Case Law[2022] ZAGPPHC 431South Africa
Sasol Oil Limited v B-BEE Commission and Others (21415/2020) [2022] ZAGPPHC 431 (14 June 2022)
High Court of South Africa (Gauteng Division, Pretoria)
14 June 2022
Headnotes
by a black company while in truth the white funders were the true beneficiaries of the shares.
Judgment
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## Sasol Oil Limited v B-BEE Commission and Others (21415/2020) [2022] ZAGPPHC 431 (14 June 2022)
Sasol Oil Limited v B-BEE Commission and Others (21415/2020) [2022] ZAGPPHC 431 (14 June 2022)
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sino date 14 June 2022
IN
THE HIGH COURT OF SOUTH AFRICA
(GAUTENG
DIVISION, PRETORIA)
CASE
NO: 21415/2020
REPORTABLE:
YES/ NO
OF
INTEREST TO OTHER JUDGES: YES / NO
REVISED:
YES / NO
14/06/22
In
the matter between:
SASOL
OIL
LIMITED
APPLICANT
AND
THE
B-BEE COMMISSION
FIRST RESPONDENT
TSHWARISANO
LFB INVESTMENT (PTY) LIMITED
SECOND RESPONDENT
AWEVEST
INVESTMENT LIMITED
THIRD RESPONDENT
AFRICAN
WOMEN ENTERPRISE INVESTMENTS
FOURTH
RESPONDENT
(PTY)
LIMITED
GOLDEN
FALLS 467 (PTY) LIMITED
FIFTH RESPONDENT
ASTRA
GROUP HOLDINGS (PTY) LIMITED
SIXTH RESPONDENT
FIREFLY
CAPITAL (PTY) LIMITED
SEVENTH RESPONDENT
JAN
WILLEM DAVID BICKER CAARTEN
EIGHTH RESPONDENT
PETER
CHARLES NASH
NINTH RESPONDENT
EMPOWERDEX
(PTY) LIMITED
TENTH RESPONDENT
JUDGMENT
This
Judgment was handed down electronically by circulation to the
parties’ and or parties representatives by email and by
being
uploaded to CaseLines. The date and time for the hand down is deemed
on June 2022.
BAQWA
J:
INTRODUCTION
[1]
This is an application for the review and setting aside of a decision
(“The Decision”) of the first respondent (“The
Commission”) based on alleged erroneous and unlawful adverse
findings made by the Commission regarding non-compliance by the
applicant (“Sasol Oil”) in term of the provisions of
the
Broad-Based Black Economics Empowerment Act 53 of 2003 (“The
Act”).
[2]
The Sasol Oil bases its application on the provisions of the
Promotion
of Administrative Justice Act 3 of 2000 (“PAJA”)
or alternatively on the principle of legality in light of the
provisions
of the Act and the B-BBEE Regulations promulgated in term
of section 14(1) of the Act (“The Regulations”).
THE
ISSUES
[3]
The issues to be determined are mainly the following:
3.1 Whether the point
raised in
limine
by the Commission to the effect that Sasol
Oil has sought to review the wrong decision ought to be upheld;
3.2
Whether the decision constitutes
procedurally unfair and unlawful administrative action in terms of
PAJA.
3.3
Whether the decision is invalid and
unlawful having regard to the principle of legality and the
regulations.
3.4
Whether the Commission should be
interdicted from making unlawful demands of Sasol Oil and threatening
to invoke its powers against
Sasol Oil if the latter does not comply
with such demands.
THE
FACTS
[4]
Sasol Oil is one of the subsidiaries of Sasol Ltd which is a listed
public
company. In 2006 Sasol Oil Ltd sold 25% of the shares of Sasol
Oil to the second respondent (“Tshwarisano”) in a black
economic empowerment transaction. Tshwarisano is a black controlled
company whose shareholders are mostly black people or companies
controlled by black people.
[5]
Awevest Investment Ltd (“Awevest”) is the third
respondent
which is the investment company of two groups of African
Women represented by Queen Elizabeth Sangion (“Sangion”).
Awevest is the sole shareholder in Golden Falls Trading 567 Pty Ltd
(“Golden Falls”) which is one of the shareholders
of
Tshwarisano. Golden falls is a special purpose vehicle which was
created exclusively to hold 5.58% of the shares in Tshwarisano.
[6]
Golden falls did not have and could initially not raise the purchase
price
of the shares of R19.3 M and a group of funders agreed to
finance the acquisition of the shares by subscribing for redeemable
preference
shares in Golden Falls. The funders subscribed, for the
preference shares at a price of R19.5 M in terms of a Preference
Share
Subscription Agreement on 3 May 2007 (“Pref Share
Agreement”).
COMPLAINT
BY MS SANGION
[7]
In December of 2015 Ms Sangion complained to Sasol Limited that the
Prefshare
Agreement unfairly favoured the funders and thereby
undermined the BEE purpose of the transaction. Sasol Limited took up
the matter
with Tshwarisano, Golden Falls, Ms Sangion and the funders
through a facilitated negotiation. The negotiation resulted in a
settlement
between the third to ninth respondent on 5 September 2016.
The Settlement Agreement was between Astra Group Holdings (Pty)
Limited,
Firefly Capital (Pty)Ltd, Jan Willem David Bicker Caarten,
Peter Charles Nash, Golden Falls Trading 567 (Pty) Limited, Awevest
Investments Limited and African Women Enterprise Investments (Pty)
Limited. (“Settlement Agreement”)
[8]
In October 2017 Sasol Oil received a notice from the Commission that
it was investigating
a complaint by Ms Sangion laid in terms of the
Act. The complaint was that Sasol Oil was somehow, responsible for
the unfair terms
of the Pref Share Agreement. The Commission
interpreted the complaint as an accusation that Sasol Oil had
knowingly engaged in
“fronting” in that it claimed a BBE
rating on the basis that Golden Falls shares in Tshwarisano were held
by a black
company while in truth the white funders were the true
beneficiaries of the shares.
SASOL
OIL’S RESPONSE
[9]
Sasol Oil made comprehensive submissions denying awareness of the
Pref Share Agreement
until Ms Sangion approached it for assistance in
December 2015. It made reference to the Settlement Agreement which
seemed to have
resolved the Sangion complaint and that it had no
reason to doubt that Golden Falls was not only a black controlled
company but
also that it was a beneficial owner of its shares in
Tshwarisano.
[10]
Sasol Oil submitted further, that its BEE rating did not in any way
depend on the question whether
Golden Falls was the true beneficial
owner of its shares in Tshwarisano. Sasol Oil’s BEE status was
based on the fact that
Tshwarisano, a black controlled company, held
25% of its shares and that under BEE rules Tshwarisano qualified as a
100% black-controlled
company as long as it had 51% or more black
shareholders.
THE
FINAL FINDINGS
[11]
After Sasol Oil’s submissions the Commission issued its
findings on 7 October 2019 which
according to Sasol Oil did not seem
to address or engage with the submissions submitted by it.
[12]
The Commission conveyed its findings to Sasol Oil by means of a
letter to which it annexed a
summarised version of a report dated 1
October 2019. The letter was purportedly in terms of its powers in
terms of section 135
of the BEE Act and regulations 15 to 17 of the
BEE Regulations.
[13]
The Act and the regulations set the parameters within which the
Commission is expected to operate
as follows:
13.1 In terms of
section 13B(3)(b) of the Act, the Commission
“
must be
impartial and perform its functions without fear, favour or
prejudice”
13.2
In terms of
section 13B(3)(c) ii, the Commission must exercise its powers
“
in
accordance with the values and principles mentioned in section 195 of
the Constitution”
13.3
In terms of
regulation 15(13), the Commission must afford a respondent an
opportunity to respond to adverse findings.
13.4 The
Commission must, in terms of regulation 15(17), conduct its
investigations in a manner that conforms “to all
the rules
relating to fair administration of justice processes applicable to
investigations”
[14]
Whilst the Commission’s decision to issue its final findings
constitutes an administrative
act and falls to be dealt with in terms
of PAJA, it may equally be reviewed under some of the provisions of
the Act and regulations
mentioned above.
THE
COMMISSION’S POINT IN LIMINE
[15]
In its application for review Sasol Oil seeks to review the
Commission’s final findings
letter of 7 October 2019 including
its final findings in paragraphs 6 and 7, its ultimatum in paragraphs
8 and 17 and its threats
in paragraph 9.
[16]
According to the Commission its final findings letter was the means
through which it informed
Sasol Oil of the findings it had made in
the “final Investigation report” dated 1 October 2019 and
which it contends
Sasol Oil ought to have reviewed and not the
letter.
[17]
Sasol Oil on the other hand contends that whilst it is true that the
Commission notified it of
its decisions through the final findings
letter, nothing was said about the final report at the time and that
its review application
is directed at the decisions and that its
notice of motion specifies the decisions which it seeks to review.
[18]
Sasol Oil therefore contends that whilst reference may be made to the
final findings letter,
it is the decisions referred to therein that
are correctly targeted for review.
GROUNDS
OF REVIEW
[19]
The first ground of review is that Sasol Oil did not know of the
Prefshare Agreement. This ground
arises from the Commission’s
final findings letter which is premised on the supposition that Sasol
knew of the Pref Share
Agreement from the very onset. This assumption
appears to be based on the understanding that a Mr Peter Wingrove
“Wingrove”
who was allegedly involved in the negotiation
of the Pref Share Agreement, was an “advisor to Sasol Oil”.
[20]
The Commission appears to have persisted in its final findings to
state that Mr Wingrove was
“characterised” as an advisor
to Sasol Oil despite the fact that Sasol Oil had pointed out in its
response to the Commission’s
findings that Wingrove was at the
time an advisor to Tshwarisano and not Sasol Oil.
[21]
In its founding affidavit Sasol Oil repeats that it had not known of
the Pref Share Agreement
until Ms Sangion sought its assistance in
December 2015. Sasol Oil did not submit any credible or admissible
evidence in support
of the contention that Wingrove was Sasol Oil’s
advisor.
[22]
In paragraph 67 of Sasol Oil’s replying affidavit Wingrove’s
involvement is dealt
with succinctly as follows:
“
67.7.2
an email dated 20 July 2011 from Deshnee Naiker (“Ms Naiker”)
to Ms Sangion, as annexure “RA2”. In this email Ms Naiker
referred to Mr Wingrove as a representative of Tshwarisano.
Ms Naiker
is Sasol Oil’s legal advisor and was involved in the
Tshwarisano transaction, and
67.7.3
an email dated 4 February 2015 from Wingrove to Ms Naiker, as
annexure “RA3”, in which he records that he stopped being
employed by Tshwarisano at the end of December 2014, and
67.7.4
Ms Naiker’s confirmatory affidavit as annexure “RA4”.
“She confirms that, in 2007, Mr Wingrove was not an advisor to
Sasol Oil and he was instead acting on behalf of Tshwarisano”.
[23]
Evidently, the Commission’s decision regarding the relationship
between Wingrove and Sasol
Oil was based on incorrect facts which
renders it reviewable. At the same time it is rendered irrational in
that it is not based
on admissible evidence.
[24]
The second ground of review is that Sasol Oil had been brought under
the impression that Ms Sangion’s
complaint had been resolved.
As alluded to above, at the instance of Ms Sangion Sasol Oil had
caused Golden Falls, Awevest, African
Women Enterprise Investments
(Pty) Ltd together with the funders to engage in negotiations with
Professor Katz as facilitator.
[25]
The rule 53 record presented by the Commission includes copies of the
Settlement Agreement which
was the result of the said negotiations
and it was concluded on 5 September 2016 and it had been signed by Ms
Sangion on behalf
of Golden Falls and Awevest.
[26]
A Golden Falls board resolution attached to the Settlement Agreement
signed by two directors
including Ms Sangion stated:
“
That it
considers it in the interests of the company’s business and to
the commercial benefit and advantage of the company
to enter into and
implement the settlement agreement”.
[27]
On the basis of the said Settlement Agreement Sasol Oil had presumed
that the matter had been
resolved satisfactorily in the interests of
all parties only to learn in October 2017 when it was notified by the
Commission of
Sangion’s complaint that the matter had remained
unresolved.
[28]
Despite being informed and being aware of Sasol Oil’s prior
attempt to have the matter
resolved it still found it within itself
to strangely criticise Sasol Oil in the following manner in its
paragraph 6.3.
“
That Sasol Oil
(Pty) Ltd failed to take material steps to combat possible fronting
that was being perpetrated through the preference
share subscription
agreement when they became aware of it, which clearly defeated the
objectives and the purpose of the B-BBEE
Act despite the complaint
having brought the issue to the attention of Sasol Oil (Pty) Ltd, and
instead continued to benefit through
the fictitious B-BBEE ownership
scheme that directly benefited the funders, a fact they were fully
aware of”.
[29]
In paragraph 6.5 the Commission held that Sasol Oil referred the
Sangion
complaint “to be arbitrated by Dr Michael Katz….in
a manner that effectively perpetuated the enforcement of the
Preference
Share subscription agreement that reduced black people to
fronts or conduit in a transaction that ought to benefit them”
[30]
At paragraph 6.6 the Commission held that Sasol oil,
“
Failed to
follow through to ensure that the matter, which clearly impacted on
its B-BBEE status was satisfactorily resolved”
[31]
The Commission was duly informed of the steps that had been taken by
Sasol Oil when Ms Sangion
brought the matter to their attention. The
matter had reached what appeared to be a satisfactory conclusion.
This was confirmed
on the form not only of the Settlement Agreement
but also through the annexure thereto which was a Board resolution
signed
inter alia
by Sangion confirming acceptance of the
Settlement Agreement. Until the renewed complaint to the Commission
Sasol was entitled
to remain under the impression that the matter
remained resolved. This begs the question what ‘follow through’
Sasol
Oil would have been expected to make. In these circumstances,
the irrational nature of the Commission’s findings is rather
astounding.
[32]
It would indeed seem that the final findings are reviewable under
section 6 of PAJA in that:
32.1 They were made
because irrelevant considerations were taken into account or relevant
considerations were not considered,
within the meaning of section
6(2)(e)(iii);
32.2 They were made
arbitrarily or capriciously with the meaning of section 6(2)(e)(vi);
32.3 They were
irrational within the meaning of section 6(2)(f)(ii) and
32.4 They were
unreasonable within the meaning of section 6(2)(h).
[33]
The third ground of review is that the transaction complained about
had no effect on Sasol’s
BEE rating which negates the
Commission’s finding that the Preference Share Agreement
“defeated the objectives and
the purpose of the B-BBEE Act”.
[34]
In paragraph 6.2 the Commission’s final findings were that
Sasol Oil “
continued with its tick box approach to claim
points for black ownership that they knew did not exist in practice
and could not
be verified, which on paper appeared to be valid and
marketed as such on the website of Sasol Oil”.
[35]
In 6.5 the Commission held that Sasol Oil had,
“
failed to
disclose this material defect in the ownership scheme to the
verification professional, thereby resulting in the recognition
of
points that are based on fictitious black women ownership when
control and management rested with the white people who are said
to
be funders”.
[36]
The Commission goes on to find in paragraph 6.9 that the black
ownership which Sasol Oil claimed through Tshwarisano, Golden Falls
and Awevest “is not only flawed but makes a mockery of what
broad-based black economic empowerment stands for”
[37]
In its conclusion in paragraph 6.10 it states that the black
ownership claimed through Tshwarisano, Golden Falls and Awevest
“falls
short of meeting the requirements for exercisable voting
rights, economic interest and net value”.
[38]
The reasoning of the Commission in coming to the conclusions referred
to above is demonstrably
flawed. The manner in which the BEE ratings
of measured entities must be measured is contained in the Codes of
Good Practice on
Broad Based Economic Empowerment of 2013. One of the
Codes is Code 100 which prescribes the rules for scoring black
ownership of
a measured entity and it includes the following
provisions.
38.1 Clause 3.1.1
provides that an entity scores points for participation by black
people in its rights of ownership. Black
people may hold their rights
of ownership in a measured entity directly or through another entity
such as a company. That was how
Ms Sangion and her partners held
their interest in Sasol through Awevest, Golden Falls and
Tshwarisano.
38.2 Clause 3.3
deals with a “flow-through-principle” which means that
when black people hold their interests
through one or more companies,
the pro rata share of their participation must be calculated at each
level of the chain.
38.3 Clause 3.4
contains a “modified flow-through principle” which
states:
“
when in the
chain of ownership, Black people have a flow-through level of
participation of at least 51%, and then only once in the
entire
ownership structure of the Measured Entity, such black participation
may be treated as if it were 100% Black”
[39]
The uncontested evidence is that black shareholders in Tshwarisano
always exceeded 51% even if
one were to exclude shares held by Golden
Falls. Tshwarisano would therefore be classified as 100% black
because its black shareholders
exceeded 51% and its BEE rating would
not be affected through the flow-through principle.
[40]
The same point can be demonstrated differently by looking at the BEE
ratings before and after
the omission of the shares held by Golden
Falls:
40.1 Empowerdex
issued a certificate on 15 January 2018 based on the assumption that
shares in Tshwarisano were held by black
people. Sasol Oil was rated
as a Level Three contributor with an ownership score of 24.81 and an
overall score of 93.21.
40.2 Sasol Oil then
instructed Empowerdex to disregard Golden Falls shares in Tshwarisano
and issue a certificate dated 7
November 2018. The result was that
there was no difference shown on Sasol Oil’s rating which still
rated as a Level Three
Contributor with an ownership score of 24.36
and an overall score of 92.76 within a Level Three Contributor range
of 90-95.
[41]
This demonstrates that the Commission had misdirected itself in its
conclusion that Sasol Oil
had misrepresented its own BEE status.
[42]
The Commission’s argument that Empowerdex had calculated Sasol
Oil’s BEE score without
interviewing a sample of its black
shareholders does not hold water because the figures the Codes of
Good Practice on Broad-Based
Economic Empowerment of 2013 set
objective measurement criteria which could not be obfuscated by any
subjective views. The measurement
in which Golden Falls is excluded
speaks for itself.
FRONTING
[43]
Section 1(c) of the Act defines fronting as the conclusion of a legal
relationship with a black
person for the purpose of that enterprise
achieving a certain level of broad-based black economic empowerment
compliance without
granting that black person the economic benefits
that would reasonably be expected to be associated with the status or
position
held by that black person.
[44]
Based on that definition the Commission contends that Sasol Oil
turned a blind eye towards the
existence of the Pref Share Agreement
and that it was complacent to the fronting practice perpetuated by
the agreement. The fallacy
of this assumption has been discussed
above with reference to the absence of a relationship between Sasol
Oil and the purported
advisor, Mr Peter Wingrove. Notably however the
Commission does not suggest that Sasol Oil or Tshwarisano were
parties to the Pref
Share Agreement which was an effort by Awevest/
Golden Falls to raise funds to enable them to participate as part of
Tshwarisano.
To ascribe a fronting intent to Sasol Oil through an
agreement to which it was not party to and which was concluded by
independent
parties is irrational.
AUDI
ALTERAM PARTEM
[45]
Administrative action which materially and adversely affects the
rights or legitimate expectations
of any person must be procedurally
fair, this is provided for in section 3(1) of PAJA. In its answering
affidavit the Commission
states that Sasol Oil was informed of the
investigation into the allegations of breach and afforded an
opportunity to respond in
a letter dated 4 October 2017.
[46]
Whilst it cannot be disputed that the Commission appeared to be
affording Sasol Oil an opportunity
to make submissions, a closer
examination of its letter dated 18 October 2018 does not support the
Commission’s statement
in this regard.
[47]
In paragraph 2 of the said letter the Commission states unequivocally
that it “has finalised
its investigation” and goes on to
say in paragraph 4 “having investigated the matter” the
Commission “makes
the following findings”
[48]
In paragraph 6 and continuing in the same vein the Commission says:
“
Given
the above-mentioned findings, the Commission may pursue certain
remedial steps”. The latter statement seems to confirm
the
finality of the findings already made.
[49]
If there is any doubt about the purpose of the letter and the
interpretation of its contents,
the conclusion in paragraph 7 dispels
such doubt when the Commission clarifies that the purpose of the
letter was “to notify
you of the findings in respect of this
complaint” after which it invites Sasol oil to respond. In
light of the excerpts quoted
above the ambiguity of the invitation is
at best puzzling.
[50]
Despite the ambiguity Sasol Oil did respond. An examination of the
contents of the Final Findings
letter with the Commission’s
Findings however demonstrates that Sasol oil’s responses went
down like water off a duck’s
back in that they appear to have
received no consideration at all. The Commission’s findings in
paragraph 6.1 to 6.10 and
its threats in paragraphs 9.1 to 9.4 are
word perfect copies of the corresponding paragraphs of the
Commission’s earlier
Findings letter on 18 October 2018.
[51]
The manner in which the invitation was made and a close examination
of the correspondence between
Sasol Oil and the Commission lead to
the conclusion that the Commission would appear to have been merely
paying lip service in
its invitation to Sasol Oil and that it was not
acting in full compliance with section 6(2)(c) of PAJA and in terms
of regulation
15(17) of the BEE regulations. This renders the process
followed unfair.
ABUSE
OF POWER BY THE COMMISSION
[52]
Regulation 15(17) of the Act provides:
“
Any
investigation conducted by the Commission shall be in accordance with
its procedures that are in accordance with the Act, and
conform to
all the rules relating to fair administration of justice processes
applicable to investigations”.
[53]
Sasol Oil claims that the Commission acted outside its powers as
contemplated in the Act and failed
to observe the obligations imposed
on it by regulation 15(17) more particularly with regard to the
series of “recommendations”
in its Final Findings letter
which were beyond the Commission’s powers in that they were out
of proportion to Ms Sangion’s
unhappiness regarding the
Prefshare Agreement which she concluded with the funders.
[54]
The recommendations were that Sasol Oil’s directors and senior
executives undergo BEE training
and that Sasol Oil undertake to abide
by the BEE Act on the advice of the Commission and further that it
publicly apologies for
its role in the violation of the BEE Act. The
most egregious of these recommendations was the recommendation that
it contribute
10% of its annual turnover to a bursary fund. Counsel
for the Commission was hard pressed when requested by the court to
point
to the source of the powers that the Commission appeared to
have accorded itself.
[55]
I find that the Commission’s recommendations are reviewable in
that the Commission was
not authorised to make the recommendations
within the meaning of section 6(2)(a)(i) and that the Commission
threatened to exercise
its statutory powers for an ulterior purpose
of compelling Sasol Oil to adopt and implement its unlawful
recommendations within
the meaning of section 6(2)(e)(ii) of PAJA.
FINDINGS
TIME-BARRED
[56]
Regulation 15(4)(g) provides:
“
The Commission
must within one (1) year of receipt of the complaint – (g) make
a finding, with or without recommendations”.
Sasol
Oil contends that the Commission’s findings are time-barred by
the above regulation on the basis that the report was
rendered
outside the prescribed time limit.
[57]
The complaint by Ms Sangion was lodged with the Commission on 6
December 2016 and the final findings
were issued on 7 October 2019.
[58]
The Commission submits that it notified the complainant of the need
for more time and was permitted
to do so in terms of regulation
15(15) of the BEE Regulations which reads as follows:
“
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”.
[59]
Sasol Oil contends that the investigation by the Commission was not
initiated by it in terms
of Regulation 15(8) as provided for in
Regulation 15(15) and as such it is not subject to an extension in
terms of that regulation.
[60]
Sasol Oil contends further that the last email on which the
Commission relies was dated 12 July
2018 and that it sought a two
months extension to September 2018 and that the email did not provide
“the circumstances warranting
a longer period” as
required by regulation 15(15).
[61]
It is common cause that the Commission only made its final findings
in October 2019 and as such
fall foul of the provisions of 15(4)(g).
[62]
In the circumstances, I find that the 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).
CONCLUSION
[63]
Having discussed the grounds of review and the Commission’s
responses thereto and taking
into account the decisions specified in
the notice of motion I find that it is the Commission’s
decisions contained in the
report dated 1 October 2019 that are
sought to be reviewed and set aside.
[64]
In
Greys
Marine Hout Bay (Pty) Ltd and Others v Minister of Public Works and
Others
[1]
what constitutes and administrative action was succinctly summarised
by Nugent JA as follows:
“
Administrative
action means any decision of an administrative nature made…under
an empowering provision [and] taken…
by an organ of atate,
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”.
[65]
With the above understanding of an administrative action, and upon a
proper reading of the Final
Findings letter of 7 October 2019 and a
consideration of the contents of the report dated 1 October 2019, I
come to the conclusion
that they are two sides of the same coin and
cannot be viewed apart from each other.
[66]
On the facts before me, nothing impeded the Commission from providing
Sasol Oil with the report
after it was issued on 1 October 2019.
Instead it communicated same through its letter of 7 October 2019.
[67]
To cry foul and raise it as a point in limine when it chose to
communicate its own decisions
in a convoluted manner cannot be
justified.
[68]
In light of the above, I make the following order:
ORDER
[69]
Having heard counsel for the parties, the following order is made:
69.1.1
The Commission’s Sasol Oil dated 7 October
2019, including its
‘finding’ in paragraph 6 and 7, its ultimatum in
paragraph 8 and 17, and its threats in paragraph
9, is reviewed,
declared invalid and set aside.
69.2 The
Commission is interdicted from
i.Making unlawful demands
of Sasol Oil, and
ii.Threatening to invoke
its powers against Sasol Oil if it does not comply with the
Commission’s unlawful demands
69.3 The Commission is
ordered to pay Sasol Oil’s costs including the costs of three
counsel
SELBY
BAQWA
JUDGE
OF THE HIGH COURT
GAUTENG
DIVISION, PRETORIA
Date
of hearing: 22 February 2022
Date
of judgment: May 2022
Appearance
On
behalf of the Applicants
Adv Wim Trengove SC
Instructed
by
Edward Nathan Sonnerbergs Inc
Tel: 082 337 0852
Email:
wim@trengove.co.za
On
behalf of the Respondents
Adv JA Motepe SC
Instructed
by
The State Attorney
Tel: 082 821 5639
Email:
jmotepe@law.co.za
[1]
[2005] 3 ALL SA 33
(SCA) at para 21
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