Case Law[2025] ZAWCHC 52South Africa
Mtakata v Passenger Rail Agency of South Africa (PRASA) and Others (17671/2023) [2025] ZAWCHC 52 (18 February 2025)
High Court of South Africa (Western Cape Division)
23 November 2023
Judgment
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# South Africa: Western Cape High Court, Cape Town
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## Mtakata v Passenger Rail Agency of South Africa (PRASA) and Others (17671/2023) [2025] ZAWCHC 52 (18 February 2025)
Mtakata v Passenger Rail Agency of South Africa (PRASA) and Others (17671/2023) [2025] ZAWCHC 52 (18 February 2025)
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sino date 18 February 2025
IN
THE HIGH COURT OF SOUTH AFRICA
WESTERN
CAPE DIVISION, CAPE TOWN
Case
Number: 17671/2023
In
the matter between:
MKHUSELI
MICHAEL MTAKATA
Applicant
and
PASSENGER
RAIL AGENCY OF
SOUTH
AFRICA (PRASA)
First
Respondent
PRASA
BOARD
Second
Respondent
HISHAAM
EMERAN
Third
Respondent
JUDGMENT
MAGARDIE AJ
Introduction
1.
The applicant is the former Head: Corporate
Security of the first respondent, the Passenger Rail Agency of South
Africa (“PRASA”).
On 10 April 2017 he was dismissed for
misconduct pursuant to a disciplinary hearing chaired by a practising
advocate and member
of the Johannesburg Bar.
2.
On 13 October 2023, some six years later, the
applicant instituted the present application seeking in effect to
challenge and overturn
his dismissal. The application was brought as
a matter of urgency. The substantive relief originally sought by the
applicant was
a declaratory order “…confirming the
validity of the applicant’s contract of employment.” A
further order
was sought compelling PRASA to “…unblock
and pay October 2023 salary (sic) immediately and subsequent to this,
all
outstanding salaries due with full benefits to be paid
retrospectively from April 2017 to October 2023 on a date to be
determined
by the Honourable Court.”
3.
According to the applicant, the trigger for the
application and its professed urgency, was an advertisement published
by PRASA inviting
suitably qualified applicants to apply for a number
of vacant executive positions. The applicant says that he saw this
advertisement
in the City Press newspaper on Sunday 30 July 2023. One
of the positions so advertised was that of Chief Security Officer:
Corporate
Office. The applicant contends that this particular
position was the position which he occupied before his dismissal. He
contends
that PRASA acted unlawfully in seeking to fill the position
because the disciplinary proceedings which resulted in his dismissal,
were unlawful and invalid to begin with.
4.
The application was initially enrolled for hearing
on 20 October 2023. The matter did not proceed on that date. A
comprehensive
answering affidavit had in the meanwhile been filed by
the respondents’ attorneys, Bowman Gilfillan Inc (“Bowmans”).
5.
The application was then set down for hearing on
10 November 2023. On 8 November 2023, two days before the hearing,
the applicant
filed a Notice in terms of Rule 28(1) seeking to affect
a series of amendments to the relief sought in his notice of motion.
The
amended relief sought differed significantly from the orders
initially sought in the applicant’s notice of motion. The
respondents
objected on various grounds to the proposed amendments.
6.
On 10 November 2023 the matter came before Pillay
AJ. That morning, the applicant applied in terms of Rule 28(4) for
leave to effect
the amendments sought in his Rule 28(1) Notice.
7.
In the course of oral argument, counsel for the
applicant moved for yet another amendment. The latter was an interim
interdict restraining
PRASA from continuing with any conduct with the
intention of employing a new Head of Security.
8.
In
a judgment handed down on 23 November 2023, Pillay AJ granted all the
amendments except the belatedly sought order for an interim
interdict
relating to the employment of a new Head of Security by PRASA. That
order was dismissed. The remainder of the amended
relief was
postponed
sine
die.
Pillay
AJ ordered the applicant to pay the costs of the application
including the costs of the application including the costs in
respect
of the amendment.
[1]
9.
This judgment deals with the merits of the amended
relief sought by the applicant. That relief, as set out at paragraphs
(c) to
(f) of the applicant’s amended notice of motion, are
orders:
7.1
“that the
the appointment of those
who constituted the disciplinary hearing was not in accordance with
the procurement policy of PRASA, including
section 217 of the
Constitution and as such, was unlawful and invalid;
7.2
the proceedings of the disciplinary hearing were, as such,
vitiated and
accordingly invalid;
7.3
the result of the said disciplinary hearing was equally vitiated and
accordingly
invalid;
7.4
the applicant’s contract of employment was never terminated; as
such,
the applicant has a right to return to his workplace
immediately upon the granting of this Order and to be paid his salary
retrospectively,
which shall include all increments effected since
his purported dismissal;
7.5
costs of the application.”
10.
The applicant advances three main contentions in
support of this relief. Firstly, he contends that the persons who
constituted the
disciplinary proceedings were improperly and
unlawfully appointed. Secondly, it is contended that the chairperson
of the disciplinary
hearing acted outside the terms of reference set
out in his appointment letter. On this score, an alternative argument
is advanced
that PRASA had no right or power to outsource or delegate
to the chairperson, the power to discipline and dismiss the
applicant.
Thirdly, the applicant contends that his dismissal was
unlawful because the first and second respondents failed to give him
written
notice of the termination of his employment.
Factual and litigation
background
11.
The events set out above are but a snapshot of the
lengthy and acrimonious litigation history between the parties.
PRASA’s
answering affidavit was deposed to by Ms. Desiree Le
Roux, who is employed by PRASA in the position of Senior Manager:
Employee
Relations. Her affidavit sets out the litigation background
in detail. That background and the chronology of events leading to
the the present application, was not disputed by the applicant in any
material respect.
12.
The applicant was employed by PRASA in the
position of Head: Corporate Security on 10 June 2013. On 21 November
2016 he was given
written notice to attend a disciplinary hearing to
answer several charges of misconduct. The disciplinary hearing
convened on 6
and 7 December 2016 and 12 to 13 January 2017. The
hearing was chaired by an independent chairperson, Advocate Timothy
Boyce (“the
chairperson”). PRASA was represented by
Advocate Nazeer Cassim SC, who acted as initiator and employer’s
representative
in the disciplinary hearing. Both advocates were
briefed by Bowmans on the instructions of PRASA.
13.
The chairperson found the applicant guilty in
respect of one of the several charges of misconduct. This charge
related to the applicant
acting in a grossly unprofessional and
unacceptable manner by issuing a defamatory and false media statement
on or about 12 October
2016 and disclosing sensitive and internal
PRASA matters to the media.
14.
In a sanction finding issued on 9 March 2017, the
chairperson concluded that given that the applicant’s
misconduct had destroyed
the trust relationship and made continued
employment intolerable, the only appropriate sanction was one of
dismissal. The chairperson’s
sanction finding recorded that the
applicant was accordingly dismissed on one month’s notice, with
the effect date of dismissal
being 10 April 2017.
15.
On
9 March 2017, the same day that the chairperson issued his sanction
finding in terms of which the applicant was dismissed on
one month’s
notice, the applicant referred an unfair dismissal dispute to the
Commission for Conciliation, Mediation and
Arbitration (“CCMA”).
The applicant referred his unfair dismissal dispute to the CCMA
notwithstanding that his dismissal
was at that stage not yet
effective. As set out in the chairperson’s sanction finding,
the applicant had been dismissed on
one month’s notice. His
dismissal would therefore only be effective from 10 April 2017. The
unfair dismissal dispute referred
by the applicant to the CCMA on 9
March 2017 was therefore clearly premature.
[2]
16.
The CCMA nonetheless entertained the applicant’s
unfair dismissal dispute, which then proceeded to arbitration. On 2
August
2017 CCMA Commissioner Dekker handed down an award finding
that the applicant’s dismissal by PRASA was both substantively
and procedurally fair.
17.
On 27 September 2017 the applicant filed an
application in the Labour Court seeking to review the arbitration
proceedings.
18.
On 25 October 2018, approximately twelve months
after service of the review application, the applicant purported to
serve a file
a notice in terms of Rule 7A(8) of the Labour Court
Rules, indicating that he abided by his 27 September 2017 notice of
motion
in the review. The respondents’ attorneys objected to
this approach by the applicant. The reason for their objection was
that the applicant had failed to file a transcribed record of the
arbitration proceedings as required by the Labour Court Rules.
19.
The applicant’s 28 September 2017 review was
subsequently deemed to have been withdrawn and lapsed, which was
confirmed by
a directive issued by the Labour Court on 19 February
2019. Shortly before this and on 9 February 2019, the applicant filed
a transcribed
record of the arbitration proceedings. This was
followed on 6 March 2019 by an application instituted by the
applicant in the Labour
Court for leave to reinstate the 2017 review
application.
20.
On 15 September 2020, Rabkin-Naicker J dismissed
the applicant’s application to revive and reinstate the 2017
review application.
The learned Judge held that both the conciliation
and the arbitration conducted by the CCMA were a nullity as the
certificate of
outcome of the conciliation was dated 7 April 2017,
three days before the applicant’s dismissal had taken place.
The CCMA
consequently had lacked jurisdiction to conciliate the
dispute. The Court noted that the only recourse for the applicant
would
be to refer his dispute afresh to the CCMA and apply for
condonation for the lengthy delay.
21.
The applicant duly filed a condonation application
in the CCMA on 9 October 2020. PRASA opposed the application and
filed an answering
affidavit. The condonation application was granted
by the CCMA on 13 August 2021. The condonation ruling was however
erroneously
granted without regard to PRASA’s answering
affidavit. This resulted in PRASA filing an application to rescind
the condonation
ruling, which application succeeded and was granted
by the CCMA on 10 November 2021.
22.
The applicant in turn filed his own rescission
application, seeking to rescind the 10 November 2021 rescission
granted in favour
of PRASA. This application was unsurprisingly
opposed by PRASA on the basis that the CCMA lacked the jurisdiction
to effectively
appeal and/or review the 10 November 2021 rescission
ruling. On 8 December 2021 Commissioner Breedt of the CCMA issued a
jurisdictional
ruling (“the Breedt ruling”) concluding
that the applicant had failed to comply with the CCMA Rules, had
failed to
serve an LRA Form 7.11 on PRASA and that there was
consequently no valid referral by the applicant to the CCMA at all.
23.
On 24 February 2022 and 10 March 2022 the
applicant filed another review application and an application for
condonation, this time
seeking to review and set aside the Breedt
ruling (“the 2022 review application”). On 5 April 2022
PRASA filed a notice
to oppose the review application. The applicant
thereafter and on 13 May 2022 served a notice of withdrawal of the
2022 review
application.
24.
According to PRASA, the applicant did not provide
reasons for the withdrawal of the 2022 review application nor did he
tender any
costs. This in circumstances where PRASA is a public body
utilizing public funds in its defence of litigation by the applicant.
25.
This was followed by the applicant filing on 1
December 2022 an application for direct access to the Constitutional
Court. PRASA
opposed the application. On 13 February 2023 the
Constitutional Court issued an order refusing the application on the
basis that
no case had been made out for direct access.
26.
The applicant continued undeterred. On 9 March
2023 he served a third Labour Court review application (“the
2023 review application”).
According to PRASA, the application
was served without a Labour Court case number. Enquiries by the
respondents’ attorneys
with the Labour Court revealed that the
latest review application had in fact not been filed by the applicant
with that Court.
Further enquiries were made by PRASA’s
attorneys with the applicant himself, who informed the attorneys that
he had informed
the Labour Court that he was no longer interested in
prosecuting the 2023 review application.
27.
On 27 June 2023 however, the applicant served
further legal proceedings on PRASA. This time it was an urgent
application issued
under Labour Court case no. 328/23 dealing with
the circumstances surrounding his dismissal. PRASA opposed the
application and
filed an answering affidavit. On 10 October 2023 the
applicant withdrew the application, again without any explanation or
tender
of costs incurred by PRASA in opposing the matter.
28.
On 13 October 2023, three days after withdrawing
his 27 June 2023 urgent application in the Labour Court, the
applicant instituted
the present application in the High Court.
Evaluation
29.
The grounds relied on by the applicant in support
of the relief sought in this application are spread over his founding
affidavit,
a supplementary answering affidavit, a replying affidavit
and a further supplementary replying affidavit. The respondents
objected
to this approach by the applicant. The respondents submitted
that not only was the applicant’s case a consistently moving
target, it was also a case characterized by numerous instances in
which the applicant impermissibly sought to raise new matters
in
reply.
30.
The respondents have in this regard brought a
substantive application for the striking out of a number of
paragraphs of the applicant’s
supplementary affidavit. The
grounds relied on for the striking out application are that the
impugned paragraphs raise matters
for the first time in reply and
provide further detail in reply on matters which were only vaguely
foreshadowed in the applicant’s
supplementary founding
affidavit.
31.
In the alternative and in the event that the
striking out application fails, the respondents seek leave to
introduce an affidavit
by Mr. Mfanimpela Dingiswayo, the former
General Manager: Group Legal Services of PRASA. The stated purpose of
this affidavit,
was to address allegations by the applicant
concerning the appointment of Bowmans and the compilation of the
disciplinary body,
being both the chairperson Adv Boyce and the
initiator Adv Cassim SC.
32.
The respondents contend that Mr. Dingiswayo’s
affidavit should be admitted as he was directly involved in the
matter at the
time and has personal knowledge of the circumstances
relating to the appointment of Bowmans and counsel engaged by PRASA
in the
applicant’s disciplinary proceedings. The respondents
submit that in the event that the impugned paragraphs of the
applicant’s
supplementary replying affidavit are not struck
out, PRASA would be prejudiced and that it would be in the interests
of justice
for the relevant facts set out in Mr. Dingiswayo’s
affidavit to then be placed before the Court.
33.
A court may in the exercise of its discretion and
in exceptional cases allow new matter to remain in a replying
affidavit, subject
to the respondent being afforded a further
opportunity to deal with the new matter in reply. In my view, the
interests of justice
and finality are best served by a determination
of each of the main grounds relied upon by the applicant in support
of the relief
sought, as opposed to a piecemeal excision of
individual paragraphs of the applicant’s affidavits by way of
their striking
out. I shall accordingly determine the application on
the basis of the affidavits as a whole. In order to address any
prejudice
arising from the applicant’s reliance on new matter
in reply, I grant the respondents’ application for leave to
introduce
the affidavit of Mr. Dingiswayo.
The characterization
of the applicant’s cause of action and relief sought
34.
A further issue must be addressed before
evaluating the merits. That issue relates to the correct
characterization of the applicant’s
pleaded cause of action and
the relief sought in consequence thereof. The respondents submit that
the applicant’s case amounts
in both form and substance to
review relief. According to the respondents, the reference in the
relief sought to the terms “unlawful”,
“invalid”
and “vitiated and accordingly invalid”, make it clear
that the applicant is in effect seeking
to review and set aside the
disciplinary proceedings. The respondents contend that the framing of
prayer (c) of the applicant’s
amended notice of motion, would
have the effect of reviewing and setting aside the appointments of
the persons who constituted
the disciplinary hearing. The respondents
submit that for the applicant to argue otherwise, is mere sophistry.
35.
On the basis of their characterization of the
applicant’s case as being review relief, the respondents submit
that such review
relief faces an insurmountable obstacle. That being
that the review is seven years late. The respondents submit that a
seven-year
delay by the applicant in impugning PRASA’s
decisions relating to the constitution of the disciplinary
proceedings, is not
reasonable. The respondents contend that the
applicant has in any event failed to provide a proper explanation for
the delay.
36.
Proceedings
for judicial review, even those that relate to legality review, must
be brought within a reasonable time. The Constitutional
Court has
made it clear that the standard to be applied in assessing both delay
in legality reviews and reviews in terms of the
Promotion of
Administrative Justice Act 3 of 2000 (“PAJA”), is whether
the delay was unreasonable.
[3]
37.
The applicant, on the other hand, repeatedly
states that his application is not based on judicial review either as
his cause of
action or remedy. The applicant states that he is not
reviewing the decision by PRASA to appoint the persons who
constituted the
disciplinary hearing. In addition, he states that he
is not reviewing the chairperson’s decision-making process in
relation
to his dismissal. According to the applicant,
“…the true nature of the relief sought in my application
is a declaratory order”. He submits that because he does not
seek review relief, there are no time constraints imposed upon
him as
to when he should have brought his application.
38.
The applicant has therefore emphatically disavowed
any reliance on review relief as his cause of action. He then however
goes on
to contradictorily state, for the first time in reply, that
“…even if the relief sought in the present application
was a review in nature”, the delay in bringing the review was
not unreasonable “considering the history of the matter”,
and that any delay should be condoned in the interests of justice.
39.
This, in my view, the applicant cannot do. He has
nailed his colours to the mast of declaratory relief. He expressly
denies that
he seeks review relief. It is not permissible for the
applicant to then plead in the alternative a mutually inconsistent
factual
basis for his cause of action. He cannot say ‘…this
is
not
a
review and the delay rule does not apply’ and at the same time
say ‘…in the alternative, this
is
a review and my delay was not unreasonable.’
40.
A
party is entitled to know precisely what case it is expected to meet
and to answer that pleaded case. Holding parties to their
pleadings
is therefore not merely pedantry but an integral part of the
principle of legal certainty which is an element of the
rule of
law.
[4]
41.
There is, to be sure, much force in the
submissions by counsel for the respondents that the relief sought by
the applicant has a
number of features of review relief. The
applicant’s emphatic eschewing of review relief and the
application of the delay
rule may also indicate, as counsel for the
respondents sought to argue, a tactical approach by the applicant
given the extent of
the delay and what counsel submitted were the
applicant’s poor prosects of success in any review.
42.
On balance however, I am of the view that the
interests of finality require this matter to be determined on the
basis of what the
applicant pleads his cause of action to be, rather
than how it is characterized by the respondents. The applicant must
in my view
be held to his pleaded cause of action and the
consequences which flow from it. That cause of action, on the
applicant’s
version, is declaratory relief.
Requisites for
declaratory relief
43.
In terms of section 21(1) of the Superior Courts Act 10 of 2013
(“
Superior Courts Act&rdquo
;), this Court has the power to:
“
i
n
its discretion, and at the instance of any interested person, to
enquire into and determine any existing, future or contingent
right
or obligation, notwithstanding that such person cannot claim any
relief consequential upon the determination.”
44.
The
granting of declaratory relief is a discretionary remedy which in the
first place requires an applicant to establish an interest
in an
existing, future or contingent right. In
Cordiant
Trading CC v Daimler Chrysler Financial Services (Pty) Ltd
[5]
,
Jafta JA said the following regarding
section 19(1)
(a)
(iii)
of the Supreme Court Act 59 of 1959, the predecessor to
section
21(1)(c)
of the
Superior Courts Act:
‘
Although
the existence of a dispute between the parties is not a prerequisite
for the exercise of the power conferred upon the High Court
by the
subsection, at least there must be interested parties on whom the
declaratory order would be binding. The applicant in a
case such as
the present must satisfy the court that he/she is a person interested
in an “existing, future or contingent
right or obligation”
and nothing more is required (
Shoba
v Officer Commanding, Temporary Police Camp, Wagendrif Dam
1995
(4) SA 1
(A)
at 14F). In
Durban
City Council v Association of Building Societies
1942
AD 27
Watermeyer
JA with reference to a section worded in identical terms said at 32:
“
The
question whether or not an order should be made under this section
has to be examined in two stages. First the court must be
satisfied
that the applicant is a person interested in an ‘existing,
future or contingent right or obligation’, and
then, if
satisfied on that point, the Court must decide whether the case is a
proper one for the exercise of the discretion conferred
on it.”.’
45.
I address next the various grounds on which the
applicant contends that he has made out a case demonstrating the
existence of an
existing right justifying the declaratory orders
sought in his amended notice of motion.
The unlawful and/or
improper appointment ground
46.
The first ground advanced by the applicant is the
contention that the persons appointed to constitute the disciplinary
hearing which
found him guilty of misconduct, were improperly and/or
unlawfully appointed. The applicant’s founding affidavit is in
this
regard lengthy on argumentative submissions, but short on detail
and factual evidence.
47.
The “crux of the matter”, as
identified by the applicant in his founding affidavit, is alleged to
be that Mr. Dingiswayo,
“…used his proximity to Bowmans
and assisted by Ms. Martha Ngoye, his executive, brought Bowmans
through a back door
to conduct a purported disciplinary hearing.”
No factual details are provided for these generalized and speculative
allegations.
The applicant goes on to allege that that Bowmans was
never on the panel of PRASA and could not be used to conduct any
business
on behalf of PRASA. This allegation is refuted in terms by
both PRASA and Mr. Dingiswayo, an aspect to which I shall later.
48.
Further allegations are made by the applicant in
his founding affidavit that the appointment of Bowmans “…was
a parallel
process not approved by the board and executive of
procurement” and that Mr. Dingiswayo “…failed to
disclose
that he worked for Bowmans before joining the first
respondent.” As to the latter allegation, it is unclear what
relevance
Mr. Dingiswayo’s previous employment history would
conceivably have to the disciplinary proceedings brought against the
applicant
or for that matter, to the relief sought in the present
application.
49.
An argument is then advanced in the founding
affidavit that Bowmans was precluded by a conflict of interest from
being appointed
by PRASA to initiate the disciplinary proceedings
against the applicant. The basis for this contention, so the
applicant argues,
is that during the period that Bowmans was tasked
by PRASA to conduct his disciplinary hearing, Bowmans had at that
stage been
mandated by National Treasury to investigate various
procurement contracts exceeding R10 million awarded by PRASA from
2012 to
2017.
50.
In its answering affidavit, PRASA points out that
the National Treasury investigation was limited to procurement
contracts and did
not bar PRASA from utilizing the services of
Bowmans, which was on its panel, from assisting with PRASA
disciplinary matters. PRASA
denies that Bowmans was conflicted in
being mandated to deal with the applicant’s disciplinary
proceedings. None of this
was disputed by the applicant in reply.
51.
The
applicant has in my view misapprehended the concept of
disqualification conflict of interest. A conflict of interest arises
and disqualifies legal practitioners from acting in a matter where
they have
competing
interests of such a nature as to compromise the ability to act
impartially or in the best interest of their client.
The
law requires an actual conflict of interest, not a notional one.
[6]
The existence of a conflict of interest disqualifying a legal
practitioner from acting for a client in a particular matter is also
a fact specific enquiry. Merely alleging a conflict of interest, as
the applicant has done, does not suffice. Furthermore, it is
generally speaking the potentially prejudiced client that is entitled
to rely on and seek the disqualification of a legal practitioner
based on an actual conflict of interest. In this application, PRASA
has emphatically denied that there was any conflict of interest
in
Bowmans representing it in the applicant’s disciplinary
proceedings.
52.
No sustainable factual basis has been advanced
which demonstrates that the National Treasury’s appointment of
Bowmans to investigate
procurement contracts at PRASA, compromised
the ability of Bowmans to act impartially or in the best interest of
PRASA when dealing
with the applicant’s individual disciplinary
proceedings. There is furthermore no factual basis established by the
applicant
which suggests that any individual attorney employed by
Bowmans or counsel instructed by Bowmans, had any personal or
financial
interest in the applicant’s disciplinary proceedings
which affected their professional judgment.
53.
The applicant has not established a factual
foundation for his allegations, in correspondence attached to his
founding affidavit,
that Advocate Boyce and Advocate Cassim SC acted
improperly or unethically in the course of the disciplinary
proceedings.
Not only were these specific allegations and
additional allegations by the applicant of “gross dishonesty”
by PRASA
factually unsupported, they were entirely jettisoned by
counsel for the applicant in his written and oral argument. No
apology
or explanation was proffered for why the applicant had made
such serious allegations in the first place and then later not sought
to substantiate or rely on them.
54.
The applicant’s conflict of interest point
in relation to Bowmans, is in my view entirely without merit. Having
effectively
abandoned conflict of interest by Bowmans as a ground
vitiating the disciplinary proceedings, the applicant’s focus
then
shifted entirely to a different line of attack. It was now
contended by the applicant, in his supplementary founding affidavit,
that by virtue of a certain report by the Auditor-General of South
Africa (“the Auditor-General”) relating to PRASA,
the
appointment of the persons who constituted his disciplinary hearing
was unlawful and improper and that consequently, his dismissal
was a
nullity.
55.
To his supplementary founding affidavit and in
support of this ground of alleged nullity of the disciplinary
proceedings, the applicant
annexed a grand total of two pages
extracted from a 2016/17 Annual Report by the Auditor-General on
PRASA (“the Auditor-General’s
report”). The
first page is the cover sheet. The applicant relies entirely on the
second page of the report, where
under the heading, “Report on
audit of compliance with legislation”, the following is stated:
“
Expenditure
Management
34.
Effective steps were not taken to prevent irregular, and fruitless
and wasteful expenditure,
as required by
section 51(1)(b)(ii)
of the
PFMA. The expenditure mainly resulted from non-compliance with
legislative prescripts and entity policies. The irregular
and
fruitless and wasteful expenditure disclosed in notes 42 and 41 does
not reflect the full extent of the fruitless and wasteful
expenditure
incurred as indicated in the basis for qualification paragraphs.
Procurement and contract
management
35.
Goods, works and service were not procured through a procurement
process which is fair,
equitable, transparent and cost effective, as
required by
section 51(1)(a)(iii)
of the PFMA and Section 217 of the
Constitution of the Republic of South Africa. This included instances
where:
-
supply chain management processes were not followed when procuring
services from suppliers
-
professional services were sourced from a panel that did not comply
with the requirements of PRASA’s supply chain management policy
-
contracts were issued in excess of the contract period stipulated on
PRASA supply chain management policy
-
payments were made to contractors without a valid contract
-
contracts were awarded to suppliers based on deviations that were not
recorded and approved by the delegated authority
-
some deviations from the supply chain management polict were approved
by the delegated…” (sentence incomplete)
56.
It is on this tenuous basis of a single page
extracted from the Auditor-General’s report, that an argument
is advanced by
the applicant that the findings of the Auditor-General
set out above, have the effect of rendering the composition of the
disciplinary
panel and the applicant’s dismissal, unlawful and
invalid. The applicant further submits that these findings of the
Auditor-General
remain binding unless reviewed and set aside and that
neither PRASA or Bowmans have sought to challenge the findings made
by the
Auditor-General. The applicant’s counsel in this respect
spent a considerable portion of his written and oral argument on
inter-alia submissions relating to the constitutional powers afforded
to the Auditor-General under section 188 of the Constitution
and the
statutory duties of that office in terms of the
Public Audit Act 25
of 2004
.
57.
The immediate and obvious difficulty is that the
extracts of the Auditor-General’s report which the applicant
relies on, make
no mention at all of the appointment of Bowmans or
the appointments and proceedings of the applicant’s
disciplinary hearing.
Counsel for the applicant was driven to accept,
as he had to, that this was so. The submission advanced on behalf of
the applicant,
however, was that while it was true that the
Auditor-General had not mentioned those who constituted the
applicant’s disciplinary
hearing as service providers or
suppliers that were procured unlawfully, the Auditor-General had not
excluded them either.
58.
Thus, by virtue of Bowmans, Advocate Boyce and
Advocate Cassim SC not being expressly excluded by the
Auditor-General in his report,
or so the argument went, they were
included in the report. Their very exclusion in fact meant inclusion.
59.
The argument flies in the face of logic and
ordinary common sense. It is unclear on what possible legal or
factual basis the invalidity
of a specific procurement process or
service provider’s appointment by PRASA, arises as a
consequence of being included in
generalised statements in the
Auditor-General’s report solely because such a procurement or
service provider has not been
expressly excluded from the said
report. Nor does there appear to me to be any genuinely arguable
answer by the applicant to PRASA’s
retort that the
Auditor-General’s report was never challenged by Bowmans
precisely because it never mentions Bowmans or the
applicant’s
disciplinary proceedings.
60.
I reject as wholly without merit and untenable,
the applicant’s contentions that the disciplinary proceedings
and his dismissal
were unlawful as a consequence of the
Auditor-General’s report.
61.
I am of the view that the applicant has in any
event failed to establish any sustainable basis to reject the
evidence of PRASA and
Mr. Dingiswayo that Bowmans, the chairperson
and the initiator of the disciplinary hearing were properly
appointed. Mr. Dingiswayo
explains in his affidavit that Bowmans was
placed on a database of attorneys that were service providers to
PRASA, that he instructed
Ms. Keshni Naicker, an attorney at Bowmans,
to deal with the applicant’s matter on behalf of PRASA and that
Bowmans was acting
on a duly authorized mandate sanctioned by the
then Group CEO and himself.
62.
Mr. Dingiswayo further confirms that it was PRASA
who decided that Advocate Boyce and Advocate Cassim SC should be
appointed and
that they were properly appointed following the steps
ordinarily followed by PRASA at the time to procure these services.
The contents
of Mr. Dingiswayo’s affidavit were confirmed by
Ms. Naicker, who set out in detail the engagements between herself,
Mr Dingiswayo
and Mr. Letsoalo, the then Group CEO of PRASA, relating
to Bowmans’ instructions on the matter of the applicant’s
disciplinary
hearing.
63.
Save for generalized and in my judgment largely
irrelevant criticism relating inter-alia to the late filing of Mr.
Dingiswayo’s
affidavit, the contents of Mr. Dingiswayo’s
and Ms. Naicker’s affidavits were not disputed by the applicant
in any
meaningful degree. These being motion proceedings, I am of the
view that there is no basis to dismiss the versions of PRASA, Mr.
Dingiswayo or Ms. Naicker regarding the lawfulness of the appointment
of Bowmans, the chairperson and initiator of the disciplinary
proceedings, as being either far-fetched or untenable. The
applicant’s challenge to the legality of the appointment of
Bowmans,
the chairperson and the initiator of his disciplinary
hearing, is without merit.
64.
No infringement of rights or existing right has in
my view been established to justify the applicant being granted
declaratory relief
on the grounds of unlawful and/or improper
appointment of the persons who constituted his disciplinary hearing.
The relief sought
in prayers (c), (d) and (e) of the applicant’s
notice of motion fails.
The ultra vires and
failure to give written notice of termination grounds
65.
The applicant alleges that this dismissal by
PRASAA was unlawful on three further bases. The first is that the
chairperson allegedly
acted outside of his mandate as set out in his
letter of appointment and terms of reference. The second basis is
alleged to be
that PRASA had no power or right to outsource or
delegate to the chairperson, the power to discipline and dismiss the
applicant.
Thirdly, the applicant contends that his dismissal was
unlawful because he was not given written notice of termination of
his employment
by PRASA. On these bases, the applicant founds prayer
(e) of his notice of motion, which seeks inter-alia an order that his
contract
of employment “…was never terminated” and
consequential orders that the applicant is entitled to return to his
workplace immediately and paid his salary
retrospectively, including all increments effected since his
dismissal.
66.
The
applicant’s challenge on these grounds is in my judgment dead
on arrival irrespective of the merits of the contentions
advanced by
him, for the first time in reply, relating to specific clauses of his
contract of employment and the chairperson’s
terms of
reference. The reason for this is that having tied his case to being
one for declaratory relief as opposed to review relief,
the
difficulty for the applicant is that because his dismissal has not
been set aside, it must be found to be valid and legally
effective.
That is the effect of the principle established in
Oudekraal
,
which holds that administrative decisions, whether lawful or not,
stand until reviewed and set aside.
[7]
67.
The granting of declaratory relief in terms of
section 21(1)
of the
Superior Courts Act requires
the applicant to
demonstrate in the first place the existence of an existing, future
or contingent right. The applicant does not
dispute the fact that the
chairperson’s sanction finding made it crystal clear that the
applicant was dismissed on one month’s
notice with the
effective date of the dismissal being 10 April 2017. The statement by
the applicant in his founding affidavit that
his contract of
employment was “never terminated” is simply inconsistent
with the facts and his own version, which
is that he was unlawfully
dismissed.
68.
However,
even if the applicant had been unlawfully dismissed, which is far
from clear and has not been established in this application,
it is
the very consequence of the
Oudekraal
principle
that even an unlawful administrative act is capable of producing
valid consequences for as long as the unlawful act is
not set
aside.
[8]
The applicant’s
employment has not been reinstated by any order of the CCMA or the
Labour Court, these being the specialist
tribunals established to
determine the lawfulness of dismissal.
69.
The applicant has therefore failed to establish
the existence of a valid contract of employment giving rise to an
existing right
capable of being determined in the form of declaratory
relief. This conclusion is fatal to the relief sought for a
declaration
that the applicant’s contract of employment was
never terminated.
70.
Having reached this finding, it is in my view
unnecessary to consider the merits of the further grounds advanced by
the applicant
relating to alleged
ultra
vires
conduct by the chairperson and
alleged failure to provide the applicant with written notice of
termination of his employment. The
declaratory relief sought in
prayer (e) of the applicant’s notice of motion fails
fundamentally at its first hurdle, the
presence of an existing right,
which is a necessary pre-condition for the exercise of the court’s
discretion to grant or
refuse declaratory relief.
Conclusion
71.
The application is dismissed with costs.
S
G MAGARDIE
Acting
Judge of the High Court
Western
Cape Division
Appearances:
For
the applicant: Mr. K Lingani
Instructed
by: Lingani & Partners
For
the first, second and third respondents: Adv L Ackerman
Instructed
by: Bowman Gilfillan Inc
Date
of hearing: 13 June 2024
Date
of judgment: 18 February 2025
[1]
Matakata v Passenger Rail Agency of South Africa (PRASA) and Others
(17671/2023)
[2023] ZAWCHC 313
(28 November 2023).
[2]
S
ection
190(1) of the Labour Relations Act 66 of 1995 (“the LRA”):
‘t
he
date of dismissal is the earlier of (a) the date on which the
contract of employment terminated; or (b) the date
on which the
employee left the service of the employer.”
[3]
Buffalo City Metropolitan Municipality v Asla Construction (Pty)
Limited
(2019 (4) SA 331
(CC) at para 48.
[4]
South African Transport and Allied Workers Union and Another v
Garvas and Others
(2013 (1) SA 83
(CC) at para 114.
[5]
Cordiant Trading CC v Daimler Chrysler Financial Services (Pty) Ltd
(2005 (6) SA 205
(SCA) at para 16.
[6]
Knoop and Another NNO v Gupta (Tayob Intervening)
2021 (3) SA 88
(SCA) at para 142.
[7]
Oudekraal Estates (Pty) Ltd v City of Cape Town and Others 2004 (6)
SA 222 (SCA).
[8]
Oudekraal at para 126.
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