Case Law[2022] ZAGPPHC 17South Africa
Top Lay Egg Co-op Limited and Others v Minister of Agriculture Forestry and Fisheries and Others (A218/2020) [2022] ZAGPPHC 17 (11 January 2022)
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to have been assigned;
Judgment
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# South Africa: North Gauteng High Court, Pretoria
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## Top Lay Egg Co-op Limited and Others v Minister of Agriculture Forestry and Fisheries and Others (A218/2020) [2022] ZAGPPHC 17 (11 January 2022)
Top Lay Egg Co-op Limited and Others v Minister of Agriculture Forestry and Fisheries and Others (A218/2020) [2022] ZAGPPHC 17 (11 January 2022)
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sino date 11 January 2022
REPUBLIC
OF SOUTH AFRICA
THE
HIGH COURT OF SOUTH AFRICA
GAUTENG
DIVISION, PRETORIA
CASE
NO: A218/2020
11/1/2022
In
the matter between:
TOP
LAY EGG CO-OP
LIMITED 1ST
APPELLANT
GEORGE
SCHWARTZEL
BOERDERY
(PTY)
LTD
2ND APPELLANT
EGGBERT
EGGS (PTY)
LTD
3RD APPELLANT
WW
BARTLETT POULTRY FARM (PTY) LTD
4TH APPELLANT
And
MINISTER
OF AGRICULTURE FORESTRY
AND
FISHERIES
1ST RESPONDENT
EXECUTICE
OFFICER:
AGRICULTURAL
PRODUCT STANDARDS,
DEPARTMENT
OF AGRICULTURE:
FOOD
SAFETY & QUALITY
ASSURANCE
2ND RESPONDENT
FOOD
SAFETY AGENCY (PTY) LTD
(REG
NO:
2013/130308/07)
3RD RESPONDENT
AGENCY
FOR FOOD SAFETY & QUALITY (PTY)
LTD
4TH RESPONDENT
AGENCY
FOR FOOD
SAFETY
5TH RESPONDENT
FULL
BENCH JUDGMENT
BOKAKO
AJ
INTRODUCTION
1.
The
trial court on the 5
th
of June 2020 refused leave to appeal, however, on petition the
Supreme Court of Appeal on the 26
th
of August 2020 granted the Appellants leave to appeal to the Full
Court of this Court.
This
is an appeal against the judgment delivered by Justice Davis on the
6
th
of March 2020.
2.
This
appeal also pertains to the appointment by the Minister of an
assignee in terms of Section 2(3)(a) of the Agricultural Product
Standards Act No 119 of 1990 ("the APS Act") and in
particular the powers granted to the appointed assignee. The
Appellants
launched an application in this Court in terms of which
relief was sought inter alia in the form of declaratory orders. The
relief
primarily related to the powers assigned by the Minister to
the Fifth Respondent in terms of the APS Act and most importantly
whether
the power was assigned to levy fees for the inspection of
eggs. That the decision contained in the Executive Officer's
publication
of 16 January 2017 be set aside alternatively that it be
declared that the Minister has not designated the third or fourth
respondents
as assignees in terms of Section 2(3)(a) of the Act.
Further that the determination of the inspection fees as published in
the relevant
Government Notice “be declared to constitute an
illegality and consequently a nullity and that all notices issued by
the fourth
respondent be reviewed and set aside and/or that it be
declared that such invoices constitute illegalities.
3.
The
other issue on appeal is centered around the interpretation of the
provisions of the Agricultural Products Standards Act No 119
of 1990
("the APS Act"). The Agricultural Products Standards Act No
l19 of 1990 ("the Act") provides for the
control over the
sale and export of certain agricultural products and similarly for
control over the sale of imported agricultural
products.
FACTUAL
BACKGROUND
4.
The first Appellant Top
lay has approximately 50 members who produce eggs which
are marketed under the name of Top lay;
they supply eggs country wide
and supplies eggs to certain of the major role-players in the
industry namely inter alia Massmart Group,
Shoprite Holdings, Pick
Pay and the Spar Group. Top lay markets at least 2 million eggs
per month, over and above the aforesaid
its members also market 7,5
million dozen eggs per month independently. This equates to 90
million eggs per month. There are also
many other producers of eggs
countrywide which includes the Second, Third and Fourth Appellants.
The Second, Third and Fourth Appellants
are corporate egg and poultry
producing entities.
5.
The Minister is the
First Respondent, the Executive Officer is the Second Respondent, the
Third Respondent is Food Safety Agency (Pty)
Ltd, Agency for Food
Safety and Quality (Pty) Ltd referred to as "AFSQ” is the
Fourth Respondent and Agency for Food Safety
is the Fifth Respondent.
6.
The
first respondent issued an invitation, inviting prospective assignees
to submit their bids to be appointed as assignees in respect
of
agricultural products as set out in the Animal Products Standards Act
119 of 1990 ("APS Act"). On 18 July 2018, the
assignees
were invited to attend an information session to familiarize
themselves
with the minimum requirements set for the selection of the assignees.
At that session, detailed information that should
accompany the
written application was presented. Eleven applications from
prospective assignees were
received
by the 2
nd
Respondent.
7.
The
third respondent made its representations as per the public
invitation. At all material times, the third respondent made it known
that the Agency for Food Safety (fifth respondent) is its trading
name. Together with its written application and amongst other
returnable
documents, the third respondent submitted a Business Plan
wherein it described itself as follows: "Food Safety Agency
(Pty)
Ltd trading as Agency for Food Safety (AFS) ". In the same
Business Plan, the third respondent again described itself as
follows:
Company name: Food Safety Agency (Pty) Ltd, Trading name:
Agency for Food Safety.
8.
On
9 December 2016, the first respondent designated the third respondent
in terms of section 2(3)(a) of the APS for the application
of section
3(1) and 4A concerning the inspection of regulated animal products
poultry, meat, and eggs as well as any other meat and
meat products
for which regulations may be promulgated. The assignee is the third
respondent trading as the fifth respondent (Food
Safety Agency (Pty)
Ltd t/an Agency for Food Safety).
9.
On
19 January 2017, the second Respondent: made it known by way of a
publication in the Government Gazette that the first Respondent
has
appointed three entities as assignees. One of these was described as
being "Agency for Food Safety (Pty) Ltd". Furthermore,
the
second Respondent's publication read that the appointment was for
purposes of the "application of sections 3(1)(a) &
(b), 3A
(l), 4A(l)(a), 7 and 8' of the Act.
10.
On the 21
st
of February 2017 the Agency for Food Safety began consulting industry
role players. After consultation with the industry at two workshops,
one being on 20 April 2017 and the other on 4 May 2017 which were
attended by the applicants, the industry's suggested that, because
of
the risk profile of eggs, quarterly inspections instead of monthly
inspections should be conducted, such was accepted together
with a
proposed reduction in the fees for inspections initially proposed and
published.
11.
Inspection of eggs were included, the inspection of packaging and
labelling to ensure that both the product
and the manner in which it
is described and sold comply with the quality and public safety
provisions of the Act. The inspection
fees included these functions
without extra charges.
The
inspection fees were reduced from R0, 015 to R0,0006 per egg. The
suggested fees charged per egg was an acceptable method of
calculating
and budgeting for inspection costs. These fees were
consequently published in Government Gazette No 40847 dated 19 May
2017 per Notice
35 of 2017.
ISSUES
TO BE DETERMINED
12.
What powers were assigned to the assignee (whether the Third or Fifth
Respondents), including the interpretation
thereof and the effect
thereof. This will need to take the following into consideration:
12.1
Whether
the assignee (whether the Third or Fifth Respondents) had also been
assigned the power to conduct inspections as provided
for
in
Section 3A, in circumstances where this power was not explicitly
assigned together with the powers in Section 3(1);
12.2.Whether
the assignee (whether the Third or Fifth Respondents) was entitled to
determine and levy fees for inspections carried
out in terms of
Section 3A (4), and if so, whether the fees determined and charged
are rational;
12.3.Whether
the assignee was entitled to charge fees in circumstances where no
actual inspection is conducted and in respect of each
egg
produced/packaged, irrespective of whether each egg was inspected;
12.4.Whether
the assignee was further and additional thereto entitled to determine
the prohibition of sale, (Section 3(1)) and charge
a fee therefore
(Section 3(1A) (b)(ii));
13.
The identity of the assignee and the effect thereof, in respect of
the powers held to have been assigned;
14.
Whether an internal appeal must be lodged with the Minister in terms
of
Section
10 of the APS Act, only if it is held that the assignee appointed,
was the Fifth or Third Respondents, had the power to conduct
inspections in terms of Section 3A and charge a fee for such
inspection, that the assignee actually
determined
the fee and in fact conducted the inspections;
15.
Whether the provisions of the Promotion of Administrative Justice No
3 of 2000 (PAJA) apply or not.
16.
Finally, that it be declared that the Minister has not designated the
power to determine fees to the third or
fifth respondents. The first
and second respondents opposed this application and argued that by
virtue of its assignment in terms
of section 2(3)(a), the assignee is
appointed to perform the powers as set out in the APS Act. It was
argued that on a proper interpretation
of the APS Act, the assignee's
powers are not limited to section 3(1) and 4A of the APS Act.
SUBMISSIONS
APPELLANTS
17.
The
Appellants argued that the manner of levying of fees of R0,0006 per
egg produced or packaged monthly was never levied before the
appointment of the assignee. Such would cause irreparable harm to the
industry to such an extent that additional fees that are charged
would have to be passed on to the consumer.
18.
The
Appellants argument was that the manner employed by the 3
rd
Respondent who purports to be the assignee in determining the fees is
draconian and arbitrary in that fees are levied for each egg
produced
or packaged whether inspected or not.
19.
The
Appellants contends that the Fifth Respondent is the appointed
assignee and not the Third Respondent.
The
power to inspect and to charge fees for inspections had not been
assigned as stipulated in Sections 3(1) and 4A of the APS Act
and not
to Section 3A; if it was held that Section 3A was designated to the
assignee there
appeared
to be a confusion pertaining to the identity of who determined the
fees. If it was the Third Respondent or a non-existent
entity it
constituted an illegality that the determination of the fees, if held
to have been assigned and held to have been determined
by the Third
Respondent constituted an illegality by virtue of the fact that it
was not the appointed assignee and further by virtue
of the fact that
such power was not assigned, even if it is the assignee.
20.
It
was also argued that the Fourth Respondent, not the appointed
assignee, conducted
inspections,
purporting to act as the assignee and issued VAT invoices in its name
to members of First, Second, Third and Fourth Appellants,
based on
R0,0006 per egg produced/packaged per month
and
not actually inspected. In some cases, fees were charged even if
no
inspections took place and it was based on the production figures
obtained from the producers.
21.
It
was further submitted that the Third and Fourth Respondents are not
organs of State and
their
actions are not subject to review in terms of PAJA or subject to an
internal appeal in terms of Section 10 of the APS Act, and
constitute
illegalities. In that the conducting of the inspections by the Fourth
Respondent and the issuing of invoices constitute
illegalities
concluding that the assignee had an unfettered discretion with regard
to the determination of its fees. Therefore, the
appellants contended
that the determination of fees by an assignee without regulatory
control amounted to exploitation.
22.
Also
argued that, it is apparent from the express
assignment
that the first Respondent assigned limited powers to the assignee in
terms of the APS Act; prior to the appointment of
the Fifth
Respondent as the assignee on 9 December 2016.
23.
They further
submitted to the court that the power to conduct inspections, grading
and sampling for quality control according to Section
3A was not
explicitly assigned to the assignee. It was also
not
explicit that the power to seize a product reasonably believed to be
concerned in the commission of an offence was also not articulated.
24.
Further
submitted that in respect of Section 8. This power was not explicitly
assigned to the assignee; the appointment of the assignee
did not
take away any of the powers of second Respondent, who still up to
today, has the power to conduct inspections in terms of
Section 3A of
the APS Act as well as the powers set forth in Sections 7 and 8.
Full citation.
25.
It
was contended by the Appellants that learned
Judge
Davis wrongly held that the provisions of Section 3A were
included in the assignment by necessary implication, such
finding was
wrong. Section 2(3)(a) of the APS Act clearly provides that the first
Respondent may assign generally or assign certain
provisions of the
Act.
26.
Further
contended by the Appellant that the court wrongly concluded that the
Third Respondent is the appointed assignee, notwithstanding
the fact
that the Fifth Respondent was explicitly appointed by the first
Respondent, the court based its finding on the fact that
the Fifth
Respondent is a trading name of the Third Respondent, such averments
being supported by representations made to the first
Respondent in
this regard. Further arguing that this has far-reaching implications
and on a proper interpretation of the provisions
of the APS Act and
the assignment.
27.
Also
submitted that the court aquo wrongly found in the main judgment that
despite the Fourth Respondent not being the appointed assignee,
so
designated, and not conducting the inspections in the name of the
assignee, but in its own name, that "this does not however
preclude the third Respondent from the issuing of fresh invoices for
its fees, even if no inspections had been done by the subsidiary,
as
its contractor or agent".
28.
The
Appellants further contended that the Fifth Respondent was
unambiguously and explicitly appointed and nobody else. It was
submitted
that the approach followed by the learned Judge is wrong in
that he found that to enable the assignee to exercise the powers in
terms
of Section 3(1) he must by necessary implication have to have
investigative powers or the power to inspect in terms of Section 3A
of the APS Act. The decision-making power to prohibit the sale of
certain products (Section 3(1)) and the sale of imported products
(Section 4A) was exclusively bestowed upon the Minister. The first
Respondent explicitly assigned his own powers (Sections 3(1) and
4A)
to the assignee also the first Respondent was excluded from
conducting any investigations or inspections if regard is had to
Section 3A, which provides for the second Respondent or the assignee
to do so. The first Respondent did not assign the powers in
Section
3A to the assignee, assignment of Sections 3(1) and 4, he clearly
intended that the assignee should be the decision maker
and nothing
else, in conformity with the doctrine of the separation of powers.
One need
not have to have the power of inspection (Section 3A) to make a
decision in terms of Sections 3(1) and 4A. The first Respondent
made
those decisions without the power of investigations previously.
The
second Respondent still has the power to inspect and he is free to
report
to the assignee, who stepped into the shoes of the Minister, to make
decisions in terms of Sections 3(1) and 4A.
29.
The
assignee did not need any other powers such as inspections to make
decisions to prohibit the sale of products (Section 3(1)) or
the
importation of products (Section 4A); further the imposing of
investigative powers and decision-making powers would
interfere
with the fundamental principle of objective decision making by the
body appointed to make the decision. This situation would
be
compounded by the fact that this person would be entitled to charge a
fee which he would be at liberty to determine without any
restriction.
30.
The
Applicants argued that any delegation of power must be restrictively
interpreted and quoted some authority in support if this
proposition
made reference to
Kosiyamhura
v Minister of Home Affairs 1991 (l) SA 643 WLD, Horseshoe v Minister
of Mineral Affairs
1992 (3) SA 838(A)
and Hershel Zetler N.O &
Others v Minister of Transport and Public Works [201 ZAWCH 200).
Further made reference to Natal
Joint Municipal Pension Fund v
Endumeni Municipality Wallis J stressed that regard should be had to
the language used, the context
in which the provision appears and the
purpose to which it is directed; The terms of the assignment are
explicit and does not leave
room for an interpretation that other
provisions could be read into it, as set out hereinabove. Neither did
the Minister or the Second
Respondent explain why only certain
provisions of the APS Act were assigned and not all the Sections
applicable to an assignee. If
regard is had to Sections (b) and (c)
it deals with separate and distinct functions and/or duties and are
distinguishable from the
power and functions set out in Section 3A;
The
First to Fifth Respondents Contentions:
31.
They
argued that the basis upon which the "Third Respondent"
exercised the powers were as follows:
31.1
The First Respondent does not have to specifically authorize or
delegate the Third Respondent to implement Sections 3,4,
7 and 8 of
the APS Act. The
Third
Respondent derives the powers to implement these Sections ex lege and
that first Respondent appointed the assignee in terms
of the
provisions of section 2(3)(a) of the APS Act which provides as
follows:
31.2
The Minister may, for the purposes of the application of this Act or
certain provisions thereof, with regards to a particular
product,
designate any person, undertaking, body, institution, association or
board having particular knowledge in respect of that
product. Acting
under the provisions of this section and although the assignment
refers to Agency for Food Safety as the assignee,
the Minister
Designated Food Safety Agency (Pty) Ltd t/an Agency for Food Safety
as the assignee. Section 2(3)(b) provides that "an
assignee thus
designated shall-(I) unless expressly
provided
otherwise and subject to the directions of the executive officer,
exercise the
powers
and perform the duties that are conferred upon or assigned to the
executive officer by or under this Act.
32.
Further
submitted that It was common cause between the parties that the first
respondent did not expressly provide otherwise and as
such, the
assignee exercised the powers in terms of section 2(3)(a) and 2(3)(b)
of the APS Act. Such powers include the powers which
were assigned to
the second Respondent.
33.
Further
submitting that the Appellants have to date, failed to provide any
evidence that the Minister expressly excluded the powers
of the
assignee in terms of sections 3(1A), 3A, 4A, 7 and 8 of the APS Act
or that he provided expressly otherwise as stated in section
2(3)(b)
of the APS Act.
34.
They
submitted that if the first Respondent had intended to exclude the
powers in terms of section 3(1A) and of the APS Act, he would
have
stated expressly that those powers are excluded. In any event, such
express exclusion would have been superfluous because in
order to
give effect to the control provisions, the purpose of the APS Act and
the intention of the legislature, the assignee would
have to exercise
the powers and duties set out in section 314.
35.
Further
arguing that a proper interpretation of section 2(3)(b)(I) is that
the assignee can exercise the powers and duties that are
conferred
upon or assigned to the second Respondent under this Act. Further
contending that the second Respondent has the power to
perform the
functions listed in section 3A and consequently is entitled to charge
fees as set out in the Act.
36.
They
argued that the Appellant`s basis of argument is not sustained in
that the learned Judge erred in failing to have regard to the
actual
terms of the assignment which expressly refers to only certain
provisions of the APS Act namely section 3(1) and 4A of the
Act. The
APS Act makes provision for control over the sale and exportation of
agricultural products. For this purpose, the first
Respondent is
granted the powers to prohibit the sale or the exportation of
products that do not meet the requirements as specified
by or under
the APS Act. The provisions of the Act read together with the
preamble makes it clear that certain agricultural products
listed in
the control provisions are subject to the control of the Minister as
set out above.
37.
Therefore,
the assignee has, in terms of section 3A, the powers to inspect,
grade and sample the products as listed for purposes of
quality
control. The purpose of section 3A is to ensure quality control of
the products before they are sent out to the market either
by way of
sale, import or export. A product that does not meet the requirements
as set out in the control provisions will be prohibited
for sale,
import or export. The assignee or the second Respondent is entitled
to charge fees in respect of duties performed to ensure
compliance
with the control provisions. This is clear from the wording of
section 3(1A) (a) which provides that: "3(IA) (a)
fees may be
charged in respect of the powers exercised and duties performed by
the second Respondent or the assignee, as the case
may be to ensure
compliance with this section.
38.
Further
contends that the fees to be charged by the assignee or the second
Respondent for the duties performed to ensure compliance
with section
3(1) are set out in paragraph 3(1A)(b) which states: 3(1A) (b) In the
case of powers exercised and duties performed
by:
(I) the
executive officer, the prescribed fee shall be payable; and (ii) the
assignee, the fee determined by such assignee shall be
payable.
39.
Further
submitted that Davis J was correct in holding that "section
3(1)
cannot logically be disconnected from 4A in that control over
products can only
take
place by way of powers created by section 3A, following
by implication that the assignee or second Respondent should
exercise
the powers set out in section 3A of the APS Act, the Minister may for
the purposes of the application of this Act or certain
provisions
thereof with regard to a particular product, designate any person,
undertaking, body, institution, association or board
having
particular knowledge in respect of the product concerned, as an
assignee in respect of that product.
40.
The
Respondents vehemently argued against the Appellants that it is
apparent from the express
assignment
that the first Respondent assigned limited powers to the assignee in
terms of the APS Act. The Respondents contended that
these powers
were explicitly assigned to the respective assignee.
41.
The
Court a quo in the main judgment correctly held that the express
powers conferred on the assignee are those as set out in the
assignment namely Sections 3 and 4A of the APS Act.
42.
The
court correctly held that the provisions of Section 3A were included
in the assignment, by necessary implication.
This
finding is with respect correct. If the first Respondent intended not
to provide, he could have provided an exclusionary note
or assignment
or exclude other Sections of the APS Act in the assignment.
THE LAW
43.
The purpose of the Act
is to control the sale and export of certain agricultural products,
the sale of certain imported agricultural
products and other related
products.
44.
In terms of Section
2(3) the Minister may appoint assignees as follows:
"(a) The
Minister may for the purposes of the application of this Act or
certain provisions thereof, with regard to a particular
product,
designate any person undertaking, body, institution, association or
board having particular knowledge in respect of the
product
concerned, as an assignee in respect of that product.
(b)An assignee thus
designated shall-
unless expressly
provided otherwise and subject to the directions of the executive
officer, exercise the powers and perform the duties
that are
conferred upon or assigned to the executive officer by or under this
Act, with regard to the product referred to in paragraph
(a); in
the case of a juristic person, not\withstanding anything to the
contrary contained in any other law or in the
absence of any express
provision to that effect, be competent to exercise the powers and
perform the duties referred to in subparagraph
(I); and
(iii) unless the
Minister in a particular case otherwise directs, have no recourse
against the State in respect of any expenses incurred
in connection
with the exercising of such powers or the performance of such duties.
"
45.
In terms of Section
3(1A) assignees are empowered to determine and charge fees in respect
of the powers exercised and duties performed
in terms of Section 2
(supra). Section 3(1A) provides:
"(a) Fees may
be charged in respect of the powers exercised and duties performed by
the executive officer or the assignee, as
the case may be, to ensure
compliance with this section.
(b)
In the case of powers exercised and duties performed by-
the
executive officer, the prescribed fee shall be payable; and
(ii) the assignee,
the fee determined by such assignee shall be payable.
46.
In terms of Section 3A
(1)(b)(c)(d) and (e) an assignee may: "classify grade, pack or
market any quantity of a product in accordance
with the prescribed
requirements..." "Inspect or cause to be tested any
quantity of a product"; or "subject to
subsection 2(d) take
such samples of a product, material, substance or other article in
question as he or she may deem necessary.
"
47.
Section 3A (4) states
"In the case of action under subsection (l) (b), (c), (d) or (e)
by the relevant person referred to in
subsection (l), the owner of
the product in question shall pay the prescribed fees or the amount
determined by the assignee, as the
case may be, for such action. "
The Act controls the sale, export and import of certain agricultural
products. The first respondent
(the Minister) may prohibit the sale
of a prescribed product unless it complies with prescribed
classifications and standards. In
terms of s 2(1) of the Act, the
Minister may designate a person in the employ of the Department of
Agriculture (the Department) as
the executive officer to exercise the
powers and perform the duties conferred under the Act. The Minister
may also, in terms of s
2(3)(a), designate a person, with regards to
a particular product, for the purposes of the application of the Act.
A person so designated
is styled an ‘assignee’ in respect of that
particular product.
APPLICATION OF
THE LAW TO THE FACTS
48.
The Act permits the
executive officer and an assignee to conduct inspections aimed at
ensuring that certain agricultural products
meet the prescribed
classifications and standards. They charge fees to do so. In the case
of the executive officer the fee is prescribed.
In the case of the
assignee, the Act stipulates, in s 3(1A) (b)(ii), that ‘the fee
determined by such assignee shall be payable.’
I shall refer to
this provision, read with s 3A (4), which requires the owner of the
product to pay the fee, as the challenged provision.
Section 3(1A)
permits fees to be charged in respect of the powers exercised and the
duties performed by an assignee.
49.
The fee that shall be
payable is the fee determined by the assignee. Among the powers
exercised by an assignee is the power of inspection.
It follows that
when the assignee exercises a power of inspection, a fee is payable
by the owner of the product inspected. That fee
is determined by the
assignee.
50.
I will then start
looking at the said proposed declaratory order that the Minister had
not assigned or designated the powers provided
for in sections 3(1A)
(a) and (b)(ii) and 3A, 7 and 8 of the Act to any of the respondents.
51.
The Appellants seek an
order that it be declared that sections 3(1A) (a); 3(1A) (b)(ii), 3A
and 7 and 8 were not assigned by the first
Respondent. A large
foundation of their attack in this regard that these sections and
sub-sections were not expressly listed in the
first Respondent's
designation but only contained in the second Respondent's publication
of the notice.
52.
Section 2 (3) (a)
stipulates that the first Respondent may, for purposes of the
application of this Act or certain provisions thereof,
with regard to
a particular product, designate any person, undertaking, body,
institution, association or board having particular
knowledge in
respect of the product concerned, as an assignee in respect of that
product.
(b) An assignee thus
designated shall-
(I)unless expressly
provided otherwise and subject to the directions of the Executive
Officer, exercise the powers and perform the
duties that are
conferred upon or assigned to the Executive Officer by or under this
Act, with regard to the product referred to
in paragraph (a);
(ii)in the case of a
juristic person, notwithstanding anything to the contrary contained
in any other law or in the absence of any
express provision to that
effect, be competent to exercise the powers and perform the duties
referred to in subparagraph (I); and
(iii)unless the
Minister in a particular case otherwise directs, have no recourse
against the State in respect of any expenses incurred
in connection
with the exercising of such powers or performance of such duties.
(c)The chief
executive official, chairman or other person in charge of such
assignee who is not a natural person-
(I)shall act on
behalf of that assignee in the exercise of the powers concerned and
the performance of the duties concerned; and
(ii)may in writing
delegate or transfer to an employee of that assignee any such power
or duty which the assignee concerned shall
or may exercise or perform
by or under this Act, or in writing authorize or direct such employee
to exercise such power or perform
such duty.
(d) A power
exercised or duty performed by an employee referred to in paragraph
(c) (ii), shall be deemed to have been exercised or
performed by the
chief executive official, chairman or other person in charge, as the
case may be: Provided that the chief executive
official, chairman or
other person in charge, as the case may be, may at any time amend or
withdraw any decision made or given by
such employee.
53.
The essence of the rule of law is that all administrative authorities
must exercise their powers within the
confines of the law. As
discussed earlier, the first Respondent was acting properly within
his powers in terms of the Act to delegate
such authority to the
third Respondent. Thereafter, the third Respondent must act within
the parameters of the authority as delegated
in terms of the Act but
subject to ministerial control.
54.
The purpose of the Act
is to regulate the export, import and sale of agricultural products
Such regulation necessitates the inspection
of such products before
they are released into the market.
55.
The inspection cannot
be done by the first respondent only as it does not possess the
necessary capacity. Upon delegation of its authority
to the
assignees, the latter have to conduct inspection services, subject to
payment of fees. There is nothing unlawful in the actions
of the
assignee, in this case the third Respondent charged fees in exchange
for their services therefore such cannot be created by
bringing the
assignee's actions within the ambit of arbitrariness in terms of
Section 25 of the Constitution as the payment is due
for services
rendered.
56.
In the event of any
arbitrariness or unfairness in fixing the fees by the assignees, the
appellants were at liberty to challenge such
fees by way of review
proceedings. In the present case I do not find that appellants have
alleged sufficient facts to justify an
illegality on the part of the
assignees. I have referred to section 3 (1A) (b) (ii) of the APS Act
above. It provides that an assignee
may charge fees for the powers
exercised and the duties performed by it. Section 3 A (4) renders the
payment of the fee or amount
determined by the assignee mandatory.
Section 15 (1) (g) of the APS Act allows the Minister to make
regulations regarding the fees
that have been determined by the
assignee. 3 (1A) (b) (ii) of the APS Act above.
57.
Appellants argued that
the aforesaid provisions gave the assignee the unfettered right to
determine its own fees. In contrast, they
say the fees payable to the
second Respondent is subject to the first Respondent’s approval,
therefore, there is no rational reason
why the fees determined by the
assignee should not be subject to some form of control.
58.
This court does support
the contention of the first and second Respondent in that an assignee
is permitted to determine its own fees,
and the producer is obliged
to pay the fee. The due process was followed in determining the fee,
and there is statutory control over
the determination of the fees,
therefore, Appellant`s argument falls off in contending that the
provision is not rational nor reasonable
given the purpose of the APS
Act.
59.
The crux of the
Appellant`s argument is that the provision does not allow for control
by the Minister or by the Executive Officer,
when the fees are
determined by the assignee. Therefore, in terms of section 2
(3) (b) (I) of the APS Act an assignee exercises
its powers and
duties subject to the directions of the Executive Officer unless
expressly provided otherwise. The Minister also has
power to revoke
the mandate upon the assignee in terms of section 2 of the APS Act.
The APS Act is thus quite explicit regarding
the ambit of an
assignee’s powers. It can therefore not be correct as suggested by
the appellants that the power exercised by assignees
is unfettered or
unqualified.
60.
It is not in dispute
that on the 19
th
of January 2017, the second Respondent made known for general
information by way of a publication in the Government Gazette that
the first Respondent appointed three entities as assignees. One of
these was described as being "Agency for Food Safety (Pty)
Ltd".
Furthermore, the second Respondent's publication read that the
appointment was for purposes of the "application of
sections
3(J)(a) and (b), 3A (1), 4:4. (J)(a), 7 and 8" of the Act.
On the 21
st
of February 2017 the fifth Respondent (Agency for Food Safety) began
consulting industry role players. After consultation with the
industry at two workshops, one being on 20 April 2017 and the other
on 4 May 2017 which were attended by the appellants, discussion
was
about risk profile of eggs, quarterly instead of monthly inspections
to be conducted with a proposed reduction in the fees for
inspections
initially proposed and published fees were reduced from R0, 015 to
R0, 0006 per egg. These fees were subsequently published
in
Government Gazette No 40847 dated 19 May 2017 per Notice 35 of 2017.
61.
We are accordingly in
agreement with the court aquo findings in this respect that the
relief sought by the Appellants of a declaratory
order that the first
Respondent had not assigned or designated the powers provided for in
sections 3(1A) (a) and (b)(ii) and 3A,
7 and 8 of the Act to any of
the respondents must fail.
62.
in terms of section
2(3)(a), the assignee is appointed to perform the powers as set out
in the APS Act. On a proper interpretation
of the APS Act, the
assignee's powers are not limited to section 3(1) and 4A of the APS
Act.
That the
decision contained in the Executive Officer's publication of 16
January 2017 be set aside alternatively that it be declared
that the
Minister has not designated the Third or Fourth Respondents as
assignees in terms of Section2(3)(a) of the Act.
63.
The second Respondent
argued that the publication of the Minister's decision on the
government gazette, the appellants were non-suited
because the review
application was out of time and that they did not apply for an
extension of the period to file a review application.
The APS Act
provides internal remedies and they failed to exhaust those legal
remedies before they could approach the court. Appellants
argued that
the court aquo was incorrect. I do not agree. Section 2 (3) (b) (I)
of the APS Act specifically provides that the powers
and duties of
the assignee shall be exercised and performed subject to the
direction of the Executive Officer. The assignee must
subject its
work to the direction of the Executive Officer. who is entitled (and
obliged) to give direction to the assignee. It is
therefore not
correct to say that the assignee has unfettered discretion to do as
it pleases.
64.
It is not in dispute
that on the 19th of January 2017, the second Respondent made known
for general information by way of a publication
in the Government
Gazette that the Minister has appointed three entities as assignees.
One of these was described as being "Agency
for Food Safety
(Pty) Ltd". Furthermore, the Executive Officer's publication
read that the appointment was for purposes of the
application of
sections 3(J)(a) and (b), 3A (1), 4:4. (J)(a), 7 and 8" of the
Act.
That the
determination of the inspection fees as published in the relevant
Government Notice "be declared to constitute an illegality
and
consequently a nullity".
65.
The Appellant`s argued
that there were various inspections, that required them to pay fees
which they claim were determined arbitrarily
and capriciously by a
person or persons not entitled to do so and moreover "
illegally" on the basis of invoices issued
by the Fourth
Respondent and further arguing that the assignee did not have the
power to determine or levy fees and secondly they
attack the
determination thereof as having been done arbitrarily and
capriciously. It is important to note that in terms of
section
15(1)(g) the "Minister may make regulations regarding the
inspection fees that have been determined by (an) assignee"
noting further that it is an undisputed fact that no such regulations
were made subsequently the fees were determined by the assignee
during the consultative and induction process subsequently
publicized.
66.
The third Respondent
had performed inspection of eggs including the packaging and
labelling thereof and, to all intents and purposes,
sought to ensure
that the said products complied with the prescribed standards.
Further noting that section 3(1A) (b) emphasis that
if the functions
are performed by the executive officer, the fees shall be the
''prescribed'
fees
and if the functions are performed by an assignee, "the fee
determined by such assignee".
67.
Section 3(1A) (a) which
provides that fees may be charged in respect of the powers exercised
and duties performed by the second Respondent
or the assignee, as the
case may be to ensure compliance with section 3(1). In this case the
owners of the product are Appellants
who are liable to pay these fees
in accordance to Section 3A (4) which provides that "in the case
of action under subsection
1(b), (c), (d) or (e)" (i.e.
classification, grading, packing, marking, inspection or sampling),
"the owner of the product
in question shall pay these fees".
68.
It is then in our view
that the first Respondent has designated the third Respondent to
perform the functions of quality control provided
for in section 3(1)
and by necessary implication and in order to perform those functions,
the rights and powers of inspection provided
for in section 4A. It is
also imperative to note that the assignee's powers are not limited to
section 3(1) and 4A of the APS Act.
69.
Similarly, in this
case, in order to exercise the control provisions, it is necessary
for the assignee to exercise the implementation
provisions and to the
extent necessary, to exercise the enforcement provisions. It is also
entitled to charge fees for such services
in terms of the Act.
70.
Acknowledging that the
Minister will require assistance in enforcing the provisions of the
APS Act, the legislature enacted the provisions
of section 2(3) which
allows for an appointment of an assignee to perform the powers and
duties in terms of the Act or certain provisions
of the Act. The Act
also states that the assignee may perform certain powers which are
conferred to the second Respondent.
71.
The purpose of the
implementation provisions is to ensure that the first respondent is
able to control the agricultural products that
are being sold,
imported and exported. The purpose of control is easy, to ensure that
unsafe and harmful products are not sent out
to the market.
72.
Therefore, the third
Respondent has in terms of section 3A, the powers to inspect, grade
and sample the products for purposes of quality
control. The purpose
of section 3A is to ensure quality control of the products before
they are sent out to the market either by
way of sale, import or
export. A product that does not meet the requirements as set out in
the control provisions will be prohibited
for sale, import or export.
73.
Section 3A provides the
following: (I) The executive officer or the assignee may, during
business hours of the industry in question
in the case of control in
terms of section 3 (I), or at any time in the case of control in
terms of sections 4(1) and 4A(1), enter
any place, premises or
conveyance in or upon which any product, material, substance or
another article in respect of which this Act
applies, is or is upon
reasonable grounds suspected to be produced, processed, treated,
prepared, classified, graded. Further (b)in
the case where no
assignee has been so designated, be made in the prescribed manner and
the prescribed fees shall, in respect of
such application, be payable
in the prescribed manner and at the prescribed time. The fees to be
charged by the assignee or the executive
officer for the duties
performed to ensure compliance with section 3(1) are set out in
paragraph 3(1A) (b).
74.
This court does agree
with the finding of the court aquo in that the fees charged in
respect of the control measures in section 4A
set to put in
subsection 4A (3) which states: (3) An application for approval
referred to in subsection (l)(b)(I) shall be made in
the prescribed
manner and the prescribed fee shall, in respect of such application,
be payable in the prescribed manner.
75.
This court does find
that the assimilation of section 3(1A) and 3A into the designation of
the powers of quality control is the only
practical interpretation of
the designation itself. The third Respondent was an assignee
designated to exercise quality control over
eggs and poultry meat
produced in or imported into the Republic. Such assignee was afforded
an authority and power to perform all
the functions secondary to the
inspection and assessment of such products and for which it may levy
fees as determined by it.
That all
notices issued by the Fourth Respondent be "reviewed" and
set aside and /or that it be declared that such invoices
"constitute
illegalities”. (RELIEF UNDER THE PROMOTION OF ADMINISTRATIVE
JUSTICE ACT, 2000 (“PAJA”)
Administrative
action is reviewable under PAJA. Sections 6 (1) and (2) of PAJA read
as follows:
“
Judicial
review of administrative action
6. (1)
Any person may institute proceedings in a court or a tribunal for the
judicial review of
an administrative action.
(2)
A court or tribunal has the power to judicially review an
administrative action if-
(a)
the administrator who took it-
(I)
was not authorized to do so by the empowering provision;
(ii)
acted under a delegation of power which was not authorized by the
empowering provision; or
(iii) was biased
or reasonably suspected of bias;
(b)
a mandatory and material procedure or condition prescribed by an
empowering provision was
not complied with;
(c)
the action was procedurally unfair;
(d)
the action was materially influenced by an error of law;
(e)
the action was taken-
(I)
for a reason not authorized by the empowering provision;
(ii)
for an ulterior purpose or motive;
(iii)
because irrelevant considerations were taken into account or relevant
considerations were not considered;
(iv)
because of unauthorized or unwarranted dictates of another person or
body;
(v) in bad
faith; or
(vi)
arbitrarily or capriciously;
(f)
the action
itself-
(i)
contravenes a
law or is not authorized by the empowering provision; or
(ii)
is not
rationally connected to-
(aa) the purpose
for which it was taken;
(bb) the purpose
of the empowering provision;
(cc) the
information before the administrator;
(g)
the action
concerned consists of a failure to take a decision;
(h)
the exercise of
the power or the performance of the function authorized by the
empowering provision, in pursuance of which the administrative
action
was purportedly taken, is so unreasonable that no reasonable person
could have so exercised the power or performed the function;
or
(i)
the action is
otherwise unconstitutional or unlawful.”
78.
Section 7 (1) of PAJA requires the review proceedings to be
instituted without unreasonable delay:
“
7
(1) Any proceedings for judicial review in terms of
section 6 (1) must be instituted without unreasonable delay and
not
later than 180 days after the date-
(a)
subject to
subsection (2) (c), on which any proceedings instituted in terms of
internal remedies as contemplated in subsection (2)
(a) have been
concluded; or
(b)
where no such
remedies exist, on which the person concerned was informed of the
administrative action, became aware of the action
and the reasons for
it or might reasonably have been expected to have become aware of the
action and the reasons.”
76.
Applicants furthermore
seek to review and set aside a number of administrative actions taken
by both the Minister and the Executive
Officer. The appellants did
not seek an order reviewing and setting aside the assignment of the
assignee. They, however, sought an
order reviewing and setting aside
the second respondent's "decision" to publish on the
government gazette, it is not a
disputed fact that the Minister
appointed the assignee. In addition to the above, the appellants
sought an order condoning the late
institution of the review
proceedings in terms of section 9 of PAJA.
22.
77.
The first and second
respondents opposed this application and argued that by virtue of its
assignment in terms of section 2(3)(a),
the assignee is appointed to
perform the powers as set out in the APS Act. It was argued that on a
proper interpretation of the APS
Act, the assignee's powers are not
limited to section 3(1) and 4A of the APS Act. The court aquo found
that it was clear that the
Minister has designated the Third
Respondent by its trading name as the relevant assignee.
78.
As contended by the
Respondents that the Appellant`s application was launched only on 19
March 2018, which is way beyond the 180 days
mentioned in PAJA. The
Applicants allege that they only became aware of the "unlawful
actions and illegalities and the impact
thereof on 27 February 2018".
Factually, insofar as the issues of fees and fee determination are
concerned, this contention
is simply unfounded. Furthermore, the
basis on which the Applicants sought condonation was based on the
alleged "confusion"
as to the identity of the designated
assignee and has nothing to do with the determination of fees.
In
Gqwetha
v Transkei Development Corporation Ltd and others
[1]
,
writing
for the majority, Nugent J said as follows:
It
is important for the efficient functioning of public bodies (I
include the first respondent) that a challenge to the validity of
their decisions by proceedings for judicial review should be
initiated without undue delay. The rationale for that longstanding
rule
– reiterated most recently by Brand JA in Associated
Institutions Pension Fund v Van Zyl 2005 (2) SA 302 (SCA)
at 321 – is twofold: First, the failure to bring a review within a
reasonable time may cause prejudice to the respondent. Secondly,
and
in my view more important, there is a public interest element in the
finality of administrative decisions and the exercise of
administrative functions. As pointed out by Miller JA in Wolgroeiers
Afslaers (Edms) Bpk v Munisipaliteit van Kaapstad 1978 (1) SA 13 (A)
at 41E–F (my translation):
“
It
is desirable and important that finality should be arrived at within
a reasonable time in relation to judicial and administrative
decisions or acts. It can be contrary to the administration of
justice and the public interest to allow such decisions or acts to
be
set aside after an unreasonably long period of time has elapsed
– interest reipublicae ut sit finis litium. Considerations
of
this kind undoubtedly constitute part of the underlying reasons for
the existence of this rule.” (footnote omitted)
Underlying
that latter aspect of the rationale is the inherent potential for
prejudice, both to the efficient functioning of the public
body, and
to those who rely upon its decisions, if the validity of its
decisions remains uncertain. It is for that reason in particular
that
proof of actual prejudice to the respondent is not a precondition for
refusing to entertain review proceedings by reason of
undue delay,
although the extent to which prejudice has been shown is a relevant
consideration that might even be decisive where
the delay has
been relatively slight (Wolgroeiers Afslaers, above, at 42C).”
79.
Plaskett
AJA held in
Beweging
vir Christelik-Volkseie Onderwys and others v Minister of Education
and others
[2]
that
a two-stage approach should be followed. The first question to be
answered is whether the delay in launching the application
was
unreasonable, or whether it was launched more than 180 days after
internal remedies had been exhausted or the applicant had been
informed of, had knowledge of or ought to have had knowledge of the
administrative action under challenge. The second question, if
the
first is answered in the affirmative, is whether it is in the
interests of justice to condone the delay.
80.
In
considering whether condonation should be granted, the Court is
obliged to disregard the merits of the review, unless the decision
complained about was egregious. In
Asla
Construction (Pty) Ltd v Buffalo City Metropolitan Municipality
(South African Civics Organisation as amicus curiae
[3]
)
the
manner in which the granting of condonation should be considered was
dealt with as follows:
“
The
manner in which the discretion to extend the statutory time period
should be exercised, was described in Camps Bay Ratepayers’
and Residents’ Association and another v Harrison and
another
[2010] ZASCA 3
;
[2010] 2 All SA 519
(SCA)
paragraph 54, in the following terms:
And
the question whether the interests of justice require the grant of
such extension depends on the facts and circumstances of each
case:
the party seeking it must furnish a full and reasonable explanation
for the delay which covers the entire duration thereof
and relevant
factors include the nature of the relief sought, the extent and cause
of the delay, its effect on the administration
of justice and other
litigants.
Although
a consideration of the prospects of success of the
application for review requires an
examination of its merits, this
does not encompass their determination. In Beweging vir
Christelik-Volkseie Onderwys v Minister
of Education
[2012]
ZASCA 45
;
[2012] 2 All SA 462
(SCA) paragraphs 42–44, the
proposition that a court is required to decide the merits
before considering whether the
application for review was
brought out of time or after undue delay and, if so, whether or not
to condone the defect, was rejected.
Thereafter, in Opposition
to Urban Tolling Alliance v South African National Roads Agency
Ltd
[2013] ZASCA 148
; [2013] 4 All SA 639(SCA) paragraphs
22, 26 and 43, it was decided that a court was compelled to deal with
the delay rule before
examining the merits of the review application,
because in the absence of an extension the court had no authority to
entertain the
review application. The court there concluded that
because an extension of the
180-
day period was not
justified, it followed that it was not authorised to enter into the
merits of the review application. However,
in South African
National Roads Agency Limited v Cape Town City
[2016] ZASCA
122
;
[2016] 4 All SA 332
(SCA); 2017 (1) SA 468 (SCA)
paragraph 81, a submission based upon this decision, namely that the
question
of delay had to be dealt with before the merits of the
review could be entertained, was answered as follows:
“
It
is true that . . . this court considered it important to settle the
court’s jurisdiction to entertain the merits of the matter
by first
having regard to the question of delay. However, it cannot be read to
signal a clinical excision of the merits of the impugned
decision,
which must be a critical factor when a court embarks on a
consideration of all the circumstances of a case in order to
determine whether the interests of justice dictates that the delay
should be condoned. It would have to include a consideration of
whether the non-compliance with statutory prescripts was egregious.”
A full and proper
determination of the merits of the review application was accordingly
dependent upon a finding that the respondent’s
failure had to be
condoned. As stated in Opposition to Urban Tolling
Alliance (supra), paragraph 26:
“
Absent
such extension the court has no authority to entertain the review
application at all. Whether or not the decision was unlawful
no
longer matters. The decision has been ‘validated’ by the delay .
. .”
It
was thus impermissible for the court a quo to have entered
into and decided the merits of the review application without
having
first decided the merits of the condonation application
.”
81.
In
Opposition
to Urban Tolling Alliance and others v South African National Road
Agency Ltd and others
[4]
it
was explained that after expiry of the 180 day period, a court may
only review an action if the interests of justice require an
extension of time. Once the 180-day period has expired, in the
absence of an extension, a court is not authorized to consider the
review. Whether the decision was in fact unlawful is then of no
consequence. The decision would be “validated” by the delay.
[5]
82.
The Applicants allege
that they only became aware of the "unlawful actions and
illegalities and the impact thereof on 27 February
2018. The
Appellants not only did they not object to the invitation at the
time, the third Respondent responded to the invitation
and also
applied to be appointed as assignee. Appellants and other role
players in the industry were well aware of the process and
the
question is now why appellants did not take issue with the invitation
at the time. Instead, they participated in the overall
process that
followed the invitation.
83.
In this regard, the
nature of the administrative decision must be taken into account, as
well as its purpose and the effect that a
setting aside thereof would
have on the parties affected by the decision. The prejudice to the
applicant should the decision not
be set aside must be weighed
against the prejudice to the respondent if it were set aside.
84.
This court cannot find
that it would be in the interests of justice to grant an extension of
time in terms of section 9 of PAJA. The
prayer for an extension of
time in terms of section 9 of PAJA cannot succeed.
85.
Further stating that
this court totally agrees with the court aquo findings in that there
is no provision in the Act permitting the
designated assignee to
sub-delegate its obligations and duties to another legal entity. Such
sub-delegation would run contrary to
the common law principle of
delegatus delegare non protest. Therefore, the fourth Respondent
cannot act as assignee.
86.
It is a known fact the
fees were determined by the Third Respondent as assignee. Regarding
the Fourth Respondent it is not in dispute
that it is a separate
legal entity and is not the assignee. Therefore, it had no authority
to determine the fees nor collecting them.
This court does support
the view of the court aquo in that this does not however, preclude
the Third Respondent from the issuing
of fresh invoices for its fees,
even if the inspections had been done by its subsidiary as its
contractor or agent.
87.
This court will not
deliberate much on aspects of the Fourth Respondent, Davis J
correctly found that the Fourth Respondent (AFSQ)
was not designated
to conduct the inspections in terms of Section 3A of the APS Act in
its own name and issue VAT invoices. Davis
J, correctly set aside the
invoices issued by AFSQ, he further held, that the Third Respondent
could merely re-issue the invoices
generated by the Fourth Respondent
afresh.
88.
Further noting that the
Appellants had an opportunity in challenging assignee`s determination
of fees. There is no doubt in that internal
remedies were in place
but it seems they opted not to utilize them rather they sought not to
canvass such. There is no evidence before
this court that suggest
that the Appellants made any attempts in resolving and exhausting
this administrative issue internally and
neither shown any
exceptional circumstances in avoiding such.
89.
As correctly stated by
the court aquo that stakeholder and or public participation process
with the industry role players prior to
the determination of the fee
by the assignee took place such indicates that the fee determination
was not arbitrarily or capriciously
made. Therefore, the relief
sought by the Appellants against the Third Respondent does not stand.
90.
In reference to case
law cited by the Appellants: (Natal Joint Municipal Pension Fund v
Endumeni Municipality), the Appellants placed
reliance on Wallis J
correctly so in that the Judge emphasized that, that regard should be
to the language used, the context in which
the provision appears and
the purpose to which it is directed; further stating that the
terms of the assignment are explicit
and does not leave room for an
interpretation that other provisions could be read into it, as set
out hereinabove.
91.
This court further
notes that the Endumeni judgment resulted in an integrated approach
to legal interpretation that can be applied
uniformly to wills,
contracts, and statutes, also when the judgment by Wallis JA was
delivered it stood out for two reasons from
the surrounding case law
which from time to time also dealt with interpretive methodology.
First, the judgment self-consciously sought
to bring an end to
ongoing debates about the proper approach to the interpretation of
legal documents. It sought to do so by providing
a short-hand
restatement of the law of statutory and other forms of legal
interpretation. Wallis JA arrived at this restatement by
explicitly
contrasting two approaches to interpretation, the two-stage approach
associated with the textualism prescribed by the
“golden rule”
and the holistic or one-stage approach associated with contextualism.
92.
It is imperative to
note as well that Wills J further emphasized the
point that sometimes
language
and syntax, and sometimes context, will predominate.
Endumeni does away with the idea in Coopers
& Lybrand that
interpretation is an exercise that occurs in stages. The starting
point is the text, because as the writer Elena
Ferrante expresses it:
"The words, the grammar, the syntax is a chisel that shapes our
thought. “But from the outset that
is viewed in context, so that
the process is both textual and contextual. And he further stated
that “there will be some cases,
though they are likely to be few,
where the language admits of only one meaning, in which event no
amount of reliance on context
can avoid that meaning”.
93.
“
When
in Coopers & Lybrand
[6]
the
proper approach to interpretation was summarized as being that one
should first "ascertain the literal meaning of the words"
and thereafter have regard to context and background circumstances,
applying extrinsic evidence of surrounding circumstances when
encountering
ambiguity, courts were being asked to engage in an artificial
process. That is not how human beings read documents or
seek to
understand their meaning. Nor was it the way in which judges
interpreted statutes or contracts”
[7]
.
94.
Section 2 (3) (b) (I)
of the APS Act specifically provides that the powers and duties of
the assignee shall be exercised and performed
subject to the
direction of the Executive Officer. The assignee’s powers include
the implementation of inspection procedures, and
the determination of
fees. The assignee must subject its work to the direction of the
Executive Officer, who is entitled (and obliged)
to give direction to
the assignee. It is therefore not correct to say that the assignee
has unfettered discretion to do as it pleases.
95.
The
first Respondent appointed the third Respondent in terms of the
provisions of section 2(3)(a) of the APS Act which provides as
follows: The Minister may for the purposes of the application of this
Act or certain provisions thereof, with regards to a particular
product, designate any person, undertaking, body, institution,
association or board having particular knowledge in respect of that
product.
96.
Therefore,
the first Respondent designated Food Safety Agency (Pty) Ltd t/an
Agency for Food Safety as the assignee. Section 3(1)
deals with
control over the sale of products.
97.
This
court is satisfied that all parties had a common understanding that
the first respondent did not expressly provide otherwise
and as such,
the assignee exercised the powers in terms of section, in that
2(3)(a) and 2(3)(b) of the APS Act. Such powers include
the powers
which were assigned to the executive officer. Section 2(3)(b)
provides that "an assignee thus designated shall-(I)
unless
expressly
provided
otherwise and subject to the directions of the executive officer,
exercise the
powers
and perform the duties that are conferred.
98.
Thus
it is clear that there is no evidence to show that the Minister
expressly excluded the powers of the assignee in terms of sections
3(1A), 3A, 4A, 7 and 8 of the APS Act or that he provided expressly
otherwise as stated in section 2(3)(b) of the APS Act. If
the
Minister had intended to exclude the powers in terms of section 3(1A)
and of the APS Act, he would have stated expressly that
those powers
are excluded. In essence the Act is not ambiguous in that
the Executive Officer has the powers to perform
the functions listed
in section 3A and consequently is entitled to charge fees as set out
in the Act. (I) The Minister may prohibit
the export from the
Republic of a prescribed product unless each quantity of that
product, intended for export, has been approved
by the executive
officer for that purpose; to determine that a prohibition referred to
in paragraph (a) shall only apply to the export
of a prescribed
product for a prescribed purpose, or in a prescribed form or
quantity, or under such other prescribed circumstances
as the
Minister deems necessary.
99.
Notwithstanding
the provisions of subsection (3) (a), the executive officer may
deviate from the standards and requirements stipulated
under that
subsection and issue the approval referred to in subsection (1) in
respect of a quantity of a product that- is to be exported
as an
experiment or under such other special circumstances as may be
approved by the executive officer in the case concerned; and
complies
with the requirements for such product in force in the country to
which it is to be exported.
100.
Section
4A deals with control over imported products and it provides as
follows: (1) The Minister may-prohibit the sale of a prescribed
product imported into the Republic unless each quantity of such
product intended for sale in the Republic complies with the
provisions
of section 3 (I);
101.
This
court is inclined in agreeing with the interpretation of the
Respondents in that APS Act makes provision for control over the
sale
and exportation of agricultural products, for this purpose, the
Minister of Agriculture is granted the powers to prohibit the
sale or
the exportation of products that do not meet the requirements as
specified by or under the APS Act.
102.
The
interpretation of statutes or to be more precise, the judicial
understanding of the legal rules, deals with those rules and
principles
which are employed to construct the correct meaning of the
legislative text to be applied in legal disputes.
103.
Similarly,
in this case, in order to exercise the control provisions, it is
necessary for the assignee to exercise the implementation
provisions
and to the extent necessary, to exercise the enforcement provisions.
It is also entitled to charge fees for such services
in
terms of the Act.
104.
Acknowledging
that the Minister will require assistance in enforcing the provisions
of the APS Act, the legislature enacted the provisions
of section
2(3) which allows for an appointment of an assignee to perform the
powers and duties in terms of the Act or certain provisions
of the
Act. The Act also states that the assignee may perform certain powers
which are conferred to the executive officer.
105.
The
purpose of the implementation provisions is to ensure that the first
respondent is able to control the agricultural products that
are
being sold, imported and exported. The purpose is to ensure that
unsafe and harmful products are not sent out to the market.
106.
Therefore,
The Third Respondent has in terms of section 3A, the powers to
inspect, grade and sample the products for purposes of quality
control. The purpose of section 3A is to ensure quality control of
the products before they are sent out to the market either by
way of
sale, import or export. A product that does not meet the requirements
as set out in the control provisions will be prohibited
for sale,
import or export.
107.
The
wording of section 3A makes it clear that in order for the Third
Respondent to execute its functions as set out and for purposes
of
control, the Respondent had to inspect, grade and sample the eggs for
quality purposes, by necessary implication and based on
the wording
and context of section 3A, the Minister assigned the powers set out
in section 3A.32.
108.
In
ensuring compliance, the Third Respondent was entitled to charge fees
in respect of duties performed to ensure compliance with
the control
provisions. As set out in section 3(1A) (a) which provides that fees
may be charged in respect of the powers exercised
and duties
performed by the executive officer or the assignee.
109.
The
phrase to ensure compliance with this section refers to the control
measures set out in section 3(1). Based on the above- provisions
and
taking the principles of interpretation into account, in order to
determine the powers assigned to the assignee, the provisions
of
section 3(1) and 4A has to be read together with the provisions of
section 3 of the APS Act.
110.
The
court aquo was correct in finding that section
3(1)
and 4A cannot logically be detached from 4A. Control over products
can only
take
place by way of powers created by section 3A".
111.
The
court correctly, held that the provisions of Section 3A were included
in the assignment, by necessary implication. This finding
is with
respect correct. If the Minister intended not to provide, he
could have provided an exclusionary note or assignment
or exclude
other Sections of the APS Act in the assignment.
CONCLUSION
112.
In conclusion
this court agrees with the findings of the court aquo in that the
claim for a declaratory order that the Minister had
not assigned the
powers set forth in sections 3(1A) (a) and (b) (ii), 3A, 4A, and 7
and 8 of the Act must fail.
113.
That the claim
for the review and setting aside of the "decision" by the
Executive Officer to publish a different designation
of the Minister
must fail.
114.
The review and
setting aside of the determination of fees must fail with an
exception that the invoices issued by the Fourth Respondent
should be
set aside.
115.
For the reasons
set out above, all the relief sought under PAJA must also fail,
COSTS
a.
The Respondents are the
successful parties and are entitled to their costs.
ORDER
a.
In the circumstances
the appeal is dismissed with costs.
DATE OF
JUDGMENT:
BOKAKO.
TP
Acting
Judge of the High Court
Gauteng
Division, Pretoria
TLHAPI.V
V
Judge
of the High Court
Gauteng
Division, Pretoria
PHAHLAMOHLAKA.
K F
Acting
Judge of the High Court
Gauteng
Division, Pretoria
Date
of Hearing: July 2021
Judgment
delivered: 2022
APPEARANCES:
For
the Applicants:
Adv. M G Roberts SC with
Adv. E Roberts
Attorney
for Applicants:
Moolman & Pienaar Attorneys
c/o
Burden, Swart & Botha Attorneys,
Pretoria
For
the 1
st
and 2
nd
Respondents:
Adv. K D Mogano
Attorney
for Respondents:
The State Attorney, Pretoria
For
the 3
rd,
4
th
and 5
th
Respondents: Adv. G Naude SC with
Adv. A Thompson
Attorney
for Respondents:
VFV Attorneys, Pretoria
[1]
2006 (2) SA 603 (SCA)
[2]
[2012] 2 ALL SA 462
(SCA) at par. 46
[3]
[2017] 1 ALL SA 677
(SCA) at paras. 11 to 13
[4]
[2013] 4 ALL SA 639 (SCA)
[5]
Tasima (Pty) Ltd v Department of Transport and others [2016] 1 ALL
SA 465 (SCA)
[6]
Coopers & Lybrand v Bryant
[1995] ZASCA 64
;
1995 3 SA 761
(A) (hereafter the
Coopers & Lybrand case) 768 A-E.
[7]
Malcolm Wallis. B Com LLB (Natal) PhD (UKZN). SC, Judge of the
Supreme Court of Appeal, Honorary Professor of Law in the University
of KwaZulu-Natal, South Africa.
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