Case Law[2024] ZAWCHC 55South Africa
Minister of Forestry, Fisheries and the Environment and Another v Hacky Fishing (Pty) Ltd and Others (20607/23; 18801/23) [2024] ZAWCHC 55; [2024] 2 All SA 466 (WCC) (23 February 2024)
Headnotes
long term fishing rights in the Hake Inshore Trawl sector before fishing rights allocation process of 2015/2016.
Judgment
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# South Africa: Western Cape High Court, Cape Town
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## Minister of Forestry, Fisheries and the Environment and Another v Hacky Fishing (Pty) Ltd and Others (20607/23; 18801/23) [2024] ZAWCHC 55; [2024] 2 All SA 466 (WCC) (23 February 2024)
Minister of Forestry, Fisheries and the Environment and Another v Hacky Fishing (Pty) Ltd and Others (20607/23; 18801/23) [2024] ZAWCHC 55; [2024] 2 All SA 466 (WCC) (23 February 2024)
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sino date 23 February 2024
In the High Court of
South Africa
(Western
Cape Division, Cape Town)
Case
No: 20607/23
In
the matter between:
THE
MINISTER OF FORESTRY,
FISHERIES
AND THE ENVIRONMENT
First
Applicant
THE
DEPUTY DIRECTOR GENERAL OF THE
FISHERIES
BRANCH OF THE DEPARTMENT OF
FORESTRY,
FISHERIES AND ENVIRONMENT
Second
Applicant
And
HACKY
FISHING (PTY) LTD
First
Respondent
PREMIER
FISHING (PTY) LTD
Second
Respondent
T
& N VISSERYE CC
Third
Respondent
CAPE
FISH PROCESSORS CC
Fourth
Respondent
ZIMELE
FISHING ENTERPRISES CC
Fifth
Respondent
LE
TAP CC
Sixth
Respondent
SEVLAC
INVESTMENTS NO. 51 CC
Seventh
Respondent
FISHERMAN
FRESH CC
Eighth
Respondent
FULL
DECK INVESTMENTS (PTY) LTD
Ninth
Respondent
DAZALLE
TRADERS (PTY) LTD
Tenth
Respondent
OFFSHORE
FISHING COMPANY (PTY) LTD
Eleventh
Respondent
MAYIBUYE
FISHING (PTY) LTD
Twelfth
Respondent
CYREL
BURREL FISHING CC
Thirteenth
Respondent
OCCEAN
UKHOZI FISHING (PTY) LTD
Fourteenth
Respondent
In
re:
CASE
No. 18801/23
HACKY
FISHING (PTY) LTD
Applicant
And
THE
MINISTER OF FORESTRY,
FISHERIES
AND THE ENVIRONMENT
First
Respondent
THE
DEPUTY DIRECTOR GENERAL OF THE
FISHERIES
BRANCH OF THE DEPARTMENT OF
FORESTRY,
FISHERIES AND ENVIRONMENT
Second
Respondent
T
& N VISSERYE CC
Third
Respondent
CAPE
FISH PROCESSORS CC
Fourth
Respondent
ZIMELE
FISHING ENTERPRISES CC
Fifth
Respondent
Heard:
14 December 2023
Delivered
(electronically): 23 February 2024
JUDGMENT
LEKHULENI
J
Introduction
[1]
The allocation of fishing rights by the Minister of Forestry,
Fisheries and Environment in Category
B of the Hake Inshore Trawl
sector has been plagued and bedeviled with several review
applications. The two applications before
this court are no
exception. Two urgent applications served before this court on 14
December 2023. The first is an application
by Hacky Fishing (Pty) Ltd
(“Hacky”) under Case No. 18807/2023. The second is a
counterapplication by the Minister
of Forestry, Fisheries, and the
Environment, (“the Minister”) as the first applicant, and
the Deputy Director General
of Fisheries Branch of the Department
Forestry, Fisheries, and the Environment, (“the DDG”) as
the second applicant
under Case No. 20607/2023. The two applications
were heard jointly.
[2]
In the first application, Hacky seeks an urgent review of the
Ministers’ alleged unreasonable
delay or failure in taking a
final decision regarding Hacky’s fishing right in Category B of
the Hake Inshore Trawl as envisaged
in section 18 of the Marine
Living Resources Act 18 of 1998 (the MLRA”). Hacky also seeks a
declaratory order that it is
entitled to a fishing right in the said
category of the fishing industry.
[3]
In the alternative, to the above relief, Hacky seeks an order that
the Minister be directed to
finalise her Provisional Addendum
urgently or on such date as the court may determine. In the event the
court granting this alternative
relief, Hacky seeks an interim
interdictory relief against the third to fifth respondents, (T &
N Visserye CC, Cape Fish Processors
CC and Zimela Fishing Enterprises
CC) which would prevent them from exercising any fishing rights that
they may have been allocated
by the Minister to engage in fishing in
the sector, and further interdicting the Minister from issuing the
aforesaid respondents
with permits for such purpose. The fourth
respondent opposed the relief sought by Hacky to the extent that it
would be prevented
from fishing pending the determination by the
Minister.
[4]
In the second application, the Minister opposed Hacky’s
application and also launched a
counterapplication and sought an
order directing the DDG including the official of the Department of
Forestry, Fisheries and the
Environment under the control of the
second applicant to refuse to issue fishing permits to the current
category B right holders
in the Hake Inshore Trawl fishing sector for
the 2024 fishing season pending the finalisation of a self-review
application to be
brought by the applicants.
[5]
In the proposed self-review application, the Minister will among
others, seek to review and set
aside the scoring of all of category B
right holders in respect of Section 4 of the application form in the
2015/2016 fish allocation
right process who were not affected by the
agreed order in previous litigation instituted by Hacky under case
number 7996/2022
(“the Hacky”) order and which led to an
agreed order between Hacky and the Minister and four industry
participants.
The Minister will also seek an order varying the Hacky
order to permit the Minister to rescore all Category B right holders
in
accordance with the Hacky order.
[6]
In addition, pending the hearing and finalisation of the intended
self-review application, the
Minister seeks an order interdicting and
restraining any category B right holder who has already been issued
with the fishing permit
for the year 2024 season from fishing in
terms of that permit. To this end, the Minister seeks an order that
the relief Hacky seeks
in its application (delay in failure to make a
final decision relating to Hacky’s right to fishing) stand over
for determination
together with the Minister’s intended
application for substantive relief (self-review application), and
that other review
applications brought by the respondents be set down
and heard together with the intended application.
The
Factual Background – Hacky’s Application
[7]
As stated above, Hacky’s application and the Minister’s
application were heard jointly
on 14 December 2023. In this
application, Hacky essentially seeks to review the Minister’s
delay to finalise her decision
regarding the applicant’s right
to fish in the Category B of the Hake Insure Trawl sector of the
fishing industry and ancillary
relief. The decision of the Minister
deals with an authorisation to fish for hake and sole. This Fishery
is based around Mossel
Bay and Gqeberha. The vessels employed are
modified to accommodate the operation of these nets. Hacky owns and
operates fishing
vessels and holds fishing rights authorising it to
fish for a variety of species.
[8]
Section 18 of the MLRA provides that no one may fish commercially
unless a right has been allocated
to it in terms of the MLRA and that
rights are allocated for a period not exceeding 15 years. A fishing
right is usually expressed
as a percentage of the total allowable
catch for a particular year. The total allowable catch represents the
number of fish that
may be caught in a particular year. Hacky
contends that fishing rights have been allocated in terms of the MLRA
since around 2001.
[9]
In 2015, the previous Minister of Agriculture, Forestry and
Fisheries, Minister Zokwana called
for applications for fishing
rights in several fishing sectors, inter alia, to fish hake and sole
through a fishing right allocation
process. This process entailed
appointing a delegate to consider applications and Gazette policies
setting out the requirements
and the criteria for the allocation of
rights. One of these criteria looked at applicants’ access to a
suitable vessel to
employ in the sector. These criteria were also to
be employed in scoring applications on a competitive basis. In other
words, score
points were assigned to an application based on the
extent to which it met the assessment criteria. Then scores were
totaled, and
rights were allocated to applicants with the total
scores above a certain threshold.
[10]
Hacky asserts that this application follows a fully ventilated
judicial review application which it brought
in this court under case
number 7996/2022 (access to a suitable vessel matter). Hacky further
avers that the suitable vessel matter
related to a sequence of
decisions in the 2015/ 2016 fishing rights allocation process in the
Hake Inshore Trawl sector which culminated
in an irregular decision
by the Minister. The fishing allocation process 2015/2016 was a
competitive process based on a scoring
methodology.
[11]
Hacky states that applications for fishing rights fell into three
categories:
11.
Category A – related to applicants which held long term fishing
rights in the Hake Inshore Trawl sector
before fishing rights
allocation process of 2015/2016.
11.2
Category B – involved applicants which held fishing rights in
other sectors but wished to enter the
Hake Inshore Trawl sector.
11.3
Category C – involved applicants which held no rights in any
fishing sector.
[12]
Hacky asserted that the former deputy Director General of Forestry,
and Fisheries, Ms Siphokazi Ndudane the
delegated official of the
Minister, refused Hacky a fishing right in the Hake Insure Trawl
sector on 20 December 2016. This decision
was initially upheld by the
previous Minister Zokwane on 10 July 2017. Hacky averred that for the
purposes of the fishing rights
allocation process in the Hake Inshore
Trawl sector, section 4 of the application forms required applicants
to demonstrate access
to a suitable vessel. Section 7(e) of the same
forms described a suitable vessel as one that,
inter alia
, is
geared to target hake and sole by the trawl method and is certified
by the South African Maritime Safety Association (SAMSA)
as being
safe.
[13]
According to Hacky, it provided a valid SAMSA
registration
certificate for each nominated vessel which in all other respect
qualified as a suitable vessel. Notwithstanding, the
former DDG, Ms
Ndudane and the former Ministers decided that this did not qualify as
safety certificate and concluded that Hackey
had not nominated a
suitable vessel. To this end, Hackey was initially awarded zero
points for access to a suitable vessel. Hacky
had scored well for all
aspects of the application criteria including aspects such as
transformation and investment. The only tipping
point which prevented
Hacky from being amongst the top scorers in category B turned on
whether Hacky had access to a suitable vessel.
[14]
Hacky challenged the decision of the Minister in a review
application, in November 2017 under Case No. 23427/
2017, which
resulted in an order by agreement setting aside Minister Zokwana’s
decision in relation to Hacky. The court referred
the matter back to
the Minister for reconsideration. The Minister subsequently reversed
his decision on 7 December 2018. The effect
of Ministers Zokwana’s
decision of 7 December 2018, included that Hackey was granted points
for access to a suitable vessel
which resulted in a score qualifying
Hackey for a long-term fishing right in the Hake Inshore Trawl sector
of category B. Hackey
was accordingly granted a fishing right and
permitted to participate in the 2019 fishing season.
[15]
However, when Minister Zokwana was reconsidering all appeals,
following several other court orders reviewing
and setting aside his
decisions, he also changed his decision of 10 July 2017 regarding the
quantum allocation between category
A, B, and C. Various category A
entities brought a review application in March 2019 to set aside
Minister Zokwana’s decision
in relation to the quantum
allocation. The crux of their case was that it had not been open to
Minister Zokwana to alter the 70/30
allocation of the total allowable
catch between category A right holders and new entrants. The
contention was that the orders setting
aside his 2017 decision had
only related to categories B and C only and not A.
[16]
Pursuant thereto, an order by agreement between the category A review
applicants and the Minister Zokwana
was reached. In terms of that
order, it was ordered that Minister Zokwana’s decision of 10
July 2017 stood in so far as it
established that category A right
holders would share 70 per cent of the total allowable catch in the
Hake Inshore Trawl fishing
while category B and C right holders would
share 30 per cent. The matter was referred to the Minister to
reconsider allocating
30 percent of the total allowable catch in the
Hake Inshore Trawl fishery to the new entrants. Pursuant to this
order, the position
reverted in the interim to Minister Zokwana’s
decision of 10 July 2015 and Hacky and other right holders who had
been successful
on appeal in December 2018 were denied participation
in the catching of fish from the end of 2019.
[17]
However, on 10 December 2021 the current Minister reversed Minister
Zokwana decision regarding the applicant.
The Minister awarded
fishing rights in the Hake Inshore Trawl Category B sector to 11
top-scoring right holders. Hacky was not
granted a fishing right and
did not fall within the 11 selected parties. According to Hacky, the
current Minister ignored Minister
Zokwana’s decision granting
points for access to a suitable vessel and other relevant
correspondence and decisions.
Given
the points allocated for a suitable vessel, had the Minister
concluded that Hacky had nominated such a vessel, Hackey contends
that the Minister would have granted a long-term fishing right to it,
and it would have been amongst the top 11 in respect of scoring.
[18]
Hackey asserts that the Minister's decision in failing to properly
score it was irrational and incorrect
and caused the applicant
(Hacky) to institute the suitable vessel review application on 25
March 2022. Hacky brought an application
to review the decision of
the Minister to refuse it the fishing right and cited all the 11
successful long term fishing rights
holders in category B of the Hake
Inshore Trawl fishery as respondents.
[19]
At the hearing of the review application in September 2022, the
decision of the Minister to refuse Hacky
a fishing right was set
aside, and the matter was referred to the Minister for
reconsideration of the scoring on the suitable vessel
(“the
Hacky court order”). On 14 December 2022, the Minister made a
provisional decision
on the reconsideration of Appeals in the
Hake Inshore Trawl fishing sector. In its reasons, the Minister noted
that as a result
of the reconsideration of Section 4 (access to a
suitable vessel), as per the Hacky court order, the final scores of
the affected
applicants have changed such that three entities that
were awarded a fishing right no longer score among the top 11 in
category
B of the Hake Inshore Trawler sector and accordingly stand
to lose their rights. The Minister further stated that three other
entities
that were not awarded a fishing right have now scored
sufficiently high to be among the top scoring category B applicants
and are
accordingly entitled to be awarded a commercial fishing
right.
[20]
The three entities which stood to lose their fishing rights are the
third, fourth and fifth respondents (the
affected respondents)
pursuant to the Hacky order. Meanwhile, the three entities entitled
to be awarded a fishing right are Precious
Prospects Trading 110
(scoring 64,95), Hacky (scoring 64,61) and Timowize (Pty) Ltd
(scoring 62,92). The Minister regarded this
decision as provisional
and stated that she will notify each of the affected respondents and
give them an opportunity to make representations
in terms of section
80(3) of the MLRA and or in terms of the natural justice principle of
audi alteram partem,
on why they should not lose their rights.
The Minister also stated that the top scoring parties must not be
regarded as creating
a legitimate expectation on the allocation of
rights.
[21]
Hacky averred that it anticipated that the Minister would finalise
her decision in a reasonable time, at
least to provided Hacky the
opportunity to be awarded a right and a permit for the 2023 fishing
season. Regrettably, contends Hacky,
the Minister’s final
decision was not forthcoming. As its grounds of review, Hacky
contended that the Minister's failure
to make a final decision
awarding a right to it by 14 December 2022 is irregular irrational
and unlawful. Hacky also relies on
section 237 of the Constitution
which requires that all constitutional obligations, of which the
dispensing of just administrative
action is one, must be performed
diligently and without delay.
[22]
Hacky asserted that in the Provisional Addendum, the Minister
determined that the affected respondents did
not qualify for a
fishing right and stood to lose their right. In Hachy’s view,
the Minister’s decision is based on
a scoring system for the
applicant, which is rational, and the Minister is bound by her
decision based on this scoring system and
is obliged to take a final
decision in accordance therewith without unreasonable delay. To this
end, Hacky submitted that the appropriate
remedy in the circumstances
will be for the third, fourth, and fifth respondents each to be
interdicted from being given permits
for the 2024 or to use permits
for 2024 season to catch hake and sole pending the determination of
the Minister’s final decision
on the rights allocation.
The
fourth respondent’s opposition to Hacky’s application
[23]
The Minister and the fourth respondents opposed Hacky’s
application. As stated above, the Minister
also launched a
counterapplication against Hacky and other right holders in Category
B of the Hake Inshore Trawl sector. The Minister’s
response to
Hacky’s application and opposition to the Minister’s
counterapplication and the response thereto by the
various
respondents is dealt with later in this judgment.
[24]
As previously stated, the fourth respondent opposed Hacky’s
application. The fourth respondent asserted
that Hacky’s
application is not urgent. According to the fourth respondent, Hacky
must have known by 2 March 2023, that this
application would be
necessary. However, the application was not brought within a
reasonable time, and the delay has not been explained
satisfactorily
or at all. The fourth respondent asserted that Hacky procrastinated
unreasonably and delayed in instituting this
application for over a
year and that no explanation for this delay has been provided.
Furthermore, the fourth respondent averred
that Hacky has not
explained why it will not be able to obtain substantive relief in due
course. The fourth respondent admitted
that pursuant to the
provisional order, the Minister expressly stated that the fourth
respondent stood to lose its fishing rights
and in paragraph 29 of
that Addendum, the Minister invited the fourth respondent and other
potentially affected parties to make
representations to the Minister,
which it duly did.
[25]
As far as the merits of the Hacky’s application is concerned,
the fourth respondent asserted that Hacky
has failed to make out a
case to show that the granting of a fishing right and the necessary
permit to enable the fourth respondent
to exploit its rights will in
any way affect the alleged right of Hacky. To this end, the fourth
respondent tendered to desist
from its effort to exploit such part of
the fishing right conferred on it, if any, as may be necessary to
enable the Minister to
accommodate Hacky should Hacky ultimately be
successful in its review application and the Minister is disposed to
conferring a
fishing right to Hacky.
[26]
The fourth respondent disputed Hacky’s allegation that it does
not qualify for a fishing right. According
to the fourth respondent,
Hacky has not set out sufficient facts to enable this court to come
to such a conclusion. The fourth
respondent pointed out that it has
an existing fishing right which shall remain extant until such time
as the decision to award
such right to it shall be reviewed and or
set aside. While Hacky in the notice of motion asked this court to
declare that the fourth
respondent has no right to receive or possess
the fishing right and permit, the fourth respondent asserted that
Hacky does not
request an order to cancel the allocation of the
fourth respondent, nor does it set out grounds upon which such relief
could in
law be granted. To this end, the fourth respondent stated
that Hacky did not make out a case claimed in the notice of motion
and
thus implored this court to dismiss Hacky’s application.
The
Minister’s opposition to Hacky’s application and the
Minister’s counterapplication – Case No. 20607/23.
[27]
As previously stated, the Minister opposed Hacky’s application
and filed a counterapplication against
Hacky and fourteen other
respondents cited above. In her counterapplication, the Minister
sought an order directing that the officials
of the Department of
Forestry, Fisheries and Environment under the control of the DDG to
refuse to issue fishing permits to current
Category B right holders
in the Hake Inshore Trawl fishing sector for the 2024 fishing season
pending the finalisation of an application
to be brought by the
applicant to review and set aside the scoring of all category B right
holders not affected by the Hacky order
in respect of section 4 of
the application form in the 2025/206 fishing right allocation
process.
[28]
In the counterapplication, the Minister further sought an order
interdicting and restraining any category
B right holders who have
already been issued with a fishing permit for the Hake Inshore Trawl
fishing season from fishing in terms
thereof pending the finalisation
of her intended self-review application. The Minister avers that her
counterapplication renders
the interdictory relief sought by Hacky
unnecessary in that the relief sought in the counterapplication, is
wider than the interdictory
relief sought by Hacky and will attain
the same objective if granted, namely that the third to the fifth
respondents will not be
permitted to fish pending the finalisation of
the self-review or variation application.
[29]
It is the Minister's case that the counterapplication will ensure
that all affected parties are treated the
same, no one not only the
third to the fifth respondents in the Hacky application, would be
permitted to fish pending the determination
of the Minister's relief
in the intended self-review application. The failure in the Hacky
order to deal with all affected parties
in relation to the rescoring
ordered, led to major unintended consequences. The Minister asserts
that it is vital for the stability
of the industry and to the
upholding of the rule of law that all affected parties are treated
the same.
[30]
The Minister confirmed the sequence of events as explained in the
Hacky application and to avoid burdening
this judgment, I will not
repeat in detail those sequence of events in this judgment. However,
in addition to what is explained
in the Hacky application, the
Minister asserted that pursuant to the Hacky order, the appeals of
the first, third, fifth and fourteen
respondents were remitted too
her in respect of section 4 only, that is the section of the
application addressing the requirements
of access to a suitable
vessel.
[31]
Following the agreed order, on 14 December 2022 the Minister signed
the Provisional Addendum which was published
on 25 March 2023. In
terms of the rescoring pursuant to the Hacky order, Hacky met the
threshold and was included in the top 11
entities. This meant that
Hacky would acquire a fishing right at number 10 together with the
entities Precious Prospects Trading,
and Timowse (Pty) Ltd. The
fourteenth respondent in the counterapplication would retain its
right and the third, fourth and fifth
respondents stood to lose their
fishing rights. According to the Minister, the provisional addendum
was understood to be correct
at the time that it was prepared, that
is in December 2022. However, in addition to affording those who
stood to lose their rights
an opportunity to make representations,
three matters arose thereafter that have had a material impact on
implementing the Hacky
order and finalising the Provisional Addendum.
[32]
First, the officials of her department discovered that the scoring
anomaly identified in the Hacky application
affected other entities
in the top 11 who were not a party to the Hacky order and could not
be rescored on access to a suitable
vessel as envisaged in Section 4.
The Minister averred that the effect of this was that those parties
had been awarded points for
access to suitable vessels in
circumstances where they should not have been. The department’s
officials conducted a rescoring
exercise on a broad application of
the Hacky order by applying it to all category B right holders. They
found that the impact on
the top 11 would look different to the table
published in the Provisional Addendum on an equal application of the
Hacky order.
[33]
The affected parties were not party to the agreed order, and so even
though these entities now benefited
improperly from an incorrect
scoring of Section 4, nothing could be done about it at that stage as
she was functus officio in respect
to those entities. Importantly,
the Provisional Addendum could not be finalised as it was apparent
that to do so would perpetuate
an unequal and unlawful position.
[34]
Secondly, the Minister asserted that the Provisional Addendum was
incorrect insofar as it indicated that
Timowise would fall into the
top 11 of the scoring charter. This was because Sevlac Investments
had achieved a score on appeal
of 67, 01 above that of Timowise. This
meant Sevlac Investment would have entered the top 11 on a correct
Addendum at number 8.
The inclusion of Timowise would then be an
error.
[35]
Thirdly, three further category B review applications were launched
before the Provisional Addendum was finalised.
The first of these was
the application by Premier Fishing, launched in June 2022. The
Minister indicated that he did not oppose
the Premier Fishing review
application. As such, the latter obtained an order on an unopposed
basis, reviewing and setting aside
the Minister's decision and
remitting the matter back to the Minister for reconsideration. The
appeal of Premier Fishing has been
finalised; however, given the
current situation, no right allocation has taken place as their
scoring and ranking has not been
completed, pending the determination
of the Minister's relief (self-review application).
[36]
The Minister further averred that the overall effect of the Hacky
court order is that the inconsistency in
scoring section 4 (access to
a suitable vessel) has resulted in several entities being awarded
scores for the section in circumstances
where they did not
demonstrate access to a vessel suited to trawl hake. According to the
Minister, what ought to have happened
is that those entities ought to
have been scored zero for the section. In the case of Hacky, the
third, fourth, and fifth respondents
were scored in accordance with
the agreed order. However, in the case of entities who were not a
party to that order, that did
not take place. Therefore, the Minister
stated that some entities hold rights in category B in circumstances
where they do so partly
because they were improperly awarded points
for suitable vessels. These entities are the third, fourth, fifth and
fourteenth respondents.
[37]
According to the Minister, this is neither fair nor lawful, and the
only way to remedy the situation is to
institute a review
application. This will allow the Minister to rescore all applicants
equally and consistently on the section
4 requirements of access to a
suitable vessel. According to the Minister, it was for this reason
that she had yet to publish a
finalised Addendum or decide regarding
Hacky's fishing rights.
[38]
The Minister stated that in February 2023, she convened a meeting
with the department officials and tasked
them to find a holistic
solution to the constant upheaval in the sector. The Minister
indicated to them that she wanted the litigation
and decision-making
to end and that she needed the department and the industry entities
to come together to find a way to end the
litigation. Despite the
laudable efforts of the department's officials, which included an
attempt at mediation through the representative
body, Fish South
Africa, the Minister asserts that it seems that this will not be
possible, and it was for this reason that she
issued the instruction
to institute legal proceedings in respect of the sector.
[39]
To this end, the Minister seeks an interdict restraining the issuing
of permits for the Hake Inshore Trawl
and that Hacky's application be
postponed pending a self-review application that she intends to
institute. The Minister acknowledged
that the interdictory relief she
seeks will be disruptive to the industry. However, the Minister
contends that this must be balanced
against the consequences of
continuing to allow the incorrect entities to fish and the need to
bring stability to the sector so
that the disruptions may finally
end.
[40]
In the Minister's view, the prevailing situation cannot be allowed to
endure. Category B appellants must
be subjected to equal and uniform
scoring, which is the only lawful course of action available to her
and the department. To achieve
this outcome, the Minister asserted
that her relief is necessary as she is precluded from rescoring
category B right holders and
appellants who are not subject to the
agreed Hacky order. In the intervening period, there was no certainty
as to who should and
should not be fishing. The Minister implored the
court to grant the interdictory relief to ensure that no category B
right holder
or appellant benefitted lawfully from the prevailing
situation.
The
third, fourth, fifth, seventh, eighth, tenth, eleventh and twelfth
respondents’ opposition to the counterapplication –
Case
No. 20607/23
[41]
The respondents above opposed the Minister's counterapplication. The
third respondent opposed the counterapplication
and averred that the
relief sought by the Minister is irregular and untenable, amongst
others, because the Minister's application
is out of time in terms of
section 7 of the Promotion of Administrative Justice Act 3 of 2000
(PAJA) and that the Minister has
failed to seek condonation for this
in terms of section 9 of PAJA. The third respondent also contended
that it is a right holder
in this fishery, having been granted a
right by the Minister in terms of section 18 of the MLRA. It has been
fishing for hake and
sole using the trawl method for two consecutive
fishing seasons (2022 and 2023).
[42]
The third respondent asserted that re-evaluating what it scored for
section 4 of its application is moot
and irrelevant as the Minister
cannot terminate the fishing right, she granted. According to the
third respondent, the Minister
is functus officio. The third
respondent contended that the counterapplication is ill-advised and
aimed at targeting category B
right holders because they have
repeatedly challenged the Minister's decision through review
applications.
[43]
In addition, the third respondent asserted that the Minister did not
seek to review and set aside her decision
to grant the third
respondent a fishing right in terms of section 18 of the MLRA. To
this end, the third respondent believes that
the Minister has not
made out a case for the interim relief she seeks, which she admits
will be disruptive to the industry, disallow
the respondents the
right to fish and cause hardship.
[44]
The fourth respondent, on the other hand, admitted that the effect of
the order sought by the Minister will
be that no one will be
permitted to fish pending the outcome of the application. According
to the fourth respondent, this is an
overkill and unnecessary. The
fourth respondent denied that there were any significant unintended
consequences which flowed from
the Hacky order. The fourth respondent
shared the views expressed by the third respondent and pleaded that
the Minister exercised
her discretion during 2016 when she decided to
bestow a fishing right to the fourth respondent. The fourth
respondent asserted
that it owns the fishing right granted to it and
has arranged its affairs accordingly. The fourth respondent applied
for the dismissal
of the Minister's application.
[45]
The grounds of opposition put forth by the fifth to the twelfth
respondents are substantially consistent
with those raised by the
third and fourth respondents. While I acknowledged that their
answering affidavits significantly differ
in certain respects, in my
view, these respondents' affidavits align in certain respects,
raising many of the same defences.
[46]
To avoid prolixity in this judgment, I will not repeat those grounds
herein in detail. These respondents
asserted that the Minister cannot
terminate the fishing rights she granted as she is functus officio.
Furthermore, these respondents
also believe that the Minister's
application is both draconian and ill-considered, given the effect it
will have on the category
B right holders who have been correctly
scored and are not the subject of any suspicion with respect to
incorrect scoring.
[47]
Furthermore, these respondents further asseverated that from the
Minister's papers, it is still apparent
that he has concerns with
fewer than the bottom half of the table of category B right holders.
Yet, the Minister is seeking to
shut down the operations of the
entire category B, thereby depriving lawfully allocated rights
holders and the employees of the
opportunity to operate and derive
income for a minimum period of three months.
[48]
According to these respondents, the Minister acknowledges this harm
yet argues that the need of the many
must outweigh the need of the
few when, in fact, it appears that he's arguing that the needs for
the view must, in fact, outweigh
the needs of the many. The
respondents also asserted that there had been an undue and
unreasonable delay on the part of the minister
and the DDG in
bringing the counterapplication. The urgency with which this
application was instituted was self-created. They all
implored the
court to dismiss the Minister's application.
The
principal submissions by the parties
[49]
At the hearing of this application, Mr Melunsky SC, Hacky's legal
Counsel, submitted that Hacky brought this
application against the
Minister to compel the Minister to make her final decision and to
secure its - at least provisionally recognised
right to catch fish.
Counsel submitted that after the Hacky order was granted in December
2022, the Minister reconsidered the application
in terms of the order
and scored the third to fifth respondent zero for section 4 access to
suitable vessel requirement.
[50]
Counsel submitted that the effect of this was that the third to fifth
respondents fell out of the top-scoring
11 and were replaced by Hacky
and two others, which provisionally entitled the latter three to be
awarded fishing rights. The Minister's
decision in respect of which
she would allocate fishing rights in Category B was provisional to
the extent that she first afforded
the third to fifth respondents an
opportunity to make representation to her.
[51]
Mr Melunsky submitted that the Minister undertook to finalise her
appeal decision in respect of category
B once she had considered
these representations. Counsel further submitted that notwithstanding
her undertaking, the Minister should
have made a final decision on
the appeals of the third to fifth respondents or Hacky within a
reasonable time. According to Mr
Melunsky, if the third to the fifth
respondents are permitted to fish pending the Minister's final
decision, they will harvest
fish at Hacky's expense. Furthermore,
Hacky will never be able to catch fish caught by the third to fifth
respondents. Thus, Mr
Melunsky implored the court to grant an order
directing the Minister to finalise her decision concerning Hacky and
the third to
the fifth respondent. In addition, Mr Melunsky urged the
court to grant an interdict against the Minister from issuing any
permits
in terms of section 13 of the MLRA.
[52]
The argument of Mr Jamie SC, who appeared for the Minister and the
DDG, was essentially in tandem and aligned
with the submission of Mr
Melunsky. In addition, Mr Jamie submitted that the Hackey order is
clearly flawed. Further, Mr Jamie
submitted that this order has been
interpreted as having vastly different consequences by the various
parties, and appropriate
relief must be sought to resolve this.
Absent an interdict, the contention proceeded, and the unintended
consequences of the Hacky
order will persist in the 2024 fishing
season in the Category B sector.
[53]
Mr Jamie submitted that the resultant position involves ongoing
illegality, consequent violation of rights,
and a breach by the
Minister of her obligations in terms of the Constitution and relevant
legislation. It was Counsel's further
submission that the failure in
the Hacky order to deal with all affected parties in relation to the
rescoring ordered by the court,
led to significant unintended
consequences. Mr Jamie submitted that it is vital for the stability
of the industry and upholding
the rule of law that all affected and
Category B applicants in the sector are treated equally. He implored
the court to grant the
interdictory relief that the Minister sought
in the notice of motion.
[54]
Mr Moolla, who appeared for the third and fifth respondents, and Mr
Tredoux for the fourth respondent, made
submissions on behalf of
their clients. In my view, their submissions are aligned; to avoid
repetition, I will summarise them jointly.
Mr Moolla submitted that
the urgent relief sought by the Minister and the DDG cannot succeed
because the Minister is functus officio.
Mr Moolla further submitted
that the urgent application brought, and the relief sought by the
intended self-review application
had not been brought within a
reasonable period, and the Minister had failed to set out in detail
the facts necessary to determine
whether the delay was necessary in
the interest of justice or to the public interest. Counsel submitted
that there is no urgency,
and any urgency alleged has been
self-created.
[55]
Mr Tredoux submitted that the Minister has acknowledged that once the
right is granted, these entities structure
their businesses, and
employees structure their lives around having access to the work that
comes along with holding such a right.
Counsel further submitted that
the fourth respondent had arranged its affairs in accordance with the
rights which were allocated
to it, and it has, consequently, employed
staff and established maintained premises for the purpose of
administering the fishing
company and selling fish to members of the
public residing in Mitchells plain and Khayelitsha.
[56]
Mr Moolla, on the other hand, further contended that there is no
demonstration of any prima facie right to
prevent the respondents and
any of the category B right-holder respondents from fishing. It was
further submitted that the respondents
have identified alternative
remedies available to the Minister in terms of section 28 of the
MLRA, which are not disruptive to
an entire industry, and which will
not cause the respondents hardship and will not prevent the
respondents from exercising their
right to fish in terms of section
18 of the MLRA. Counsel submitted that there is nothing wrong with
the consent order.
[57]
Furthermore, Mr Moolla submitted that the consent order did not
review and set aside the fishing rights granted
to the third and
fifth respondents. As such, their respective fishing rights remain
valid and enforceable. Mr Moolla further contended
that the Minister
and the DDG have failed to make a case for granting the urgent
interdictory relief. Mr Tredoux and Mr Moolla
implored the court to
dismiss the Minister's application. Meanwhile, Mr Cooke, for the
eighth, tenth and eleventh respondents,
submitted that there was no
need for an interdict against his clients. He implored the court to
indemnify his clients with a costs
order.
Issues
to be decided
[58]
There are two critical questions for consideration in these two
applications. The first principal question
that this court is
enjoined to consider is whether the Minister has made out a case for
an order postponing Hacky’s application,
and for an order
interdicting and restraining any category B right holders who
have already been issued with a fishing permit
for the 2024 fishing
seasons from fishing in terms thereof pending the finalisation of an
application to be brought by the Minister
to review and set aside the
scoring of all Category B rights holders not affected by the Hacky
order. Secondly, this court is called
upon to determine whether to
review the Minister's delay in granting Hacky a fishing right in
Category B of the Hake Inshore Trawl
sector. Ancillary to this
question, this court is enjoined to determine whether it should grant
Hacky an interdictory relief restraining
the third, fourth and fifth
respondents from making any application for fishing permits pending
the finalisation of the Provisional
Addendum by the Minister.
Applicable
Legal Principles and Discussion
[59]
As previously stated, there are two interdictory reliefs that this
court is enjoined to determine. That of
Hacky and that of the
Minister. The Minister seeks an order that the interim interdict that
Hacky seeks of reviewing the Minister's
delay in making a final
decision relating to Hacky's right to fishing in Category B of the
Hake Inshore Trawl be postponed and
be heard together with the
substantive review application that the Minister intends to bring.
The Minister also seeks an order
that other applications in relation
to the same sector, namely those brought by Sevlac Investments No. CC
(Case No. 14446/2022)
and Le Tap CC (Case No. 10586/2022) be set down
and heard together with her intended self-review application.
[60]
The interdictory relief that the Minister seeks in her application is
much wider than the interdictory relief
sought by Hacky. Moreover,
the Minister's counterapplication overlaps with Hacky's application
in that the interdictory relief
that the Minister seeks in this
application will achieve the same objective if granted, namely that
the third to the fifth respondent
will not be permitted to fish
pending the finalisation of the self-review application or variation
application of the Hacky order.
For the reasons mentioned, I will
first consider the counterapplication of the Minister, and then
Hacky's interdictory relief.
[61]
It is common cause that the Minister is responsible, among others,
for administrating the MLRA and overseeing
the functions and
strategic objectives of the fisheries branch within the department.
In the discharge of her duties, the Minister
is guided by, among
others, section 33 of the Constitution read with PAJA as well as the
principles set out in section 2(j) of
the MLRA, which includes
transforming the fishing industry, particularly relevant to Category
B and Category C applicants for fishing
rights. The purpose is to
encourage new and particularly previously disadvantaged entities and
persons to become involved in the
fishing industry.
[62]
Section 18(1) of the MLRA provides:
“
Granting of rights.
—
(1) No person shall undertake
commercial fishing or small-scale fishing, engage in mariculture or
operate a fish processing establishment
unless a right to undertake
or engage in such an activity or to operate such an establishment has
been granted to such a person
by the Minister.
…………………
.
(5) In granting any right referred to
in subsection (1), the Minister shall, in order to achieve the
objectives contemplated in
section 2, have particular regard to the
need to permit new entrants, particularly those from historically
disadvantaged sectors
of society.
(6) All rights granted in terms of
this section shall be valid for the period determined by the
Minister, which period shall not
exceed 15 years, whereafter it shall
automatically terminate and revert back to the State to be
reallocated in terms of the provisions
of this Act relating to the
allocation of such rights.”
[63]
This section authorises the Minister to issue commercial fishing
rights for periods not exceeding 15 years
and determine the
proportion of the available fish resources, termed the total
allowable catch each successful right holder may
catch annually.
Pursuant to this provision, it is common cause that the Minister had
granted fishing rights to 11 top-scoring applicants
in category B,
which included the third to the fifth respondents. On 15 September
2022, with the consent of the third to the fifth
respondent, the
Minister was ordered to reconsider the scoring of section 4
applications (access to a suitable vessel) in the application
of
Hacky and the third to the fifth respondents.
[64]
This order was pursuant to a complaint by Hacky that the Minister had
given the third to fifth respondents
points for having a suitable
nominated vessel in section 4, notwithstanding that their vessels
were incapable of catching hake
by the trawl method and were
self-evidently unsuitable for use in the Inshore Trawl sector.
Subsequent thereto, in December 2022,
having reconsidered the
applications, the Minister scored Hacky and the third to fifth
respondent zero for section 4 in terms of
the fishing right
allocation process.
[65]
Pursuant to the reconsideration of section 4, per Hacky court order,
the final scores of the affected applicants
changed. The effect was
that three entities (third to the fifth respondents) that were
awarded a fishing right no longer scored
among the top 11 in category
B of the Hake Inshore Trawl and stood to lose their rights. After the
reconsideration process, the
third to the fifth respondents fell out
of the top, scoring 11 and were replaced by Hacky and two others on
the table that the
Minister prepared. As a result, this provisionally
entitled Hacky and the two other entities to be awarded fishing
rights.
[66]
Notwithstanding, the Minister's decision in respect of which these
new entities would be allocated fishing
rights in Category B was
provisional to the extent that she afforded the third to fifth
respondents an opportunity to make representations
to her in terms of
section 80(3) of the MLRA or in terms of the principle of natural
justice of
audi alteram partem
on why they should not lose
their rights. The Minister's invitation to the third to fifth
respondents required them to make representations
by no later than 31
January 2023 as to why, given that their scores fell below the
cut-off point, they should nevertheless qualify
for a fishing right.
[67]
Despite this invitation to the affected respondents, the Minister
took time to make a final decision. As
previously stated, the
Minister has given three reasons for the delay in making her
decision. Among others, the Minister’s
explanation for not
finalising her decision in Category B was that she was awaiting the
outcome of other review applications. The
other reasons for the delay
that the Minister advanced have been discussed in paragraphs 32 to 35
of this judgment.
[68]
It is irrefutable that since 2017, category B of the Hake Inshore
Trawl sector has been plagued by instability
that resulted in a
destabilised fishery. The Minister noted in her affidavit that this
situation is untenable and that
'we are now almost eight years
into the rights allocation period and still there is no stability in
this sector'
. The instability in the sector has been acknowledged
by many of the respondents cited herein. The third respondent has
alluded
to the fact that, ‘indeed, such instability,
unlawfulness and regulatory and economic chaos is unprecedented in
South African
fisheries management history. Never before have
ministerial decisions been reviewed and set aside with such frequency
and regularity.’
[69]
For this reason, the Minister has approached this court to seek an
order that ensures that all the affected
parties in this category are
treated the same and no one, not only the third to the fifth
respondent in the Hacky application will
be permitted to fish pending
a determination of the Minister's self-review application. The
respondents have challenged the Minister's
application essentially on
the basis that there was an inordinate delay in bringing this
application, that the application is not
urgent, that the Minister is
functus officio and that the Minister has not sought to review and
set aside her decision to grant
some of the respondents fishing
rights in terms of section 18 of the MLRA.
[70]
Against this backdrop, I turn to consider the preliminary points
raised by the respondents and thereafter,
the merits of the
Minister’s application and the other disputed issues raised
above.
The
alleged delay in bringing the Minister’s application
[71]
As explained above, the respondents contended that the Minister's
application was not urgent and that, if
any, the urgency was
self-created. The opposing respondents further submitted that there
was a delay in bringing this application.
[72]
Wh
ether
a delay was undue or unreasonable is a factual inquiry upon which a
value judgment had to be made with due regard to all the
relevant
circumstances. (
Khumalo and Another v Member
of the Executive Council for Education: Kwa-Zulu Natal
2014 (5) SA 579
(CC) para 49). As far as the delay in
launching this application is concerned, I am of the view that a
distinction needs to be
drawn between the intended self-review
application and the interdictory relief that the Minister seeks in
this matter. This present
application is for an interdict and not a
self-review application in terms of the principles of legality. In my
opinion, the Minister
would be expected to give a full and detailed
explanation for the delay in the review application. The founding
affidavit in that
self-review application must set out that
explanation in full and with sufficient particularity as it is a
requirement of that
application. The present application, in my view,
stands on a different footing.
[73]
Notwithstanding, it is indisputable that the Minister made various
efforts to resolve the impasse in this
sector amicably. The Minister
has explained in detail the delay in bringing this application and in
making a final decision pursuant
to the Hacky order as explained in
earlier in this judgment. Furthermore, in her attempt to bring
stability to the sector and put
an end to the piecemeal
decision-making brought about by the numerous court cases, on three
occasions, in February 2023, May 2023
and October 2023, the Minister
tasked her officials to engage with the industry's representatives to
find a holistic solution and
put an end to the litigation.
Unfortunately, these attempts were unsuccessful.
[74]
In my judgment, the argument of the respondents that there was a
delay in bringing this application is flawed
and does not stand up to
scrutiny when the efforts of the Minister to bring finality to the
matters in dispute is considered. In
any event, even if there was
such a delay, I am of the view that the interest of justice calls for
it to be overlooked.
Urgency
[75]
As far as urgency is concerned, it is trite law that the
court
will first consider whether an applicant has averred facts which,
objectively speaking, demonstrate urgency. Where the application
lacks the requisite element or degree of urgency, the court can, for
that reason, decline to exercise its powers under Rule 6(12)(a).
(See
Commissioner, South
African Revenue Services v Hawker Air Services (Pty) LTD
[2006] ZASCA 51
;
2006 (4) SA 292
(SCA) para 9). In
other words, where the facts indicate that the urgency is
self-created, an applicant will not be entertained,
and the
application will be struck from the roll. (see
W.M.W
v S.W
(26912/17)
[2023] ZAGPJHC 710 (15 June 2023)).
[76]
Essentially, the question is whether the applicant has demonstrated
that it will not be afforded substantial
redress at the hearing in
due course. (
East
Rock Trading 7 (Pty) Ltd and Another v Eagle Valley Granite (Pty) Ltd
and Others
(Case
No.33767/11) [2011] ZAGPJHC 196 (23 September 2011)). If the first
question is answered in the affirmative, the second question
is
whether the court should entertain the application. Relevant to this
question are considerations such as whether the respondents
have been
given an adequate opportunity to present their case, whether there is
other prejudice to the respondents or the administration
of justice,
the strength of the applicant's case, and whether the urgency shown
is self-created.
[77]
In the present matter, the Minister has explained in detail the
grounds upon which why this matter is brought
on an urgent basis.
This was set out in the founding affidavit and the replying
affidavit. Amongst others, the Minister averred
that this application
is brought urgently given the imminent commencement of the 2024
fishing season. Without the interdictory
relief, the category B right
holders will be entitled to fish from 1 January 2024 if they have
been issued a permit to do so, which
the Minister's department may
not withhold without good reasons or a court order. The Minister
asserted that right holders commence
with permit applications between
October and November of the preceding year, and the department is in
the process of issuing these
permits, as they are required, in law to
do so.
[78]
The Minister further contended that this means that he is left with
no choice but to seek urgent interim
relief directing that no permits
be issued to category B right holders pending the finalisation of the
self-review application
and, to the extent that permits have already
been issued, the holders of those permits be interdicted from
utilizing them.
[79]
The Minister contended that if the interdictory relief is not
granted, then the very purpose of her relief
will be defeated in that
successful applicants being introduced into the industry will have to
wait until 2025 to start fishing,
while those who ought not to be
fishing will be permitted to fish for another season. Simply put, the
Minister asserts that entities
who were allocated a right pursuant to
unlawful decisions will continue to fish at the expense and prejudice
of the sector. Meanwhile,
entities that rightfully should have been
awarded a fishing right will not be allowed to exercise the same.
According to the Minister,
this would perpetuate the operation of
unlawful decisions made in the award of fishing rights and the
instability and uncertainty
in the sector.
[80]
In my view, the Minister has clearly set out urgency as envisaged in
Rule 6(12)(b) of the Uniform Rules.
Furthermore, the impasse between
the parties involves a violation of the rights of the respondents,
particularly those who scored
enough to qualify for a fishing right
but who are erroneously excluded from the top 11 in the category B
Hake Inshore Trawl. Those
respondents (excluded respondents) have a
right to choose and practice their trade accordingly. Their right to
practice their trade
would be infringed if the matter is heard in the
ordinary course. Furthermore, the Minister, as the custodian of the
marine living
resources and the authority to issue fishing rights,
cannot be expected to endure the instability and chaos in the fishing
sector
in perpetuity.
She
has a constitutional obligation to correct this impasse.
[81]
It is trite that a party's failure to institute proceedings on an
issue that existed and of which that party
may have been aware for
some time would make it difficult for such a party to have that issue
adjudicated on an urgent basis. (See
South African Breweries (Pty)
Ltd v Minister of Corporative Governance and Traditional Affairs and
Another
[2021] 4 All SA 189
(WCC) para 15). However, there are
exceptions to this general rule, especially in cases with ongoing
violations of rights. A court
is bound to consider such a matter on
an urgent basis. Similarly, in my view, the erroneously excluded
respondents are suffering
a violation of their rights on an ongoing
basis, which necessitates the urgent hearing of this matter. Thus,
the Minister was correct
in bringing her application on an urgent
basis.
Is
the Minister functus officio?
[82]
The respondents have argued that the Minister is
functus officio.
It was further submitted that any re-evaluation of what is scored for
section 4 of its application is moot and irrelevant as the
Minister
cannot terminate the fishing right, she granted. Furthermore, the
respondents submitted that the Minister has not sought
to review and
set aside her decision to grant the respondents a fishing right in
terms of section 18 of the MLRA.
[83]
Whilst I note and appreciate the argument raised, I am of the view
that it is for that reason that the Minister
has approached this
court for an interdict to stop the exercise of that right and the
issuing of permits by official of her department
to the respondents.
The issues raised by the Minister in this application are novel. The
Minister seeks to correct irreparable
prejudice that flows from the
existence of fishing rights which have been irregularly issued. The
argument that the Minister is
functus officio would have been
sustainable if the Minister on her own decided to withhold the
issuing of fishing permits. Contrastingly,
the Minister did not
decide to withhold the issuing of permits of fishing rights without a
court order. Instead, the Minister has
approached this court for such
relief to correct an unlawful consequence resulting from an unlawful
administrative decision.
[84]
In
Transair (Pty)
Ltd v National Transportation Commission
1977
(3) SA 784(A)
the Appellate Division, as it then was, stated that
‘while an administrative body may not be competent to
investigate the
validity of its own prior acts, this does not mean
that it is incompetent to ask a court to do so.’ (See also
Merafong City Local
Municipality v AngloGold Ashanti Limited
2017
(2) SA 2011
(CC) para 41.) This constitutional obligation on
administrators and organs of State to go to court and not to simply
ignore
their own unlawful administrative actions has been highlighted
in several cases in our courts.
In
Minister of Home Affairs and Another v The
Public Protector
2018 (3) SA 380
SCA para 38,
the court held that until a court is appropriately approached, and an
allegedly unlawful exercise of public power
is adjudicated upon, it
has binding effect merely because of its factual existence. (
See
also
State
Information Technology Agency SOC Ltd v Gijima Holdings (Pty) Ltd
2018 (2) 23 (CC)).
[85]
Undoubtedly, the 2015/2016 fish right allocation process has been
plagued since inception by numerous errors,
litigation, and
instability. Due to the uncertainty and instability created in the
sector because of multiple internal appeals
and several High Court
applications, it is indisputable that the Minister made concerted
efforts to find a holistic solution to
end the instability in the
sector with no success. The Minister was at great pains to find a
lasting solution to arrest the situation.
Thus, the intended
self-review application is brought in good faith and without malice
to stabilise the sector. The Minister approached
this court to
correct a mistake in scoring in the appeal process. In my view, this
interdict application is intended to correct
the impasse and the
instability in the sector.
[86]
The action taken by the Minister in my view, is consistent with the
Constitutional Court decision in
Merafong
City Local Municipality v AngloGold Ashanti Limited
2017(2) SA 2011 (CC) para 41, where
the Court observed that t
he
import of
Oudekraal
Estates (Pty) Ltd v City of Cape Town
2004
(6) SA 222
(SCA) and
MEC
for Health, Eastern Cape v Kirland Investments (Pty) Ltd
2014
(3) SA 481
(CC)
was
that government cannot simply ignore an apparently binding decision
on the basis that it is invalid. The court noted that
the
validity of the decision must be tested in appropriate
proceedings. And the sole power to pronounce that the decision
is defective, and therefore invalid, lies with the courts. Government
itself has no authority to invalidate or ignore the
decision. It
remains legally effective until properly set aside. In my view, the
Minister is not functus officio in bringing
the interdict application
to correct the instability in the fishing sector.
The
Minister’s counterapplication on the Merits
[87]
In my view, the relief the Minister seeks in her Notice of Motion is
overbroad. It paints all the respondents
with the same brush. In the
Notice of Motion and even in her founding affidavit, the Minister
seeks an interdict restraining all
the Category B right holders who
have already been issued with a fishing right for the 2024 fishing
season from fishing pending
the finalisation of the outcome of her
review application. Mr Jamie, on behalf of the Minister, argued in
his heads of argument
that interdicting all the category B entities
from fishing until the determination of the Minister’s
substantive application
provides protection for all applicants in
that no entity would be permitted to fish out the total allowable
catch at the expense
of others.
[88]
I do not agree with this proposition. In my opinion, this proposition
ignores the fact that the top-scoring
respondents are not affected by
the access to a suitable vessel. I firmly believe that the relief the
Minister seeks against the
top-scoring respondents is legally
incompetent.
[89]
In my judgment, the proposed relief will be prejudicial on the
Category B fishing rights holders who have
been correctly scored and
are not subject to any suspicion regarding incorrect scoring.
Notably, the Minister has already identified
the impugned
applications in Category B. It will be grossly irregular and
irrational, in my view, that all the Category B right
holders be
prohibited from fishing from the commencement of the 2024 fishing
season, especially because the Minister is concerned
with the bottom
half of the table of the Category B right holders.
[90]
Furthermore, the top-scoring respondents in all probability will
retain their fishing rights after the rescoring
contemplated by the
self-review application. In my opinion, shutting down the entire
fishing operation for Category B indiscriminately
would be extremely
illegitimate. It would deprive lawfully awarded fishing rights
holders and their employees of the opportunity
to operate and earn an
income.
[91]
In addition, in the self-review application, the Minister intends to
recheck the scoring of section 4 of
the Category B application forms
to ensure that applicants nominated suitable vessels as defined in
the sector policy. The top-scoring
respondents unquestionably have
suitable vessels and were scored correctly in section 4. Thus, the
intended self-review application
does not impact the top-scoring
respondents. In these circumstances, a blanket ban against the
top-scoring respondents, notwithstanding
that they fully complied
with all the requirements and permutations set by the Minister, will
be excessively harsh and grossly
unfair to them.
[92]
The Minister has correctly acknowledged that the fishing right
allocation process is a competitive process
and that once a fishing
right is granted, the respondents structure their business, and
employees structure their lives around
having access to the work that
comes along with holding such right. Thus, a blanket ban or interdict
against all the respondents
on fishing will impact not only the
top-scoring respondents and enterprises but also their employees,
contracting parties, and
members of the public. This situation is
also compounded by the current economic climate and unemployment rate
that this country
is experiencing. In my view, a blanket prohibition
of fishing on all the respondents without any differentiation will
indisputably
increase the unemployment level, which is already high.
[93]
The top-scoring respondents have legitimately arranged their affairs
according to the rights allocated to
them and consequently employed
staff and maintained premises for administering the fishing company
and selling fish to members
of the public. In my view, the effect of
the order that the Minister seeks non-selectively against all the
respondents is far-reaching
and likely to negatively impact the
livelihood of the top-scoring respondents who satisfy all the
requirements of the Minister,
and the public they supply.
[94]
However, I am firmly of the view that the respondents who do not meet
the threshold set by the Minister, particularly
the third, fourth,
and the fifth respondents, should not cry foul as they don't satisfy
the requirements for a fishing right in
this sector. It must be
stressed that there must be organisational control in every business
setting. There must be a system built
with strong checks and balances
that regulate, guide, and protect the organisation. In this case, the
Minister has decided to allow
eleven (11) applicants in this sector
who meet specific competitive criteria. The affected respondents did
not challenge the maximum
number that the Minister has allocated for
this sector. Furthermore, they do not meet the specifics, or the
threshold set by the
Minister. The application of the Hacky court
order affects them or the bottom half of the Minister's table rather
than the top-scoring
entities.
[95]
To this end, I agree with Mr Jamie that entities who had acquired
fishing rights due to irregular administrative
decisions should not
be heard to complain if such rights are not permitted to stand. They
have had the benefit of fishing for varying
periods over the past
eight years under circumstances where they were not entitled thereto
on a proper scoring of section 4 in
terms of the Hackey order. As the
Minister noted in her founding affidavit that, the harm is
self-evident. As matters stand, entities
who ought not to be fishing
may be fishing, while entities who ought to be entitled to fish do
not hold rights as yet. In my opinion,
the restraining order that the
Minister seeks must be viewed from this perspective and must directed
to the low-scoring respondents
affected by the Hacky order.
[96]
It must be borne in mind that the Minister can only change the scores
allocated to the respondents for section
4 (access to a suitable
vessel) as this is the only aspect of her decision she seeks to be
reviewed and set aside. The disruption
and instability that the
intended interdict would have on the low-scoring respondents must be
balanced against the consequences
of continuing the incorrect
entities to fish and the need to bring stability to the sector so
that the disruptions may finally
end.
[97]
In my view, an interdictory relief will cause hardship to the
top-scoring respondents who lawfully acquired
their fishing rights.
To the contrary, any prejudice that the low-scoring respondents
(affected respondents) allege they would
suffer must be weighed up
and balanced against the consequences of continuing to allow
irregularly awarded fishing rights to be
exploited. They do not have
access to a suitable vessel which is required by the Minister.
[98]
To my mind, the low-scoring respondents must be interdicted to afford
the Minister an opportunity to correct
the injustice. The anomaly
that the Minister explained in her founding affidavit cannot be
allowed to continue in perpetuity. As
stated above, the extent and
nature of the illegality is such that if the grant of the fishing
rights pursuant to the incorrect
scoring is permitted to stand, that
would perpetrate an illegality at the expense of the applicants who
properly, fairly, and rationally
scored, and should rank in the list
of top 11 applicants, and who are entitled to the allocation of a
fishing right and permit.
[99]
In a nutshell, the position of the low-scoring respondents (third,
fourth, and fifth respondents) stands
on a different footing. I am
aware that the same prejudice may be suffered by these respondents
who did not meet the threshold.
As previously stated, these
respondents who had acquired rights due to irregular administrative
decisions shouldn’t be heard
to complain if such rights are not
permitted to stand. A glaring injustice cannot be countenanced. The
perpetuation of an unfair,
unjust, and unlawful allocation of fishing
rights is indefensible and untenable.
[100]
I firmly hold the view that such an irregular administrative action
that hamstrung the Minister cannot be ignored.
Despite the challenges
these respondents may face, I firmly believe that the Minister's
application for an interdict against them
should succeed so that this
injustice can be corrected through the intended review application.
To this end, the absence of an
interim interdict against these
respondents will foil and frustrate the Minister's constitutional
mandate and offend her functions
and powers. The Minister must act in
the public interest to prevent irregularities and take steps to
rectify them when they occur.
[101]
I therefore conclude that the top-scoring respondents will suffer
irreparable harm if the interdict against them
is granted. In my
opinion, the balance of convenience favours the granting of an
interdict against the affected respondents to
correct the irregular
fishing rights issued to them. As astutely noted by Mr Jamie, the
continued existence of irregular decisions
and the unfairness that
flows therefrom constitutes ongoing prejudice not only to the
Minister in her official capacity but also
to the sector. The
Minister has a duty to act in the public interest to prevent such
irregularities and, when they do occur, to
take steps to rectify
them.
[102]
To my mind, this finding is fortified by section 33 of the
Constitution, read with section 3 of PAJA, which guarantees
the right
to just administrative action that is lawful and reasonable. The
Minister is constitutionally obligated to ensure that
administrative
decisions comply with the provisions of PAJA and section 33 of the
Constitution. The Minister must address irregular
decisions and
actions and take steps to remedy such situations.
[103]
Consequently, the Minister’s application must succeed with
respect to the third, fourth, fifth, and thirteen
respondents and
must fail with respect to the top-scoring respondents. I turn to
consider Hacky application.
Hacky’s
application for a declarator and interdictory relief – Case No.
18801/23
[104]
Hacky seeks an urgent review of the Minister’s alleged
unreasonable delay or failure in taking a final decision
regarding
Hacky’s fishing right in Category B of the Hake Inshore Trawl
fishing sector. In addition, Hacky also seeks an
interdict that the
third, fourth and fifth respondents be restrained from applying for
permits or making use of any permits already
issued to them for
purposes of exercising any fishing rights granted to them in the Hake
Inshore Trawl sector.
[105]
I have noted that the Minister has since instituted the review
application under case number 2090/24. Pursuant
to the view I take
regarding the issues above, I am of the view that the order Hacky
seeks is moot. Furthermore, while I accept
that the Minister has
taken a long time to decide whether to grant Hacky the fishing right,
I am of the view that such a decision
is central to the review
application and must await the outcome of that application. If the
Minister’s review application
is successful, this will permit
the scoring of all appellants including Hacky equally and
consistently on the issue of access to
a suitable vessel in terms of
the competitive process the Minister has implemented.
Order
[106]
Given all these considerations, the following order is granted:
106.1 The second applicant,
including the officials of the Department of Forestry, Fisheries and
the Environment under the
control of the second applicant, are
authorised and directed to refuse to issue fishing permits to the
third, fourth, and the fifth
respondents, who are Category B right
holders in the Hake Inshore Trawl fishing sector, for the 2024
fishing season pending the
rescoring sought in the application for
review/variation brought by the applicants under case number
2090/2024.
106.2 Hacky’s application
is postponed
sine die
and is to be heard together with the
Minister’s self-review application under case number 2090/2024.
106.3 The third, fourth, and the
fifth are interdicted and restrained from fishing in terms of any
permit/s already issued
to them for the 2024 fishing season, pending
the rescoring sought in the application under case number 2090/2024.
106.4 The costs of both
applications shall stand over for later determination, save that the
applicants (the Minister and
the DDG) shall pay the costs of the
eighth, tenth, eleventh and twelfth respondents in case 20607/23
jointly and severally.
LEKHULENI
JD
JUDGE
OF THE HIGH COURT
APPEARANCES
For
the Minister and
the
Deputy Director General:
Mr
Jamie SC
Mr
Ebrahim
Ms S
Hendricks
Instructed
by:
The
State Attorney
Long
Street
Cape
Town
For
Hacky Fishing:
Mr
Melunsky SC
Instructed
by:
Andre
De Vos & Associates
35
Brickfield Road Salt River
Cape
Town
For
the Third, and
Fifth
Respondents:
Mr
Moolla
Instructed
by:
Smit
& Associates Attorneys
Malmesbury
For
the Fourth Respondent:
Mr
Tredoux
Instructed
by:
SB
Attorneys
Unit
66 Roeland Square
Drury
Lane, Gardens
Cape
Town
For
the eighth, tenth and
eleventh
Respondents:
Mr
Cooke
Instructed
by:
Dawson
Edward & Associates
De
Hoop - Gardens
Cape
Town
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