Case Law[2023] ZAGPPHC 1815South Africa
Sand Shifters Africa (Pty) Ltd and Others v Commissioner: Broad-Based Black Economic Empowerment Commission and Another (2021/61622) [2023] ZAGPPHC 1815 (24 October 2023)
High Court of South Africa (Gauteng Division, Pretoria)
24 October 2023
Judgment
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# South Africa: North Gauteng High Court, Pretoria
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## Sand Shifters Africa (Pty) Ltd and Others v Commissioner: Broad-Based Black Economic Empowerment Commission and Another (2021/61622) [2023] ZAGPPHC 1815 (24 October 2023)
Sand Shifters Africa (Pty) Ltd and Others v Commissioner: Broad-Based Black Economic Empowerment Commission and Another (2021/61622) [2023] ZAGPPHC 1815 (24 October 2023)
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sino date 24 October 2023
FLYNOTES:
ADMINISTRATIVE – B-BBEE Commission – Final findings –
Commission
made findings outside prescribed time in terms of Regulation
15(4)(g) – Failed to ask for extension of time
–
Delays explained by Covid restrictions and office move –
Covid lockdown cannot account for delay of almost
a year –
Regulation 15(4) etched in peremptory terms – Not in
interests of justice to grant condonation –
Fell foul of
section 6(2) of PAJA and failed to comply with empowering
provisions – Commission time-barred –
Final findings
reviewed and set aside –
Promotion of Administrative Justice
Act 3 of 2000
,
s 6(2)(b).
IN THE HIGH COURT OF
SOUTH AFRICA
(GAUTENG
DIVISION, PRETORIA)
CASE
NO: 2021/61622
(1)
REPORTABLE: YES
(2)
OF INTEREST TO OTHERS JUDGES: YES
(3)
REVISED: NO
DATE:
24/10/2023
In
the matter between:
SAND
SHIFTERS AFRICA (PTY) LTD FIRST
APPLICANT
SAND
SHIFTERS (PTY) LTD SECOND
APPLICANT
SAND
SHIFTERS LOGISTICS HOLDINGS (PTY) LTD THIRD
APPLICANT
MARISIMO
BEE PROFESSIONAL
SERVICES
(PTY) LTD)
FOURTH
APPLICANT
and
COMMISSIONER:
BROAD-BASED BLACK
ECONOMIC
EMPOERMENT COMMISSION FIRST
RESPONDENT
MINISTER
OF TRADE AND INDUSTRY SECOND
RESPONDENT
JUDGMENT
MOTHA
J
Introduction
[1]
Fronting is a weapon used by erstwhile oppressors
to stymie and reverse the gains of the democratic project. They know
that a hungry
stomach knows no principles and greed knows no bounds.
From the Pied Piper of Hamelin, one learns the lesson that the one
who pays
the piper calls the tune.
[2]
This is a review application to set aside the
findings made by the Commission of the Broad-Based Black Economic
Empowerment Commission
(“the Commission”) on 9 June 2021.
The first to third applicants are private companies and part of the
Sand Shifters
Group companies specializing in supplying sand,
filling, and bricks to the construction industry as well as providing
aggregates.
The fourth applicant was a B-BEE verification agency. Ms.
Colman is the sole director of the first, second and third
applicants.
[3]
By agreement between the parties, this court's
role has been truncated to solely adjudicate three issues, to wit:
3.1
Whether
the first respondent is entitled to challenge the authority of the
applicants’ deponents, Ms. Colman, in the absence
of compliance
with Rule 7(1) of the Uniform Rules of Court;
3.2
If
the authority challenge is before court, whether there is sufficient
evidence to satisfy the court that they are duly authorized;
and;
3.3
Whether
the first respondent is time-barred in terms of regulation 15(4)(g)
of the Broad-Based Black Economic
Empowerment Regulations published
in
Government
Gazette
40053,
dated 6 June 2016.
[1]
Parties
[4]
In describing the parties, it is worth noting that
the dispute between the fourth applicant and the respondents has been
dealt with
in terms of the order dated 27 July 2023. Therefore, the
only
dramatis personae
are
the first, second and third applicants and the respondents.
[5]
The first applicant is Sand Shifters Africa (Pty)
Ltd (SS Africa), a private company established and incorporated in
terms of the
company laws of the Republic of South Africa, with the
registration number: 2017/060197/07.
[6]
The second applicant is Sand Shifters (Pty) Ltd
(SS), a private company established and incorporated in terms of
company laws of
the Republic of South Africa, with the registration
number: 2019/487644/07 (previously 2007/166133/23).
[7]
The third applicant is Sand Shifters Logistics
Holdings (Pty) Ltd (SS Logistics), a private company established and
incorporated
in terms of the company laws of the Republic of South
Africa, with the registration number: 2015/086505/07.
[8]
The fourth applicant is Marisimo BEE Professional
Services (Pty) Ltd, a private company established and incorporated in
terms of
the company laws of the Republic of South Africa, with the
registration number: 2007/019859/07.
[9]
The first respondent is the Broad-Based Black
Economic Empowerment Commission, an entity created by section 13B of
the Broad-Based
Black Economic Empowerment Amendment Act 46 of 2013
(“the Act”).
[10]
The second respondent is the Minister of Trade and
Industry who is cited in his official capacity as a member of the
cabinet vested
with public authority and duty to oversee the
implementation of the Act.
Facts in brief
[11]
On 26 June 2019, Mr Sipho Lesly Mahlangu lodged a
complaint of fronting, on behalf of the “Ekurhuleni Business
Forum”,
against the Sand Shifters (Pty) Ltd (the three
applicants). The complaint was received and acknowledged by the
Commission on the
same day, which day marked the beginning of the
computation of time limit in terms of Regulation 15(4)(g) of the
Broad-Based Black
Economic
Empowerment Regulations.
[12
]
On 20 September 2019, the Commission informed Sand
Shifters that a complaint had been lodged by Mr Mahlangu. On 9
October 2019,
SS Africa provided documents requested by the
Commission on 20 September 2019. Further documents were provided by
SS Africa on
17 October 2019.
[13]
The 26
th
of June 2020 marked the end of one (1) year, as
contemplated in
regulation 15(4)(g).
On 15 July 2020, the Commission
advised that it had concluded its assessment of the matter and had
reached a conclusion that there
were merits in investigating SS
Africa’s, SS’ and SS logistics’ alleged
misrepresentation of the B-BBEE status
and fronting practices
including the creation of an opportunistic intermediary for B-BBEE
compliance.
[14]
Documents requested by the commission were emailed
on 28 July 2020. On 6 August 2020 the Commission requested further
information
and clarification from SS Africa. This information was
provided on 7 August 2020. On 10 December 2020, the commissioner
addressed
a letter to “Mr. GG Volsoo” headed “Findings:
Sipho Mahlangu// Sand Shifters Africa (Pty) Ltd and Others.”
Mr. Vosloo responded to this letter on 20 December 2020. On 29
January 2021, the SS applicants replied to the preliminary findings.
The final finding was issued to Sand Shifters on 9 June 2021.
Authority
challenge
[15]
In the answering affidavit, the respondents
challenge the authority of Ms. Colman, the deponent to the founding
affidavit, to launch
this application. The argument is articulated in
following terms:
“
The
current legal proceedings are purportedly instituted on behalf of
Sand Shifters Africa (Pty) Ltd; Sand Shifters (Pty) Ltd; Sand
Shifters Logistics Holdings (Pty) Ltd and Marisimo BEE Professional
Services (Pty) Ltd. All four mentioned entities are juristic
persons
with separate legal identity.
Notwithstanding
that the current proceedings are purported to be instituted on behalf
of juristic persons, the deponent to the founding
affidavit, Ms.
Colman, fails to allege that she is authorized to institute the
proceedings on behalf of the four companies. In
addition, she fails
to annex company resolutions authorizing her to institute the current
proceedings on behalf of the four entities.”
[2]
[16]
Responding to this challenge in her replying
affidavit, Ms Colman avers that:
“
I
am advised that the appropriate way to challenge my authority is by
way of notice in terms of Rule 7 of the Uniform Rules of Court,
which
the first and second respondents elected not to do. The point is
accordingly badly taken and without merit and should be
rejected on
this basis alone.
As
indicated in the founding papers, I am the sole director of the first
to third applicants. However, Mr. Matona could argue that
I am not
representing the first to third applicants is also not clear. As a
matter of fact, I am duly authorized to depose to both
the founding
and replying affidavits.”
[3]
## [17]On the one hand, the
applicants contend that the respondents failed to bring this
challenge in terms of Rule 7. Therefore, the matter
is not properly
before this court. On the other hand, the respondents submit that
Rule 7 only applies to the Power of attorney
challenge. Therefore, it
does not extend to a challenge to the authority to act on behalf of a
juristic person.
[17]
On the one hand, the
applicants contend that the respondents failed to bring this
challenge in terms of Rule 7. Therefore, the matter
is not properly
before this court. On the other hand, the respondents submit that
Rule 7 only applies to the Power of attorney
challenge. Therefore, it
does not extend to a challenge to the authority to act on behalf of a
juristic person.
[18]
Following the amendment in 1987, Rule 7(1) now
reads:
“
Power
of attorney
Subject to the provisions
of subrules (2) and (3) a power of attorney to act need not be filed,
but the authority of anyone acting
on behalf of a party may, within
10 days after it has come to the notice of a party that such person
is so acting, or with the
leave of the court on good cause shown at
any time before judgment, be disputed, whereafter such person may no
longer act unless
he satisfied the court that he is authorized so to
act, and to enable him to do so the court may postpone the hearing of
the action
or application.”
## [19]This
Rule applies to both action and application proceedings. The Supreme
Court of Appeal, in the matter ofLimpopo
Provincial Council of the South African Legal Practice Council v
Chueu Incorporated Attorneys and Others[4],held
the following:
[19]
This
Rule applies to both action and application proceedings. The Supreme
Court of Appeal, in the matter of
Limpopo
Provincial Council of the South African Legal Practice Council v
Chueu Incorporated Attorneys and Others
[4]
,
held
the following:
“
[21]
Since then, the issue of authority has been dealt with in a number of
decisions of this Court. The position is now established
that
the manner to challenge the authority of a litigant is to utilise
rule 7(1) of the Uniform Rules of Court. The original
understandingof rule 7(1) was that it only applied to the mandate provided to attorney. However, thisCourt in
Unlawful Occupiers, School Site v City of Johannesburg (Unlawful Occupiers)
,citing Eskom v Soweto City Council
and
Ganes
and Another v Telecom Namibia Ltd,
held
that the remedy for a respondent who wishes to challenge the
authority of a person allegedly acting on behalf of the purported
applicant is provided for in rule 7(1).”
[5]
[20]
Indeed, the correct approach to challenge the issue of authority is
by way of Rule 7(1). However, as stated in Erasmus: “T
his
sub-rule does not lay down the procedure to be followed by the party
challenging the authority of a person acting for a party.
It would
seem that the challenge, which may be brought at any time before
judgment, may be raised in a variety of ways:
(a)
In appropriate circumstances, by notice, with or
without supporting evidence;
(b)
in the defendant’s plea or special plea;
(c)
in an answering affidavit;
(d)
orally
at the trial.”
[6]
[21]
The respondents raise the challenge in the
answering affidavit. They are perfectly within their rights to raise
the point in the
manner they do. To insist that they should have
mentioned Rule 7 is tantamount to elevating form over substance.
Having said that,
this court is of the view that the respondents’
point is unmeritorious.
Firstly,
Ms. Colman is the sole director of the first, second and third
applicants. As such, she alone makes up “the board
of
directors”.
[22]
If she avers, as she
does, under oath that she is authorized to act, there can be no
persuasive justification for rejecting that
averment. Therefore, it
is rather an unavailing attempt to ask for proof. When all is said
and done, this is a factual question.
With that said, the jury is out
on whether or not this argument serves to fortify the respondents’
case of alleged misrepresentation
of the B-BBEE status and fronting
practices
.
[23]
Focusing
on the issue of authority, the court in the matter of
Eskom
v Soweto City Council
[7]
held:
“
However,
even
if the authority of Rossouw is to be assessed, respondent is on safe
ground. In the absence of a prescribed mode of proof,
it is a
factual question whether a particular person holds a specific
authority. It may be proved in the same way as any other
fact.
Adjudication involves consideration of what the credible evidence
means and the extent of quality of and sometimes the absence
of
contradiction or other reason to remain unconvinced. There are
several decisions wherein this approach is evident.”
[8]
[24]
Secondly,
Ms. Colman’s evidence remains uncontroverted, since the
respondents have not put forward any evidence suggesting
otherwise.
This view finds resonance with the court in the matter of
Mall
(Cape) (Pty) Ltd v Merino Ko-operasie Bpk
[9]
,
in which it held:
## “That
being so, there is no reason to think that the applicant did not pass
a proper resolution authorizing the institution of proceedings
against the respondent and that the present proceedings are those of
the applicant. The respondent has put before the court no
evidence
whatsoever to suggest that this is not the case, and in the
circumstances, I am prepared to hold that the applicant has
put
sufficient before the court.”[10]
“
That
being so, there is no reason to think that the applicant did not pass
a proper resolution authorizing the institution of proceedings
against the respondent and that the present proceedings are those of
the applicant. The respondent has put before the court no
evidence
whatsoever to suggest that this is not the case, and in the
circumstances, I am prepared to hold that the applicant has
put
sufficient before the court.”
[10]
## [25]For the
aforementioned reasons, the respondents’ application stands to
be dismissed.
[25]
For the
aforementioned reasons, the respondents’ application stands to
be dismissed.
The Time-barring
challenge
[26]
To fully appreciate this submission, it is
important to sketch out the regulatory framework. The point of
departure is regulations
4, which reads:
“
Condonation
of time limits
.
– (1) On good cause shown, the commissioner may condone late
performance of an act or conduct in respect of which these
Regulations prescribe a time limit, other than a time limit that is
binding on the Commission itself.”
[27]
Thereafter, a proper reflection should be accorded
to regulation 15(4)(g) and sub-regulations (8) and (15) which read:
“
(4)
The Commission must within one (1) year of receipt of the complaint –
…
(g) make a finding, with
or without recommendations.
…
(8) Where the Commission
initiates an investigation on its own, the Commission shall initiate
an investigation by issuing a notice
to investigate in the prescribed
Form B-BBEE 10 and follow the process in sub-regulation 4(d)-(f)
above.
…
(15) If the Commission is
of the view that more time is warranted to conclude its process in
respect of an investigation as contemplated
in sub-regulation (8),
the Commission must inform the complainant of the need to extend the
time, the circumstances warranting
a longer period, and the exact
period required as an extension.”
[28]
It is common cause that the Commissioner made its
final findings outside the prescribed time limit. I pause to recap,
the complaint
was lodged on 26 June 2019 and the finding was due on
26 June 2020. The eventual finding was made on 9 June 2021. The
Commission
failed to ask for an extension of time as contemplated in
regulation 15(15). The applicants are bringing a review challenge in
terms of section 6(2)(b) of the Promotion of Administrative Justice
Act 3 of 2000 (PAJA). The kernel of the attack is that the Commission
failed to comply with the empowering provision which required the
findings to be made within a year.
[29]
The time-bar attack is launched in the founding
affidavit. At paragraph 90, the applicants state the following:
“
The
Regulations also further regulate the manner in which the Commission
conducts its investigatory functions. Part 4, regulation
15 provides
that:
90.1 within 1 year of
receiving the complaint, including self-initiated complaint,
investigate the complaint, notify the respondent
of the complaint,
hold a formal hearing in terms of section 13J(2) of the act, as may
be necessary, in accordance with the procedures
of the Commission and
make a finding, with or without recommendation;”
[30]
Responding to the challenge at paragraph 88 of the
answering affidavit, the respondents state:
“
88.1
I admit the allegations set out in this paragraph. The completion of
the investigation within 1 period was hindered by Covid-19
pandemic
and lockdown. As soon as the lockdown regulations were relaxed, the
Commission proceeded to investigate the matter, including
communicating with Sand Shifters. Sand Shifters cooperated with the
Commission outside of 1 year and did not at no stage object
to the
continuation of the investigation until they received the preliminary
findings on or about December 2020.
88.2 I wish further to
point out that it was an oversight on the part of the Commission not
to inform the applicant of the need
to extend the investigation
period.
……
90.1 I admit the
allegation, however I confirm that the investigation was completed
within a reasonable time.
90.2 The investigation
was affected by COVID-19 restrictions which resulted in halting
operations and later remote operation. Furthermore,
it was in this
period that the Commission also relocated offices from 420
Witch-Hazel Avenue, Eco-Park, Centurion to 77 Mentjies,
the DTIC
campus, Sunnyside, Pretoria in August 2020.”
Submissions
[31]
Since the sub-regulation (15) deals with a
complainant-initiated investigation, the respondents’ counsel
submits that the
regulation is contradictory to the extent it refers
to sub-regulation (8), which deals with a self-initiated
investigation.
[32]
Due to
this contradiction, the argument goes, the court must resort to the
case of
Competition
Commission of South Africa v Pickfords Removals SA (Pty) Ltd.
[11]
I am
uncertain whether this submission offers any aid to the respondents’
cause. Since, whether an investigation ensues following
a complaint
or is self-initiated, the Commission is enjoined to make a finding
within one (1) year, save where regulation 15(15)
is complied with.
[33]
In
Pickfords
Removals
, the court dealt with section
67(1) of the Competition Act 89 of 1998 (the
Competition Act), which
reads: “A complaint in respect of a prohibited practice may not
be initiated more than three years after the practice has
ceased.”
The court held:
“
[32] As
I have said, this aspect is interlinked with the question of
condonation, but I find it convenient to discuss these
aspects
separately. In this Court, the Commission abandoned its argument that
the knowledge requirement in section 12(3) of the
Prescription Act
should be read into
section
67(1)
of the
Competition
Act. It
argued instead, that the provision merely provides a
useful comparison. It further argued that
section
67(1)
of the
Competition
Act is
open to two possible interpretations:
(a)
first, it is a substantive time-bar, i.e., a prescription provision
proper, which places an absolute prohibition on the initiation
of a
complaint in respect of a prohibited practice more than three years
after the cessation of that practice; or
(b)
second, it is merely a procedural time-bar, which can be condoned by
the Tribunal in terms of its powers in
section
58(1)(c)(ii)
of the
Competition
Act, provided
that good cause is shown.”
[12]
[34]
Counsel submits that
regulation 15(4)
should be
viewed as a procedural time-bar, which can be condoned by the
Commission. Contrary to the
Competition Act which
contains
section
58(1)(c)(ii)
, the B-BBEE’s regulation 4 contemplates
condonation of time limits on good cause shown, save where the time
limit is binding
on the Commission itself.
[35]
In
rebuttal, counsel for the applicants refers to the matter of
Sasol
Oil Limited v The B-BEE Commission and others.
[13]
My
brother Baqwa J was confronted with the same time-barring challenge.
Notwithstanding that the Commission had notified the complainant
of
the need for more time, unlike in this case, the court held: “…t
he
Commission’s findings are reviewable in terms of
section 6(2)
of PAJA in that a mandatory and material condition prescribed by the
empowering provision was not complied with within the meaning
of
section 6(2)(b)
and that the findings themselves contravened
regulation 15(4) of the BEE Regulations within the meaning of section
6(2)(f)(i).”
[36]
The
court upheld the time-barring point because,
inter
alia,
the
Commission failed to provide the circumstances warranting a longer
period. Secondly, it sought a two months extension to September
2018,
yet it made its final findings in October 2019.
[14]
In
casu,
the
Commission failed to communicate to the complainant the need for an
extension of time, nor give the circumstances warranting
a longer
extension period. It also failed to state the exact extension period
required.
Discussion
[37]
In
interpreting regulation 15(4) of the B-BBEE Act, this court’s
first port of call is the matter of
Natal
Joint Municipal Pension Fund v Endumeni Municipality
.
[15]
In dealing with the issue of interpretation, the court held:
“
The
present state of the law can be expressed as follows: Interpretation
is the process of attributing meaning to the words used
in a
document, be it legislation, some other statutory instrument, or
contract, having regard to the context provided by reading
the
particular provision or provisions in the light of the document as a
whole and the circumstances attendant upon its coming
into existence.
Whatever the nature of the document, consideration must be given to
the language used in the light of the ordinary
rules of grammar and
syntax; the context in which the provision appears; the apparent
purpose to which it is directed and the material
known to those
responsible for its production. Where more than one meaning is
possible each possibility must be weighed in the
light of all these
factors. The process is objective, not subjective. A sensible
meaning is to be preferred to one that leads
to insensible or
unbusinesslike results or undermines the apparent purpose of the
document. Judges must be alert to, and guard
against, the temptation
to substitute what they regard as reasonable, sensible, or
businesslike for the words actually used.”
[16]
[38]
Furthermore,
in
Kubyana
v Standard Bank of South Africa Ltd
[17]
the
court held the following:
“
It
is well established that statutes must be interpreted with due regard
to their purpose and within their context. This general
principle is
buttressed by s 2(1) of the Act, which expressly requires a purposive
approach to the statute's construction.
Furthermore, legislation must
be understood holistically and, it goes without saying, interpreted
within the relevant framework
of constitutional rights and norms.
However, that does not mean that ordinary meaning and clear language
may be discarded, for
interpretation is not divination and courts
must respect the separation of powers when construing Acts of
Parliament.”
[18]
[39]
When interpreting any legislation, this court must
be mindful of section 39(2) of the Constitution. This section
provides that:
“when interpreting any legislation and when
developing common law or customary law, every court, tribunal or
forum must promote
the spirit, purport and objects of the Bill of
Rights.” Therefore, this court is bound to follow
Pickfords
Removals
and conclude that regulation
15(4) is a procedural time-bar. However, in the absence of compliance
with regulation 15(15) can this
court condone the Commissioner’s
delay using regulation 4?
[40]
For condonation to be granted in terms of
regulation 4, the Commission stands and falls on good cause shown.
Therefore, condonation
is not there for the taking nor is it a mere
formality. It can hardly be said that moving offices is a reason
worthy of the court’s
consideration when examining condonation
for a delay of almost a year. With reasons such as these and
statements such as “it
was an oversight on the part of the
Commission not to inform the applicant of the need to extend the
investigation period,”
this court cannot help but wonder
whether this is due to negligence combined with incompetence or a
well-orchestrated stratagem
to frustrate the mandate of the Act.
Regardless of the reasons, this is tantamount to disregarding the
enormous sacrifice of South
Africans who paid the ultimate price for
this constitutional democracy.
[41]
Under apartheid a dark complexion was an anathema.
Hence, black South Africans were hated, prevented from accessing the
means of
production and deprived of possession of advanced skills. In
fact, it is a misnomer to label black people as the previously
disadvantaged,
as is a common parlance of the government and
business. Nothing could be further from the truth, black people are
the previously
discriminated against and presently disadvantaged. It
is not by chance that black people are landless, poverty-stricken,
unemployed
en mass,
and
visited by all kinds of social and economic ills.
[42]
The Commission was enacted with this background in
mind; and to establish a legislative framework for the promotion of
black economic
empowerment, to transform the economic landscape and
to promote the economic unity of the nation by promoting equal
opportunity
and equal access to government services.
[43]
Therefore, the work of the Commission is of
paramount importance. It is truly disheartening when its work is
dealt with lackadaisically,
as is the case in this instance. With
access to State coffers and top lawyers, the Commission should not
put a foot wrong in enforcing
its own legislation. Regulation 15(4)
is etched in peremptory terms, which cannot be escaped without
invoking the provisions of
regulation 15(15). How could a
conscientious Commissioner, who comprehends how pernicious and
poisonous apartheid was to black
people, fall foul of regulation 15
(15)?
[44]
In the absence of compliance with regulation
15(15) the Commission cannot be saved by regulation 4. As stated in
Pickfords Removals
“Condonation is not a mere formality – good cause must be
shown. The concept of “good cause” is well-known
in our
law.”
[45]
In the
matter of
eTV
(Pty) Ltd and Others v Judicial Service Commission and Others
[19]
the court held:
“
it was accepted
that the test had to be objective. In other words, it is not
sufficient that “good cause” should exist
purely in the
mind of the decision-maker: the decision must, in addition, be
objectively justifiable or survive objective scrutiny.
Put
differently, “good cause” in the mind of the
decision-maker alone is simply not “good” enough. If
questions such as the one in issue were to be interpreted purely
against a subjective test, we might as well begin to put out the
lights for any role for the courts as protectors and defenders of our
constitutional order. “Justifiable” is not, however,
synonymous with “agreeable to the court.”
[20]
[46]
The
reason that the work of the Commission was affected by Covid-19
lockdown is the closest it comes to a reason worthy of the court’s
consideration. However, Covid 19 lockdown cannot account for the
delay of almost a year. In its answering affidavit, the Commission
states that: “As soon as the lockdown regulations were relaxed,
the Commission proceeded to investigate the matter including
communicating with Sand Shifters.”
[21]
Indeed, o
n
15
July 2020, the Commission advised SS Africa, SS and SS Logistics that
they were merits in investigating them. Again, on 6 August
2020, the
Commission requested further information and clarification from SS
Africa, which was provided on 7 August 2020.
[47]
Furthermore,
the respondents submit that the applicants cannot be heard to be
crying foul when they never sounded an alarm but “cooperated
with the Commission outside of one (1) year and did not at no stage
object to the continuation of the investigation until they
received
the preliminary findings on or about December 2020.”
[22]
This submission is fallacious because it is the commission that is
required to comply with regulation 15(4)(g), not the applicants.
The
applicants could not have known that the respondents had sought an
extension form the complainant, Mr Mahlangu. Therefore,
it was
prudent for the applicants to wait for the completion of the
investigation before objecting.
[48]
Ultimately, this court must ask itself if it is in
the interest of justice to grant condonation, notwithstanding the
delay of almost
a year and paucity of reasons. Let me hasten to
mention that before this court there is no application for
condonation.
Dealing
with the issue of condonation, Mokgoro J in
Bertie
Van Zyl v Minister for Safety and Security,
[23]
held
the following:
“
However,
in determining whether condonation may be granted, lateness is not
the only consideration. The test for condonation is
whether it is in
the interest of justice to grant condonation.”
[24]
[49]
Besides
the issue of lateness, indeed, there are other germane factors to
consider, such as the cause of the delay, the effect of
the delay on
the administration of justice and other litigants, the reasonableness
of the explanation for the delay, the issues
to be raised in the
matter, and the prospects of success.
[25]
Certainly, this list is not a
numerus
clausus
.
[50]
Still
on condonation, Moseneke ACJ in
Ferris
v Firstrand Bank
[26]
held
the following:
“
As
the interest of justice test is a requirement for condonation and
granting leave to appeal, there's an overlap between these
enquiries.
For both inquiries, an applicant's prospects of success and the
importance of the issue to be determined are relevant
factors.”
[27]
[51]
At a risk of repeating myself, save for the Covid
19 lockdown, this court is not favored with reasons for the delay,
much less with
reasonable explanation thereof. To my mind the delay
of one year is not only unreasonable but also borders on the
dereliction of
duty. Most certainly there are weighty issues to be
raised. Since the parties did not ventilate the merits, this court is
not in
a position to make a sound comment on the prospects of
success.
[52]
When
all is said and done, the Commissioner failed to comply with the
empowering provisions. In determining the interest of justice
a
court must have regard to, and carefully weigh, all relevant
circumstances and factors.
[28]
Having
examined the reasons for the delay and all relevant factors, l do not
think it is in the interest of justice to grant condonation.
Therefore, the Commission is time-barred. As it was stated in
Pickfords
Removals
,
prescription is aimed at penalizing negligent inaction not the
inability to act.
[53]
I am also mindful of the need to tread carefully
around the principle of separation of powers. The legislature deemed
it meet to
include the proviso “other than a time limit that is
binding on the Commission itself” in regulation 4. The comity
of the separation of powers is sacrosanct. Mogoeng CJ’s words
reverberates in this court’s mind:
“
Ours
is a constitutional democracy, not a judiciocracy. And in consonance
with the principle of separation of powers, the national
legislative
authority of the Republic is vested in Parliament[1] whereas the
judicial and the executive authority of the Republic
repose in the
Judiciary[2] and the Executive[3] respectively. Each arm enjoys
functional independence in the exercise of its powers.
Alive to this
arrangement, all three must always caution themselves against
intruding into the constitutionally-assigned operational
space of the
others, save where the encroachment is unavoidable and
constitutionally permissible.”
[29]
[54]
For all the reasons mentioned above, the
Commission contravened regulation
15(4)(g) of the B-BBEE
.
Therefore has fallen foul of section 6(2) of PAJA. In terms of
section 8(1) the court must grant a just and equitable order.
PAJA Analysis
[55]
In
summarizing
what
constitutes an administrative action, Nugent JA, in the
matter
of
Greys
Marine Hout Bay (Pty) Ltd and Others v Minister of Public Works and
Others,
[30]
held:
“
Administrative
action means any decision of an administrative nature made…under
an empowering provision [and] taken…
by an organ of state,
when exercising a power in terms of the Constitution or a provincial
constitution, or exercising a public
power or performing a public
function in terms of any legislation, or [taken by] 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 effects
the rights of any
person and which has a direct external legal effect”.
[31]
[56]
In the matter of
Minister
of Defence and Military Veterans v Motau and Others
[32]
the court held:
“
[33] The concept
of “administrative action”, as defined in section 1(i) of
PAJA, is the threshold for engaging in administrative-law
review. The
rather unwieldy definition can be distilled into seven elements:
there must be (a) a decision of an administrative
nature; (b) by an
organ of state or a natural or juristic person; (c) exercising a
public power or performing a public function;
(d) in terms of any
legislation or an empowering provision; (e) that adversely affects
rights; (f) that has a direct, external
legal effect; and (g) that
does not fall under any of the listed exclusions.[37] In the present
matter there are two elements in
dispute: whether the Minister’s
decision under section 8(c) of the Armscor Act is of an
administrative nature (element (a))
and whether it falls under any of
the listed exclusions (element (g)). Both can be answered by
interrogating the nature of the
power.”
[57]
All the criteria for an administrative action are fulfilled in that
the first respondent, being an organ of state, took an
administrative
decision under an empowering provision which is not specifically
excluded by PAJA, which decision adversely affected
the rights of the
applicants and has a direct and external effect.
Costs
[58]
It
is trite that costs follow the action. Indeed, it would not be in
keeping with the values of
ubuntu
[33]
to
decide otherwise.
Referring
to this important African legal concept, the court in
S
v Makwanyane and Another
[34]
held:
“
The
concept carries in it the ideas of humaneness, social justice and
fairness.
”
[35]
[59]
Chaskalson
CJ had the presence of mind to recognize the role this African legal
concept plays, albeit in a different setting. This
court is of the
view that one of the values of
Ubuntu
implicates
the issues of costs. Costs are a matter of fairness to both
sides.
[36]
Ubuntu’s
role
needs to be dusted off, magnified and elevated to its rightful place
in our jurisprudence.
Umuntu
ngumuntu ngabantu or motho ke motho ka batho or
munhu i
munhu hivanwani vanhu
is
one of the many values engraved in
Ubuntu
,
besides humanity, social justice and fairness mentioned
supra.
In my
limited understanding of the English language, this means: “you
are because we are”. Unfortunately, a lot is lost
in that
translation.
[60]
Deeply embedded in that concept is fairness, the
assertion that one (the applicants) should not be out of pocket as a
result of
another person’s (respondents’) conduct or for
merely enforcing one’s rights. Therefore,
Ubuntu
is also an instrument to address and redress the
wrongs in order to protect the vulnerable. Consequently,
Ubuntu
fits snugly in the issues of costs as well.
Ubuntu
is not a feeble philosophy, it is firm albeit
empathetic. In exercising my judicial discretion on costs, l view the
facts through
the prism of
Ubuntu
,
especially the
umuntu ngumuntu ngabantu
value. I conclude that the applicants are entitled
to the cost of this action.
Order
In the result, l make the
following order:
1.
The respondents’ application is dismissed
2.
The final findings issued against the first,
second and third applicants on 9 June 2021 are hereby reviewed and
set aside.
3.
The first respondent is ordered to pay the costs
of this application.
M.P.
JUDGE MOTHA
JUDGE
OF THE HIGH COURT, PRETORIA
Date of hearing: 27 July
2023
Date of judgement: 24
October 2023
APPEARANCES
Counsel for the
Applicants: Adv
D Van Zyl:
Adv A Ngidi:
Instructed by:
Moeti
Kanyane Attorneys, Pretoria
Counsel for the
Respondents: Adv
H. A Mpshe
Instructed by:
The
Office of the State Attorney, Pretoria
[1]
Order
dated 27/07/2023.
[2]
Answering
affidavit at para 8 to 9.
[3]
Replying
affidavit paragraphs 27 to 28.
[4]
[2023]
ZASCA 112
(26 July 2023).
[5]
Supra para 21.
[6]
Erasmus
volume 2 at D1-96A.
[7]
1992
(2) SA 703 (W).
[8]
Supra
at 706.
[9]
1957
(2) [C.P.D].
[10]
Supra
at 352 para H.
[11]
2021
(3) SA (1) (CC
).
[12]
Supra
para 32.
[13]
[2022] ZAGPPHC 431.
[14]
Supra paras 60 and 61.
[15]
2012
(4) SA 593 (SCA).
[16]
Supra
para 18.
[17]
2014
(3) SA 56
(CC).
[18]
Supra
para 18.
[19]
2010
(1) SA 537 (GSJ).
[20]
Supra
para 544H-I.
[21]
Answering affidavit para 88.
[22]
Supra.
[23]
2010
(2) SA 181 (CC).
[24]
Supra
para 14.
[25]
Pickfords
Removals
at
37 para 54.
[26]
2014
(3) SA 39 (CC).
[27]
Supra
para 10.
[28]
Economic
Freedom Fighters v Gordhan and Others; Public Protector and Another
v Gordhan and Others
2020
(6) SA 325
(CC) para 51.
[29]
Electronic
Media Network Limited and Others v e.tv (Pty) Limited and Others
2017 (9) BCLR 1108
(CC).
[30]
(2005)
3 ALL SA 33 (SCA).
[31]
Supra
para 21.
[32]
2014
(5) SA 69 (CC).
[33]
It
promotes restorative justice and it's a community centric ethos. The
essence of Ubuntu is I am because we are. Kenyan writer
or scholar
James Ogude, a professor of African literature and cultures,
believes Ubuntu might serve is a counterweight to the
rampant
individualism that's so pervasive in the contemporary world. “Ubuntu
is rooted in what I call a relational form
of personhood, basically
meaning that you are because of the others. He was speaking at Addis
Ababa in Ethiopia.
[34]
1995 (3) SA 391.
[35]
Supra para 237.
[36]
Geerdts
v Multichoice Africa (Pty) Ltd
(JA88/97)
[1998] ZALAC 10
(29 June 1998) para 48.
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