on the
issues in the matter, or as Erasmus puts it, it is matter
that does
not contribute to the decision in the case.
[3]
[26] Chess SA seeks
to review and set aside the suspension decisions on a number of
grounds. One of the grounds is bias. Chess
SA alleges that Sascoc was
biased, or reasonably suspected of bias, in favour of the Mahomole
faction, and that its decisions are
reviewable under subsection 6 (2)
(a) (iii) of the Promotion of Administrative Justice Act, 3 of 2000
(“PAJA”). It
also alleges that the decisions were taken
for an ulterior motive, and are thus reviewable under subsection 6
(2) (e) (ii) of PAJA,
alternatively was taken in bad faith, and are
thus struck by subsection 6 (2) (e) (v) of PAJA.
[27] It would be
hard to imagine how a party can make a case for bias, ulterior
motives or bad faith without making disparaging
remarks about the
other party’s conduct and motives. That is in the nature of the
matter. It is also clearly so that Chess
SA has made a number of
remarks that Sascoc would find offensive, and has vehemently
expressed its opinion regarding Sascoc’s
conduct. However, I do
not believe that the disparaging remarks were made simply in order to
offend or defame, nor were they so
worded. Similarly, the wording is
not such that one can find that the words are meant solely to harass
or annoy Sascoc. In my view,
given the case that Chess SA’s
seeks to make, the allegations are relevant.
[28]
In
Tshabalala-Msimang
and Another v Makhanya and Others
[4]
the
applicants sought an order securing the medical records of the first
applicant, and an interdict restraining their publication.
In the
answering affidavit a number of allegations were made regarding the
first applicant’s (a Government Minister) alleged
abuse of
alcohol and its effects on her state of health. In an application to
strike out these averments, the first applicant argued
that they were
scandalous and vexations and also irrelevant. The Court held that
even though the allegations had the result of
damaging the first
applicant’s reputation, they were necessary for the respondent
to be able to set out in detail the facts
upon which she wished to
make her case. They were also relevant to the case sought to be made.
For those reasons the application
to strike was dismissed.
[29]
In my view the remarks in
Beinash
v Wixley
[5]
are
apposite to this case:
“
I
have considerable difficulty in appreciating why the narration of the
background which preceded the application to set aside the
impugned
subpoena should be characterized as irrelevant. On the contrary the
substance of this narration appears to be quite relevant
and indeed
very useful in understanding the reason and need for, and the cogency
and legitimacy of, the attack made by Wixley on
the impugned
subpoena.”
[30] The point is
that, even if allegations are damaging to a party, and does harm to
its case or to its reputation or standing
in the community, that in
itself does not make such allegations scandalous or vexatious. Only
if the allegations are levelled in
such a manner as to solely abuse
harass annoy or defame the other party can they be characterized as
scandalous or vexatious.
[31]
Once the applicant for a striking order has failed at the first
hurdle, that is the end of the case. However, I also
wish to deal
with the issue of prejudice. Sascoc’s averment that the
Mahomole faction has been prejudiced by the allegations
in the
founding affidavit is of no moment. It is the applicant in the
striking application that must be prejudiced. The issue of
prejudice
is not to be narrowly construed. It is not only in instances, for
example, where a party may be forced to answer to lengthy
irrelevant
averments that it would be prejudiced. It may also be that the
allegations impact on the objecting party’s broader
life, such
as in
Weeber
v Vermaak and Another
[6]
where
irrelevant allegations were struck out that may have impacted a
party’s chances in an election.
[32] The averments
made against Sascoc in these papers may have the effect of harming
its reputation. However, they are directly
relevant to the case
sought to be made by Chess SA, and are not couched in a manner which
is abusive or harassing. There is simply
no other way to make a case
such as Chess SA wishes to make. Sascoc is entitled to dispute the
averments, and it has done so at
length. I find therefore that Sascoc
has not suffered prejudice within the meaning of rule 6 (15). It
follows that the striking-out
application must fail.
PAJA REVIEW
[33] Chess SA seeks
to review Sascoc’s decisions to suspend Chess SA in terms of
the Promotion of Administrative Justice
Act, 3 of 2000 (“PAJA”).
The decisions would only be open to review under PAJA if they
constitute “administrative
action” as defined by PAJA,
which is:
“
any
decision taken, or any failure to take a decision, by-
(a)
an organ of state, when-
(i)
exercising a power in terms of the
Constitution or a provincial constitution; or
(ii)
exercising a public power or performing a
public function in terms of any legislation; or
(b)
a natural or juristic person, other than an
organ of state, when exercising a public power or performing a public
function in terms
of an empowering provision,
which adversely affects
the rights of any person and which has a direct, external legal
effect……”
[34] An organ of
state is defined in section 239 of the Constitution as:
“
(a)
any department of state or administration in the national, provincial
or local sphere of government; or
(b)
Any other functionary or institution-
(i)
exercising a power or performing a function
in terms of the Constitution or a provincial constitution; or
(ii)
exercising a public power or performing a
public function in terms of any legislation, but does not include a
court or a judicial
officer;….. “
(iii)
[35] The Sport Act
provides for the recognition of a sport confederation Section 2 (1)
of the Sport Act reads as follows:
“
(1)
The Minister must recognize in writing a Sports Confederation which
will be the national coordinating macro body for the
promotion and
development of high performance sport in the Republic.”
[36]
The Sport Act defines “sport confederation” as the
confederation referred to in section 2 of the Sport Act.
Section 2
sets out the duties and powers of the sport confederation referred to
in subsection 2 (1). In terms of subsection 2 (2)
the sport
confederation may, from time to time, develop guidelines for the
promotion of high-performance sport. In relation to
high performance
sport a government ministry, department, province or local authority
may consult with the sport confederation.
[7]
The sport confederation must co-ordinate all activities relating to
high performance sport, including team preparations and must
consult
with all the relevant sport bodies in that regard.
[8]
Section 3 A requires the sport confederation to enter into a service
level agreement with the Department. Section 4 provides for
consultation between the Minister and the sport confederation insofar
as general policy to be pursued high performance sport is
concerned.
Subsection 6 (2) requires the national sport federations (such as
Chess SA) to actively participate in and support programmes
of the
Department and the sport confederation. The sport confederation is
also tasked with establishing a national colours board
that considers
all applications for national colours
[9]
.
Section 14 empowers the Minister, after consultation with the sport
confederation, to make regulations in relation to high performance
sport.
[37]
Section 13 provides for dispute resolution between members of sport
bodies or between members and their governing bodies.
Where disputes
cannot be resolved by the particular sport body it may be submitted
to the sport confederation for resolution.
[10]
The sport confederation must then advise the Minister of the dispute.
[38] Once the
dispute has been referred to the sport confederation, the provisions
of subsections 13 (3) and (4) apply:
“
13
Dispute resolution
(1)
…
(2)
…
.
(3)
The Sport Confederation must, in relation
to any dispute referred to in subsection (1) or (2)-
(a)
notify the relevant parties of the
allegations;
(b)
invite the parties to make representations
to it;
(c)
convene where necessary an inquiry into the
dispute; and
(d)
in accordance with the provisions of the
Promotion of Administrative Justice Act, 2000 (Act 3 of 2000), notify
the parties of the
decision.
(4)
The Sport Confederation may, at any time,
of its own accord, cause an investigation to be undertaken to
ascertain the truth within
a sport or recreation body, where
allegations of-
(a)
any malpractice of any kind, including
corruption, in the administration;
(b)
any serious or disruptive divisions between
factions of the membership of the sport or recreation body; or
(c)
continuation or maintenance of any
institutionalized system or practice of discrimination based on
gender, race, religion or creed,
or violation of the rights and
freedoms of individuals or any law,
have been made, and may
ask the Minister to approach the President of the Republic to appoint
a commission of enquiry referred to
in section 84 (2) of the
Constitution.”
[39] From the above
it is clear that the sport confederation that is contemplated in the
Sport Act is an institution exercising
a public power or performing a
public function as defined in section 239 of the Constitution. The
question is whether Sascoc is
the sport confederation referred to in
section 2 and whether it has been recognized by the Minister in
writing.
[40] In the
founding affidavit Chess SA alleged that Sascoc is the sport
confederation recognized by the Minister in terms
of section 2 of the
Sport Act, that it derives its powers and functions from the Sport
Act, and that it is an organ of state which
exercises a public power
or performs a public function in terms of the Sport Act. Sascoc did
not engage with these allegations
in its answering affidavit. In a
supplementary affidavit Sascoc denied that it was an organ of state.
It said that it is a private
entity established in terms of its
constitution. It specifically denied that it derived its powers from
the Sport Act.
[41] However,
Sascoc did not engage with Chess SA’s central allegation, that
Sascoc has been recognized by the Minister
as the sport confederation
referred to in section 2. Whilst Sascoc persisted in its
supplementary affidavit in denying that it
is the sport confederation
referred to in the Sport Act, it simultaneously submitted that Chess
SA was permitted to refer the dispute
between it and the Mahomole
faction to Sascoc for resolution in terms of section 13 of the Sport
Act. If that is the case, then
Sascoc is the sport confederation
referred to in the Sport Act, and it is an institution exercising a
public power and performing
a public function in terms of
legislation. It is thus an organ of state within the meaning of
section 239, and subject to review
in terms of PAJA.
[42] If I am wrong
in this finding, the decision by Sascoc would, in any event, in my
view, fall within the definition of
administrative action in (b) of
PAJA, in that Sascoc is a juristic person exercising a public power
or performing a public function
in terms of an empowering provision.
[43] Sascoc is a
private entity that has been established in terms of its
constitution. It says that it is a voluntary association
that is
governed and regulated in terms of the constitution. Therefore, it
argues, it does not exercise public powers or perform
public
functions when it exercises its powers in terms of its constitution.
[44] Sascoc’s
membership is comprised of national sport federations, provincial
sport confederations, elected ex-officio
members such as the
International Olympic Committee, the International Paralympics
Committee, etc. It also has a number of associated
members
representing various other sporting bodies. In terms of its
membership regulations Sascoc is the pre-eminent organization
designated “
to take national responsibility for the
development of the particular code of Sport and Recreation in South
Africa”.
It acts as the controlling body for the
preparation and delivery of Team South Africa at the Olympics,
Paralympics, Commonwealth
Games, World Games and All Africa Games.
Its members must obtain consent from Sascoc if they wish to
participate in international
sporting events, and they must
report to Sascoc on developments within the particular sport.
[45] In terms of
its constitution Sascoc has the authority to implement the National
Sports Colours Regulations, 2001. In
terms of clause 4.2 of its
constitution, Sascoc’s main business is to promote and develop
a strategic framework for High
Performance Sport as defined in the
Sport Act, and to act as the controlling body for sport in the
Republic. One of its ancillary
objects is to act as the recognized
national sports entity for the Republic. It has the exclusive
authority to select a city that
may apply to host the Olympic or
Commonwealth Games. It also has to ensure close cooperation between
government and the private
sector.
[46] Does it,
however, as a private body, exercise public power or perform a public
function? I shall attempt to provide hereunder
a summary of the
various authorities that deal with this question.
[47]
In pre-constitutional times, in
Dawnlaan
Beleggings (Edms) Bpk v Johannesburg Stock Exchange
[11]
the Court held that the decisions of the JSE were reviewable on the
basis that the JSE had a statutory obligation arising from
the
legislation in terms of which it had been established
[12]
to be licensed, and to ensure that its rules safeguarded and
furthered the public interest. It found that the functions of the
JSE
affected the public in general, and that it was not merely a private
body exercising private functions.
[48]
In
Cronje
v United Cricket Board of SA
[13]
,
(before the advent of PAJA), the question was whether the passing of
a resolution by the Cricket Board banning the applicant from
all
involvement in cricket was reviewable. The Court considered itself
bound by
South
African Roads Board v Johannesburg City Council
[14]
in which it was held that rules of natural justice only come into
play when a statute empowers a public official or body to do
an act
or give a decision prejudicially affecting a person’s rights.
The Court in
Cronje
held that the Cricket Board was not a public body, but rather a
voluntary association unconnected to the State. Its powers derived
from contract, it was privately funded and it had no statutory
recognition nor was it required to act in the public interest. For
those reasons its decisions were held not to be reviewable.
[49]
In
Coetzee
v Comitis
[15]
the Court considered a contractual term imposed on a soccer player by
the governing body that was akin to a restraint of trade.
The
judgment was handed down seven days after the commencement of PAJA
and was decided on general public policy grounds and on
the
Constitutional right to freedom of movement and dignity. It is not,
in my view, authority in respect of the exercise of public
power or
public functions by a private entity.
[50]
In
TIRFU
Raiders Rugby Club v South African Rugby Union and Others
[16]
the Court was called upon to determine whether a decision of the
South African Rugby Union on which clubs would participate in
play-off games constituted the exercise of public power or the
performance of a public function for purposes of a PAJA review.
The
Court considered the provisions of PAJA to be applicable to the case
at hand based on “
significant
public interest”
in
the affairs of the rugby organisations. It said so after having had
regard to the dictum in
Marais
v Democratic Alliance
[17]
which
reiterated that the mere public interest in a decision did not make
it an exercise of public power or performance of
a public function.
The Court (per Yekiso J) said:
“
The
exercise of such power and the performance of such function [by the
management committee of the Rugby Union] did not relate
to the
internal affairs of the First Respondent but was directed to the
external, independent and autonomous bodies such as the
Second, Third
and Fourth Respondents. In my view the conduct of the First
Respondent complained of is sufficiently public in nature
to warrant
the application of the provisions of the
Promotion of Administrative
Justice Act.”
[18
]
[51]
The approach taken in
TIRFU
was questioned in
Calibre
(infra)
.
[19]
I believe that in
TIRFU
too much emphasis was placed in
TIRFU
on the public interest, and that something more than public interest
is required for the conduct to be the exercise of public power
or the
performance of a public function.
[52]
In
AAA
Investments (Pty) Ltd v Micro Finance Regulatory Council and
Another
[20]
the Constitutional Court (per Yacoob J) considered whether the
Constitution applied to the rules of the first respondent (“the
Micro Finance Council”), a regulator of the micro-lending
industry and if so, whether the rules were consistent with the
Constitution. The central question was whether the Micro Finance
Council exercised public power when it made rules regulating
micro-lenders.
[53]
Yacoob J examined English, Canadian and United States law on the
issue of judicial review. In the
Panel
on Takeovers and Mergers
case
[21]
in England the Court
held that the Panel was subject to judicial review because it
performed an important public duty, its decisions
affected the
general public, it acted judicially in some respects, and its power
arose from certain statutory powers exercised
by a government
department.
[54]
In
Anston
Cantlow
[22]
the
English approach was described as follows:
[23]
“
What,
then, is the touchstone to be used in deciding whether a function is
public for this purpose? Clearly there is no single test
of universal
application….Factors to be taken into account include the
extent to which in carrying out the relative function
the body is
publicly funded, or is exercising statutory powers, or is taking the
place of central government or local authorities,
or is providing a
public service.”
[55]
In the United States it has been held
[24]
that a private corporation was bound by the First Amendment to the
Constitution on the basis that it (Amtrak) had been established
and
organized under federal law for the purpose of pursuing federal
government objectives, and it operated under government control.
[56]
In Canada conduct has been considered to be subject to judicial
review where non-governmental entities engaged in conduct
that is
‘governmental’ in nature
[25]
,
or where there the body in question had been established in terms of
a statute, or where there was a degree of government control.
In both
Canada and the United States, the proximity of the conduct to
governmental functioning was the deciding factor in whether
the
conduct was reviewable.
[57]
Yacoob J distinguished the Canadian and United States’ emphasis
on whether the conduct was governmental in nature
from the South
African approach as follows
[26]
:
“
Our
Constitution does not do this, however, by an expanded notion of the
concept of government or the executive or by relying on
concepts of
agency or instrumentality. It does so by a relatively broad
definition of an organ of state. This definition renders
the legality
principle and the Bill of Rights applicable to a wider category of
functions than the Charter does in Canada. An organ
of state is,
amongst other things, an entity that performs a public function in
terms of national legislation. If the Council performs
its functions
in terms of national legislation, and these functions are public in
character, it is subject to the legality principle
and the private
protection. In our constitutional structure, the Council or any other
entity does not have to be part of government
or the government
itself to be bound by the Constitution as a whole.”
[58] The Court held
that the functions of the Micro Finance Council were public in nature
for the following reasons: Firstly,
the Minister exercised a measure
of control over the Council, its composition and tasks, and the
criteria for registration of its
members, and, secondly the Minister
prescribed minimal rules that the Council had to enforce. Thirdly,
the Council was obliged
to perform its functions in terms of a
ministerial Exemption Notice.
[59]
In
Mittalsteel
South Africa (Ltd) (formerly Iscor Ltd) v Hlatswayo
[27]
the
Court considered the meaning of a ‘public body’ in the
Promotion of Access to Information Act, 2 of 2000 (which
is similar
to the definition of an organ of state in section 239), and reached a
conclusion that Mittalsteel (formerly Iscor) was
a ‘public
body’, based on the extent by which the body was under the
control of the state or performed a traditional
governmental
function.
[60]
In
The
National Horse Racing Authority of Southern Africa v Naidoo and
Another
[28]
a decision to ‘warn off’ a horse trainer by a Board of
Enquiry established by the National Horseracing Authority was
under
review as administrative action under PAJA. The Court held that the
question was whether the sporting body was exercising
a public power
or performing a public function, and that the answer to the question
lay in a consideration of the functions of
the body. The government,
the Court held, had a substantial interest in the regulation and
administration of sport, and in cases
where the body exercised a near
monopolistic control over the sport on all levels, and where public
interest in the sport was massive
and the amounts of money generated
by the body was substantial, there was no reason to find that PAJA
was excluded from application
to sporting bodies such as the Horse
Racing Authority.
[61]
In
Calibre
Clinical Consultants (Pty) Ltd and Another v National Bargaining
Council for the Road Freight Industry and Another
[29]
the Court considered whether the decision of a Bargaining Council not
to appoint the appellant as a service provider was subject
to review.
The Court made the point that a body cannot be considered to exercise
a public power simply because the public had an
interest in the
manner in which the powers were exercised. Nugent JA emphasized the
fact that abroad and in South Africa:
“…
courts
have consistently looked to the presence or absence of features of
the conduct concerned that is governmental in nature.
What has been
considered to be relevant is the extent to which the functions
concerned are ‘woven into a system of governmental
control’
or ‘integrated into a system of statutory regulation’, or
the government ‘regulates, supervises
and inspects the
performance of the function’ or it is ‘a task for which
the public, in the shape of the state, have
assumed responsibility’,
or it is ‘linked to the functions and powers of government’
or it constitutes ‘a
privatization of the business of
government itself’ or it is publicly funded, or there is
‘potentially a government
interest in the decision-making power
in question’ or the body concerned is ‘taking the place
of central government
or local authorities’…”
[30]
[62]
Nugent JA held that although there is no single test of universal
application to determine whether conduct of a private
body is
judicially reviewable, it is useful to enquire whether the conduct is
governmental in nature and whether it entails public
accountability
because “
it
seems to me that accountability to the public is what judicial review
has always been about.”
[31]
[63]
In
Nyoka
v Cricket South Africa
[32]
the president of Cricket South Africa was removed from office, and
whereas it was conceded that in terms of the principles of natural
justice he had had the right to be heard before his removal was
considered, the only question for determination (on the merits)
was
whether his right to be heard had been violated. I also do not
consider this case to be authority regarding the application
of PAJA
to a private body.
[64]
In
Ndoro
and Another v South African Football Association and Others
[33]
the
Court was concerned with the question whether the decision of an
arbitrator appointed in terms of the SAFA statutes and
the National
Soccer League’s constitution was reviewable.
[65] Having
considered
Cronje
,
Coetzee, National Horseracing, TIRFU,
Nyoka and Calibre
, the Court (per Unterhalter J, as he then was)
parsed the following principles from the cases:
[65.1] Private
entities may discharge public functions by recourse to powers that do
not have a statutory source. Such powers
may constitute public
powers.
[65.2] A private
entity may exercise public power, but not all of its conduct is
necessarily the exercise of public power
or the performance of a
public function. Whether it is depends on the nature of the power or
unction.
[65.3] While there
are broad criteria for evaluating whether a competence of a private
entity is a public power or public
function, the simple fact that an
entity is powerful and may do things of interest to the public does
not result in the conclusion
that the entity discharges a public
power or public function.
[66] The test,
according to
Ndoro
, is the following:
“
It
is the “
assumption
of exclusive, compulsory, coercive regulatory competence to secure
public goods that reach beyond mere private advancement
that attracts
the supervisory disciplines of public law.”
[34]
[67]
I was urged to find that
Ndoro
was incorrectly decided, in that it seems on the face of it to
deviate from the principles laid down in
AAA
Investments (supra)
and
Calibre
(supra)
,
which have both “
sought
out features that are governmental in kind when interrogating whether
conduct is subject to public law review
”
[35]
.
I do not believe that to be the case.
Ndoro
makes it clear that public power is exercised and public functions
performed when a body assumes the competence
“
to
secure public goods that reach beyond mere private advancement
.”
(my emphasis). That is the same as saying, as did Nugent JA in
Calibre
:
“
Powers
or functions that are ‘public’ in nature, in the ordinary
meaning of the word, contemplates that they pertain
‘to the
people as a whole’ or that they are exercised or performed ‘on
behalf of the community as a whole’-
(or at least to a group or
class of the public as a whole-), which is pre-eminently the terrain
of government”.
[36]
[68] In
Ndoro
the Court took into account that the regulatory scheme of the
Football Association was exclusive, comprehensive, compulsory and
coercive and that there was no other way to play professional
football other than in terms of the SAFA rules. Compliance was not
optional and the rules were backed by coercive sanctions. Finally,
soccer was of enormous importance to large sections of the public,
so
that the flourishing of the game was bound up with the well-being of
the nation. For these reasons the Court held that SAFA
was acting in
the public good, and not merely in furthering private interests, and
that the decision of the arbitrator was ‘administrative
action’
as defined in PAJA.
[69] However,
whether
Ndoro
did or did not extend the understanding of what
constitutes public power, in my view Sascoc is clearly fulfilling a
governmental
function. It cooperates with the Department in promoting
and regulating sport within the republic. There is no path to
participation
internationally other than through Sascoc, nor is there
a path to national colours, save on its recommendation. On Sascoc’s
own version, when a dispute arose between the two Chess SA factions,
Chess SA was entitled to submit the dispute to Sascoc in terms
of
subsection 13 (2) of the Sport Act, at which point Sascoc was obliged
to act in accordance with the provisions of subsection
13 (3). Sascoc
promotes sport throughout the country, and it does so in conjunction
with, and under the guidance of the Minister
and of the Department.
[70] I therefore
find that Sascoc is also a juristic person that exercises a public
power and performs a public function in
terms of an empowering
provision (its constitution). Its conduct is subject to review under
PAJA.
[71] Should the
decisions to suspend Chess SA, initially by the Board pending
confirmation of the general meeting, and the
subsequent permanent
suspension at the general meeting be reviewed and set aside? Sascoc
has argued that the decision by the Board
has been overtaken by Chess
SA’s final suspension by the general meeting, and that Chess SA
cannot obtain relief in respect
thereof. In my view that argument
misses the point. It is so that setting aside the Board decision
would not have the effect of
reinstating Chess SA. As Sascoc says, it
is a fait accompli. However, the Board’s decision may still be
declared to have
been taken unlawfully, if it is so.
[72] Having held
that Sascoc’s decisions are reviewable under PAJA, I now turn
to consider whether the decisions to
suspend Chess SA, provisionally
and then finally, should be reviewed and set aside. The following is
a summary of the events leading
up to the taking of the decisions:
[72.1] Sascoc’s
intervention in Chess SA seems to have been commenced in earnest at
the meeting held between Sascoc
and the Du Toit faction on 21
September 2022. Mr. Du Toit says that at that meeting he advised
Sascoc of the enormous difficulties
faced by Chess SA to get its
house in order. That may or may not be the case, but nonetheless, on
22 September 2022 Sascoc requested
a number of good-governance
documents from Chess SA.
[72.2] Chess SA
only replied to the request on 23 January 2023, essentially saying
that it did not understand some of the
Sascoc requirements, and that
it could not comply with other requests due to non-cooperation by
members of the rival faction. Chess
SA requested a meeting with
Sascoc to discuss how Sascoc could assist it in achieving the
necessary good-governance requirements.
Sascoc’s response was
simply to note receipt of the email.
[72.3] On 27
January 2023 Sascoc invited Chess SA to a portfolio committee meeting
to be held on 24 March 2023. Chess SA was
requested to submit a
presentation for the committee’s attention. There was then an
attempt to reschedule the meeting that,
due to scheduling issues,
never materialized.
[72.4] On 14 March
2023 Chess SA received a letter from Sascoc informing it that Chess
SA had been provisionally suspended
as a member of Sascoc by the
Sascoc board. Chess SA was advised that the next general meeting
would be held on 22 April 2024 where
its suspension would be
discussed. Two reasons were given for the suspension, firstly, that
Chess SA had undertaken to provide
the documents required by Sascoc,
but had failed to do so, and, secondly, that there had been a
six-year impasse in the factional
fighting within Chess SA which had
brought Chess SA into disrepute.
[72.5] Mr. Du Toit
wrote to Sascoc on 16 March 2023, setting out the history of the
case, and demanding certain documents
relating to the Board’s
decision, and also requesting a copy of the Sascoc constitution. No
response was received from Sascoc.
A further letter by Chess SA’s
attorneys on 30 March 2023 elicited no response from Sascoc.
[72.6] On 6 April
2023 Sascoc gave notice to its members of the upcoming general
meeting to be held on 22 April 2023. Chess
SA did not receive the
notice, and no mention was made therein of the proposed ratification
of the suspension of Chess SA.
[72.7] Only on 17
April 2023 did Sascoc acknowledge receipt of Chess SA’s
letters. In its reply Sascoc invited Chess
SA to attend the general
meeting. It was told that Chess SA would be allowed to ‘present’
to the general meeting. No
reasons were given for the proposed
ratification of the suspension.
[72.8] On 19 April
2023 Sascoc disseminated a report written by Ms. Patience
Shikwambana, the deponent to Sascoc’s answer,
in which she
provided a five-page summary of the state of affairs within Chess SA,
and of the events of the previous 6 years. The
report had apparently
also served as the basis for Chess SA’s provisional suspension
by the Board. The report did not specify
what the specific basis was
for Chess SA’s suspension, save to state that Sascoc had
concerns in relation to the Chess SA
elections process “
and
possible litigations on verification system on good standing for each
member
”, whatever that may have meant. The report noted
that both Sascoc and the Department were of the view that Chess SA
did not
“
meet requirements
to be in good standing
with Sascoc based on their presentation and failure to prove that all
its affiliates understand the election
processes including the
verification on good standing process.”
There was no
attempt made to explain to the reader exactly what ‘requirements’
were not met. The report did not explain
that different courts had in
the past held the Mahomole faction’s attempts to take over
Chess SA to have been unlawful. It
also did not explain Chess SA’s
difficulties in administering the sport in the face of a takeover
attempt by the Mahomole
faction. Sascoc was quite disparaging of
Chess SA’s decision to institute legal action against the
Mahomole faction.
[72.9] Chess SA was
given a hearing at the general meeting held on 22 April 2023. Ms.
Shikwambana presented the case for Chess
SA’s suspension. She
provided two reasons for the suspension: Firstly, that Chess SA had
not complied with Sascoc’s
membership requirements,
specifically, that it had not submitted its annual documents and that
its affiliates were not in good
standing. Secondly, that the
leadership issue within Chess SA had brought the sport into
disrepute, by bringing court cases without
exhausting internal
processes, and undermining Sascoc interventions.
[72.10]
Mr. Du Toit was given an opportunity to respond. However, it is clear
that he was placed under a severe time constraints
in that he was
given only 20 minutes to present his case. Some six pages into the
transcription of his presentation he was told
that he only had five
minutes left to make his case, and ultimately, he was made to
stop.
[37]
[72.11] Du Toit’s
presentation largely amounted to a plea to Sascoc to assist in
reviving the organization. His plea
fell on deaf ears because, after
a brief discussion, the general meeting resolved to permanently
suspend Chess SA.
[72.12] On 28 March
2023 Sascoc recorded its decision in writing, advising Chess SA
formally of its suspension. It provided
the following reasons:
[72.12.1] That
Chess SA had not complied with Sascoc membership requirements of
having no less than five affiliates within
5 provinces;
[72.12.2] That
Chess SA had not held free and fair elections since 2018;
[72.12.3] That
Chess SA had not submitted governance documents such as a
constitution, an agenda and minutes of annual general
meetings, and
financial reports;
[72.12.4] That
Chess SA had not convened annual general meetings;
[72.12.5] Chess SA
had failed to submit audited financial statements since 2017, and had
not submitted a safeguarding policy;
[72.12.6] Chess SA
had failed to act in its own best interests, had since 2019
disregarded and undermined Sascoc and the International
Chess
Federation, and had failed to resolve a long-standing leadership
dispute.
[73] Clause 22 of
Sascoc’s constitution provides for the suspension of members.
It says that the general assembly may
suspend a member at a general
meeting. In terms of clause 22.2 the Sascoc Board may provisionally
suspend a member in two circumstances,
firstly, if a member violates
its obligations as a member, or secondly, if the member no longer
meets the requirements to be in
good standing. The Board must do two
things before it suspends a member. Firstly, it must consult the
relevant international body,
and secondly, the Board must grant the
member the opportunity to make representations at a hearing before a
suspension is confirmed.
[74] Mr. Seleka SC,
acting for Sascoc, argued that the member’s opportunity to put
its case comes at the general meeting
that considers the provisional
suspension. That cannot be correct. Clause 22.2 relates to suspension
of a member by the Board,
not by the general meeting. Secondly, it
requires the Board to provide a hearing, which would be superfluous
if the member were
already suspended.
[75]
Section 3 of PAJA requires an administrative action to be taken in a
procedurally fair manner
[38]
,
which includes that a person whose rights are materially and
adversely affected by a decision must be given adequate notice of
the
nature and purpose of the proposed administrative action
[39]
,
a reasonable opportunity to make representations,
[40]
, a clear statement of the administrative action,
[41]
and the person must be given an opportunity to put its case before a
decision is taken
[42]
.
[76] None of these
requirements were met by the Board. Its decision to provisionally
suspend Chess SA was therefore procedurally
unfair.
[77] Notice of the
general meeting was given to members of Sascoc on 6 April 2023, short
of the thirty days’ notice
period provided for in the Sascoc
constitution. Chess SA received only five days’ notice of the
meeting. It only received
the Shikwambana report three days before
the meeting. That was not, in my view, adequate notice for it to
prepare its case. Also,
the Shikwambana report did not provide a
clear statement of the complaint against Chess SA, and it had to try
to distill from the
report what case it had to meet. Moreover, in my
view Chess SA was not given adequate time to put its case. I find
that the proceedings
relating to the general meeting were also
procedurally unfair.
[78]
Chess SA argued that Sascoc was not authorized by its constitution to
suspend a member, due to Chess SA’s suspicions
regarding the
validity of the November 2022 constitution
[43]
.
I have already said that I accept that the latter constitution was
properly adopted. It authorizes Sascoc to suspend members in
appropriate circumstances, and no more has to be said on this
subject.
[79]
Chess SA also says that the decision to suspend it was tainted by
bias, or that Chess SA held a reasonable belief that
Sascoc was
biased.
[44]
Although I can say
that Sascoc’s approach to the matter was unfortunate, in that
it refused, apparently on legal advice,
to become embroiled in the
dispute between the Du Toit and Mahomole factions, I cannot say that
its decision was the result of
bias, or even that Chess SA’s
belief of bias is reasonable. One could perhaps have hoped that
Sascoc would accept the Full
Court findings, and have become involved
in active dispute resolution, as the Sport Act empowers it to do. The
apparent absence
of leadership by Sascoc does not, however, translate
into a conclusion that it was biased. The same applies to the
argument that
the decision was taken in bad faith
[45]
,
for an ulterior motive, or that the decision was taken because of the
dictates of another person or body
[46]
.
[80] Chess SA
submitted that Sascoc had considered irrelevant facts in coming to
the decision, and had not considered relevant
aspects. It argued that
the results of the litigation should have been considered, as well as
the interference in Chess SA affairs
by the Mahomole faction. For
that reason, it says, the decision by the general meeting should be
reviewed under subsection 6 (2)
(e) (iii).
[81] There is some
substance to this argument. The Shikwambana report, upon which both
the Board and the general meeting made
its decisions did not, in my
view, convey the entire context of the predicament in which Chess SA
found itself. The election of
Exbo office bearers on 1 July 2018,
including the election of Mr. Mahomole, had been set aside, and the
Court directed that a Special
General Meeting should be held again.
The elected Exbo members, evidently from the Mahomole faction, were
not thereafter entitled
to act as Exbo members.
[82] The Full Court
handed down judgment on 16 February 2022 in which it upheld the
appeal against the rescission order of
Yacoob J. The result of the
Full Court upholding the appeal was that the order of Siwendu J
revived, with the consequence that
an AGM held on 8 December 2018, at
which the Du Toit faction prevailed, was held to be valid. That
information was never provided
to the general meeting, and Sascoc
seems to have paid no heed to the findings against the Mahomole
faction.
[83] The
difficulties that Chess SA faced in obtaining possession of its
financial documents and bank documents, that prevented
it from
preparing annual statements, was also only referred to in passing. It
may well be that if that information had been conveyed
to the general
meeting properly, there may have been a different outcome. However,
given my findings below I do not have to come
to a conclusion on this
issue.
DID THE EXBO OF CHESS SA
HAVE AUTHORITY TO LAUNCH THIS APPLICATION?
[84] Although I
believed it to be proper to consider all of the above issues, this
final topic is, in my view, dispositive
of the application.
[85] Chess SA says
that on 27 April 2023 the Exbo met and adopted a resolution to
institute this application. Its contention
was supported by a
document titled “
Minutes of the Executive Board of the
Voluntary Association Chess SA held on 27 April 2023”
that
purported to be a resolution taken by the Exbo
.
The document
recorded that it had been resolved that Chess SA would institute
litigation against Sascoc, and that Mr. Du Toit was
authorized to do
all things necessary to institute the proceedings.
[86] Sascoc asked
Chess SA to provide the actual minutes of the meeting. These were
never forthcoming. The resolution itself
cannot be the minutes of the
meeting as Chess SA alleges. Sascoc also denies that a proper
executive meeting could have been held,
in light of the fact that
nine of Chess SA’s provincial members had at that time been
suspended. It says that the decision
to institute the litigation is a
nullity.
[87] The Chess SA
constitution records that its ordinary members are the various
provincial chess associations. It also has
a special member known as
the Player’s Commission that is comprised of individual chess
players. Associate members are those
chess associations that have
applied to be recognized as associate members and have at least 250
individual members of their own.
[88] Chess SA is
governed, firstly by a National Council that meets bi-annually. An
Ordinary General Meeting must be held
every year but not later than
July of each year. The Annual General Meeting is to be held not
earlier that October. An Annual General
Meeting must be held each
year. Curiously, the list of business to be transacted at an Annual
General Meeting in terms of clause
20.4 of the constitution does not
include the election of an Exbo, although it seems unlikely that a
new Exbo is not elected each
year. Clause 22.5 of the constitution
does, however, refer to an “elective A.G.M.” where a new
Exbo is elected.
[89] The National
Council has full power to manage and direct the business affairs of
Chess SA, and may exercise all powers
possessed by Chess SA, and may
“
do all such acts on behalf of Chess SA, as may be exercised
and done by Chess SA itself.”
[90] Secondly,
Chess SA’s day-to day affairs are conducted by the Exbo that
consists of the president, two vice-presidents,
a treasurer, a
general secretary, three provincial representatives, a representative
of the Special Member, a person responsible
for public relations and
marketing, the head of schools chess, and the Head Coach. In terms of
clause 24.1 each member of Exbo
has one vote, which it must exercise
by a show of hands. Decisions are taken by majority vote, and in the
case of a tie, the chairperson
has a casting vote. A quorum consists
of seven members of Exbo, including a minimum of two provincial
members
being present.
[91] The Exbo
functions are:
[91.1] To oversee
Chess SA’s administrative functions and to deal with any
matters referred to it by the National Council.
[91.2] To decide on
administrative structures and procedures;
[91.3] To control
and oversee the work of the management committee, commissions and
technical committees.
[92] On 22 April
2023 Mr. Du Toit told the general meeting that the decision of the
Full Court handed him the “keys”
to Chess SA, seeming to
imply that he was then placed in charge of the organization. Nothing
is further from the truth. The only
effect of the Full Court order
was that the elections of December 2018 were given legitimacy. That
does not mean that the Du Toit
faction had carte blanche then to
continue to rule Chess SA by fiat. Chess SA was still obliged to hold
annual general meetings
to elect a new Exbo. This it did not do.
[93] It seems clear
that no new Exbo was elected at the December 2022 annual general
meeting. In my view, the Exbo that had
been elected in 2018 had no
authority to act on behalf of Chess SA in 2023.
[94] I also have
grave doubts, although this issue was not canvassed in argument,
whether the Exbo, even if properly elected,
would have had the
authority in terms of the constitution to launch litigation. That
authority seems to me to be vested in the
National Council.
[95] However, be
that as it may, I also have grave doubts whether the Exbo was
properly constituted, and whether a proper
vote was taken on 27 April
2023.
[96] Although Chess
SA did not put up minutes of the meeting of 27 April 2023, it
provided a version of the events leading
to the adoption of the
alleged resolution. It says that when the resolution was adopted, the
Exbo consisted of Mr. Du Toit as president,
a vice president, one
provincial representative, one Players’ Commission
representative, the Head of Schools, the Head Coach
and a public
relations person. These persons had one vote each. In addition, the
Exbo consisted of a schools’ representative,
secretary, two
provincial representatives, treasurer and provincial, all of whom had
been co-opted onto Exbo, and none of whom
had voting powers. From the
above it is clear that the Exbo was not properly constituted.
[97] At the meeting
on 27 April 2023 the following persons with voting rights were
present:
[97.1] Mr. Du Toit
(president);
[97.2] Ms. J
Steenkamp (vice-president);
[97.3] Mr. M Lekgau
(Players’ Commission representative);
[97.4] Mr. J
Mabusela (Head coach);
[97.5] Ms. J Soojay
(Public relations).
[98] In
addition to the above voting members, the following non-voting
members were present:
[98.1] Mr. T Nene
(schools’ representative);
[98.2] Ms. P
Mahamba (provincial representative);
[98.3] Ms. A
Vermaak (treasurer);
[98.4] Mr. J Wilken
(provincial representative).
[99] Mr. Du Toit
says in his affidavit that it was decided to put the resolution to a
vote onto a Whatsapp group. He
says one voting member abstained
from the vote. That left four votes for members present at the
meeting. Three members voted against
the resolution. One person, Ms.
L Koekemoer, was absent from the meeting and voted in favour of the
resolution by Whatsapp. That,
Mr. Du Toit says, means that there was
a three-votes in favour, three votes opposed tie, which he broke by
exercising his casting
vote. That cannot be. Leaving aside the
question whether it was permissible for Ms. Koekemoer to vote on
Whatsapp when she was
not present at the meeting, given the
constitutional requirement that voting is to be by a show of hands,
the mathematics do not
add up. If there were six votes available,
five at the meeting and one by Mrs. Koekemoer, and one member
abstained, there could
not have been a tie. The votes must have been
three votes opposed to the resolution and two in favour.
[100] In my view
Sascoc correctly challenged the authority of Mr. Du Toit to institute
these proceedings on behalf of Chess
SA. I find, therefore, that
these proceedings were not properly authorized.
COSTS
[101]
Sascoc seeks costs against Chess SA, and has also argued that costs
should be granted against Mr. Du Toit
de
bonis propriis.
The
issue of costs is one to be considered judicially, and bearing in
mind the approach in
Ferreira
NO v Levin& Others; Vryenhoek & Others v Powell NO and
Others
[47]
:
“…
without
attempting either comprehensiveness or complete analytical accuracy,
depriving successful parties of their costs can depend
on
circumstances such as, for example, the conduct of the parties, the
conduct of their legal representatives, whether a party
achieves
technical success only, the nature of the litigants and the nature of
the proceedings.”
[102]
In
Biowatch
Trust v Registrar Genetic Resources and Others
[48]
the Constitutional Court restated the general rule, that in
constitutional litigation an unsuccessful litigant ought not to pay
costs.
[49]
[103] In my view
there were clear Constitutional issues at stake in this case, namely
Chess SA’s right to fair administrative
action by an organ of
state. In such circumstances, Chess SA ought not to be made to pay
costs.
[104] In any event,
Chess SA has shown that Sascoc’s decisions were procedurally
unfair, firstly in suspending it first
provisionally, and later,
finally. In this regard Chess SA has achieved a measure of success,
albeit that it was unsuccessful due
to a technical challenge. It
would, in my view, be appropriate to make no order as to costs in
respect of the main application.
That includes the costs of Part A.
[105] Sascoc
brought an unsuccessful substantive application for the striking out
of evidence that I intend to dismiss. That
application was voluminous
and took some time to consider. In respect thereof, Sascoc ought to
bear the costs.
[106]
Consequently, I make the following order:
[106.1] The
application is dismissed.
[106.2] The
first respondent’s striking-out application is dismissed.
[106.3] The
first respondent shall bear the costs of the striking-out
application.
[106.4] Save for
the costs order in paragraph 106.3 above, there is not order as to
costs.
SWANEPOEL J
JUDGE OF THE HIGH
COURT
GAUTENG
DIVISION PRETORIA
Counsel for the
applicant:
Adv. A.T. Lamey
Adv.
C. Van Schalkwyk
Instructed
by:
Hurter Spies Inc.
Counsel for the first
respondent:
Adv. P.G. Seleka SC
Adv.
S. Van Vuuren
Instructed
by:
Harrington Johnson Wands Attorneys
[1]
Section
2 of the Sport Act
[2]
Vaatz
v Law Society of Namibia
1991 (3) SA 563
(NM); See also Erasmus,
Superior Court Practice, 2
nd
Ed. D1-91
[3]
See
footnote 3 above. See also National Director of Public Prosecutions
v Zuma
[2009] ZASCA 1
;
2009 (2) SA 277
(SCA) at para 23
[4]
2008
(6) SA 102 (W), [2008] 1 ALL SA 509 (W)
[5]
[1997] ZASCA 32
;
1997
(3) SA 721
(SCA) at para 24
[6]
1974
(3) SA 207 (O)
[7]
Subsection
2 (3) (b)
[8]
Subsection
2 (4)
[9]
Section
11
[10]
Subsection
13 (2) (a)
[11]
1983
(3) SA 344 (W)
[12]
The
Stock Exchanges Control Act, 7 of 1947
[13]
2001
(4) SA 1361
(T)
[14]
1991
(4) SA 1 (AD); [1991] 4 ALL SA 722 (AD)
[15]
2001
(1) SA 1254 (C)
[16]
[2006]
2 ALL SA 549
(C)
[17]
2002
(2) BCLR 171 (C)
[18]
At
para 29
TIRFU
places
much emphasis on the public interest, an approach that was doubted
in
Calibre
(infra)
at para 36
[19]
At
para 36
[20]
2007
(1) SA 343 (CC)
[21]
R
v Panel on Takeovers and Mergers, ex parte Datafin and Another
(Nortoin Opax PLC intervening
[1987] 1 ALL ER 564
(CA)
[22]
Anston
Cantlow and Wilmcote with Billesley Parochial Church v Wallbank
[2003] UKHL 37; [2004] 1 AC 546
[23]
At
para 12
[24]
Lebron
v National Railroad Passenger Corporation
[1995] USSC 11
;
513 US 374
(1995)
[25]
Eldridge
v British Columbia (Attorney-General [1997] 3 SCR 624
[26]
At
para 41
[27]
2007
(1) SA 66
(SCA);
[2007] 1 ALL SA 1
[28]
2010
(3) SA 182 (N)
[29]
2010
(5) SA 457 (SCA); [2010] 4 ALL SA 561 (SCA)
[30]
At
para 38
[31]
At
para 40
[32]
[2011]
ZAGPHC 32
(15 April 2011)
[33]
2018
(5) SA 630 (GJ); [2018] 3 ALL SA 277 (GJ)
[34]
At
para 23
[35]
At
para 39
[36]
At
para 39
[37]
Page
013-30 of the record
[38]
Subsection
3 (1)
[39]
Subsection
3 (2) (b) (i)
[40]
Subsection
3 (2) (b) (ii)
[41]
Subsection
3 (2) (b) (iii)
[42]
Subsection
3 (3)
[43]
Subsection
6 (2) (a) (i) of PAJA
[44]
Subsection
6 (2) (a) (iii)
[45]
Subsection
6 (2) (e) (v)
[46]
Subsection
6 (2) (e) (iv)
[47]
[1996] ZACC 27
;
1996
(2) SA 621
(CC) at para 3; [1996] ZACC 27
[48]
[2009]
ZACC 14; 2009 (6) SA 232 (CC)
[49]
The
Constitutional Court restated the rule applied in Affordable
Medicines Trust and Others v Minister of Health and Another
[2005]
ZACC 3
;
2006 (3) SA 247
(CC)
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