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# South Africa: Western Cape High Court, Cape Town
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## Jaffas Bay Fishing CC v Minister of Forestry, Fisheries and the Environment and Others (7828/24)
[2025] ZAWCHC 301 (16 July 2025)
Jaffas Bay Fishing CC v Minister of Forestry, Fisheries and the Environment and Others (7828/24)
[2025] ZAWCHC 301 (16 July 2025)
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sino date 16 July 2025
FLYNOTES:
ADMINISTRATIVE
–
Fishing
rights –
Scoring
criteria
–
Required
threshold for allocation – Minister’s decision lacked
transparency and rationality – Attempted
correction of
drafting error in answering affidavit undermined credibility of
justification – Decision was irrational
and procedurally
flawed – Arbitrary application of scoring criteria –
Failure to provide adequate reasons for
scoring below required
threshold – Reviewed and set aside – Matter remitted
for reconsideration –
Marine Living Resources Act 18 of
1998
,
s 80.
IN
THE HIGH COURT OF SOUTH AFRICA
WESTERN
CAPE DIVISION, CAPE TOWN
Case No:
7828/24
In
the matter between:
JAFFAS
BAY FISHING CC
Applicant
and
THE
MINISTER OF FORESTRY, FISHERIES AND
THE
ENVIRONMENT
First
Respondent
THE
DEPUTY DIRECTOR GENERAL: FISHERIES
MANAGEMENT
BRANCH
Second
Respondent
SUE
MIDDLETON N.O.
Third
Respondent
And
those 60 category A right holder industry respondents named in
annexure 1 to the notice of motion as the 4
th
to the 63
rd
respondents
Neutral
citation:
Jaffas Bay Fishing CC vs The Minister of Forestry,
Fisheries and the Environment and 2 others (7828/24) [2025] ZAWCHC
(16 July 2025)
Coram:
MANTAME J
Heard
:
04 March 2025
Delivered
:
16 July 2025
Summary:
Administrative Law: Jaffas Bay sought to review and set aside the
appeal decision of the Minister not to allocate it fishing rights.
Jaffas Bay challenged the Minister’s decision of denying it
sardine fishing rights, on the basis that the scoring of its
Corporate Social Investment (CSI) contributions was irrational,
inconsistent, and inadequately explained. The Court found the
Minister’s scoring process inconsistent with the scoring
criteria that was in existence. In fact, the court found that
the scoring system was unclear and lacked transparency and thereby
failed the tests of reasonableness and rationality under
administrative
law. Despite the Court’s finding, it therefore
declined to substitute its own decision due to the expertise involved
and
the technical process of fishing rights allocation. The
Court found that it is not as good a position as that of an
administrator
to make that decision. Therefore, it could not usurp
the powers of the executive. The notion of separation of powers
requires the
courts to not enter into the domain of the executive
unless it is a foregone conclusion that a certain percentage of the
TAC should
be awarded to Jaffas Bay. For these reasons the appeal
decision of the Minister was reviewed and set aside, and the matter
was
remitted to the Minister for a re-consideration, of Jaffas Bay’s
appeal.
ORDER
1. The
decision taken by Minister Creecy in terms of
Section 80
of the
Marine Living Resources Act 18 of 1998 dated 18 December 2023 and/or
on “The General Published reasons for the Decisions
on Appeal
in the Small Pelagic (Sardine) Sector” on 15 January 2024 to
refuse Jaffas Bay a commercial sardine fishing right
is reviewed and
set aside.
2.
The matter is remitted back to the Minister George or the relevant
Minister of the Department at
the time to reconsider the appeal by
Jaffas Bay on whether
inter alia
:
(a) Jaffas Bay was
correctly awarded a correct score and evaluation by the DA, regard
being had to Jaffas Bay’s Corporate
Social Investment (CSI)
contributions:
(b) Jaffas Bay was
correctly awarded a total score of 49.18% less than the minimum
requirement of 50% or whether it achieved above
the minimum threshold
of 50%;
(c) Based on the total
score by the DA, it was just, fair and equitable to refuse Jaffas
Baya commercial sardine fishing right.
3.
The respondents are ordered to pay the costs of this application,
including costs of an application
to file further affidavits on Scale
B.
JUDGMENT
MANTAME
J
Introduction
[1]
The applicant (Jaffas Bay), brought an application to review and set
aside the decision
of the first respondent (the Minister), in terms
of Section 80 of the Marine Living Resources Act, 18 of 1998 (the
MLRA). In her
decision taken on 15 January 2024, the Minister refused
to grant Jaffas Bay, a commercial sardine fishing right. The
applicant
seeks an order directing the Minister to allocate a
commercial sardine fishing right and to issue to the applicant a
fifteen-year
(15) duration of such right in terms of Section 18 of
the MLRA within 30 days from the date of an order of this Court.
Further,
the applicant seeks an order directing the Minister to
determine and allocates a portion of the sardine total allowable
catch in
terms of Section 14 of the MLRA to the applicant.
[2]
The respondents opposed the application in its entirety, arguing that
the relief sought
is premised on an incorrect and strained
interpretation of the Minister’s appeal decision, and the
complaints raised are
without merit.
Preliminary
application to file further affidavit(s)
[3]
On 3 March 2025, and shortly before the hearing of this matter, the
first to third
respondents filed an application in terms of Rule 6
(5) (e) of the Uniform Rules of Court requesting leave to deliver
further affidavits.
These affidavits were deposed to by Ms Ferhana
Patel, (Ms Patel), - who provided a supplementary affidavit, and
Barbara Dallas
Creecy, the Minister who provided a confirmatory
affidavit regarding the impugned decision.
[4]
In this application, Ms Patel explained that in the answering
affidavit she deposed
to on 13 January 2025, she confirmed the
contents relating to her, save for a drafting error in paragraph 85
which incorrectly
stated:
‘
During the appeals
process,
Minister
Creecy
noted that the method adopted by the Delegated Authority for scoring
of CSI could potentially prejudice smaller companies relative
to
larger companies. Jaffas Bay’s score was therefore re –
evaluated using the methods that the Department had originally
intended to use (percentage CSI of turnover), with > 1% in any
year being awarded 3 points, > 0.51% and < = 1% being awarded
2
points and < = 0.5% being awarded 1 point. This scoring system was
informed by the Codes of Good Practice of the Broad- Based
Black
Economic Empowerment Act of 2007 according to which a company’s
CSI contribution should be at least 1% of net profit
after taxes.’
[underline added]
[5]
Ms Patel stated that the statement is incorrect insofar as it relates
to Minister
Creecy. The first sentence with underlined Minister
Creecy ought to have reflected “the Delegated Authority.”
If the
contents of the paragraph 85 are read in this context, then it
would be consistent with the remainder of the answering affidavit
and
what is contained in the Regulation 5 (3) report compiled by the
Delegated Authority and attached to the applicant’s
supplementary founding affidavit. This was a drafting error that was
unnoticed during the preparation of the affidavit. The matter
was
only brought to Counsel’s attention during the preparation of
respondents’ heads of argument on Friday, 28 February
2025.
[6]
Minister Creecy confirmed her role as first respondent from 29 May
2019 to June 2024.
She confirmed that paragraph 85 is incorrect
insofar as it relates to her. The first sentence ought to refer to
the “Delegated
Authority” instead of “Minister
Creecy.”
[7]
It was contended that should the Court not admit those further
affidavits into evidence,
the respondents would be prejudiced. The
general need for finality in judicial proceedings and the need for
the Court to adjudicate
a matter on all relevant facts, compels this
Court to exercise its discretion to allow the affidavits and
annexures to be included
in the evidence.
[8]
Jaffas Bay opposed the preliminary application by the respondent,
noting that Ms Patel’s
affidavit in support of the application
in terms of Rule 6 (5) (e) was filed after it had submitted its
replying affidavit and
two weeks after its Counsel filed its heads of
argument. A further prejudice to the applicant was that the
respondents filed a
confirmatory affidavit by Minister Creecy without
any application for condonation or an attempt to explain why she
failed to file
this confirmatory affidavit when Ms Patel filed her
answering affidavit, which on its own was almost 30 days late when it
was filed
in mid – January 2025.
[9]
It was stated that Ms Patel’s affidavit included inadmissible
hearsay evidence.
Ms Patel’s allegation that paragraph 85’s
reference to Minister Creecy instead of “Delegated Authority”,
is incorrect and does not reflect any error. Paragraph 85 simply
correctly affirms that the Minister accepted the Delegated
Authority’s
analysis indicating that the scoring system adopted
in the Sardine GPR for Questions 6.14/6.15 causes prejudice to small
sized
applicants such as Jaffas Bay. This is why an alternative and
new scoring system had to be adopted which is the one set out in
paragraph 85
[1]
. What Ms Patel
stated in her affidavit is incorrect and does not constitute a
reasonable assertion based on the Minister’s
own appeal
decision.
[10]
The Minister refuted the claim that Ms Patel’s affidavit
contained inadmissible hearsay
evidence. In her role as Chief –
Director: Appeals and Strategic Environmental instruments within the
department, she is
vested with the responsibility and oversees the
structure and operations across all 3 directorates, namely appeals
and reviews
in Cape Town, Pretoria as well as Strategic Environmental
instruments. The applicant's assertions are inaccurate.
[11]
Rule 6 (5) (e) of the Uniform Rules of Court confers a discretion
upon the Court to permit filing
of further affidavit(s). A Court may
permit the filing of further affidavit(s) at its discretion when a
party seeks to introduce
new evidence or clarify information that is
relevant to the determination of a matter.
[12]
It is common cause that leave to file further affidavits was sought
on the eve of the hearing.
Despite that being the case, on the same
day, Jaffas Bay filed a response to this application, opposing the
granting of such permission.
It is trite that a party seeking this
permission must provide a satisfactory explanation why this
indulgence was sought woefully
late. Other than to state that the
error was brought to her attention by her Counsel on 28 February
2025, when Counsel was in the
process of preparation of heads of
argument, the respondents provided no other satisfactory explanation.
In any event, the practice
directive 50 (1) (b) requires the
respondent to deliver heads of argument not less than 5 days before
the date of hearing.
In this matter such heads were delivered on 3
March 2025, without a request for condonation explaining the reasons
for lateness.
[13]
In applications of this nature, a series of factors must be
considered. These factors
[2]
include, (i) the reason the evidence was not produced timeously; (ii)
the degree of materiality of the evidence, (iii) the possibility
that
it may have been filed to “relieve the pinch of the shoe”;(iv)
the balance of prejudice to the applicant if the
application is
refused in relation to the prejudice to the respondent if it is
granted; (v) the stage of the litigation; (iv) the
possibility of an
appropriate order of cost to address the late filing; (vii) the
general need for finality in judicial proceedings;
and (viii) the
appropriateness of visiting the attorney’s fault upon the head
of his client.
[14]
Notwithstanding the fact that such an error should have been noted
when the answering affidavit
was filed on 14 January 2025, the
undisputed fact is that Jaffas Bay was obviously prejudiced by the
Rule 6 (5) (e) application
that was filed on the eve of the hearing.
In my opinion, Jaffas Bay correctly pointed out that paragraph 85, as
originally drafted,
is correct. Ms Patel simply seeks to re write
paragraph 3.14 as pointed out in paragraph 10 of this judgment. In
fact, Ms Patel
attempts to introduce incorrect evidence before this
Court that contradicts what was originally presented in paragraph 85.
The
corrected version fails to logically and rationally communicate
what the respondents wish to communicate. This is the same reason
why
the decision of the Minister is impugned. As crossed –
referenced by the applicant the recommendations by the Delegated
Authority, were taken as is by the Minister and were incorporated
into the Minister’s decision. To permit the filing of further
affidavit (s) would be tantamount to allow or granting an amendment
based on untrue facts through the backdoor.
[15]
Hano
Trading CC v JR 209 Investments (Pty) Ltd
[3]
states that:
‘
[11] Rule 6 (5)
(e) establishes clearly that the filing of further affidavits is only
permitted with the indulgence of the Court.
A court, as arbiter, has
the sole discretion in this regard where there is a good reason for
doing so.”
[16]
In this matter, further affidavits that sought to be filed have the
potential to amend the case
that was presented by the applicant and
the defence that was mounted by the respondents. Furthermore, Jaffas
Bay did not have ample
opportunity to address the indirect amendment
that was sought.
Albeit,
it was extremely late when it was
served by this affidavit, Jaffas Bay filed an affidavit in response
thereto regardless of the
fact that no leave was granted to file this
string of affidavits. Clearly, this application was filed to “relieve
the pinch
of the shoe” in respondents’ defence.
[17]
For this reason, I am of the view that the respondents should not be
allowed to file further
affidavits. The “healing balm” of
an appropriate cost would be dealt with at the conclusion of this
judgment.
Factual
Matrix
[18]
Jaffas Bay has been a historic and active participant in the South
African Commercial West Coast
rock lobster, hake and small pelagic
fishing sector since 1998. The entity held commercial rights in the
hake long line and small
pelagic (anchovy and sardine) fishing
sectors in terms of Section 18 of the MLRA.
[19]
On 31 December 2020, Jaffas Bay’s commercial fishing right to
harvest anchovy and pilchards
terminated and reverted to the State as
provided in Section 18 (6) of the MLRA. No fishing rights allocation
process was planned
to ensure an uninterrupted continuation of
commercial fishing. This happened when Jaffas Bay became a
substantial investor in the
fishing industry by acquiring the
following vessel – owning entities:
19.1 48
% shareholding in Slip Knot Fishing (Pty) Ltd, which harvests small
pelagic (pilchard and anchovy)
19.2 33%
shareholding in Arbal Holdings which owns the hake fishing vessel,
and
19.3 78%
shareholding in MFV Ivy Doreen which harvest West Coast Lobster quota
allocation.
[20]
Following this termination, the Minister granted industry– wide
“exemptions”
in terms of Section 81 of the MLRA, allowing
hundreds of fishing companies to continue their operations. Two years
later, i.e.
28 February 2022, the fishing rights were allocated for
an additional period of 15 years in terms of the “2022 Fishing
Rights
allocation Process (FRAP).
Delegated
Authority’s decision
[21]
Following an assessment and evaluation of the FRAP 2021 application,
applications in the Sardine
Fishery, the General Published Reasons
for the Decisions on the Allocation of 2021/22 Fishing Rights in the
Sardine Fishery (
the Delegated Authority’s GPR: Sardine
)
was published on 28 February 2022.
Amongst
others the Delegated Authority’s (the DA) decision was as
follows:
1. 46
of the 80 Category A applicants were successful sharing 92.5926% of
the TAC; (the applicants who held rights
in the fishery for which
they are re – applying the period 2006 to 2020).
2. 2 of
the 59 Category B applicants were successful sharing 1.6667% of TAC;
(the applicants who held rights in
sectors other than the fishing
they have applied for during the period 2006 to 2020).
3. 4 of
the 105 Category C applicants were granted rights in the sector with
a combined TAC of 5. 7407%; (the
applicants who have not held fishing
rights in any of the commercial fishery sectors during the period
2006 to 2020).
4. 10%
of the TAC would be reserved for appeals.
5.
Sardine commercial fishing rights were allocated for fifteen years,
starting from 1 March 2022 to 31 December
2037.
[22]
On the same day, Jaffas Bay, a Category A applicant, was denied the
re–allocation of its
pilchard fishing right by the third
respondent, who acted in terms of the delegated authority in terms of
Section 79 of the MLRA.
Jaffas Bay was granted the anchovy right
based on the previous information that was submitted.
[23]
Jaffas Bay expressed dissatisfaction with the manner in which the
Delegated Authority communicated
its decision. In late March 2022,
Jaffas Bay received notification regarding the decision from other
members of the fishing industry.
They advised that the Notification
Letters and individual scoresheets were posted on the Fishing Rights
Allocation Process (FRAP)
online fishing rights application portal.
The DA issued no public notice, press statement, or any other public
announcement that
alerted members or applicants about the outcome.
[24]
In addition to this publication, the Delegated Authority dispatched a
Notification Letter and
a scoresheet to every applicant who submitted
an application for a Small Pelagic (Sardine) commercial fishing
right. The DA excluded
Jaffas Bay’s sardine fishing right
application but scored Jaffas Bay a total of 49.18% points. The DA’s
reasons for
its decision are set out in the notification letter that
was sent to Jaffas Bay on 22 March 2022.
[25]
Jaffas Bay Notification Letter and scoresheet by the DA revealed
that:
25.1 Jaffas Bay
application was excluded because its application was found to be
improperly lodged and materially defective as no
SARS certificate was
attached.
25.2 Jaffas Bay’s
application was scored 49.18%.
Minister’s
appeal decision
[26]
In terms of Section 80 of the MLRA, Jaffas Bay is entitled to appeal
the decision of the DA.
On 28 April 2022, after expressing
dissatisfaction with the decision, Jaffas Bay lodged an appeal
against the Delegated Authority’s
decision to the Minister
which essentially excluded its application and further contended that
it “
scored above the minimum score of 50% points required
for the re – allocation of its pilchard fishing right…and
therefore
clearly qualifies for a 15 year long commercial pilchard
fishing right.
” The appeal was filed prior to
the deadline of 29 July 2022.
[27]
On 18 December 2023, Minister Creecy issued the General Published
Reasons for the Decisions on
Appeal in the Small Pelagic (Sardine)
Sector: FRAP 2021/2022 (
the Appeals GPR: Sardine
). Minister
Creecy, in her decision,
inter alia,
decided to retain the
allocation of 225 tonnes on appeal. She also determined that the 10%
reserved TAC tonnage is to be distributed
amongst the 14 successful
Category A appellants and 1 successful Category B appellant,
incorporating the evaluation of the performance
of Category A
appellants during the previous rights period.
Review
application
[28]
Once more, Jaffas Bay and other applicants seeking commercial fishing
rights in the Small Pelagic (Sardine
and Anchovy) sector, who were
dissatisfied with Minister Creecy’s decision and/or the
Delegated Authority’s decision,
instituted applications for
judicial review in respect of those decisions:
28.1 Thirteen (13)
applications relate to Category A (i.e. nine (9) in the Sardine
Fishery and four (4) in the Anchovy Fishery.
28.2 Six (6) applications
relate to Category B (i.e. three (3) in the Sardine Fishery and three
(3) in the Anchovy Fishery); and
28.3 Three (3)
applications relate to Category C (i.e. two (2) in the Sardine
Fishery and one (1) in the Anchovy Fishery).
[29]
In its application for review, Jaffas Bay asserts that the Minister
evaluated its sardine fishing
rights application in an arbitrary,
irrational, and unlawful manner. Alternatively, if the Minister’s
own irrational and
arbitrary methodology is applied, Jaffas Bay ought
to have been allocated additional points and would consequently
qualify for
a sardine fishing right. The Minister’s Appeals GPR
fails to offer any cogent explanation as to the reasons for adopting
a “minimum” score and to what extent this minimum score
“decision” gives effect to attainment of the policies
and
objectives set out in Section 2 of the MLRA.
[30]
Additionally, it has been noted that Jaffas Bay previously applied
for and successfully acquired
an anchovy fishing right using the same
information that was contained in its current application of its
sardine fishing right
application. Consequently, it should have
successfully acquired a sardine fishing right as well. Given that the
Delegated Authority
and subsequently the Minister used the same
scoring and weighing criteria for both the anchovy and sardine
fishing sectors, Jaffas
Bay sardine fishing right application ought
to have been scored the same as its anchovy application, and thus,
the sardine rights
should have been allocated to Jaffas Bay.
[31]
In addition, its sardine application was not consistently assessed
when compared to Jaffas Bay
application for squid, tuna – pole,
and anchovy fishing rights. Jaffas Bay has successfully applied for
these fishing rights.
[32]
Despite the Minister’s acceptance that Jaffas Bay argument for
exclusion in its appeal,
she did not accurately and consistently
evaluate its application in the same manner as the anchovy
application score. The Minister
amended the scoresheet for Jaffas
Bay, raising the score to 49.46% after identifying specific scoring
errors made by the Delegated
Authority in the calculation of the
“transformation” score. However, the applicant does not
take issue with scores
allocated. The errors concerned questions 6.10
and 6.11 in the scoresheet.
[33]
The Minister identified errors in paragraphs 3.13 and 3.14 of her
appeal decision. Upon effecting
changes for question 6.10 she scored
Jaffas Bay from 9/24 to 11/24, leading to an increase in the final
score. Jaffas Bay expressed
dissatisfaction with the Minister's
failure to clarify the formula or data utilised to determine that
score. Consequently, the
scoring criterion is arbitrary, irrational,
unlawful, and therefore reviewable. The Minister’s attempt to
correct the Delegated
Authority’s errors with regard to the
scoring of questions 6.14 and 6.15 that qualifies Jaffas Bay’s
contribution as
a percentage of turnover to corporate social
investment (CSI), is deemed even more confusing according to the
applicant. The Delegated
Authority in their opinion, had adopted an
unlawful and inequitable evaluation scoring which ranked Jaffas Bay
based on their respective
Rand dominated CSI contributions. The
Minister correctly put in the appeal decision at paragraph 3.14, that
this scoring system
was prejudicial to smaller operators. As a
result, the Minister adopted an entirely new scoring system based on
each applicant’s
stated, “CSI as a percentage of turnover
contribution.”
[34]
Jaffas Bay further expresses dissatisfaction regarding the score of 6
points that was awarded
for transformation. In their opinion, the
Minister continued to confuse the Delegated Authority’s scoring
matrix in table
9 page 31 of the Sardine GPR. In this instance,
Jaffas Bay ought to have scored nothing less than 9 points, based on
its previous
year’s contribution to CSI. In 2019, it was 3.37%,
in 2020 it increased to 4.16% and in 2021 it decreased to s 2%.
[35]
This variance was noted to be evident in Jaffas Bay response to
questions 6.15 recorded in its
application form. The Minister failed
to explain Jaffas Bay’s score of 6 points, which resulted in a
final weighted score
of 2% points given that transformation criterion
carried a weighting of 15%. The Minister’s scoring methodology
describes
as irrational and unlawful, as Jaffas Bay ought to have
been awarded 9 points, given that its CSI contribution over 3 years
averaged
3.17% of turnover. It was said that if one had to apply the
Minister’s arbitrary weighing of 33.3%, then its actual
adjusted
score for 6.14/6.15 must be 3%. In essence, its total score
must therefore be increased from 49.46% points to 50.46% points. On
this version, Jaffas Bay must then qualify for a sardine fishing
right similar to its previous qualifications in the anchovy fishing
sector. The Minister’s adoption of the exact same scoring and
weighing system that was implemented by the Delegated Authority,
which the Minister confirmed on appeal to be prejudicial to “smaller
companies relative to larger companies” perpetuates
the
arbitrariness and unlawfulness of the Delegated Authorities scoring
and weighing system.
[36]
Interestingly, it was said, that the Minister acknowledged the
revision of scores as recommended
by the Delegated Authority and
endorsed them. However, the Minister took no action to ensure that
the information about the scoring
adjustments was made available.
Furthermore, the Minister failed to exercise her powers of appeal
when considering the scores and
weightings allocated to questions
6.11, 6.16, 6.17, 6.19, 6.23 and 6.26. The Minister awarded Jaffas
Bay 5 points for each and
every criterion. However, the final
weighted scores randomly awarded to Jaffas Bay differs altogether.
There was no rational conceivable
explanation that was given.
According to Jaffas Bay, a 5-point allocation has to be converted to
a 15% weighted score. So, each
5 points awarded to the applicants can
only carry a final weighted score of 0.75% points (5 points x 15%).
[37]
Jaffas Bay appears to have concerns regarding the Minister’s
decision that a 50% threshold
is necessary to qualify for a sardine
fishing right. The Minister faced significant scrutiny regarding her
decision, as she did
not provide a clear explanation for adopting
this "minimum" score and how it aligns with the policies
and objectives
outlined in Section 2 of the MLRA and the sardine
policy. It was said that the decision to refuse Jaffas Bay a sardine
right because
it scored less than 50 points is not rationally
connected to the policy objectives of Section 2 of MLRA and the
sardine policy.
[38]
Although this represents the minimum score, the Minister in the
appeal decisions granted anchovy
rights to all historic right
holders, including Jaffas Bay, who scored 40% or higher. The Minister
clarified the rationale behind
the 40% being a justifiable minimum in
the anchovy fishery, while it was not applicable to the sardine
fishery, despite both being
governed by the same policy objectives
outlined in Section 2 of the MLRA and the Small Pelagic Policy. The
only motivation for
allowing previous right holders who demonstrated
inadequate r overall performance, was to enable the inclusion of New
Entrants
into the anchovy fishery. Despite its criticism of the 50%
points cut – off score for the allocation of sardine fishing
rights,
Jaffas Bay contended that it met the “minimum”
score, alternatively, that the “minimum” score is an
arbitrary
and irrational determination of Jaffas Bay's qualification
for a fishing right.
[39]
Jaffas Bay contended that this Court has previously reviewed and set
aside the Minister’s
decision in other fishing sectors, thereby
granting the applicants in those cases their fishing rights under
Section 18 of the
MLRA.
Submissions
[40]
Jaffas Bay contended that, while it initially mounted a range of
complaints in this review application,
however, it has since narrowed
down its review grounds to focus solely on the reasonableness,
rationality and lawfulness of the
Minister’s scoring of Jaffas
Bay’s Corporate Social Investment (CSI) contributions according
to scoring criteria 6.14/6.15.
The perspective is that it should have
received a score of 1% point (the highest possible for the SCI
scoring criterion); resulting
in a total of 50.13% points and an
allocation of 0.9132% of the sardine TAC, as recommended by the
Delegated Authority and the
experts from the small pelagic assessment
team.
[41]
They believe that the Minister’s decision-making process is a
tangled mix of contradictory,
unreasonable, and irrational scoring
and evaluation methods. The new scoring system, as outlined in the
respondent’s answering
affidavit, contravenes the provisions of
Section 80 (3) of the MLRA.
[42]
The respondents maintained that following Jaffas Bay appeal to the
Minister, the Delegated Authority
prepared and submitted a Regulation
5 (3) Report to facilitate the Minister’s proper consideration
of the Jaffas Bay appeal.
The Regulation 5 (3) Report
acknowledged that despite Jaffas Bay having received a score of
49.18% by the Delegated Authority
in the Category A applications, the
Small Pelagic Assessment Team reassessed Jaffas Bay due to the errors
identified during the
evaluation of applicants in the appeal process.
First,
in respect of question 6.10 applicants were incorrectly
compared across all categories rather than being compared solely
within
their respective categories, as specified in the Delegated
Authority’s GPR: Sardine. Following the correction of the
error,
Jaffas Bay’s score adjusted from 9 points to 11 points
out of a total of 24 points, leading to an increase in their final
score of 0.13%. Secondly, regarding questions 6.14 and 6.15, the
Delegated Authority’s GPR: Sardine outlines the scoring
methodology as follows: scores could not be awarded based on the
percentages of an applicant’s turnover or profit that was
spent
on CSI in each year over the period 2019 to 2021, as the provided
data for question 6.15 were considered unreliable and,
in some cases
not credible. Instead, scores were based on the actual amounts (in
Rand) spent on CSI, relative to the average amount
by all applicants
within that category only. Upon re – evaluation of Jaffas Bay
score using the alternative method, with:
> 1% in any year =
awarded 3 points; >0.51% and <1% - awarded 2 points; and <0.5%
- awarded 1 point. This exercise,
the respondents indicated resulted
in a score change from 6 to 9 points out of a total of 9 points,
which further increased in
the final score of 1.0%. In essence, the
changes in respect of questions 6.10 and 6.14/6.15 resulted in Jaffas
Bay’s score
being increased by 1.13% to a total score of
50.31%. This score surpasses the threshold required for successful
category A applicants,
and as a result, Jaffas Bay should be awarded
a right in the sardine fishery.
[43]
On consideration of Regulation 5 (3) report, it was said the
Minister, in exercising her extensive
appellate powers, should have
corrected certain errors made by the Delegated Authority in respect
of Jaffas Bay’s transformation
score. A support for this
contention was referenced to paragraphs 3.13 and 3.13.1 of Jaffas
Bay’s Appeal Decision, along
with the Minister score for
question 6.10. It was noted that the previous score was incorrectly
awarded as 9, but subsequent to
its correction on appeal, it was
adjusted to 11. The weighting of question 6.10 was 10% of the
transformation section, which comprised
had a total weighting of 15%.
The maximum score for question 6.10 was 24, and the percentage (%)
score for question 6.10 was calculated
as (11/24) x (10x100) x (15) =
0.69%. Jaffas Bay percentage (%) score therefore increased from
(9/24x10/100x15) = 0.56% to 0.69%
(an increase in the total score of
0.13%).
[44]
The respondents denied that the Minister failed to explain or provide
any formula data or any
information regarding the meanings or
references of 9/24 or 11/23. the score associated with this data; the
computation of 9 and/or
11; and the calculation of the final score of
0.13%. The Minister stated that the spreadsheets have been published
on the Departmental
website to help applicants comprehend the scoring
methodology. Jaffas Bay was at liberty to request access to
information necessary
for purposes of lodging an appeal if it
required the information, but it chose not to do so. Therefore, the
Minister stated that
these complaints are without merit and lack
substance.
[45]
As regards the Ministers correction of scores, it was submitted that
regarding question 6.14/6.15 Minister
Creecy adopted an entirely new
scoring system based on each applicants stated CSI as a percentage
turnover contribution. Further,
it was submitted that Jaffas Bay
raised several concerns regarding the Delegated Authority scoring
methodology, particularly in
relation to questions 6.14/6.15, and the
perspectives provided by the Delegated Authority in Regulation 5 (3)
report was self-explanatory.
Jaffas Bay therefore, misses the point
that the decision that is sought to be reviewed is that of the
Minister and not the Delegated
Authority. In addition, the Minister,
in her appeal decision in paragraph 3.14, considered Jaffas Bay’s
eligibility to an
increased score in respect of questions 6.14/6.15.
As it was stated in Regulation 5 (3) report, it proposed that Jaffas
Bay in
respect of question 6.14/6.15 be adjusted from 6 to 9 points
out of a total of 9 points, leading to an additional increase in
their
final score to 1.0%. The respondents disagreed with Jaffas
Bay’s contention that the Minister adopted the Delegated
Authority’s
rationale in its entirety and without any
amendment. It was said that it was correct that the appeal decision
contains the Delegated
Authority’s views which were “copied
and pasted” from the Regulation 5 (3) report. Although there
was a proposal
by the Delegated Authority to adjust the score from 6
to 9 points for questions 6.14/6.15, the Minister was not convinced
by the
DA’s views, and Jaffas Bay’s score remained at 6
points based on the methodology set out in the Appeals GPR: Sardine.
It was submitted that the Minister’s scoring in this regard was
based on a flawed reading and understanding of the Appeal
Decision by
Jaffas Bay.
[46]
For instance, Jaffas Bay, in concluding that its appeal was upheld,
with its score changing from
49.18% to 50.13%. The Minister accepted
the Regulation 5(3) report read in conjunction with Jaffas Bay Appeal
Decision, indicating
that the Minister accepted the Delegated
Authority’s findings without amendment or exception. However,
it was noted that
the failure to grant a sardine fishing right was
incorrect. Not all revisions of the scores were accepted by the
Minister as recommended
by the Delegated Authority in Regulation 5
(3) report. It was suggested that the misinterpretation of what the
Minister decided
arises from the statement on paragraph 3.15 of the
Appeal Decision which provides: “
I note the revision of
scores as recommended by the DA and uphold these adjustments.
”
Paragraph 3.14 of the Appeal Decision which deals with question
6.14/6.15 indicates that Jaffas Bay’s score
remains at 6 and
did not change to 9 as was proposed by the Delegated Authority in the
Regulation 5 (3) report.
[47]
The respondents contended that an additional basis for review,
introduced late in Jaffas Bay’s
replying affidavit, was the
Minister's violation of Section 80 (3) of the MLRA. This was due to
the adoption of a revised scoring
and evaluation methodology as set
out in paragraphs 81, 82, 83, and 84 of the respondents’
answering affidavit. Jaffas Bay
contended that the Minister’s
decision to refuse to award it a fishing right is premised on the
scoring process set out in
paragraphs 81 – 84. The explanation
in the answering affidavit does not only introduce an impermissible
ex post
facto
attempt to rationalise, justify and explain away the original
contradictory, confused and unlawful decision by the Minister, it
somehow introduced a new scoring system that is somehow irrational.
Discussion
Alleged
inadmissible hearsay evidence by Jaffas Bay
[48]
Jaffas Bay, in these proceedings alleged that the deponent to the
answering affidavit (Ms Patel)
is not authorised by virtue of her
position to depose to the answering affidavit in question. The
Minister failed to submit a confirmatory
affidavit to verify the
accuracy and truthfulness of the averments made on her behalf by Ms
Patel.
[49]
Pursuant to the aforementioned point of law that was taken by Jaffas
Bay, the Minister filed
a confirmatory affidavit, aligning herself to
the role of Ms Patel in these proceedings as Chief Director. Ms Patel
is responsible
for reporting to the Minister on all fishery appeals
and vetting recommendation related to the appeal administration and
all litigation
relating to appeals. The respondents contended that Ms
Patel’s debate regarding the authorisation to depose to
affidavits
in motion proceedings need not occupy this Court as it has
long been settled by the Supreme Court of Appeal.
[50]
For instance, in
Ganes
and Another v Telecom Namibia
[4]
,
the SCA held:
“
[19] …The
deponent to an affidavit in motion proceedings need not be authorised
by the party concerned to depose to the affidavit.
It is the
institution of the proceedings and the prosecution thereof which must
be authorised.”
[51]
Both Ms Patel and the Minister have convincingly demonstrated before
this Court that Ms Patel
had the requisite authority to oppose this
application on behalf of the Minister after the necessary proceedings
were instituted.
Moreover, the opposition of these proceedings was
said to have been fully authorised. In all, this is not an issue that
needs this
Court to traverse in detail given the above decision by
the Supreme Court of Appeal. This point has to fail.
The Ministers
evaluation and scoring criteria
[52]
Jaffa’s Bay contended that the Minister’s decision on
appeal in terms of Section
80 of the MLRA relating to scoring and
evaluation should be reviewed and set aside, as it was arbitrary, and
irrational, and therefore
unlawful. Further, since Ms Patel
demonstrated that the Minister’s decision-making process was
blemished with contradictory
confusion, unreasonableness, and
irrational scoring and evaluation process, the new scoring and
evaluation process was in violation
of Section 80 (3) of the MLRA.
[53]
Alternatively, an order be granted by correctly applying the
Minister’s own arbitrary and
irrational scoring and evaluation
criteria, as Jaffas Bay should have scored above the “minimum”
of 50%, which was
itself arbitrarily determined as the threshold
needed to qualify for a fishing right. This 50% score, set as the
minimum requirement,
is arbitrary, irrational, and unlawful, failing
to consider the policy principles and objectives outlined in Section
3 of the MLRA.
The Minister should be directed to allocate to
Jaffas Bay a 15-year duration commercial sardine right in terms of
section
18 of the MLRA within 30 days of the order, and that the
Minister be directed to determine and allocates to the applicant a
portion
of the sardine total allowable catch in terms of Section 14
of the MLRA. In addition, Jaffas Bay ought to have been scored an
additional
10% point (the maximum score for the CSI scoring
criterion), thus 50.13% points in total and allocated and a
corresponding allocation
of 0.9132% of the sardine TAC as advised by
the Delegated Authority and the experts comprising the small pelagic
assessment team.
However, at the hearing of this application it
was said that the issue has narrowed down and its review grounds
focused solely
on the reasonableness, rationality and lawfulness of
the of the Minister’s scoring of Jaffas Bay’s Corporate
Social
Investment (CSI) contributions under the scoring criteria.
[54]
The respondent asserted that following Jaffas Bay’s filing of
its application, it was afforded
an opportunity to respond to their
case. However, it appears that much of their reply introduces new
points. It is trite that a
litigant cannot come to Court and seek to
make out a new case in reply.
[55]
To the extent a new case was made out in the process of its reply,
and had the respondents answered
differently, particularly concerning
the Minister’s scoring for questions 6.14 and 6.15, Jaffas Bay
would not have responded
in a manner that introduced a new ground for
review. This further ground ought to be considered by this Court as
it comprehensively
addresses the complaints of Jaffas Bay in its
entirety.
[56]
For instance, the scoring system that was put in issue could be
gleaned in paragraph 3.13 and
3.14 of the Minister’s Appeal
Decision. As stated above the respondents attempted to correct
(amend) the contents of paragraph
85 of the answering affidavit. The
original paragraph 85 read as follows:
‘
During the appeal
process, Minister Creecy noted that the method adopted by the
Delegated Authority for scoring of CSI could potentially
prejudice
smaller companies relative to larger companies. Jaffas Bay’s
score was therefore re – evaluated using the
methods that the
Department had originally intended to use (percentage CSI over
turnover) with >1 % in any year being awarded
3 points, >0.51%
and < = 1% being awarded 2% and < =0.5% being awarded 1 point.
This scoring system was informed the Codes
of Good Practice of the
Broad Based Black Economic Empowerment Act of 2007 according to which
a company’s CSI contribution
should be at least 1% of net
profit after taxes’.
[57]
The respondent indicated that the first line which referred to
Minister Creecy – should
refer to the Delegated Authority. Had
this Court made the correction, it would have undermined the very
purpose of this application
from the outset.
[58]
First, by way of an example the Minister ascertained that Jaffas Bay
was compared with applicants
from all three categories rather than
solely against others in its own category, as mentioned in the GPR
(paragraph 3.3, Question
10), which raised some concerns. The
Minister, having recognised that shortcoming, did not provide clarity
in addressing the error
regarding the alteration of Jaffas bay's
score from 9/24 to 11/24. This was an appeal process, and the
Minister should have been
transparent when adjusting the scores.
[59]
Public policy in general advocates for the necessity of providing
reasons for decisions, especially
those that carry significant
consequences for individuals or institutions. This would reinforce
the notion that decisions were
made legitimately. There would not be
a perception of arbitrariness, unreasonableness or capriciousness.
[60]
Secondly, if due regard is had to para 3.14 of the Minister’s
decision itself and not paragraph
85 of the respondent’s
answering affidavit, the Minister re – evaluated the score
given to Jaffas Bay by employing
the methods that the Department had
originally intended to use with the consideration of the percentage
CSI turnover. The score
for 6.14 remained at 6 points. Having all of
the above, the Minister increased Jaffas Bay overall score. For
question 6.1, the
overall score is increased by 11 points. Once more,
no reasons for such increase were provided. For the respondents
to suggest
that the Delegated Authority nor the Minister determined
that Jaffas Bay score would remain at 6 points for question 6.14/6.15
is untenable, as this is not borne out by the record of the
Minister’s Appeal Decision.
[61]
If the Minister noted that the method adopted for scoring of CSI
could potentially prejudice
smaller companies relative to larger
companies, it stands to reason that her conclusion should have been
more reflective of this,
more especially if the transformation
imperative were taken into account. The attempted correction
(amendment of paragraph 85)
was made purely to preserve the Ministers
reputation.
[62]
If a proper analysis is made with
Bato
Star Fishing (Pty) Ltd v Minister of Environmental Affairs and
Others
[5]
.
In that
matter it was clearly stated that PAJA dictates reasonable
administrative action by establishing reasonableness as a ground
for
judicial review of administrative action. That implies that
administrative decision – makers are required to act reasonably
or within the limit of reasonableness. In this instance, the three
(3) elements of reasonableness are rationality, proportionality,
and
contextual reasonableness. A rational decision, for instance is
supported or justified by the evidence and information that
was
placed before the public official (the Minister) along with the
rationale for such decision. In other words, there must be
a
collection of justifications for the decision that would persuade an
individual that the decision is truly sensible (rationality
test).
The effect of the decision is that a reasonable decision –
maker needs to adopt a decision that is proportionate or
achieve a
reasonable equilibrium (proportionality test) and take contextual
approach – this depends on its application on
case-to-case
basis, taking into account the specific facts and circumstances
(nuanced, situation-sensitive and/or contextual test).
All of the
above is lacking in the Minister’s appeal decision.
[63]
This Court is evidently not in a position to validate a process when
the record does not clarify
how it was reached. The respondent
devised a formula for calculating the scores. In my view, it is not
open to the respondents
at this stage to introduce some formulas
which were not narrated either by the Delegated Authority or the
Minister in her impugned
decision. In addition, the Minister in the
appeal considered the scoring and evaluation system established by
the Delegated Authority
and revisited it by applying new scores. The
confusion regarding whether it was the Minister or the Delegated
Authority who identified
a potential prejudice in the scoring
criteria seems to stem from the respondents' own case. In my view,
the Minister’s decision
has to be reviewed and set aside.
[64]
Jaffas Bay argued that if the review succeeds, this Court should
consider a substitution order
directing the Minister to allocate
Jaffas Bay a fifteen year (15) commercial sardine fishing right in
terms of Section 18 of the
MLRA, along with an order that the
Minister determines and allocates the allowable catch in terms of
Section 14 of the MLRA
or the 0.9132% of the sardine TAC as was
determined by the Delegated Authority in 2023. The lack of clarity
regarding what Jaffas
Bay is entitled to reinforces the idea that the
process by which those scores were determined is neither transparent
nor easily
understood. However, this Court disagrees with the
position adopted by Jaffas Bay that this Court is that it is equally
positioned
[6]
and as well
qualified as the original authority to make the decision.
[65]
If Jaffas Bay cannot clearly articulate the substitution order that
this court should grant,
it follows that it is not in as good a
position to grant that order. In other words, it is not a
certainty regarding
the score that Jaffas Bay should have been
awarded. Moreover, it is not a foregone conclusion how much TAC
should have been awarded
to Jaffas Bay. The 0.9132% of the sardine
TAC, as was determined by the Delegated Authority in 2023, cannot be
considered to be
an appropriate award as the DA’s decision was
not under review before this Court. Although the factors as
espoused
in
Trencon
must be considered cumulatively, this
Court is at large to consider other important factors. These will
include delay, bias or
incompetence of an administrator and fairness
to all parties. Regrettably, these do not contribute to the
discussion in this case.
[66]
The respondents submitted that, as a general rule, a court typically
will not substitute its
own decision for that of an administrator and
instead, it will remit the matter to the administrator for
reconsideration.
[7]
.
[67]
I agree with the respondent’s submission for the important
reason that the allocation of
a commercial fishing right requires
some level of expertise, and such a decision is inherently policy
laden in nature
[8]
. Jaffas Bay
amongst others, complained that the provisions of Section 2 of the
MLRA were not properly considered. The respondents
denied those
assertions. In my view, it appears that those policy considerations
were made by the respondents. However, it remains
unclear to what
extent the Minister considered them. For instance, the awarded scores
do not align with the Minister's findings.
In any event, those scores
were not explained. In
Puffin
Fishing
it
was held that “…
this
is one of those cases where a substitution of this nature would
definitely cross the line in breach of the separation of powers
doctrine, since by no stretch of the imagination could (the Court) be
considered in as good a position as the functionary concerned
to
determine the terms of the tuna pole.
”
[68]
In this regard, both the Delegated Authority and the Minister were
assisted by a team of experts
who are most qualified to make an
accurate and proper decision. For instance, it was said that the
Minister, in her appeal decision,
was assisted by an assessment team
composed of technical and subject experts in fisheries research,
fisheries resource management,
and fisheries monitoring, control, and
surveillance, as well as legal and information technology experts.
This Court would not
have that benefit.
[69]
Without a doubt, delay would be caused by the remittal of this matter
to the administrator. For
instance, it was stated that the DA held
back 10% of the TAC, which is normally a reserved tonnage for
appeals. At this point,
this Court is not in a position to ascertain
how much of that TAC is available or how much the Minister has
allocated of the remaining
10% remaining tonnage on appeal. In any
event, that percentage is set aside for appeals, and not for review
matters. This Court
is not in a position to ascertain the numbers of
competing rights holders already in that space and/or could still be
accommodated,
as well as the percentage of the TAC applicable to
them.
[70]
The Court, in its current stance, cannot replace the Minister's
decision, as doing so would constitute
an overreach of the powers of
the court. The fact that Jaffas Bay litigated the matter to this
level suggest that allocation of
fishing rights is a complicated
factual, technical, and legal determination, that requires a certain
level of expertise. The Court
lacks the advantage of such expertise,
as previously mentioned.
[71]
In fact, it would be beneficial for the matter to be remitted to the
Minister for a fresh reconsideration
of the appeal, especially given
that there is a new Minister who will apply his mind for the first
time in this appeal. The respondents
in this application submitted
that given that there are about 22 matters that are in the process of
reconsideration on appeal in
the Small Pelagic Sector the Minister
would have completed the process by 29 August 2025. Again, this
Court is not aware
as to how has this process has unfolded.
[72]
For these reasons, the review succeeds and the following order is
granted.
72.1 The decision taken
by Minister Creecy in terms of
Section 80
of the
Marine Living
Resources Act
18 of 1998 dated 18 December 2023 and/or on “The
General Published reasons for the Decisions on Appeal in the Small
Pelagic
(Sardine) Sector” on 15 January 2024 to refuse Jaffas
Bay a commercial sardine fishing right is reviewed and set aside.
72.2 The matter is
remitted back to the Minister George or the relevant Minister of the
Department at the time to reconsider the
appeal by Jaffas Bay on
whether
inter alia
:
(a) Jaffas Bay was
correctly awarded an accurate score and evaluation by the DA, regard
being had to Jaffas Bay’s Corporate
Social Investment (CSI)
contributions:
(b) Jaffas Bay was
correctly awarded a total score of 49.18% less than the minimum
requirement of 50% or whether it achieved above
the minimum threshold
of 50%;
(c) Based on the total
score by the DA it was just, fair and equitable to refuse Jaffas Baya
commercial sardine fishing right.
72.3 The respondents are
ordered to pay the costs of this application, including costs of an
application to file further affidavits
on Scale B.
B.P. MANTAME
JUDGE OF THE HIGH
COURT
APPEARANCES
For
the Applicant:
Adv Shaheen Moolla
Instructed
by:
TSP Inc.
For
the Respondent: Adv
Nasreen Bawa SC
Instructed
by:
State Attorney
[1]
Record
page 190, para 3.14 – Minister’s Appeal decision dated
18 December 2023 – cross referenced to Record
page 353
(unnumbered para 63) of the Delegated Authority, SC Middleton
[2]
Erasmus,
Superior COURT Practice Volume 2 I Uniform Rules and Appendices D1 –
Rule 6 – 31;
Popterstraat
69 Eiendomme (Pty) Ltd VPA Venter Worcester (Pty) Ltd
2000
(4) SA 598 (C)
[3]
2013
(1) SA 161
[4]
2004
(3) SA 615
(SCA) para [19]
[5]
[2004] ZACC 15
;
2004 (4) SA 490
(CC) para [25]; Walele v City of Cape Town 2008
(60 129 (CC)
[6]
Trencon
Construction (Pty) Ltd v Industrial Development Corporation of South
Africa Ltd
2015
(10) BCLR 1199 (CC)
[7]
Johannesburg
City Council v Administrator, Transvaal
1969
(2) SA 72
(T) at 76 D – E
[8]
Puffin
Fishing CC and Another v Minister of Forestry Fisheries and the
Environment and Other
(11413/2023)
[2024] ZAWCHC 76
(11 March 2024 para [35]
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