Case Law[2025] ZAWCHC 329South Africa
Matakata v Passenger Rail Agency of South Africa (PRASA) and Others (Leave to Appeal) (17671/2023) [2025] ZAWCHC 329 (31 July 2025)
Judgment
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# South Africa: Western Cape High Court, Cape Town
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## Matakata v Passenger Rail Agency of South Africa (PRASA) and Others (Leave to Appeal) (17671/2023) [2025] ZAWCHC 329 (31 July 2025)
Matakata v Passenger Rail Agency of South Africa (PRASA) and Others (Leave to Appeal) (17671/2023) [2025] ZAWCHC 329 (31 July 2025)
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sino date 31 July 2025
IN
THE HIGH COURT OF SOUTH AFRICA
WESTERN
CAPE DIVISION, CAPE TOWN
Case
Number: 17671/2023
In
the matter between:
MKHUSELI
MICHAEL MATAKATA
Applicant
and
PASSENGER
RAIL AGENCY OF SOUTH AFRICA (PRASA)
First Respondent
PRASA
BOARD
Second Respondent
HISHAAM
EMERAN
Third Respondent
JUDGMENT DATED 31 JULY
2025
APPLICATION
FOR LEAVE TO APPEAL
MAGARDIE AJ
1.
The applicant applies for leave to appeal
against the whole of the judgment and the order of this court in
Matakata v
Passenger Rail Agency of South Africa (PRASA) and Others
(17671/2023)
[2025]
ZAWCHC 52
(18 February 2025) (“the principal judgment”).
The principal judgment dismissed with costs
an
application for declaratory orders sought by the applicant in the
following terms:
1.1
“
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;
1.2
the proceedings of the disciplinary hearing
were, as such, vitiated and accordingly invalid;
1.3
the result of the said disciplinary hearing
was equally vitiated and accordingly invalid;
1.4
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.”
2.
The application for leave to appeal sets
out various grounds on which the applicant contends that an appeal
against the principal
judgment has reasonable prospects of success.
In the alternative, the applicant contends that there are compelling
reasons why
an appeal should be heard. The main grounds of appeal,
insofar as it has been possible to distill them from the application
for
leave to appeal, are essentially three-fold. Firstly, the
applicant contends that the court erred and misdirected itself by
failing
to address all the grounds of attack advanced by the
applicant in relation to his purported dismissal by the first
respondent (“PRASA”).
Underpinning this ground of appeal
is a contention by the applicant that the court erred in its findings
regarding the application
of the
Oudekraal
principle in relation to the termination of the applicant’s
employment with PRASA.
3.
Secondly, the applicant contends that based
on the common cause facts, an appeal court would reasonably confirm
or declare that
the applicant’s employment was never
terminated. Thirdly, the applicant contends that the court erred and
misdirected itself
in rejecting the applicant’s ground of
attack in relation to alleged unlawful procurement of the
professional services of
the persons who constituted his disciplinary
hearing.
4.
The principal judgment sets out the factual
background in some detail. No useful purpose would be served by
unduly rehashing it
again. Suffice to say that the applicant was the
former Head: Corporate Security at PRASA. On 10 April 2017 he was
dismissed for
misconduct pursuant to a disciplinary hearing. The
disciplinary hearing chairperson and the initiator / employer’s
representative
at the disciplinary hearing were advocates from the
Johannesburg Bar briefed by PRASA’s attorneys, Bowmans, on the
instructions
of PRASA. The applicant contends on various grounds that
the appointment of the persons who constituted the disciplinary
hearing
and the disciplinary proceedings were unlawful and invalid.
The key issue to be determined was whether the applicant had
established
the requirements for declaratory relief in terms
of
section 21(1)(c) of the Superior Courts Act 10 of 2013 (“
Superior
Courts Act&rdquo
;). That section provides that a court may “…
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.”
5.
The applicant’s cause of action in the main application was
limited to
declaratory relief. This is an important consideration
when deciding whether an appeal against the principal judgment has
any reasonable
prospects of success. As set out in the principal
judgment, the applicant eschewed any reliance on judicial review
either as his
cause of action or the remedy being sought in the
application. He stated that he did not seek to
review
the decision by PRASA to appoint the persons who constituted the
disciplinary hearing. Nor, according to the applicant, was
he
reviewing the chairperson’s decision-making process in relation
to his dismissal.
6.
According to the applicant, the true nature of the
relief sought in the application, was a declaratory order.
Consequently, so went
the applicant’s argument, there were no
time constraints imposed upon him as to when he should have brought
his application,
as would have been the case in a review based on
either the Promotion of Administrative Justice Act 3 of 2000 (“PAJA”)
or the principle of legality.
7.
The lengthy history of the litigation instituted
by the applicant against PRASA which followed his dismissal on 10
April 2017 is
set out in detail in the principal judgment. That
litigation involved various applications by the applicant in the
Commission for
Conciliation, Mediation and Arbitration (“CCMA”),
four applications in the Labour Court, an application for direct
access to the Constitutional Court and applications to this Court
firstly for interim interdictory relief and thereafter the
declaratory
orders which resulted in the principal judgment. Counsel
for the applicant submitted that the litigation background was common
cause and unnecessarily included in the principal judgment. The train
of events and the applicant’s conduct of his litigation
against
PRASA speaks for itself. I fail to see why that litigation background
would not be relevant. The granting of declaratory
orders in terms of
section 21(1)(c)
of the
Superior Courts Act is
a discretionary
remedy. That the applicant seeks an order effectively re-instating
his employment in a position from which he was
dismissed
approximately 8 years ago and which dismissal has not been set aside
by the Labour Court or the CCMA , is a factor relevant
to the
exercise of that discretion. So too are the uniformly failed outcomes
of the plethora of applications by the applicant in
relation to his
dismissal on 10 April 2017 and the findings of the various courts and
bodies which dealt with those applications.
8.
I shall deal first with the ground of appeal
advanced on the basis that the court erred in dismissing the
applicant’s ground
of attack that the persons appointed to
constitute the disciplinary hearing which found him guilty of
misconduct, were improperly
and/or unlawfully appointed. There were
two foundations to the applicant’s argument in this regard. The
first was that Bowmans,
PRASA’s attorneys, were by virtue of
conflict of interest disqualified from conducting the applicant’s
disciplinary
hearing.
9.
The second was that the disciplinary hearing
proceedings were unlawful and invalid on the basis of certain
findings made by the
Auditor-General in his 2016/2017 Annual Report
on PRASA. The principal judgment sets out the reasoning for the
court’s rejection
of the applicant’s various contentions
in his founding affidavit that Bowmans were by virtue of conflict of
interest disqualified
from conducting his disciplinary hearing. The
applicant’s contentions in this regard and his unfounded
allegations in relation
to the legal practitioners concerned, were
found to be devoid of factual substance and singularly lacking in
merit. I am not persuaded
that a court of appeal would find
otherwise. In any event, none of these findings are challenged in the
application for leave
to appeal.
10.
As to the second foundation for the applicant’s
improper and/or unlawful appointment challenge to the disciplinary
proceedings,
the applicant in his supplementary answering affidavit
contended that by virtue of the Auditor-General’
s 2016/2017
Report on PRASA (“the Auditor-General’s report”),
the appointment of the persons who constituted his disciplinary
hearing was unlawful and improper and that consequently, his
dismissal was a nullity. In support of this ground of alleged nullity
of the disciplinary proceeding, the applicant annexed to his
affidavit certain extracts from the Auditor-General’s report.
The said extracts amounted to a total of two pages. That included the
report’s covering page.
11.
Under the heading, “Report on audit of
compliance with legislation”
,
the
Auditor-General’s report stated in relation to PRASA that
“…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,1996.
This included instances where:….
professional
services were sourced from a panel that did not comply with the
requirements of PRASA’s supply chain management
polic
y.”
It was in reliance on this italicized statement and apparent finding
in the Auditor-General’s report, that the applicant
argued that
its effect was to render the composition of the disciplinary panel
and his consequent dismissal, unlawful and invalid.
12.
The extracts of the Auditor-General’s report
which the applicant relies on make no mention of the appointment of
Bowmans to
the panel referred to in the report. The report does not
refer to the appointments of persons to the proceedings of the
applicant’s
disciplinary hearing. That much is obvious. Mr.
Mtshemla, counsel for the applicant, however argued that the
Auditor-General’s
report need not have done so. It was not
necessary for the Auditor-General, counsel submitted, to have
mentioned by name each and
every supplier / service provider to which
his findings related. According to the applicant’s application
for leave to appeal,
this was “…because they were all
and collectively included by virtue of being in a panel for the
period affected by
the AG report.” Unlawfulness and invalidity
of their appointment was thus visited on these suppliers or service
providers
not because they were included and referred to in the
Auditor-General’s report. On the contrary, says the applicant.
It was
because those service providers, including those who
constituted his disciplinary hearing were not specifically excluded
from the
Auditor-General’s report, that were in fact included
in the report.
13.
I have dealt with this argument in some detail in
the principal judgment. It is untenable and has no merit. The
applicant disagrees.
In his application for leave to appeal, the
court’s findings in this regard are described as being
“
constitutionally and statutorily
(sic)
perverse
”.
I leave aside for a moment the appropriateness of that description.
There are in my view no reasonable prospects of another
court
concluding that persons who rendered professional services to PRASA
during the period covered by the Auditor-General’s
report, did
so unlawfully because although they were not specifically mentioned
in the report, they were somehow impliedly included
and hence subject
to its adverse findings by implication. The applicant sought to
buttress this novel argument by reliance
on the interpretive maxim
i
nclusio
unius est exlusio alterius
(the
specific inclusion of one implies the exclusion of the other). The
maxim does not apply conversely. It does not mean the specific
exclusion of one implies the inclusion of the other. The
interpretation of the Auditor’s General’s report
contended
for by the applicant turns this common sense rule of
interpretation on its head.
14.
Nor for that matter am I persuaded that there
are any reasonable prospects of a court of appeal rejecting the
undisputed evidence
of PRASA that the
chairperson
and the initiator of the disciplinary hearing were in fact properly
and lawfully appointed in accordance with PRASA’s
internal
procurement procedures and that Bowmans was acting on a duly
authorized mandate sanctioned by the then Group CEO of PRASA.
No
sustainable factual or legal basis was established by the applicant
that the
appointment of the persons who
constituted his disciplinary hearing breached section 217 of the
Constitution, PRASA’s procurement
policy was unlawful and
invalid. There was consequently no basis for a declaratory order to
that effect. There are in my
view no reasonable prospects of a court
of appeal granting the declaration sought in paragraph (c) of the
applicant’s amended
notice of motion and the consequential
orders sought in paragraphs (d) and (e) thereof.
15.
The
applicant set great store in a ground of appeal based on the
contention that the court erred in failing to deal with all his
grounds of attack and in its reliance on the principle established in
Oudekraal
.
[1]
In prayer (f) of his amended notice of motion, the applicant sought a
declaratory order that “…
the
Applicant’s contract of employment was never terminated as
such, ha
s
(sic)
a
right to return to his workplace immediately upon the grant of this
order and to be paid his salary retrospectively, which shall
include
all increments effected since his purported dismissal
.”
The applicant’s grounds of attack in support of this relief,
advanced for the first time in a supplementary replying
affidavit,
were that his dismissal by
PRASA
was unlawful on three further bases. The first was that the
chairperson allegedly acted outside of his mandate as set out
in his
letter of appointment and terms of reference. The second was 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 alleged that his dismissal
was unlawful
because he was not given written notice of termination of his
employment by PRASA.
16.
The main judgment held that having tied his
case to being one for declaratory relief as opposed to review relief,
the effect of
the
Oudekraal
principle was that because his dismissal had not been set aside, it
must be found to be valid and legally effective. The court
further
concluded that the applicant had failed to establish the presence of
an existing right in respect of the relief sought
in prayer (e) of
his amended notice of motion, that being a necessary pre-condition
for the exercise of the court’s discretion
to grant or refuse
declaratory relief. Having failed fundamentally at this first hurdle,
the court concluded that it was 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.
17.
The
applicant submits that the
Oudekraal
principle finds no application in the matter at hand and relies on
various authorities which have concluded that the dismissal
of a
public servant does not constitute administrative action reviewable
in terms of PAJA.
[2]
On this
basis, the applicant contends that the court erred in failing to
determine the merits of his alternative challenges to
the lawfulness
of his dismissal. The argument is without merit. Firstly, this was
not an application for judicial review in which
it is generally
advisable for a court to deal with all the grounds of review advanced
by a litigant seeking to impugn unlawful
administrative action.
Secondly, the applicant in any event failed to establish that there
was a valid contract of employment giving
rise to an existing right
capable of being determined by declaratory relief. The declaratory
order sought in paragraph (f) of the
applicant’s amended notice
of motion was one for an order that his contract of employment was
“never terminated”.
But it was. It was terminated by the
chairperson of the disciplinary hearing on 10 April 2017 in his
sanction finding. The applicant
has not been re-instated by any order
of the Labour Court or the CCMA and his dismissal has not been set
aside.
18.
The declaratory order sought by the
applicant that his contract of employment was never terminated and
that as such he has the right
to return to his workplace, is
inconsistent with reality and the established common cause facts. The
applicant referred an unfair
dismissal dispute to the CCMA on 9 March
2017. This was the very day that he received his sanction of
dismissal from the chairperson
of the disciplinary hearing. He
litigated repeatedly in the CCMA and the Labour Court on the basis
that he had been unfairly dismissed
by PRASA. The applicant’s
employment had in fact been terminated by PRASA and he knew it.
19.
The test for leave to appeal is set out in
section 17(1)(a) read with
section 17(1)(b)
of the
Superior Courts
Act. It
is whether proper grounds have been established that there is
a reasonable chance of an appeal succeeding or whether
there
is some other compelling reason why an appeal should be heard. This
application establishes neither.
Order
20.
The application for leave to appeal is
dismissed with costs.
S
G MAGARDIE
Acting
Judge of the High Court
Western
Cape Division
[1]
Oudekraal Estates (Pty) Ltd v City of Cape Town and Others 2004 (6)
SA 222 (SCA).
## [2]For
example, the judgment of the Labour Appeal Court in Public
Servants Association of South Africa obo De Bruyn v Minister of
Safety and Security and Another (JA91/09) [2012] ZALAC 14;
[2012] 9
BLLR 888 (LAC); (2012) 33 ILJ 1822 (LAC) (15 May 2012).
[2]
For
example, the judgment of the Labour Appeal Court in P
ublic
Servants Association of South Africa obo De Bruyn v Minister of
Safety and Security and Another (JA91/09) [2012] ZALAC 14;
[2012] 9
BLLR 888 (LAC); (2012) 33 ILJ 1822 (LAC) (15 May 2012).
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