Case Law[2024] ZAWCHC 130South Africa
Democratic Alliance v Speaker of the Knysna Municipal Council and Others (4247/2023) [2024] ZAWCHC 130 (10 May 2024)
Headnotes
Summary of common cause facts
Judgment
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## Democratic Alliance v Speaker of the Knysna Municipal Council and Others (4247/2023) [2024] ZAWCHC 130 (10 May 2024)
Democratic Alliance v Speaker of the Knysna Municipal Council and Others (4247/2023) [2024] ZAWCHC 130 (10 May 2024)
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sino date 10 May 2024
IN
THE HIGH COURT OF SOUTH AFRICA
(WESTERN
CAPE DIVISION, CAPE TOWN)
Case Number: 4247/2023
In
the matter between:
DEMOCRATIC
ALLIANCE
Applicant
And
THE
SPEAKER OF THE KNYSNA MUNICIPAL
COUNCIL
First Respondent
THE
EXECUTIVE MAYOR OF THE KNYSNA
MUNICIPALITY
Second Respondent
THE
MUNICIPAL MANAGER OF THE KNYSNA
MUNICIPALITY
Third Respondent
OMBALI
PHINEAS SABOLA
Fourth Respondent
WESTERN
CAPE MINISTER, LOCAL GOVERNMENT,
ENVIRONMENTAL
AFFAIRS AND DEVELOPMENT
PLANNING
Fifth Respondent
MINISTER
FOR CO-OPERATIVE GOVERNANCE AND
TRADITIONAL
AFFAIRS
Sixth Respondent
Case
Number: 4441/2023
In
the matter between:
WESTERN
CAPE PROVINCIAL MINISTER
OF
LOCAL GOVERNMENT, ENVIRONMENTAL
AFFAIRS
AND DEVELOPMENT PLANNING
Applicant
and
THE
KNYSNA MUNICIPALITY
First Respondent
THE
SPEAKER OF THE KNYSNA MUNICIPAL
COUNCIL
Second Respondent
THE
MUNICIPAL MANAGER OF KNYSNA
MUNICIPALITY
Third Respondent
OMBALI
PHINEAS SEBOLA
Fourth Respondent
Dates
of hearing: 18, 20 July 2023
Further
affidavits filed in 4247/23: 1, 4 August 2023
Further
written submissions in 4247/23: 4, 10, 11 and 16 August 2023
[1]
Date
of judgment: 10 May 2024
JUDGMENT
PANGARKER
AJ
THE
TWO APPLICATIONS
Introduction
1.
The applicant, the Democratic Alliance
(DA/applicant) seeks by way of an Amended Notice of Motion in case
number 4247/23, the following
relief:
1.
It is ordered that this application be dealt
with as one of urgency and that the applicant’s failure to
comply with the Uniform
Rules of Court and practice manual be
condoned.
2.
Declaring that the decision taken by the Knysna
Municipal Council, dated 25 January 2023, appointing the Fourth
Respondent as the
Municipal Manager is null and void.
3.
In the alternative to paragraph 2:
3.1
Declaring that the decision taken by the Knysna
Municipal Council, dated 25 January 2023, appointing the Fourth
Respondent as the
Municipal Manager is unlawful, unconstitutional,
and invalid.
3.2
Reviewing and setting aside the decision in
paragraph 3.1.
4.
Declaring that the decision taken by the Knysna
Municipal Council, on 14 February 2023, to remunerate the Fourth
Respondent on the
maximum scale (as determined by Notice No: 43122 of
March 2020 on upper limits for Senior Managers) is declared unlawful,
unconstitutional,
and invalid.
5.
Reviewing and setting aside the decision in
paragraph 4.
6.
Declaring that all decisions taken by the
Fourth Respondent, in his purported capacity as the Municipal
Manager, including all contracts
and all appointments, are declared
unlawful, unconstitutional and invalid and are reviewed and set
aside.
7.
In the alternative to paragraph 6:
7.1
Declaring that all decisions taken by the
Fourth Respondent, in his purported capacity as the Municipal
Manager, including all contracts
and all appointments, are declared
unlawful, unconstitutional and invalid and are reviewed and set
aside.
7.2
Suspending the order in paragraph 7.1 for a
period of ten court days. During such period the First to Third
Respondents, or other
authorised officer, may apply to the High
Court, on supplemented papers, for an order in terms of s
172(1)(b)(i) of the Constitution
in respect of any specified decision
of the Fourth Respondent in his purported capacity as Municipal
Manager of the Knysna Municipality.
8.
Any respondent, who opposes this application,
is ordered to pay the applicant’s costs, including the costs of
two counsel.
9.
Further and/or alternative relief.
2.
In case number 4441/2023, the Western Cape Provincial Minister of
Local Government,
Environmental Affairs and Development Planning
(MEC), sought in March 2023 by way of an urgent application, to
declare the decision
taken by the Knysna Municipal Council (the
Council) on 25 January 2023 to appoint Ombali Phineas Sebola (Sebola)
as it’s
municipal manager, null and void. In terms of an
order granted on 17 April 2023 by Acting Judge President Goliath, the
matters
were set down for a joint hearing on 18 and 20 July 2023
respectively. The order also encapsulated a time-table for the
delivery
of the Rule 53 record, affidavits and heads of argument.
3.
By the time the matters were heard, both had transformed to the
extent that the
issues and disputes, but for costs in case number
4441/2023, were constrained to the DA’s application in
4247/2023. I therefore
address this application first in the
judgment. The aspect of costs in 4441/2023, and after
discussion in chambers with counsel
and their attorneys, was heard
first.
4.
The DA’s application was riddled with interlocutory
applications, which
are considered below. Suffice to point out as an
introduction that I granted certain orders in a striking out
application and indicate
the reasons for the order in the judgment.
5.
After two full days of argument and in light of the aforementioned
striking out
application, the landscape of the DA’s application
was the following: the first to fourth respondents would
deliver
their further affidavits referred to in the striking out
application, on 28 July 2023 and the applicant’s legal
representatives
would inform me by 31 July 2023 if their client
intended to file a further affidavit, whereafter judgment would be
delivered in
early August.
6.
Counsel for the applicants in both matters requested that an order be
granted
that Sebola’s appointment by the Council be declared
null and void and that reasons for the order were to follow.
Counsel
for the respondents disagreed, requesting that the orders not
be piecemeal, but composite, at the conclusion of my judgment.
The motivations in respect of the requests by all the parties in both
matters were fully canvassed and considered and given the
numerous
issues in the DA’s application, I decided against granting a
piecemeal order.
7.
The DA launched its review and remedial relief application on 10
March 2023 and
the MEC delivered his application for a declaratory
order on 15 March 2023. In the DA’s application, only the first
to fourth
respondents participate therein. Where the role players and
parties are referred to without reference to their title, this is not
intended to be disrespectful of them.
The parties
8.
The respondents in 4247/2023 are the Speaker of the Knysna Municipal
Council,
the Executive Mayor and municipal manager of the Knysna
Municipality who is cited in his administrative capacity and in his
personal
capacity, the MEC and the Minister for Co-operative
Governance and Traditional Affairs. The first to fourth respondents
are simply
referred to herein as the respondents. The Minister abides
the decision of the Court.
9.
In case number 4441/2023, the respondents are the Knysna
Municipality, the Speaker
of the Knysna Municipal Council and the
Knysna municipal manager in his official and personal capacities. The
only issue for determination
is costs. There is an overlap of facts
in these applications and several facts which are common cause, are
set out below.
Summary of common
cause facts
10.
On 9 December 2021, the Knysna Municipality advertised the position
of municipal manager,
with a closing date for applications being 5
January 2022
[2]
. The position
was re-advertised on 13 June 2022, with a closing date of 8 July
2022
[3]
, but because time limits
were not adhered to, the post was re-advertised further on 27
September 2022 with 10 October 2022 being
the closing date
[4]
.
11.
Messrs Adonis, Smit and Sebola were shortlisted for the vacant post
and the candidates underwent
an assessment and interview process on 6
December 2022. The selection process and panel excluded the DA
Chief Whip and other
Chief Whips. Roy Steele and Associates
[5]
were appointed to attend to the screening and shortlisting of the
candidates and subsequently compiled a selection report, which
has
loosely been called the
Steele
report
during
these proceedings
[6]
.
12.
The Steele report ranked the three candidates’ performances on
interviews and written
assessments as follows:
“
DJ
Adonis and Smit
- Advanced
RK
Smit
- Advanced
OP
Sebola
- Needs development/Competent
[7]
”
13.
The Steele report also ranked the three candidates on their knowledge
and experience competencies.
Once again in these categories, Smit and
Adonis ranked as “
advanced”
in all
the competencies, while Sebola ranked as “
Needs
development as per written assessment/Minimum Competency Course
completed
[8]
.
It is common cause that the Steele report did not contain the
candidates’ interview scores, but the evidence indicated
that
Sebola fared the best in the interview itself. That notwithstanding,
the Steele report made the following findings at paragraphs
5.3 and 6
thereof:
“
5.3
Findings
5.
3.1 The
interview outcome is an inverse relationship with the assessment
outcome. The assessment outcome showed
that Mr DJ Adonis and Mr
RK Smit feature as the most competent amongst the three candidates.
5.3.2
Mr
Sebola for reasons unexplained made constrictive progress in
completion of the case assessment. Financial management skills
will require further development.
5.3.3
This
may increase the risk of successful occupation of the post of
Municipal Manager for Knysna Municipality. However, should
the
Selection Panel resolve to appoint Mr Sebola on grounds of
transformation and representivity, it is strongly recommended that
a
strong executive management team be appointed to support him and/or
support in a form of a mentorship
.”
6.
Recommendations
It is recommended:
6.1
That the Selection Panel takes note of the content of the Selection
Report;
6. 2
That the Selection Panel approves the recruitment and selection
process, the Long list, Short List
and Screening Report;
6.3
That either Mr DJ Adonis or Mr RK Smit be considered for
appointment as Municipal Manager in the light of the restricted
response
to the case evaluation by Mr OP Sebola, or citing reasons
readvertise the vacancy and/or indulge in a further recruitment
process;
6.4
That the contract of employment and the all-inclusive remuneration
package be negotiated
and finalized by the Executive Mayor within the
statutory limits and period allowed;
6.5
That it be noted that, within 14 days of Council Decision, a written
report including all
necessary documents be submitted to the MEC for
local government regarding the appointment process and outcome;
6.6
That the Human Resources Department, as a matter of courtesy and
legal requirement, inform
the unsuccessful candidates formally of the
outcome of the selection process, and thank them for their
application and participation
in the process.”
(my emphasis)
14.
From the above extracts, it was apparent that Steele Consultants
recommended to the Selection
Panel that Adonis or Smit be appointed
as municipal manager, pursuant to which the Selection Panel prepared
its own report
[9]
to the Knysna
Municipal Council. After meeting on 18 January 2023, the Selection
Panel concluded that, in respect of knowledge
and experience, “
all
candidates met the threshold”
[10]
with regard to the categories of higher education qualification, work
related experience, core managerial and occupational competencies
and
supply chain management competencies. The Selection Panel’s
report also stated that it had considered a number of factors,
including that Sebola scored the highest in the interview and it
ultimately recommended that Sebola should be appointed for the
position.
15.
However, the Selection Panel’s report was silent on the Steele
Report’s scoring
of Sebola’s competency assessment, and
that either of the other two candidates, Smit or Adonis, were
recommended for the
post and Sebola was not. A third report, this
time by the Executive Mayor, was prepared for the Knysna Municipal
Council
[11]
and it stated
that:
“
The
panel in their recommendation of Mr O.P. Sebola took into account a
number of considerations, including the fact that Mr. Sebola
performed the best and scored the highest points in the structured
interview, transformation and representivity. The panel
is
further encouraged and, as advised by the consultant, further
recommends that a strong executive management team be appointed
to
support the municipal manager
.”
(my emphasis)
16.
The Steele and Selection Panel reports were attached to the Executive
Mayor’s report
and on 25 January 2023, the Knysna Municipal
Council held a Special Council meeting. One of the items on the
agenda was the appointment
of the new municipal manager for
Knysna
[12]
. Suffice to point
out that the reports referred to earlier were provided to councillors
on the day of the meeting. The agenda indicated
that the Speaker
ruled that the report on the appointment of municipal manager was to
be moved for discussion “
in
Committee”
and
it indeed was.
17.
The Minutes of the meeting reflected that there were various caucus
breaks to discuss and
consider the reports, with two proposals put
forth
[13]
. One of the
proposals, made by the DA’s councillor Sharon Sabbagh
(Sabbagh), who was also the deponent to the founding
affidavit in
case number 4247/23, was that the appointment be re-advertised due to
material mistakes and irregularities with the
interview and
assessment process and a lack of information on the scoring of the
three candidates.
18.
Given the voting for the two proposals, the Speaker used his casting
vote to support the
Executive Mayor’s proposal. It was
thus resolved by a majority at the Special Municipal Council Meeting:
“
[a]
That
Council takes note of the content of the Selection Committee report;
[b]
That the recruitment and selection process as reflected in the
Selection Committee Report, and consultant report be accepted
;
[c]
That Council takes note that Mr O P Sebola, who performed the best
and scored the highest points during the structured interview
is
competent, for the appointment as a Municipal Manager;
[d]
That Council appoints Mr O P Sebola as the Municipal Manager for a
period of five (5) years on the basis of the findings and the
consensus of the Selection Panel;
[e]
That the Executive Mayor extends an offer of employment to Mr O P
Sebola;
[
f]
That the fixed term contract of employment and the all-inclusive
remuneration
package and subsequent reviews be negotiated and
finalized by the Executive Mayor within the statutory limits;
[g]
That should Mr O P Sebola decline the offer or not sign an employment
contract within
one month of today’s Council resolution, that
the Executive Mayor submit a report for the consideration of the
appointment
of the second or third suitable candidate or the
re-advertisement of the position of Municipal Manager;
[h]
That the report on the appointment of Mr O P Sebola be provided to
the MEC for Local Government in terms of Regulation 17(3)(b) of
the
Local Government: Municipal Systems Act, Act 32 of 2000 and
Regulations
;
[i]
That the Human Resource, or a representative thereof, as a matter of
courtesy,
inform the unsuccessful candidates formally of the outcome,
and thank them for their application and participation in the
processes.”
[14]
(my emphasis)
19.
On 7 February 2023, the Executive Mayor informed the MEC of the
Council’s taken on
25 January 2023 to appoint Sebola as
municipal manager, attaching various documents to the
correspondence
[15]
. Sebola was
consequently appointed as municipal manager of the Knysna
Municipality and it seems undisputed that at a further Municipal
Council meeting held on 14 February 2023, it was decided that he
would be remunerated on a scale commensurate with the upper limit
for
senior managers.
20.
It is common cause that section 54A of the Local Government:
Municipal Systems Act (the
Act)
[16]
,
read with the Regulations to the Act, apply to the appointment of
municipal managers and acting municipal managers. In lengthy
correspondence dated 16 February 2023
[17]
,
Minde Schapiro and Smith Inc., the DA’s legal representatives,
informed the MEC
[18]
on the
process of Sebola’s appointment, his assessment as “
basic”
and
“
needing
development”,
and
that the Executive Mayor had misrepresented that Sebola had scored
the highest and performed the best out of the candidates.
The
correspondence indicated that Sebola’s appointment violated the
Act and Regulations and the MEC was requested to take
appropriate
steps in terms of the Act, which included an application for a
declaratory order or any other legal action against
the Municipal
Council.
21.
The MEC’s correspondence to the Executive Mayor on 23 February
2023
[19]
made it very clear
that evident from the judgment of
Dilosotlhe
v Mahikeng Local Municipality and Others
[20]
,
candidates
falling within the
basic
range
may be appointed as senior managers in rare situations but the
competency framework did not allow for such a candidate to
be
appointed where other candidates were assessed as
competent
or
better
[21]
.
22.
Significantly, the MEC’s correspondence alerted the Executive
Mayor to the fact that
to prefer a candidate who was assessed as
“
basic
”
and
“
needing
development”
over
competent candidates was irrational, regardless of how well the
preferred candidate scored in the interview. Sebola’s
appointment was thus contrary to the Appointment Regulations, and in
particular item 6.1 of the Competency Framework provided for
in the
Act, and was furthermore irrational. The MEC concluded that the
decision to appoint Sebola as municipal manager was therefore
null
and void
[22]
.
23.
Notwithstanding the MEC’s urgent and detailed correspondence,
the Executive Mayor
was undeterred about Sebola’s appointment
and the correctness thereof. He held the view that item 6.1 of
the Competency
Framework provided merely a benchmark for appointments
and that Sebola was indeed competent. In support, the Executive
Mayor
attached a December 2022 assessment of Sebola, which
holistically-speaking, assessed him as competent
[23]
.
The latter reference was to the Gijima report, which is referred to
in more detail later herein.
24.
In the MEC’s reply to Minde Schapiro and Smith, he confirmed
receiving the report
on the appointment, and noted that the report
from the Council omitted certain documents and information necessary
or prescribed
by Regulation 17(4) and that these were requested from
the Municipality. The MEC highlighted at paragraph 3 of his
correspondence
that it appeared that Sebola’s appointment was
not in accordance with the requirements of the appointment
Regulations, and
he had requested the Municipality to terminate the
appointment, failing which he would act in terms of the legislation.
25.
Further correspondence from the applicant’s legal
representatives on 3 March 2023
to the MEC
[24]
indicated that the time period for the Municipality to respond to the
former’s request had lapsed
[25]
.
The applicant reiterated the urgency of the matter in that Sebola’s
appointment was unlawful and decisions he took were
unlawful. The
applicant’s legal representatives impressed upon the MEC to act
urgently, failing which the DA would approach
the High Court on an
urgent basis.
26.
The MEC maintained in his correspondence of 6 March 2023
[26]
to the Executive Mayor that Sebola’s appointment was null and
void; that the Steele Report, and not the Gijima Report which
was
outsourced, was tabled for consideration by the Council on 25 January
2023, and in terms thereof, Sebola was not the best possible
candidate for the position; that his appointment was irrational and
that the Executive Mayor was required to notify him by the
next day,
that the appointment was terminated, failing which steps would be
taken to enforce compliance with the legislation.
27.
The Executive Mayor’s response to the MEC on 8 March 2023 was
to request the authority which the MEC relied upon in his earlier
correspondence and to indicate that the Municipality would seek
legal
opinion on the issue of the lawfulness of Sebola’s appointment
and other issues raised in their continuing correspondence
but that
he would keep the MEC informed of the way forward. He agreed with the
MEC that the appointment must be done lawfully.
On the same day, the
MEC informed Minde Schapiro of the Executive Mayor’s
correspondence. Shortly thereafter, on 10 March
2023, the DA issued
its application under the above case number, followed a few days
later by the MEC’s application under
case number 4441/2023.
Both applications seek to have the Knysna Municipal Council’s
decision to appoint Sebola as
Knysna’s municipal manager,
invalidated.
28.
Given the progression of the two applications, particularly the DA’s
application,
the following further undisputed facts are that the
Selection Panel comprised the Executive Mayor, Deputy Executive
Mayor, two
officials and two Union observers. Furthermore, the Gijima
Report was a senior manager assessment report of Sebola in relation
to the Thabazimbi Local Municipality. On 17 March 2023, the first to
fourth respondents delivered their Notices of Opposition to
the DA’s
application, and the first to third respondents similarly did so in
the MEC’s application. In April 2023,
the Knysna Municipality
submitted the Rule 53 record in the DA’s application.
29.
At the time that Goliath AJP granted an Order taken by agreement in
both matters, all indications
were that the respondents in the
applications would oppose the relief sought. On 1 June 2023, Nandi
Bulabula Incorporated, who
represented the Municipal respondents
in both applications, communicated the following to Minde Schapiro
and Smith
Inc. in respect of the DA’s application:
“
2.
Based
on further consideration of the matter, our clients accept that the
Council’s impugned decision to appoint Mr Sebola
as its
Municipal Manager, taken on 25 January 2023, is flawed and falls to
be set aside.
3.
We accordingly propose that the parties approach the Acting Judge
President with a draft order, by agreement, setting aside the
impugned decision. In this regard we are further mandated to
tender the DA’s costs to date.
”
(my emphasis)
30.
Thus, on 1 June 2023, the Municipal respondents had admitted that
Sebola’s appointment
was to be set aside. During the period 3
to 30 June 2023, the DA and the respondents engaged in
settlement negotiations
[27]
and on 6 July 2023, the respondents delivered their
explanatory affidavit, without a condonation application. Given
the
issues and submissions in the DA’s matter, it is necessary to
set out the content of the affidavits in some detail.
THE DA’s
APPLICATION: CASE NUMBER 4247/23
31.
Sabbagh, the DA’s elected representative and Chief Whip in the
Knysna Municipality,
was the deponent to the DA’s main
affidavits
[28]
. She contends
that even if the Knysna Council’s decision does not fall to be
reviewed as an administrative action under the
Promotion of
Administrative Justice Act (PAJA)
[29]
,
it nonetheless constituted the exercise of a public power and would
have to be substantively and procedurally rational, and lawful,
under
the principle of legality. The applicant’s stance was
that once the Court found that Sebola’s appointment
was null
and void, the consequences thereof flow naturally from section 54A(3)
of the Act, and thus the Court’s power to
impose a different
remedy consequent upon such finding, was limited.
32.
Inasmuch as the applicant recognised that the Systems Act required
the relevant MEC to check
that the appointment of a municipal manager
complies with section 54A of the Act, failing which, the Minister may
take the steps
contemplated in the section, the averment was made
that the DA was not precluded from approaching the Court for relief.
33.
Sabbagh stated that the standards set regarding the relevant
competencies, qualifications,
experience and knowledge as outlined in
Annexures A and B to the Regulations referencing the appointment of a
municipal manager,
were to be met by the candidate applying for the
post. The achievement levels for each competency was graded as
“
superior”,
“advanced”, “competent” and “basic”
.
A “
basic”
range
[30]
scored by an individual was understood to mean that the candidate was
deemed unsuitable for the senior manager role. The applicant
stated
that a candidate who rated “
basic”
,
could not be appointed lawfully above the other two candidates who
were rated as “
advanced”
.
34.
The applicant raised four grounds of review. Firstly, that Sebola was
not qualified for
appointment as municipal manager for the following
reasons: his core managerial and occupational competencies were
graded as “
basic”
, he needed development in
certain competency areas, made constrictive progress in case
management completion and his financial
management skills needed
development. On behalf of the applicant, Sabbagh stated that these
facts were contained in the Steele
report, and the Selection Panel
and Mayor’s reports ignored same and Steele’s
recommendation that Sebola not be appointed
for the post. Thus, the
decision to then appoint Sebola, contrary to the requirements of the
Systems Act, was reviewable under
section 6 of PAJA and under the
principle of legality.
35.
The second ground of review was that the Knysna Council’s
decision to appoint Sebola
was irrational and unreasonable given that
Smit and Adonis were qualified and each scored an “
advanced”
rating. The motivation for this ground was that even though
Sebola scored the highest in the interview, he rated “
basic”
in the competency test and was therefore unsuitable for the position.
The applicant concluded that in view of this rating, his
performance
in the interview was irrelevant. Furthermore, the Selection
Panel’s motivation for recommending Sebola
on the basis of
transformation, equity and representivity, which the Mayor also
endorsed, was irrational because under the competency
test or
assessment, Sebola rated “
basic”.
36.
According to the applicant, it was irrational to appoint an
incompetent person when the
other two candidates were competent and
it was never explained why the appointment of either Smit or Adonis
would not achieve the
transformation, representivity and equity
requirements. The Mayor’s indication that strong managers could
be appointed to
assist Sebola was not in line with the Steele
report’s recommendation warning against Sebola’s
appointment.
37.
The third ground of review was that the meeting of 25 January 2023
excluded the public,
which was unlawful. In elaboration, Sabbagh
stated that it was unreasonable to exclude the public from what was a
vital decision.
The applicant emphasised that openness and
transparency were founding constitutional values and that there were
consequences to
closing meetings unlawfully to the public.
38.
The final ground of review was that the Knysna Council acted with an
ulterior purpose by
excluding Chief Whips from the selection process.
The applicant stated that despite the Steele report’s findings,
Sebola
was the Council’s choice. It attributed this selection
to the suspicion that Sebola was willing to award tenders to
undeserving
persons and had a history of similar conduct. Hence, the
applicant further questioned the rationale of the decision to appoint
Sebola above any of the other two candidates who were assessed and
interviewed.
39.
Insofar as the suggested remedial action requested, an order was
sought undoing each and
every decision which Sebola took while acting
as municipal manager from the inception of his appointment. The
motivation for the
latter relief was three-fold: firstly, Sabbagh
stated that such relief was sanctioned by the Act in that an
appointment contrary
to the Regulationswas null and void. Her
view was thus that Sebola’s appointment was unlawful,
hence he was never
the municipal manager for Knysna and it followed
that he had no power to make any decisions.
40.
According to the applicant the default consequence of declaring
Sebola’s appointment
invalid, would be to undo the decisions he
took as municipal manager, and here the applicant placed reliance
upon section 8 of
PAJA or section 172(1)(b) of the Constitution
[31]
.
The third reason was that the applicant has concerned that Sebola “
is
corrupt and will use his unlawful appointment as Municipal Manager
for corrupt purposes”
[32]
.
In this regard, the applicant expressed a reasonable fear that Sebola
would abuse his power, make improper appointments
and irregularly
award tenders.
41.
In her supplementary founding affidavit, Sabbagh stated that the Rule
53 record did not
contain all the documents or material required by
the Regulations which must be submitted by a candidate when applying
for a vacant
post. At paragraph 16, she set out what these
undisclosed documents were, which included,
inter alia,
details of any dismissal for misconduct. The absence of such
documents amounted to non-compliance with the Regulations related
to
the selection process. Furthermore, the Fundudzi report and the
competency assessments were also missing from the record provided.
In light of the above, it was contended that the decision was
reviewable under section 6(2) of PAJA and the principle of legality.
42.
Sabbagh added that the Executive Mayor’s reliance on the Gijima
report
[33]
to support his view
that Sebola was competent to be appointed as municipal manager when
queried by the MEC in February 2023, amounted
to impermissible,
ex
post facto
justification
for the invalid appointment. In a nutshell, the report related to
Sebola’s suitability for the same position
in the Thabazimbi
Local Municipality and was not part of the record, nor relied upon by
the Selection Panel.
43.
At the conclusion of Sabbagh’s supplementary founding
affidavit, she stated that time
had passed since Sebola’s
appointment and recognised that all his decisions may not be capable
of being set aside without
causing disruption to the Knysna
Municipality. She pointed out that the applicant relied on the
Fundudzi Report’s existence,
and not the truth of its content,
to hold a view that there were unanswered questions regarding
allegations of mismanagement against
Sebola. To clarify, the Fundudzi
report contained allegations against Sebola related to alleged
mismanagement in another municipality.
The case for the
Municipal respondents
44.
The Speaker of the Knysna Municipal Council (the Speaker), deposed to
an explanatory affidavit
on behalf of the Municipal respondents. As
the issue regarding the scale of Sebola’s remuneration fell
away, I do not intend
to address the Speaker’s responses on
this aspect in the judgment.
45.
The Speaker pointed out that initially the applications were opposed,
but after consideration
and consultation with legal representatives,
“
the
Municipality recognises that the Council’s decision to appoint
Mr Sebola cannot be sustained”
[34]
.
He
explained that this Court could not merely accept an agreed order and
would still have to satisfy itself that the terms of a
proposed order
were competent and proper. The intention was to file an explanatory
affidavit setting out why the Municipality accepted
that the decision
to appoint Sebola was flawed and should be set aside. However, the
agreement to a draft order was not intended
as accepting all the
applicant’s allegations
[35]
.
46.
The respondents indicated that they did not accept the relief sought
at paragraphs 6 and
7 of the Amended Notice of Motion, which they
believed to be factually and legally unsound. This was a
reference to an order
seeking all Sebola’s decisions to be set
aside, and what may be referred to as a referral order. From the
correspondence,
it seemed that the parties at least agreed that
paragraphs 4 and 5 of the Amended Notice of Motion would not be
proceeded with
and that the Municipality tendered the applicant’s
costs up to 3 June 2023.
47.
The Speaker confirmed that the respondents’ position was that
even if the Council’s
decision was declared null and void, the
Court still had the power in terms of section 172(1)(b) of the
Constitution to grant a
just and equitable remedy. The affidavit
highlighted that the Steele report was not requested to make
recommendations as to the
best candidate for the municipal manager
position and it was suggested that Steele may have exceeded his/their
mandate.
48.
The respondents stated that insofar as the screening process of
candidates went, the reference
checks on Sebola rendered positive
feedback and the applicant did not question this. Furthermore,
Sebola’s previous employers
were contacted, also yielding
positive references and it is emphasised that allegations of alleged
misconduct were insufficient
to disqualify a candidate. Put
differently, the Speaker held the view that a candidate must have
been charged with “
misconduct
of a qualifying nature”
[36]
to potentially render that person disqualified from the
process.
49.
There was no dispute that Sebola had the appropriate qualifications
for the position, was
never dismissed for misconduct previously, had
no criminal record and met the minimum competency requirements, as
indicated in
the Screening report. The Speaker accepted that the
Council should have considered the Fundudzi report once it came to
light, but
disputed that Sebola was obliged to disclose it in terms
of the Regulations as no disciplinary action was ever instituted
against
him nor was any pending at the time of his application for
the post. Furthermore, he stated that Sebola was not in
possession
of the Fundudzi report which it was understood, was
provided to National Treasury. The Speaker acknowledged that the
Council accepted
that the Fundudzi report, once its existence became
known, was a relevant consideration for the Council.
50.
The Municipal respondents held the view that Sabbagh incorrectly
interpreted the import
of item 6.1 of Annexure A to the Regulations
as meaning that if a candidate scored “
basic”
,
he/she was unsuitable for a senior manager position. The
respondents’ view was that a “
basic”
scoring
entailed that the candidate for the senior manager post, such as a
municipal manager post, was deemed unsuitable
[37]
.
As far as the respondents were concerned, item 6 of the Regulations
explained that achievement levels were benchmarks for appointments,
and not cast in stone.
51.
The respondents thus said that the candidate who scored “
basic”
may be
appointed provided caution was applied in appointing and promoting
him/her. The Speaker accordingly disagreed that the strained
construction which the applicant applied to Annexure A of the
Regulations was an acceptable interpretation thereof
[38]
.
Furthermore, the Steele and Selection Panel reports understood the
provisions of item 6.1 regarding a “
basic”
scoring
as not excluding such a candidate from being appointed where it was
stated that:
“……
.
However, should the Selection Panel resolve to appoint Mr Sebola on
grounds of transformation and representivity, it is strongly
recommended that a strong executive management team be appointed to
support him and/or support in a form of mentorship”
[39]
.
52.
The respondents held the view that if interpreted correctly, item 6
allowed for the Selection
Panel to proceed to recommend Sebola,
notwithstanding the conclusion of the Steele report. Furthermore,
they made the averment
that there was no merit in the contention that
Sebola was automatically disqualified because he rated “
basic”
for one of several metrics.
53.
The Speaker indicated that the applicant’s argument on
transformation ignored other
considerations such as gender, and he
denies that the appointment was irrational. Ultimately,
the respondents were
of the view that the applicant’s metric of
measuring transformation was not the issue, but the question which
arose, amongst
others, was whether the Selection Panel’s
approach to transformation by considering the history of appointments
for the position
and representation, was lawful and rational, and it
is advanced that it was.
54.
Insofar as the applicant’s criticism in its founding affidavit
related to the Steele
report, the Speaker disagreed that the report
stated that Sebola was unsuitable for appointment, not a qualified
candidate, unfit
or incompetent. The respondents therefore did not
accept the applicant’s characterisation of Sebola
vis-a-vis
the
Steele report. Interestingly, the respondents contend that the
Steele report was a basis for invalidating Sebola’s
appointment
as neither the Steele nor Selection Panel reports contained the
actual outcomes of each process
[40]
upon which the scores for the candidates were derived. It follows,
said the Speaker, that the Council thus did not have the candidates’
actual results before it in respect of performance and assessment,
meaning that the competency assessments were thus absent from
the
Rule 53 record as Steele did not provided the Knysna Municipality
with the documents at the time.
55.
The respondents’ further issue with the Steele report was that
there was a lack of
explanation as to what was meant by “
needs
development”
and
the Municipal Council did not interrogate this at the time of
considering the reports. In addition, the competency assessment
process of the candidates (especially Sebola) was conducted by a Mr
Peters (Peters), a colleague of Steele and the respondents
were
unaware of this at the time. As for Sebola, who also deposed to an
affidavit, he disputed the accuracy of the Steele report
insofar as
his performance in the competency assessment was concerned
[41]
.
56.
According to the respondents, the Gijima assessment of Sebola, and
thus the Gijima report
which rated him as competent in an assessment
for another Municipality, was relevant to Sebola’s suitability
as municipal
manager for Knysna and should thus have been placed
before the Knysna Municipal Council. The Speaker stated that the
latter report
was available to the Mayor who erred when he failed to
place the report before the Council as a relevant document to
consider.
The result thus was that the Council’s decision was
flawed. Added to that, the Speaker was also of the view that the
Fundudzi
report, which I refer to below, should also have been placed
before the Council, accompanied by Sebola’s answers thereto,
and here too, an error occurred.
57.
While
the respondents question the applicant’s reliance on the
Fundudzi report, they leave it in the Court’s hands as
to
whether annexing certain portions of the said report was
legally permissible. To summarize, the Speaker indicated
that the
allegations against Sebola contained in the Fundudzi report were
investigated by the Hawks who found insufficient
evidence
to pursue the matter further. Nonetheless, the Speaker stated that
the Mayor's decision not to place the outcome of his
interaction with
the Hawks before the Counsel, though taken in good faith, was
incorrect
[42]
. The Speaker
accepted that such information should have been placed before the
Council so as to decide for itself whether there
were obstacles
preventing Sebola’s appointment.
58.
The upshot of these circumstances was that the Municipal respondents
admitted that not all
relevant information was placed before the
Council at the time it deliberated the appointment of the municipal
manager. On the
issue of exclusion of the public and media to the
Council’s meeting of 25 January 2023, it was contended that the
fact that
the meeting was held
in committee
was not unusual
when it came to the appointment of senior managers, including a
municipal manager. The respondents explained that
no one was refused
admission into the meeting and certainly, the Speaker denied refusing
anyone admission to the meeting.
59.
In respect of the last ground of review, the “
ulterior
purpose”
suggested
by the applicant, the Speaker indicated that the applicant did not
allege that there was a Council resolution actually
taken on 29
November 2021 to the effect that Whips must attend selection panel
meetings. He furthermore stated that the reference
to the
confirmation by Melanie Paulsen (Paulsen) in the founding affidavit
amounted to inadmissible hearsay evidence
[43]
.
In conclusion on this point, the Speaker stated that the composition
of the Selection Panel complied with Regulation 12
in that no party
Whips were invited. Furthermore, the applicant’s suggestion
that the exclusion of party Whips amounted to
an ulterior motive was
unsubstantiated.
60.
The Municipal respondents made it clear that Sabbagh’s
allegations and speculation
in respect of Sebola were scandalous and
vexatious and should thus be struck out. The Speaker held the view
that her unsubstantiated
allegations made against the Council and
Sebola were made recklessly, to alarm and to poison the mind of the
Court
[44]
. Furthermore, it was
stated that what Sebola did subsequent to his appointment was not
relevant to the lawfulness of the processes
which lead to his initial
appointment.
61.
The next aspect was a consideration of the appropriate consequential
relief suggested and
requested by the applicant. It was common cause
that the applicant had forgone the relief sought at paragraphs 4 and
5 of the Amended
Notice of Motion. Insofar as consequential relief is
concerned, the Speaker indicated was that the default position where
a Court
invalidated a decision made by a public official body in
review proceedings, was that the matter was remitted to that body or
official
for re-consideration. In circumstances where the applicant
had not requested any specific relief as to how the Council must deal
with the existing processes to appoint a municipal manager, that
would be left to the Municipal Council to determine.
62.
In essence, the applicant sought an order that all the decisions made
by Sebola since
his appointment should be declared invalid,
alternatively, the onus was on the Municipality to indicate which
decisions ought to
be saved. The complaint by the respondents was
that there was no reference to specific decisions which were alleged
to be contentious,
nor was there an indication as to which of
Sebola’s decisions were to be saved and why. The Municipality
refused the applicant’s
invitation to decide upon which
decisions should be saved as it held the view that the application
for this relief had
"gaping
holes"
[45]
.
Furthermore, the respondents’ views were that the relief sought
at paragraphs 6 and 7 of the Amended Notice of Motion was
inappropriate because the fact that Sebola’s appointment would
be set aside did not automatically invalidate the decisions
he made
which are/were self-standing administrative decisions in terms of
PAJA.
63.
The respondents’ view was that the applicant was not the
correct party seeking the
consequential relief and that Sebola’s
decisions stand as valid. The Speaker points put that Sebola’s
decisions affect
persons who were not before the Court, and would
include, for example, members of staff and third parties
who were
awarded tenders or concluded contracts with the
Municipality. The Speaker disagreed is that the relief was
incompetent because
these parties would need to be joined in the
proceedings where an order setting aside Sebola’s decisions as
invalid, was
sought.
64.
The Speaker, with reference to section 172 (1) of the Constitution
read with section 8(1)
of PAJA, stated the Court had a discretion to
strike down a decision and this must be based on justice and equity
relevant to the
circumstances of the decision. The applicant sought a
sweeping finding by the Court, which then ignored the consideration
of justice
and equity and in circumstances where the Court had no
information regarding such decisions. On behalf of the respondents,
the
Speaker submitted that in those circumstances an injustice would
be perpetrated were the Court to accede to the applicant’s
request.
65.
The respondents do not agree with the DA’s interpretation of
section 54 A(3) of the
Systems Act. The applicant was of the view
that Sebola’s unlawful appointment was null and void and hence,
he was unauthorized
to have made decisions, with the result that it
rendered these decisions unlawful, automatically. The Municipality
contended that
if this interpretation of the section were to be
followed, it would be unconstitutional as it would deprive the Court
of its powers
in terms of section 172(1) of the Constitution read
with section 8 thereof, to determine when decisions should be set
aside.
66.
In conclusion, the respondents accepted that Sebola’s
appointment must thus be set-aside
and that the applicant was
entitled to its costs until 3 June 2023. The respondents’
stance remained that the relief sought
in paragraphs 6 and 7 of the
Amended Notice of Motion could not be granted and was without basis.
Lastly, in respect of the further
costs subsequent to 3 June 2023,
the respondents stated that they were entitled to their costs because
of the applicant’s
attitude in persisting in seeking the relief
and also sought costs of preparation of the explanatory affidavit
which was necessitated
by the applicant’s approach to the
matter. Costs were requested on an attorney and client scale as a
result of the gratuitous
insults levelled against Sebola and the
Council as well as the applicant’s stubborn insistence on
pursuing the additional
relief which, the respondents stated, was
inappropriate.
67.
In Sebola’s affidavit, he explained the interview and
assessment processes, which
he underwent for the municipal manager
post. Suffice to set out that once he became aware that he was
actually undergoing a written
assessment, he stopped and objected for
the following reasons: he was the only candidate who underwent a
written assessment while
the other two candidates relied on reports
from previous assessments; he did not complete the written assessment
as the result
of the assessment categories could be obtained from the
Gijima report. Sebola points out that the Steele report was
misleading
as it did not disclose his objection and the reason for
halting the written assessment, hence it was materially flawed.
68.
Sebola attended the Gijima competency assessment on 20 December 2022
in which it was determined
that he was competent to hold the position
of a senior manager and he advised the chairperson of the Selection
Panel that the assessment
results may be procured directly from
Gijima and expected the Council would consider the report when it met
on 25 January 2023
to consider the appointment. Insofar as the
Fundudzi report was concerned, Sebola stated that the Hawks
considered the allegations
contained therein but he was neither
provided with nor placed in possession of the report and did not know
that at the time, he
was the subject of an investigation.
69.
Aligning himself with the Speaker’s view, Sebola considered
Sabbagh’s allegations
against him as being speculative and
without merit, and requested that the averments against him be struck
out. He furthermore
highlighted the fact that the applicant failed to
indicate which tenders he allegedly awarded unlawfully and provided
no information
on this allegation. Sebola stated that he was
compelled to accept the position taken by the Municipality in
relation to his appointment
as set out in the explanatory affidavit.
70.
The Executive Mayor who also provided an affidavit, stated that his
failure to place the
Gijima report before the Council was an
oversight or human error and apologized for this. He confirmed
receipt of the report but
was of the view that the Steele report was
sufficient as its findings did not hamper Sebola’s chances for
appointment. He
also dismissed Sabbagh’s speculative claims as
to why Sebola was appointed.
The
DA’s reply
71.
In her replying affidavit, Sabbagh took issue that the explanatory
affidavit was filed late.
She stated that it was irrelevant whether
Sebola’s appointment would have served transformation because
he was not qualified
for the appointment and not appointable above
the other candidates. Furthermore, she pointed out that the
respondents’ submissions
about Sebola’s sterling
performance as municipal manager were impermissible as these were
attempts to justify his appointment
at all costs.
72.
Sabbagh addressed the applicant’s views that Sebola was
ineligible for appointment
and cautioned that the respondents were
not to sneak in additional review grounds which would be prejudicial
to the applicant and
could affect the just and equitable remedy. The
Court was asked to disregard these allegations and decide the case on
the applicant’s
grounds of review
[46]
.
Sabbagh made the point that the respondents never raised
concerns about the assessment processes conducted by Steele and
Associates prior to the application and the applicant discovered that
the Municipality and its attorneys had never contacted them
to
address Sebola’s complaints about/regarding Steele and Peters.
73.
On the issue of a remedy, Sabbagh articulated the applicant’s
fear that were the respondents’
versions to be accepted on the
remedy aspect, it would open the door to Sebola’s
re-appointment. It became clear that the
versions of Steele and
Peters were set out in affidavits to counter what Sebola complained
of in relation to the assessment process.
The applicant emphasized
that Sebola’s assessment was fair and in line with Steele’s
agreement with the Municipality.
However, the applicant was of the
view that the Municipality appointed Sebola for ulterior
purposes
[47]
.
74.
With regard to the striking out application, Sabbagh apologized and
stated that she withdrew
statements made in paragraphs 109, 119, 117
and 124 of her earlier affidavit regarding allegations of wrongdoing
by Sebola
[48]
.
Notwithstanding the apology offered, however, she then went ahead to
indicate that what was contained in the Fundudzi report was
cause for
concern because according to her (and/or the applicant), if the
findings were correct, then it would be
"reasonable
to fear that Mr. Sebola would engage in similar conduct in
Knysna"
[49]
.
75.
Sabbagh stated that she did not know of the outcome of the Fundudzi
investigation by the
Hawks, stated that for purposes of the
application, she accepted that the Hawks investigated the allegations
in the report and
chose not to pursue it, but then did, in my view,
an about turn: she stated that the fact that the Hawks decided not to
pursue
Sebola was not conclusive proof of his innocence. She
complained that Sebola had not addressed nor answered the allegations
in
the Fundudzi report and then concluded that there was thus no
basis on which the Court nor the Council could conclude whether the
findings in the report were justified or not. According to her, these
aspects then do not render him ineligible for appointment
but it was
an important part of the factual matrix in determining why he was
appointed and what the remedy should be.
76.
On the issue of the remedies available, more specifically that the
Municipality would have
to identify decisions taken by Sebola as
requested in the Amended Notice of Motion, the suggestion was that
the respondents misunderstand
the relief. The applicant maintained
that the consequence of setting aside Sebola’s appointment was
that all decisions were
invalid and that the question was whether to
temper the invalidity by preserving the decisions which he took and
for that, no joinder
of third parties was necessary. According to the
applicant, it had demonstrated that Sebola was compromised
and here
again, there was a reference to the Fundudzi allegations.
77.
Thus, the applicant’s view was that the Fundudzi allegations
cast a shadow over Sebola’s
suitability for office and that a
remedy must be granted which protected the residents of Knysna.
Insofar as which official should
accept the responsibility to
identify decisions which should stand, the applicant indicated that
it had no preference as to who
decided on that aspect and simply
stated that it cannot be that the Speaker, Mayor and any acting
municipal manager cannot perform
such function.
78.
Peters’ affidavit was attached to the replying affidavit and
dealt in quite some detail
with the assessment of Sebola. He stated
that correspondence was sent to Sebola indicating that he would
undergo both a competency
assessment as well as an interview. In this
regard, the deponent referred to annexure GP2, which was not attached
to the affidavit.
Peters’ version differed from Sebola’s
in that he stated that the nature and assessment were explained and
Sebola at
no stage expressed any surprise. No complaint was made to
Phillips of the human resources department and had there been such a
complaint, he would have been advised of it. There was also no
indication given that Sebola refused to complete the assessment.
79.
Furthermore, Peters confirmed that there was nothing unusual about
being required to complete
the written assessment and interview on
the same day and that that there was nothing unfair about the other
candidates’ only
being interviewed. Mr Steele (Steele), a human
resources practitioner and member of Roy Steele and Associates,
confirmed in his
affidavit that he made it clear to the Municipality
that he would be represented by Peters who was employed by his firm
as a human
resources consultant, that Peters was more than qualified
to conduct the competency assessment and interview process and that
he
(Peters) would be primarily responsible for managing the
appointment process. Steele was not present for the actual
assessments
nor interviews, but confirmed that Sebola was required to
undertake a written assessment and interview.
The DA’s
standing
80.
While the applicant came in for some criticism for jumping the gun by
approaching the Court
for relief, it submitted that it was not
precluded by legislation from doing so. The common cause fact was
that the correspondence
indicated that the applicant’s legal
representatives communicated with the MEC in February 2023 regarding
the issues pertaining
to the Council’s appointment of
Sebola
[50]
.
81.
It was evident from the facts that the applicant’s legal
representatives informed
the MEC that the time period for the
respondents’ compliance had lapsed
[51]
.
Furthermore, all indications were that after the Executive Mayor’s
correspondence to the MEC, in which he denied irregularities
in
Sebola’s appointment, the MEC indicated that counsel was being
briefed and I understand this to mean that he was on the
verge of
approaching the Court under the auspices of section 54A, as
elaborated above. The MEC informed Minde Schapiro of these
steps on 8
March 2023
[52]
, and on 10
March 2023, a few days prior to the MEC’s delivery of his
application, the applicant approached the Court seeking
relief
against the various respondents under the banner of a PAJA or
legality review.
82.
I accept that section 54A sets out a very specific procedure for the
appointment of a municipal
and acting municipal manager. In
Notyawa
v Makana Municipality and Others
[53]
,
with
reference to section 54A(9) of the Act, the Constitutional Court
stated that:
“
It
is apparent that Parliament has entrusted the MEC to monitor
compliance with the Systems Act. But where the MEC fails to perform
this function, the Minister may intervene and perform the function
herself
[54]
.”
83.
Section 54A(8) contemplates the action which the MEC must take within
a prescribed time
period in order to enforce compliance by a
Municipal Council, which action includes an application to Court for
a declarator on
the validity of the appointment or “
any
other legal action against the municipal council”
[55]
.
It is thus apparent that the MEC and the Minister are the enforcers
of the substantive and procedural requirements of the Systems
Act in
relation to the appointment of a municipal and acting municipal
manager. Counsel for the parties in this application are
ad
idem
on
this aspect, but whilst the respondents question the applicants’
standing in approaching the Court, the applicant argued
that section
54A did not preclude anyone else approaching a Court for relief.
84.
Given the course which this application took, the issue regarding the
applicant’s
standing became a secondary issue during the
hearing, relegated to the side-lines, but picked up when the
respondents wished to
drive home the fact that the applicant should
not have approached the Court for the relief as per the Amended
Notice of Motion.
I must note, however, that the respondents did not
seek a dismissal of the application on the basis that the applicant
lacked standing
by virtue of the provisions of section 54A, nor was
the Court requested to rule on this aspect first insofar as it being,
for example,
a point
in limine
.
85.
To add, the respondents’ counsel’s heads of argument
addressed the question
of the applicant’s standing mainly
insofar as the just and equitable relief aspect, but the truth of it
was that the issue
was not pursued with any vigour during argument.
Notwithstanding such approach, there was merit in the respondents’
argument
that this was the MEC’s call insofar as enforcement of
section 54A is concerned.
86.
The question which arises, though, is whether the applicant is
precluded from bringing the
application because of the supervisory
role of the MEC, and failing him, the Minister, in terms of the
legislative provisions catered
for in section 54A. I was referred to
authorities such as
Nkandla
Local Municipality and Others v MEC for the Department of
Co-operative Governance and Traditional Affairs
[56]
,
Western Cape Provincial Minister of Local Government, Environmental
Affairs and Development Planning v Central Karoo District
Municipality and Others
[57]
and
Notyawa
[58]
as
support for the view that the MEC was the functionary to supervise
compliance with section 54A in respect of the appointment
of (in this
case) municipal managers, and that another person/party cannot
challenge the decision to appoint a municipal manager.
87.
However, the applicant stated that it approached the Court either in
terms of PAJA or the
principle of legality, and on the basis that it
was a political party which had an interest to ensure that “
public
power is exercised in accordance with constitutional and legal
prescripts and that the rule of law is upheld”
[59]
,
as stated in
Democratic
Alliance v The Acting National Director of Public Prosecutions
[60]
.
I
understand this and the oral submissions to mean that the applicant
approached the Court as an own-interest litigant but also
as a
political party with an interest in the matter, mindful of section
195 (1) of the Constitution. Section 195(1) addresses the
basic
values and principles governing public administration, which must be
underscored by democratic values which,
inter
alia,
included
a high standard of professional ethics, accountability and
transparency
[61]
.
88.
From the facts of this matter, and the MEC’s application, it is
accepted that the
Knysna Municipal Council exercised public
administrative power when it decided to appoint Sebola and it must
therefore be held
accountable for the exercise of such power. I have
had regard to the authorities referred to above and note that none
specifically
address the issue of standing in the context of a
person/party whoh approaches the Court as an own-interest litigant or
a political
party under the section 195 banner, in respect of a
challenge to the appointment of a municipal manager. The question of
standing
thus requires further discussion.
89.
In
Merfaong
City Local Municipality v SA Municipal Workers Union and Another
[62]
,
the Labour Appeal Court (LAC) considered legal standing of the
respondents, a registered trade union and an employee and
resident of the relevant municipality, who were the applicants in the
Labour Court in an application for review of the municipal
manager’s
appointment. In summary, on the question of standing to bring the
review application, the LAC held as follows:
“
[65]
Section
54A of the Systems Act does not expressly deal with standing, nor
does it preclude, or oust the standing of persons/entities,
or
groups, whose interests are directly affected by the appointment
.
However, sections 54A(8) and (9), arguably, imply, that the
appointment of a municipal manager is subject to confirmation by the
MEC and the Minister, or implies remedies which such individuals or
groups may be obliged to pursue before approaching the court.
In this
regard, the fact that the appropriate steps that have to be taken by
the MEC, (and failing him or her, the Minister), does
not have to
result in litigation, is informative.
[66]
The provisions of sections 54A(8) and (9) are measures that also
have as their purpose the prevention, or limitation, of a
proliferation
of litigation, or multiple litigation, or unnecessary
litigation, with its attendant consequences, least of which, is the
delay
that ensues with all of its ramifications. The provisions also
seem to maintain and retain the hierarchical responsibility for
appointments to be made in compliance with the Systems Act. Even if
the employees have an interest in who their manager is, it is
not
their function or duty to “hire or fire” the manager. The
same may be said about ratepayers or residents of the
area served by
the municipality. That duty still rests with the employer. In the
case of an employment of a municipal manager,
in terms of the Systems
Act, the responsibility for the appointment is shared between the
Municipal Council (the employer), the
MEC for Local Government and
the National Minister responsible for local government
.
[67]
In keeping with the established precedent, where an internal remedy
has not been pursued before
a party approaches a court, a case would
have to be made out in that regard, which may also be a factor, not
only in determining
whether the court should exercise its
jurisdiction in the particular case, but also in determining
whether
the litigant has sufficient interest to be accorded standing, in
light of all the other relevant circumstances in the particular
matter. Each case will have to be determined on its own facts or
merits
.”
(my emphasis)
90.
In
Merafong,
the
Minister for Co-operative Governance and Traditional Affairs
was not joined in the application and the LAC held
that in
circumstances where correspondence indicated that the MEC
sat back and failed to act in terms of section 54A(8),
the
respondents should have brought the appointment issue to the
Minister’s attention but had not. A remedy was available
to the
trade union and resident but they had failed to act. In my view,
Merafong
supports
the view that whether the litigant - other than the MEC and Minister-
has sufficient interest to be granted standing, depends
upon the
circumstances, facts and merits of a case.
[63]
91.
In addressing the question of the applicant’s standing, I also
consider
Giant
Concerts CC v Rinaldo Investments (Pty) Ltd and Others
[64]
,
where
the Constitutional Court discussed the position of the own-interest
litigant at length; the requirements for establishment
of whether
such a party has standing in a constitutional issue and the
applicable authorities
[65]
. It
is apparent from
Giant
Concerts
that
the own-interest litigant must show that its rights or interests
are/were directly affected by the impugned decision and the
interests
must be real and not merely hypothetical or academic
[66]
.
Standing, in this context, is interpreted broadly unlike the common
law concept of standing
[67]
.
92.
Returning to this applicant, the argument was that it had not shown
that any of its rights
or interests were affected by the decision of
the Council to appoint Sebola. The appointment of Sebola, merely on
the facts as
set out in the application, certainly do not indicate
that the DA was directly affected by the appointment nor does it show
that
the appointment affected its rights.
93.
The enquiry, however, does not end there because every matter
involving the issue of standing
of an own-interest litigant in a
constitutional issue, must be considered within the context of the
facts and merits of the case.
There is no doubt that this matter
involves what may be described as a constitutional issue. In my view,
the applicant made it
clear that it approached the Court as a
political party on the basis and motivation to ensure that the
exercise of public power
met constitutional and legal standards.
Without repeating the merits as set out above, the applicant has a
Chief Whip and Ward
Councillor in the Knysna Municipal Council, and
it goes without saying that residents and persons within the
Municipality would
be affected by the Council’s decision in
appointing Sebola as the municipal manager.
94.
As a political party represented within Knysna, it can surely not be
said that the applicant
had no interest in the Council’s
decision to appoint Sebola. The proper exercise of public power by
the Knysna Municipal
Council, in this instance, must surely be viewed
as an interest of the applicant, and in my view, such interest was
neither hypothetical
nor academic at the time the application was
launched. In fairness, even if the applicant’s standing was
questionable on
the directly-affected rights basis, it warrants
mentioning that Cameron J in
Giant
Concerts
[68]
emphasised
the following:
“
[33]
The
separation of the merits from the question of standing has two
implications for the own-interest litigant. First, it signals
that the nature of the interest that confers standing on the
own-interest litigant is insulated from the merits of the challenge
he or she seeks to bring. An own-interest litigant does not
acquire standing from the invalidity of the challenged decision
or
law, but from the effect it will have on his or her interests or
potential interests. He or she has standing to bring
the
challenge even if the decision or law is in fact valid. But the
interests that confer standing to bring the challenge,
and the impact
the decision or law has on them, must be demonstrated.
[34]
Second,
it means that an own-interest litigant may be denied standing even
though the result could be that an unlawful decision
stands.
This is not illogical. As the Supreme Court of Appeal pointed
out, standing determines solely whether this
particular litigant is
entitled to mount the challenge: a successful challenge to a public
decision can be brought only if “the
right remedy is sought by
the right person in the right proceedings”.
[69]
To
this observation one must add that the interests of justice under the
Constitution may require courts to be hesitant to dispose
of cases on
standing alone where broader concerns of accountability and
responsiveness may require investigation and determination
of the
merits. By corollary, there may be cases where the interests of
justice or the public interest might compel a court
to scrutinise
action even if the applicant’s standing is questionable.
When the public interest cries out for relief,
an applicant should
not fail merely for acting in his or her own interest.
”
(my
emphasis)
95.
Having regard to Cameron J’s findings referred to above, it
then becomes apparent
that the question of standing, in certain
circumstances, should be considered with reference to the interests
of justice or the
public interest and that a Court should be cautious
to conclude a matter on standing alone where greater concerns
existed. I hold
the view that notwithstanding the fact that the
applicant is or was not directly affected by Sebola’s
appointment, it nevertheless
established that it had an interest, at
least, in the fact that the appointment was made, whether there was a
correct exercise
of public power in making such appointment and the
procedural correctness of the appointment.
96.
In addition, this is a matter where the parties largely agreed on at
least the main relief
– the setting aside of the appointment –
and this is a consideration I take into account as well. While the
applicant’s
standing may not be on all fours with what is
required when regard is had to
Giant Concerts
, the fact
that standing in the context of a constitutional issue must be
interpreted broadly, leads me to find that the applicant
has shown
sufficient interest in the impugned decision to warrant bringing this
application.
97.
I emphasise that my decision on standing is not based on whether the
DA, as applicant, is
the right person or party seeking the right
remedy or remedies in its application. The issue of remedies sought
in the Amended
Notice of Motion
[70]
is addressed later herein. In the circumstances, adopting a broad
approach, my finding is that the applicant has standing as an
own-interest litigant, being a political party as described above.
The condonation
applications
98.
There were two condonation applications before me: the DA’s
application for the late
filing of its heads of argument which were
due on 27 June 2023, and the Municipal respondents’ application
for the late filing
of the explanatory affidavit in contravention of
the Goliath AJP order. Counsel for the applicant argued the
applicant’s
case on the merits and left the question of
condonation in the Court’s hands. Neither party had sought an
order dismissing
the application or opposition on the basis of a
failure to make out a case for condonation. The facts relevant to the
condonation
applications overlap somewhat and I summarise these facts
below.
99.
After the application was served, the Municipal respondents gave
notice of their intention
to oppose it. The Goliath AJP order set out
timelines for compliance by the respective parties for the delivery
of the Rule 53
record, the applicant’s supplementary founding
affidavit, the respondents’ answering affidavit, as well as a
counter
application and/or interlocutory applications. The
applicant’s replying affidavit was due by 13 June 2023 and its
heads s
of argument by 27 June 2023. The respondents’ heads of
argument were to be delivered by 4 July 2023
[71]
.
100.
The applicant’s supplementary founding affidavit was filed in
accordance with the order. It was common
cause that the respondents
did not file their explanatory affidavit by 23 May 2023 but instead
requested a seven-day grace period
to do so until 30 May. The
explanation tendered was simply that the affidavit had not yet been
finalised. The applicant refused
the requested extension on the basis
that it was prejudiced by the delay and non-compliance with the
order
[72]
. All indications
were that a condonation application was imminent, however, the
explanatory affidavit was not filed by 30 May,
the date requested to
submit it. On 1 June 2023, the respondents conceded in writing that
the Knysna Council’s decision to
appoint Sebola was flawed and
should be set aside
[73]
.
101.
In the same correspondence, the respondents made it clear that
any agreement to a draft order setting
aside the Council’s
decision should not be viewed as an acceptance of all the allegations
in the application nor all the
grounds of review raised
[74]
.
Furthermore, the respondents made it clear that they took issue with
the relief sought in paragraphs 6 and 7 of the Amended Notice
of
Motion.
102.
The DA’s explanation for delay in filing its heads of argument
was based on the fact that without sight
of the respondents’
explanatory affidavit, it could not at the time agree not to pursue
the relief that Sebola’s decisions
taken as municipal manager,
be invalidated. In other words, without sight of the explanatory
affidavit, the applicant was not in
a position to assess on what
basis or upon which review grounds, the respondents agreed that
Sebola’s appointment was unlawful
and should be reviewed.
Similarly, it could not assess the status of its further relief in
seeking an order that all his decisions
were to be set aside.
103.
A draft order was provided to the respondents but not agreed to
because of the opposing views held as to
whether Sebola’s
appointment was to be set aside as opposed to a declaration that the
Council’s decision was null and
void
[75]
.
Ms Jonker (Jonker) for the DA proposed to Ms Bulabula (Bulabula) for
the respondents, that the latter set out their view on Sebola’s
appointment and the applicant’s further relief. On 14 June
2023, Bulabula informed Jonker that their lead counsel had
found himself overcommitted in other matters, hence the delay in
filing the explanatory affidavit.
104.
Much of the sequence of events and correspondence described above,
was duplicated in the respondents’
condonation application
which is supported by Bulabula’s affidavit confirming that
senior counsel was only able to settle
the draft affidavit on 14 June
2023, subsequent to which it had to be sent to the respondents for
consideration. The further explanation
for the delay in delivery of
the affidavit was that Bulabula was required to traverse the
affidavit with the Speaker in person
and had submitted an unsigned
copy thereof on 23 June 2023, which fact the applicant confirmed.
Furthermore, Bulabula had
fallen ill
[76]
and had a pressing family matter on the eve of having to travel to
Knysna to secure the signature and commissioning of the affidavits.
105.
Subsequently, having considered the unsigned affidavit and the
concession that Sebola’s appointment
be set aside, the
applicant’s stance was to attempt to settle the matter.
Bulabula explained that given the demand to respond
by 30 June 2023,
she was unable to co-ordinate the representatives as well as senior
and junior counsel, but it seemed that there
was communication
between the DA’s counsel and the respondents’ junior
counsel. The result was that settlement discussions
ensued including
counter-proposals made to the applicant, to which there was no
response. On 3 July 2023, to the respondents’
surprise, the
applicant delivered its heads of argument and informed that the
counter-proposal was rejected.
106.
Jonker’s explanation for the two-day limit to respond to the
applicant’s “
without
prejudice”
settlement
offer was that if it was rejected, and given the looming hearing
dates, the applicant was required to file its condonation
application
and heads of argument timeously. Jonker’s letter of 30 June
2023
[77]
then put the
respondents to terms in that it indicated that the applicant would
proceed with its relief as per the amended Notice
of Motion and that
a punitive costs order would be sought. Bulabula explained that after
arranging a meeting with the Speaker,
his affidavit was delivered on
6 July 2023, and that the dilemma and challenges regarding the delay
were unavoidable.
107.
Having regard to these explanations, I am of the view that a
pragmatic approach be adopted. Certainly, the
parties were ready to
proceed on the main issues in dispute on the hearing dates and
neither emphasised that the application and
opposition (or
explanatory affidavit) be dismissed on the basis of a failure to
provide a sufficiently full explanation for condonation.
In my view
therefore, to dismiss either the application or the opposition to the
remedies sought on the basis of an unsatisfactory
or insufficient
explanation for the delay would not only be short-sighted but it
would have the effect of not resolving the issues
between the parties
even though they agree that the Council’s appointment of Sebola
was invalid. Furthermore, it would also
elevate form above substance
and may result in additional and unnecessary litigation, potentially
at the cost of the Knysna residents.
108.
Having considered the affidavits and the explanations provided by the
applicant and the respondents, I find
both explanations to be
sufficiently full and reasonable and find that the interests of
justice warrant the granting of condonation
to both parties
[78]
.
Insofar as costs are concerned, this is addressed later in the
judgment.
The respondents’
striking out applications
109.
The first to fourth respondents brought a striking out application
referred to paragraphs 26 and 27 and the
last sentence of paragraph
28.1 of Sabbagh’s replying affidavit and paragraphs 10 to 29 of
Peters’ affidavit
[79]
.
110.
Having considered the application and submissions, during the hearing
I granted orders striking out paragraph
26 of Sabbagh’s
replying affidavit because the content thereof contained scandalous
and vexatious matter. Sabbagh’s
statement that the respondents’
conduct does not equate with the conduct of State organs interested
in assisting the Court,
but rather that of wanting to defend Sebola
with the aim of ensuring that the Court granted a remedy which would
allow him to be
re-appointed, was also purely speculative. There was
simply no foundation for such an assertion.
111.
I also struck out the last sentence of paragraph 28.1 of Sabbagh’s
replying affidavit on the basis
of it being scandalous and vexatious,
as it alleged, without a factual basis, that the appointment of
Sebola was for an ulterior
purpose. Paragraph 27 of the affidavit
addressed in detail the versions of Steele and Peters, who filed
affidavits dealing with
Sebola’s assessment and interview. The
request that it be struck in its entirety was based on the fact that
it constituted
new matter in reply, presented in support of new
consequential relief not contained in the Notice of Motion. My
finding was not
to strike out paragraph 27 and I granted the
respondents leave to file a further affidavit should they wish to do
so, but limited
only to those aspects raised in paragraph 27 of
Sabbagh’s replying affidavit
[80]
.
112.
A similar order was granted in respect of paragraphs 10 to 29 of
Peters’ affidavit, which I found not
to constitute new matter
in reply. The respondents were thus constrained to address only
paragraphs 10 to 29 of the Peters’
affidavit. The opportunity
to address these paragraphs was further motivated by the averment and
argument that the Peters affidavit
was filed a day before the
hearing, thus not giving the respondents an opportunity to address
it.
113.
The first to fourth respondents’ striking out application dated
18 July 2023 repeated what was sought
in the first striking out
application
[81]
with a slight
variation
[82]
. The
Notice referred to various paragraphs in Sabbagh’s founding
affidavit, which I summarise below:
113.1
The second and third sentences of paragraph 18
amounted to
inadmissible hearsay evidence in relation to certain utterances which
Paulsen, the legal manager for the Knysna Municipality,
allegedly
stated regarding Chief Whips. Absent a confirmatory affidavit by
Paulsen, these sentences are struck out.
113.2
In the second to fourth sentences of paragraph
109, Sabbagh accused
Sebola of unlawfully awarding tenders
"to
people who do not deserve them"
[83]
.
The rest of the paragraph continued in similar vein. Having regard to
the submissions, I agree that these allegations, all unfounded
when
regard is had to the papers filed, constitute scandalous and
vexatious allegations against Sebola and are thus struck out.
113.3
Paragraph 117, starting with “
there are real reasons"
and ending with
"for corrupt purposes"
alleged that
Sebola was corrupt and that he would use his appointment for corrupt
purposes. The statement is surely scandalous
and vexatious, hence the
first sentence of paragraph 117 is thus also struck out.
113.4
The last sentence of paragraph 117 referring
to an executive summary
of the Fundudzi Report , as well as paragraph 118 and the Fundudzi
report itself
[84]
were sought
to be struck out on the basis that the
"applicant
scandalously seeks to rely on a document which it obtained extra
legally and which amounts to inadmissible hearsay
evidence."
[85]
In
my view, the applicant indeed obtained the Fundudzi report extra
legally and it amounts to inadmissible hearsay evidence, which
would
prejudice Sebola. The reliance on the report was motivated to cast
Sebola in an unfavourable and unflattering light, and
the allegations
within the paragraph are indeed scandalous. Thus, the last sentence
of paragraph 117, paragraph 118 and SS16 (the
Fundudzi report), are
struck out. Their retention would certainly be prejudicial to the
respondents
[86]
.
113.5
Paragraphs 119 and 124 of Sabbagh’s founding
affidavit are
struck out as they contained scandalous and vexatious allegations, in
that it was alleged that Sebola would act unlawfully
and irregularly.
113.6
Paragraph 5.5 of Sabbagh’s replying affidavit
is not struck
out. The fact of the matter is that Sebola’s appointment was
indeed unlawful hence the content of this paragraph,
wherein Sabbagh
made a statement regarding the unlawfulness of his appointment,
cannot be considered as scandalous and vexatious
matter.
114.
In summary, the respondents are largely successful in their striking
out applications, though a duplication
of applications was not, in my
view, necessary. Thus any costs to be awarded would only be in
respect of the 18 July 2023 application,
which in any event deals
with the bulk of the matter sought to be struck out.
115.
There is a further aspect which bears mentioning. Sabbagh, after
mentioning the Fundudzi report and having
made the allegations of
impropriety, alleged unlawful conduct and irregular award of tenders
by Sebola, amongst others, then withdrew
these allegations and
statements in her later affidavit and apologized for her utterances.
To be clear, had matters ended there,
it would probably not have been
necessary to embark on a consideration of the various paragraphs to
which the objections were raised.
116.
Unfortunately, and as can be seen from Sabbagh’s affidavits,
the apology and withdrawal of her statements
were short-lived. I say
this because I note that from paragraph 32.3 and onward of her
replying affidavit
[87]
, that
notwithstanding her earlier apology and withdrawal, she nonetheless
forged ahead and embarked on what resembled justification
for still
questioning Sebola’s integrity, honesty and
bona
fides
in
his capacity as municipal manager for Knysna. The only impression to
gain is that the apology was hollow and the apparent withdrawal
of
her statements which were sought to be struck out, was not genuine.
117.
Considered holistically, I thus had to make further findings on the
striking out application in respect of
the paragraphs referred to in
Sabbagh’s replying affidavit. I have already mentioned that
leave was granted to file a further
affidavit dealing with a limited
aspect, but as will be seen later, this was not the case as the
parties then embarked on placing
further aspects before me which were
either not contained in the earlier papers and/or not addressed
during the hearing.
118.
As a matter of completeness, it warrants mentioning that the
respondents had filed a conditional application
for postponement to
address the averments which Sabbagh and Peters made regarding the
interview and assessment process. Given the
orders granted in the
striking out application at the hearing, and leave being granted to
file a further affidavit but limited
to the latter aspects, there was
thus no need to deal with the conditional application for
postponement.
Null
and void or setting aside?
119.
An issue arose, albeit obliquely, as to whether the Councils’
decision to appoint Sebola was null and
void, or whether it should be
set aside. Paragraph 2 of the Amended Notice of Motion sought to
declare that the Councils’
decision of 25 January 2023 in
appointing Sebola as municipal manager, was null and void. The
respondents agreed that the decision
be set aside and as indicated
above, were prepared to reach an agreement to this effect, however,
they were disinclined to agree
to the terms
"null and void"
and rather preferred the term “
set(ting) aside”
.
120.
The respondents’ explanatory affidavit
[88]
indicated that the reason why the applicant sought relief in this
form, contrary to the parties’ agreement, was that it wished
of
the Court to rule that all Sebola’s decisions subsequent to his
appointment, were invalid. The applicant’s replying
affidavit
did not address this averment specifically.
121.
While this aspect may seem to be a moot point, it is nonetheless
appropriate to address it herein, at least
for the sake of clarity.
Section 54A(3) of the Act states that:
“
54A
Appointment of municipal managers and acting municipal managers
(3)
A decision to appoint a person as municipal manager, and any
contract concluded between the municipal council and that person in
consequence of the decision, is null and void if –
(a)
the person appointed does not have
the prescribed skills, expertise, competencies or qualifications; or
(b)
the
appointment was otherwise made in contravention of this Act.
”
[89]
122.
From the above, it is evident that the relevant legislation uses the
term “
null and void”
. The question therefore
arises whether the disagreement between the parties as to which term
would be appropriate in a finding
and order of Court, is one of
semantics or has some substance? The respondents’ argument was
that nothing turns on the distinction
even though, as is apparent
above, they raised the point in their affidavit and heads of
argument.
123.
In
Njongi
v Member of the Executive Council, Department of Welfare, Eastern
Cape
[90]
,
Yacoob
J, with reference to a discussion on the principle of legality and
consequences of declaring an administrative act unlawful,
stated at
paragraph 45 of the aforesaid judgment that:
“
After
a judgment setting this administrative decision aside has been given,
the administrative decision is certainly regarded as
having been void
ab initio”
[91]
.
124.
Having regard to the submissions on this issue and the above
dicta,
I am inclined to agree with the respondents’ counsel that the
reference to “
null and void
” in section 54A(3)
read with section 54A(8), would be no different than an order of the
Court setting aside an appointment
by a public authority. Put another
way, once the Court finds that the appointment was unlawful, it is
thus null and void in the
language of section 54A(3) and the effect
of such appointment would be that it has no legal force and
resultantly, must be set
aside. To the extent that there was a debate
on this aspect, the above discussion and findings clarify the slight
disagreement
between the parties.
Is
the Court required to rule on all the grounds of review
?
125.
One of the main issues on which I wished to be addressed during the
hearing was whether the Court was expected
to make findings on all
the applicant’s grounds for review which it sought. This was a
hotly-debated issue, and having regard
to the authorities and
submissions, not a simple one. On the one hand, the applicant argued
that the Court should make a finding
on the Sebola assessment issue
with reference to the requirements in Regulation 6(1) read with
Regulation 8(1) of the Act. That
approach notwithstanding, counsel
for the applicant nonetheless agreed with his opponent for the
respondents that the Court should
approach the question and the
matter from the perspective of judicial minimalism in that it should
not make decisions which are
not needed to be made.
126.
Aside from judicial minimalism, the respondents argued that the Court
should adopt a common cause perspective
and not consider the disputed
Steele report in respect of the assessment issue nor the ulterior
purpose ground. The argument emphasised
that findings need not be
made on these aspects and on what was meant by the
"basic
range”
in
achievement levels of candidates in terms of the Regulations to the
Act
[92]
. The respondents’
further submitted that the applicant sought findings by the Court on
all its grounds of review rather than
on the agreed basis/bases as
set out in the correspondence and affidavits in the application.
127.
Needless to say, I required of the applicant’s counsel
particularly to convince me that it was indeed
necessary to consider
and make findings on all his client’s grounds, when the reality
of the matter was that the parties
were
ad idem
that there
were procedural irregularities in the appointment process and that
the Council were not in possession of all the documents
which it
should have had, leading up to its decision to appoint Sebola. I was
referred to a few authorities which I consider in
the discussion
below.
128.
In
Airports
Company South Africa v Big Five Duty Free (Pty) Ltd and Others
[93]
,
the
Court
a
quo
was
confronted with the meaning and effect of a settlement agreement and
the effect of making it an order of Court. While the detail
of the
dispute in that matter is not relevant for our purposes, the
Constitutional Court in
Airports
Company
[94]
criticized
the submissions and parties’ reliance on
Eke
v Parsons
[95]
to suit their respective views and arguments. I raise
Airports
Company
because
it is evident from correspondence exchanged prior to the application,
that the respondents reminded the applicant that even
though they
accepted and agreed that the Councils’ decision to appoint
Sebola was flawed and had to be set aside, and they
considered the
proposal to approach the Acting Judge President with a draft order to
set the order aside by agreement, they (the
respondents) nevertheless
realized and appreciated, with reference to
Airports
Company,
that
in the circumstances of the matter, it was not merely a case of
presenting and obtaining an order by agreement.
129.
The evidence from the affidavits indicated that the applicant agreed
to the proposed order by agreement and
duly accepted that regard must
be had to
Airports
Company
,
which in essence required of Courts not to simply accept an order by
agreement as the Court still had to satisfy itself that the
terms of
the order were
"competent
and proper”
[96]
. In view hereof, it was clear that even though the parties had
agreed in June 2023 that the impugned decision was to be set aside,
the matter could not simply be resolved by obtaining an order by
agreement from the High Court.
130.
It was evident that the respondents had not agreed to all the grounds
of review raised nor all the allegations
levelled against them. The
respondents accepted and admitted that not all the information and
documents necessary for consideration
by the Council were before it
during the appointment process. They submitted that on this basis
alone, the appointment process
was flawed and the appointment fell to
be set aside. The question then arose whether all the grounds of
review were required to
be considered and ruled upon.
131.
The applicant’s argument was that findings should be made at
least on the first two grounds of review,
dealing with Sebola’s
assessment and “
basic”
rating for the position of
municipal manager. According to the submissions, the apparent refusal
to admit the public to the meeting
of 25 January 2023 and the
ulterior purpose/motive ground were relegated as not being as
important to the applicant. The applicant
favoured a finding, and in
fact insisted during the hearing, that this Court was to make a
finding on Sebola’s assessment
and the assessment process, and
that his “
basic”
rating had excluded him from
appointment to the municipal manager post.
132.
To answer the question posed earlier, it must firstly be remembered
that the common ground between the parties
was that the process and
appointment was flawed because not all the documents needed for such
decision were before the Council
at the relevant time, thus rendering
the process and Sebola’s appointment contrary to section 54A
and the Regulations in
the Act. The effect thereof would be that the
appointment was invalid and unlawful and was null and void.
133.
In certain cases, it would certainly be appropriate to consider and
determine all the grounds of review which
an applicant raised in its
application. This would be particularly so when one took into account
the costs for parties in approaching
another Court to traverse issues
which should have been addressed by the High Court but were not
[97]
.
134.
The point is that unlike the
Premier, Gauteng
matter
which I reference in a footnote below
,
in this matter
the parties were
ad idem
that the appointment was to be set
aside because the decision taken by the Municipal Council was
invalid. The distinction is important
because the main order would be
premised not only on a finding but also on an agreement that the
Council’s decision was invalid
and null and void. I thus hold
the view that it is therefore unnecessary for the disposal of the
case and finalization of the application,
to make determinations on
all the grounds of review and/or on the assessment process and
whether Sebola, who scored “
basic”,
was eligible
for appointment as a municipal manager.
135.
Further on the aspect of what is to be decided for a proper disposal
of a case, I refer to Ngcobo CJ's findings
at paragraph 82 in
Albutt
v Centre for the Study of Violence and Reconciliation and Others
[98]
:
“
[82]
Sound
judicial policy requires us to decide only that which is demanded by
the facts of the case and is necessary for its proper
disposal.
This is particularly so in constitutional matters, where
jurisprudence must be allowed to develop incrementally.
At
times it may be tempting, as in the present case, to go beyond that
which is strictly necessary for a proper disposition of
the case.
Judicial wisdom requires us to resist the temptation and to wait for
an occasion when both the facts and the proper
disposition of the
case require an issue to be confronted. This is not the
occasion to do so. There may well be cases,
and they are very
rare, when it may be necessary to decide an ancillary issue in the
public interest. This is not such a
case
.
It may well be said that the President is anxious to know whether the
exercise of the power to grant pardon constitutes
administrative
action and whether PAJA applies to applications for pardon. The
anxiety of the President should adequately
be addressed by what I
have said above, namely, that the High Court erred in reaching these
questions.”
(my
emphasis)
136.
The opening sentence of paragraph [82] of
Albutt
is
emphasized because this Court may not lose sight of what it was
called upon to decide in circumstances where the parties had
agreed
that the process of appointment was flawed and there were documents
which should have been brought to the attention of the
Municipal
Council when considering its decision, but were not.
Furthermore, more recently in
Bliss
Brands (Pty) Ltd v Advertising Regulatory Board NPC and Others
[99]
,
a unanimous decision of the Constitutional Court, that Court remarked
at the commencement of its judgment that:
“
Despite
the magnitude of the questions and the allure of grappling with them,
the decision we reach highlights the fact that at
times the
imperative of judicial avoidance does and must carry the day
[100]
”
.
137.
Madlanga J writing for the Constitutional Court in
Bliss
Brands
referenced
the
dicta
of
Ngcobo CJ in
Albutt
[101]
.
Thus,
from the above findings in these judgments, it is evident that in
certain circumstances and matters, judicial avoidance and
sound
judicial policy should dictate a Court’s approach. Having
regard to the authorities cited and the parties’ submissions,
I
am therefore of the view that I should only determine that which is
necessary to be determined for the proper disposal of this
application. In my view, it follows that what is necessary to be
determined is whether the agreed ground of review is a competent
and
proper basis for holding that the Council’s decision to appoint
Sebola as the Knysna municipal manager, was null and
void.
138.
Anything more than the above determination, in the specific
circumstances where the parties are
ad idem
that the process
of appointment was flawed and the appointment decision was unlawful
and invalid, would fly in the face of what
the Constitutional Court
described as “
judicial avoidance”.
Furthermore,
from a practical and logical perspective, having to make decisions on
all the grounds of review would also be superfluous
or unnecessary,
because a decision on one ground/basis which leads to a conclusion
that the appointment was invalid, would be sufficient
to result in an
order and declaration that the appointment was null and void.
139.
The respondents’ counsel argued that the applicant persisted
with a finding on the assessment issue
because Sebola was not the
preferred candidate and that the motivation for such persistence was
purely political grandstanding.
I decline to be drawn into such a
debate as it is neither necessary nor relevant to the outcome and the
relief sought.
140.
Ultimately, all that is required to be determined is whether the
agreed ground of review was competent and
proper for the
administrative decision to be found to be null and void, as referred
to in section 54A(3). It is not necessary for
a proper disposal of
the application, that each and every ground of review is to be ruled
upon.
The
agreed/undisputed basis for setting aside the Municipal Council’s
decision
141.
It is common cause that the Selection Panel and Mayor recommended
Sebola’s appointment based on their
belief and understanding of
the Steele report. Clearly, their understanding was incorrect. It is
furthermore apparent that the
candidates’
curricula
vitae
were
not before the Municipal Council for its consideration, nor did it
receive the weighted scores allocated to the candidates
during the
assessment of their competency for the position of municipal
manager
[102]
. With
reference to the Steele report, it was clear that the Council did not
have before it any information related to the
candidates
"leading
competencies"
and
"core
competencies”
[103]
.
142.
Furthermore, clause 6 of Annexure A to the Regulations sets out the
achievement levels standard and provides
that a candidate falling
within the basic range was deemed unsuitable for the role of
municipal manager and that caution should
be applied in promoting and
appointing such individual. Yet, the Council neither queried nor
sought clarity on the “
needs development/competent”
competency categorization which the Steele report allocated to
Sebola. I say this because it is evident when one has regard to
the
legislation and its Regulations, that the competency categorization
referred to by Steele and Associates - “
needs
development/competent”-
is not catered for in clause 6 of
Annexure A. To add, the competency categorization which Steele
attributed to Sebola in consequence
of his assessment thus did not
accord with the designated achievement level in the Regulations, but
the Council sought no clarity
on this.
143.
Furthermore, a competency assessment of Sebola in the form of the
Gijima report, accredited by COGTA,
was conducted at the end of
2022
[104]
. Overall the
Gijima Assessment People
[105]
found Sebola to be competent for the position of municipal manager
for Thabazimbi Local Municipality, slightly more than a month
prior
to the Council’s meeting on 25 January 2023. From the
applicant’s papers, it was apparent that the applicant
expanded
or extended its grounds of review in respect of the principle of
legality to include the Municipal Council’s failure
to consider
relevant information related to Sebola and/or the appointment of a
suitable candidate
[106]
.
Secondly, from the Executive Mayor’s correspondence to the MEC,
dated 28 February 2023
[107]
,
it was evident that the latter sought to rely on the Gijima
assessment as justification and support for Sebola’s
appointment
as competent for the post as municipal manager.
144.
The reference to the Gijima report was significant in that, while
correspondence subsequent to Sebola’s
appointment point to the
fact that the Executive Mayor relied on the report to justify
Sebola’s suitability for the post,
this report did not form
part of the Rule 53 record and was not relied upon by the Selection
Panel and Mayor in the selection process.
Accordingly, the Executive
Mayor’s reliance on the Gijima report was unjustified and
ex
post facto
. If the report was to be relied upon, it should have
been part of the documents in the selection process and thus part of
the Rule
53 record.
145.
There is a further factor to consider. Regulation 11 dictates the
requirements in respect of documents which
an applicant for senior
manager post must submit in his/her application
[108]
.
On perusal of the Rule 53 record, it is so that it is devoid of the
candidates’ academic qualifications, contactable references,
registration with a professional body, full details of dismissal for
misconduct and details of any disciplinary actions pending,
instituted or finalized against a candidate. The
absence of these documents lead me to conclude that they were
not
before the Council at the relevant time and it follows that for
purposes of the appointment of a municipal manager, Regulation
11 was
not complied with.
146.
In its supplementary affidavit, the applicant stated that the
Fundudzi report was also not before the Selection
Panel and the
Municipal Council during the appointment process. For the reasons set
out earlier in the judgment, I struck out the
Fundudzi report but the
relevance of referring to it again is that it goes to the common
cause fact that the parties both state
that the report should have
been brought to the Council’s attention. To elaborate: the
Executive Mayor explained that the
allegations made in the Fundudzi
report first came to the Mayor’s attention a few days
prior to 25 January 2023
[109]
.
While Sabbagh and the applicant distance themselves from the
truthfulness or otherwise of the content of the Fundudzi report,
the
argument was that the report should have been brought to the
Municipal Council’s attention prior to it making its decision
on the vacant municipal manager post.
147.
Having regard to Sebola’s version, it indeed seemed that the
allegations of corruption and dishonesty levelled
against him in the
Fundudzi report were addressed by the Hawks and eventually came to
naught. The Executive Mayor’s version
that Sebola was
not
facing
a pending or finalized disciplinary action instituted by a previous
employer, in my view, was indeed correct and was tellingly
not
disputed by the applicant. Thus, Sebola therefore did not
fall foul of Regulation 11(4)(e) and had no duty to provide
or
disclose the Fundudzi Report or its existence, to the Council. The
evidence indicated that Sebola’s version that he was
not aware
of the existence of the report and did not have possession of it at
the time
[110]
, was supported
by that of the Executive Mayor, and it was not taken issue with by
the applicant.
148.
Whatever the debate may be around the Fundudzi report, its content
and effect (if any), the fact of the matter
was that it was prepared
for National Treasury. For the purposes of this application, it
mattered not whether the compilers of
the report provided it to
Sebola’s erstwhile employer, Modimolle-Mookgophong Local
Municipality or not. As can be seen above,
the applicant’s
reliance on a contravention of Regulation 11(4)(e) was misplaced.
149.
The significance of what is stated and found in the preceding
paragraphs is that the respondents accepted
and conceded that the
failure or oversight to place the Fundudzi report before the
Council
[111]
, was a
procedural flaw in the appointment process. The indication was that
the respondents and the Council agreed with the applicant
that the
mere existence of the Fundudzi report was a consideration which the
Council ought to have applied its mind to once it
was known that such
report was prepared and existed. In the circumstances, it is thus
fair to conclude that the Council was none
the wiser about the report
at the time it considered the appointment for municipal manager.
150.
Having regard to the above discussion, it is then clear that the
process of appointment was riddled by one
or more procedural flaw and
that certain documents which were supposed to have been before the
Council, were not, prior to the
final appointment decision being
made. In view of these findings, and the submissions by the parties,
it is thus evident that the
Municipal Council’s decision to
appoint Sebola did not comply in certain respects with section 54A
and the Regulations in
the Act. In view of this finding, my further
finding therefore is that section 54A(3)(b) applies in that Sebola’s
appointment
was “
otherwise
made in contravention of this Act”
[112]
.
151.
I reiterate my view that, in light of these findings, I need not
consider all the other grounds of review
raised in the Amended Notice
of Motion. In the event of any doubt, there is a further reason for
holding this view, and it finds
its support in section 54A(3) itself.
The section prescribes in peremptory language, that a decision to
appoint a municipal manager
is null and void in the event of either
of the circumstances set out in sub-section (a)
or
those in sub-section (b), occurring. To be clear, if the appointed
person did not have the prescribed skills, expertise, competencies
or
qualifications, then the decision to appoint him/her was null and
void,
or
, if the appointment was made in
contravention of the Act, then too, it was null and void.
152.
Bearing this in mind, it is therefore not required that the grounds
in section 54A(3)(a) and (b) must be
present for a declaration of
invalidity to occur, nor that sub-section (a) will always have to be
present before a null and void
finding may be made. The null
and void finding is made in circumstances where either a section
54A(3)(a) or (b) situation
occurred. I have found, and it was agreed,
that procedural flaws or errors existed in the appointment process
and there was thus
a consequential contravention of the Act and its
Regulations as referred to above, having regard to section 54A(3)(b).
Thus,
the argument by the respondents on this aspect was
correct. In the circumstances, the decision taken by the Knysna
Municipal Council
on 25 January 2023, appointing Sebola as municipal
manager, is declared null and void.
153.
Counsel for the DA, in respect of the procedurally flawed process
adopted by the Municipal Council, submitted
that the Council acted
contrary to sections 6(2)(b), 6(2)(e)(iii), 6(2)(e)(vi) and
6(2)(f)(i) of PAJA. In view of my findings above,
I would agree that
sections 6(2)(b) and 6(2)(e)(iii) were contravened only to the extent
that the Fundudzi Report was not before
it for consideration and
should have been. As I do not address nor make findings on the other
grounds raised in the applicant’s
papers, because it is not
necessary to do so, I am thus not in a position to make findings on
the other sections referred to in
section 6(2) of PAJA. Lastly, it is
noted that in its main heads of argument, the applicant’s
counsel indeed stated that
any of the grounds of review would
suffice
[113]
.
Just
and equitable remedy
154.
This section deals with paragraphs 6 and 7 of the Amended Notice of
Motion and the relief sought therein.
To summarise, paragraph 6
sought a declaration that all Sebola’s decisions as municipal
manager, including all contracts
and appointments were to be declared
unlawful, unconstitutional and invalid, and were reviewed and set
aside. In its alternative
relief at paragraph 7, the applicant sought
an order suspending the order granted in terms of paragraph 6 for 10
days so that the
first to third respondents may approach the Court on
supplemented papers for an order in terms of section 172(1)(b) of the
Constitution.
155.
From paragraph 77 in the applicant’s main heads of argument,
and its submissions during the hearing,
it then became apparent that
what was actually requested differed from what is contained at
paragraphs 6 and 7 of the Amended Notice
of Motion. The Court was
asked, insofar as a remedy was concerned, to follow the dictum in
Phalatse
and Another v Speaker of the City of Johannesburg and Others
[114]
.
Counsel
for the applicant argued that
Phalatse
emphasized
a corrective principle in that “
the
invalid exercise of public power should be reversed or
corrected”
[115]
.
It
was submitted that as in
Phalatse,
the
municipal respondents in this matter had a duty to assist the Court
in determining the effect of setting aside Sebola’s
decisions
and I was thus urged to adopt a similar approach which may be seen as
just and equitable under section 172(1)(b) of the
Constitution.
156.
The further submissions were that once a declaration of invalidity
was made in respect of an impugned decision,
the decisions flowing
from the invalid exercise of public power should be set aside –
this is the default position
[116]
.
It was argued that the onus rested with the respondents to justify
why there should be a departure from such default position.
The
applicant’s stance was that full retrospective invalidity of
the impugned decision should be granted, but notwithstanding
what was
sought in the application, the applicant requested in its main heads
of argument, that the Court deviates from the Amended
Notice of
Motion and grants an order which is just and equitable.
157.
The reasoning and motivation for such deviation from the default
position, and the Amended Notice of Motion,
was that such order would
avoid disruption to public administration, potential unfairness to
third parties and the preservation
of validity of decisions taken by
unlawfully/invalidly appointed persons. The request was that
were this Court to grant a
blanket order, which would set aside all
Sebola’s decisions since his appointment, the effect of the
order would be to prejudice
the residents of Knysna.
158.
Turning to
Phalatse:
all
decisions taken by the Mayor of the City of Johannesburg were
declared unlawful, unconstitutional and invalid and were reviewed
and
set aside
[117]
. Keightley J
granted a further order suspending the default order for 10 days and
allowed the City Manager or authorised person
to apply to the High
Court on supplemented papers for an order in terms of section 172
(1)(b) of the Constitution in respect of
the Executive Mayor’s
specified decisions. Having regard to the submissions, in its most
basic form, counsel’s request
in his heads of argument was that
paragraph 6 of the Amended Notice of Motion not be granted
[118]
,
but that the alternative relief as set out in paragraph 7, which
seemed to be in line with the
Phalatse
orders,
be granted.
159.
Having regard to the submissions, I consider that the default
position was that the second act(s), that is,
Sebola’s
decisions as municipal manager, were invalid because the legal basis
for its performance was non-existent
[119]
.
However, a distinction must be drawn between the first impugned
decision by the Council, sought to be declared null and void,
and the
second act, being Sebola’s decisions taken as municipal
manager. Once that differentiation is made, in my view, the
enquiry
would then be whether the performance of the second decision(s)
depended upon the first decision for its validity.
160.
To answer the question, I refer to
Motala
v Master, North Gauteng High Court
[120]
which I find to be of assistance. The appellant sought a review of
the Master’s decision to remove him as joint liquidator
of a
certain group of liquidators and also a review of the Master’s
decision to remove him from the panel of approved liquidators
and
trustees. The argument was that the Master’s decision to remove
the appellant from the panel flowed from or was dependent
upon the
earlier decision to remove him as joint liquidator. The Supreme Court
of Appeal (SCA) did not accept the argument and
held that while both
decisions were administrative decisions, the later decision was due
to the appellant’s changed circumstances
and not due to nor
dependent upon the validity of the first decision
[121]
.
161.
In referring to
Motala,
it
would be remiss not to refer to
Seale
v Van Rooyen NO and Others; Provincial Government, North West
Province v Van Rooyen NO and Others
[122]
.
The
Court in
Motala
effectively
reconfirmed the principle enunciated in
Seale,
that
if the first administrative act was set aside, the second
administrative act that depended on the first act for its validity,
was invalid as the legal foundation for its performance was
non-existent
[123]
.
162.
In
Corruption
Watch NPC and Others v President of the Republic of South Africa and
Others
[124]
,
the Constitutional Court had the following to say about the
declaration of invalidity of an administrative action:
“
[32]
What may lead some readers of what I have paraphrased from Oudekraal
astray is reading it in isolation. Later Oudekraal
makes it
clear that where a consequential act could be valid only as a result
of the factual existence – not legal validity
– of the
earlier act, the consequential act would be valid only for so long as
the earlier act had not been set aside.
[125]
In
Seale Cloete JA for a unanimous Court put this beyond question.
He held:
“
Counsel
for both Seale and the TYC sought to rely in argument on passages in
the decision of this court in Oudekraal Estates (Pty)
Ltd v City of
Cape Town which adopted the analysis by Christopher Forsyth of why an
act which is invalid may nevertheless have
valid consequences and
concluded:
‘
Thus
the proper enquiry in each case – at least at first – is
not whether the initial act was valid but rather whether
its
substantive validity was a necessary precondition for the validity of
consequent acts. If the validity of consequent
acts is
dependent on no more than the factual existence of the initial act
then the consequent act will have legal effect for so
long as the
initial act is not set aside by a competent court.’
.
. .
[T]he
reliance by counsel on the decision in Oudekraal, [is] misplaced. As
appears from the italicised part of the judgment just
quoted, the
analysis was accepted by this court as being limited to a
consideration of the validity of a second act performed consequent
upon a first invalid act, pending a decision whether the first act is
to be set aside or permitted to stand. This court did not
in
Oudekraal suggest that the analysis was relevant to that latter
decision.”
(Footnote
omitted.)
[33]
The Supreme Court of Appeal then
concluded that “
it is
clear from Oudekraal . . . that if thefirst act
is set aside, a second act that depends for its validity
on the first
act must be invalid as the legal foundation for its performance was
non existent”
.
(footnote
omitted)
[34]
In Kirland this Court accepted what was decided in Seale.
Writing for the majority, Cameron had this to say:
“
In Seale . . .
the Court, applying Oudekraal, held that acts performed on the basis
of the validity of a prior act are themselves
invalid if and when the
first decision is set aside. . . . [T]he
Court rightly rejected an argument,
in misconceived reliance on
Oudekraal, that the later (second) act could remain valid despite the
setting aside of the first.”
(footnote
omitted)
(my emphasis)
163.
The
respondents take no issue with the authorities but they have referred
me to and requested that I adopt the approach by the Full
Bench of
this Division in
Mgoqi
v City of Cape Town and Another
[126]
.
Briefly,
Dr Mgoqi presided over a meeting of the municipal council in
circumstances where his contract had already expired
[127]
and the Court found that there was a mistaken impression that he was
empowered to chair the meeting (when he was not). The Court
stated
that:
“
He was, to all
intents and purposes, the ostensible, de facto municipal manager and
was carrying out his duties and obligations
as such”
[128]
.
164.
The submission was that the Constitutional Court authorities which
the applicant referred to, did not oust
the approach adopted in
Mgoqi,
so that the appointment of Sebola be set aside
with prospective (as opposed to retrospective) effect only and in
that way, his decisions
taken prior to the declaration of invalidity,
should remain unaffected. Breaking this down to its basics, the
applicant still wanted
an order that the declaration of invalidity in
relation to Sebola’s decisions should be retrospective, but
that such order
be suspended with a view that parties may approach
the Court in terms of section 172(1) of the Constitution for a just
and equitable
order and that some decisions be preserved.
165.
I agree with the respondents that the decisions taken by Sebola, even
unlawfully appointed, were made in
the capacity as municipal manager,
as in
Mgoqi.
From the facts, it was accepted that the
issue of a lack of candidates’ information and the failure to
place documents and
reports before the Council were only realised
after the appointment was made. At that stage, Sebola was already
making decisions,
such as granting tenders, approving leave to
administrative employees, chairing meetings, appointing staff and the
like. He was
serving a public power and function, possibly unaware
that his appointment was invalid and not in compliance with section
54A of
the Act, due to (at the very least) procedural flaws in the
appointment and non-compliance with the legislation.
166.
The decisions he made in such capacity, were not, in my view,
dependent for their legal validity and enforcement on
the validity of
his appointment as municipal manager. Sebola had, as counsel for the
respondents stated in his submissions and
with reference to
Mgoqi
,
at least “
colourable authority”
. In my view, it
would certainly cause administrative chaos, inconvenience, potential
hardship and more were all his decisions to
be declared invalid and
set aside. Furthermore, consideration must also be given to
third parties who may have been awarded
contracts as part of the
Knysna municipality’s administration, so to blindly set these
decisions aside, would or could have
far reaching effect. Added to
that, affected persons or parties are not before the Court.
167.
Returning to the request by the applicant that I follow
Phalatse
and grant an order along
similar lines, I point out that
Phalatse’s
circumstances and those
which arise in this matter were markedly different. In that matter,
the learned Judge had to deal with an
urgent review as to whether the
decisions and conduct of the Speaker of the City of Johannesburg in
the motion of no confidence
procedure which led to the axing of the
then Executive Mayor of the City, were lawful. Keightley J considered
various impugned
decisions and then determined the remedy in the
context of section 171 and 172 of the Constitution
[129]
.
The orders granted were peculiar and specific to the circumstances
and findings in that matter and I agree with the respondents’
counsel that when reading
Phalatse,
it becomes evident that
the orders granted could be implemented, in that decisions could be
identified by the City Manager for purposes
of seeking a just and
equitable order
[130]
.
168.
In this matter, the landscape is different. By the time the matter
was argued, Sebola was already the municipal
manager for more than
six months and the parties had attempted settlement and agreed on the
main issue that the decision to appoint
him, was flawed and should be
set aside or be declared null and void. To declare all Sebola’s
decisions null and void as
a result of his unlawful appointment
would, in my view, neither be just nor equitable. I am of the view
that the circumstances
of each case would be a more than relevant
consideration before ordering a blanket setting aside of Sebola’s
decisions
as municipal manager.
169.
In any event, to set aside all Sebola’s decisions from the
inception of his appointment, would have
far reaching consequences,
the effect of which could cause chaos, potential prejudice and
uncertainty in respect of agreements
and decisions involving third
parties, interrupt service delivery and the functioning of the Knysna
Municipality. Furthermore,
third parties, whether individuals,
institutions or juristic persons, who were parties to agreements
which Sebola concluded in
his official capacity and who may be
affected by an order of this Court, were not before it.
170.
The applicant’s submission on this issue was that the absence
of third parties (before the Court) was
not a bar to the remedial
relief sought, and it was in the nature of an order
in rem
that third parties were affected. It was furthermore suggested during
the hearing that the applicant had no objection to a joinder
of any
third party and/or such party approaching the Court to indicate that
a decision taken by Sebola should be set aside.
171.
While I appreciate that third parties may be affected in such a
public administration issue, the third party
would be entitled to
approach the Court in terms of PAJA at least, but should be duly
apprised of the issues and have time to properly
consider his/her/its
stance, rather than be thrown into the deep end and joined in a
dispute between the applicant and the Knysna
municipal respondents.
172.
Ultimately, the applicant sought an order which suspends the
declaration of invalidity and sets aside Sebola’s
orders for a
specified period until the first to third respondents approached the
Court in further proceedings, on duly supplemented
papers, for an
order in terms of section 172 (1)(b) of the Constitution. This relief
presents its own problems. In my view, counsel
for the respondents
correctly argued that the decision-making functions and powers of an
Executive Mayor as in
Phalatse
differ
from those of a municipal manager. The latter is responsible for the
day to day operation and running of the Municipality
and makes daily
decisions such as in-house leave approvals of municipal staff,
authorising salary payments, deciding appeals in
terms of section
62(4) of the Act and more
[131]
.
173.
Having regard to paragraph 7.2 of the Amended Notice of Motion, I
wish to emphasise that no decisions which
would be the subject of an
application to Court for a section 172(1)(b) order were identified.
To blame the respondents for their
failure to identify such decisions
and thus not assist the Court was also not helpful. The fact of the
matter was that neither
the Executive Mayor nor the Speaker hold the
functions of a municipal manager and cannot therefore take upon
themselves the
role and function of the municipal manager as they are
Councillors.
174.
The applicant’s relief at paragraph 7.2 would in effect be a
10-day period for the Speaker and Executive
Mayor or other authorised
person to audit the work and decisions made by Sebola during his
tenure as municipal manager and thus
approach the Court for a just
and equitable order on supplemented papers. How this is to happen,
and which decisions were/are to
be earmarked for further litigation
and consideration, was a question left open by the applicant.
175.
The further issue with such remedial order as per paragraph
7.2 is that in granting such relief, it would be tantamount
to
allowing the applicant to be granted an order which the MEC had not
sought in his application under case number 4441/23. I have
already
made a finding that the applicant has standing to bring this
application and I do not traverse that terrain again. However,
I need
to emphasise that the relief the applicant sought in paragraph 7
would, in my view, make inroads into the MEC’s role
as
supervising authority in terms of section 54A. Hence, I agree with
the respondents’ argument that the applicant’s
relief
would be far-reaching and may create a situation where the
supervisory role vested in the MEC in terms of legislation, was
usurped or infringed
[132]
.
Ultimately, the applicant as an own interest litigant has not shown
that any of Sebola’s decisions adversely affected its
rights or
had an external legal effect
[133]
on its rights, and would not be entitled to the relief it seeks in
paragraph 7.2.
176.
I was also referred by the applicant’s counsel to an unreported
judgment of the North West Division
of the High Court, Mahikeng,
namely
Dilotsothle
v Mahikeng Local Municipality
[134]
,
in support of the submission that the orders granted in the latter
judgment were appropriate to follow as the facts were similar
to this
matter. That may be so, but significantly Gura J made findings on the
assessment of the municipal manager as basic, which
I have not done
for the reasons already stated. Order 3 at the conclusion of
Dilotsothle
remits the matter back to
the Mahikeng Local Municipal Council to reconsider the appointment of
the municipal manager on the basis
of the Selection Panel’s
report. From my understanding of this order, the relevant Council was
also ordered to reconsider
the posts as advertised based on the
competency assessments reports of each candidate at the time.
177.
With respect, I decline to follow the
Dilotsothle
order
for the following reasons: while Sebola also rated “
basic”
according to the Steele report, I made no finding regarding the
correctness or otherwise of the assessment at the time, and/or
the
correctness of the Steele report, because the matter was decided on
the common cause or agreed ground of review. Secondly,
it was evident
from the facts of this case that huge disputes revolve around the
Steele report, its correctness and competence,
and that is not an
avenue which this Court traversed because it was unnecessary to do
so. Thirdly, Sebola himself raised issues
regarding his assessment
and realised that his treatment differed from the other candidates.
To refer the matter back to the Knysna
Municipal Council at a stage
where the competency assessment reports were provided to the
Selection Panel and expect the Selection
Panel to then make a
decision, has its own problems because of the missing documentation
and the failure to consider the Fundudzi
Report.
178.
Thus, while I fully appreciate the appropriateness of the remittal
order in
Dilotsothle
to the facts and circumstances in
that matter, the same approach would neither be competent nor
practical in the circumstances and
disputes in this matter. I thus
determine that a remittal to the Council with an order that the
Selection Panel reconsiders the
competency assessments of the three
candidates would be inappropriate.
179.
Furthermore, to refer the matter back to the Municipal Council to
re-start the process as from the Steele
report, would make no sense
because the parties raised concerns about the Steele report in the
sense of its reliability and correctness.
Furthermore, to exclude
Sebola from applying again should he wish, would certainly not be
fair, whatever the applicant’s
views were about him. Whether
the other two candidates were/are available or not is also not a
yardstick to determine a suitable
order. Having regard to the
submissions, and the further submissions and affidavits, the most
sensible order to grant would be
an order that the advertisement
process begins afresh. Any other order, given the dispute about the
Steele report, would not be
just nor equitable. The remedy should be
just that: a remedy and not a cause for further, unnecessary
litigation.
The further
affidavits and written submissions filed after the hearing
180. I
do not intend to spend much time on this aspect. I set out the time
line in respect of the further affidavits
and multitude of further
written submissions by counsel. On the first day of hearing, leave
was granted to the respondents to file
affidavits only in respect of
a response to paragraph 27 of Sabbagh’s replying affidavit and
paragraphs 10 to 29 of Peters’
affidavit. All these paragraphs
dealt with Sebola’s actual interview and assessment process. It
became apparent from the
affidavits of Phillips, the HR Manager of
the Knysna Municipality that there was a dispute on the papers as to
how the interview
and assessment occurred, but interestingly, the
affidavit then attacks Peters’ qualification to conduct the
assessment.
181. In
short, the allegation was made that Peters was neither competent nor
qualified to assess the candidates.
The reason for such statement and
accusation were not pertinent to the eventual outcome of the matter,
but it was at this stage
where, in my view, the matter became
clouded. Not only was the Steele report attacked in the answering
affidavit, but the competency
and authority of Peters, considered as
someone who was outsourced by Steele, was questioned.
182.
The further supporting affidavits of the Speaker and the chairperson
of the Municipal Council set out and
support Phillips’
contention that Peters and Steele, as a service provider, were not
authorised to conduct the assessment
and Steele was not a lawfully
accredited service provider in terms of the COGTA directive
[135]
and thus the entire process was flawed from start to finish. At
paragraph 24 of the Speaker’s affidavit, the latter then
sought
an order to declare the appointment of Steele Consultants to be
invalid and unlawful. An already convoluted matter then
became even
more problematic when the applicant’s further affidavits of 3
August were filed.
183.
The respondents’ supplementary submissions of 10 August
comprise 55 pages. Large parts thereof addressed
matters already
argued and the rest dealt with the law and competency of a collateral
challenge, untenable claims by Jonker in
her further affidavit, and
the binding nature of the COGTA directive. The theme throughout was
that the applicant’s belated
request that the matter be
remitted to the Council to reconsider the Steele assessment and
thereafter make a new appointment, should
not be entertained.
184. In
summary, the submissions by the respondents’ were that, but for
the applicant’s about-turn
in its first set of heads of
argument – that the Court should issue directions that the
Municipal Council reconsiders the
appointment process to just after
the Steele assessment process - the propriety of the Steele process
was not in issue as it was
irrelevant to the setting aside of the
appointment decision. The respondents had accepted that the decision
was to be set aside
and that the matter would be remitted to the
Council.
185.
It was further submitted and reiterated that there was no need for
the Court to determine the applicant’s
new consequential
relief
[136]
as it was raised
in heads of argument. The further submissions were along the line
that if the Court were to grant new consequential
relief, it would
effectively be accepting that the Steele process was beyond reproach
and not flawed, which the respondents submitted,
it was. Criticism
was levelled at the applicant’s about-turn, which
forced the respondents to approach the matter
as it did and raise a
collateral challenge, which according to
Oudekraal
Estates (Pty) Ltd v City of Cape Town and Others
[137]
,
a Court has no discretion to allow or disallow: in other words, the
respondents may bring the challenge at any stage.
186.
The affidavits shortly, and the applicant’s submissions of 10
August 2023, contend that the respondents
could not seek a
declaration of invalidity in respect of Steele’s appointment in
an affidavit as they were supposed to launch
a collateral challenge
for such relief. Issues of lateness and a lack of condonation were
also raised, and furthermore, that the
affidavits go beyond the very
limited issue which the Court had allowed pursuant to the striking
out application.
187.
The respondents proceeded to file further supplementary heads on 16
August 2023. It set out why it was not
necessary for the Court to
make findings on the assessment by Steele, but if it did, then a
remittal order based on the correctness
of the Steele assessment and
process, would deprive the Council of determining whether that
process was indeed adequate. The argument
went that if the Court were
to delve into the applicant’s further new consequential relief
– the remission to Council
at a stage just after the Steele
assessment report – then the Court had no discretion but to
consider the collateral challenge,
being the appointment of Steele.
188.
From the papers, it was evident that there were flaws in the process
and if not a dispute, then the affidavits
indicated that there was
certainly a difference in how Peters’ experienced Sebola’s
interview and assessment, and how
Sebola did. My firm view remains
that there was simply no need to traverse this issue and I say so
because my main finding is based
on a common cause review ground and
not on the Sebola assessment issue. It is evident, therefore, that
any remedial order, which
I have discussed above, cannot be based on
the correctness or otherwise of the Steele assessment. The mere fact
that these issues
were raised, albeit it subsequent to the hearing,
raised questions as to the reliability of the assessment process and
report.
Given the findings which I have already made, I remain
convinced that there is no need to make a finding that the assessment
and
interview were correctly conducted or not.
189. In
my view, the submissions of counsel for the respondents are correct.
To order a referral and hamstrung
the Council where it must accept
the Steele report, notwithstanding issues raised on affidavit, would
not be correct, nor equitable.
In view of the orders I grant based on
my earlier findings, there is no reason to address nor determine any
collateral challenge
and make a finding whether Steele and Peters
were lawfully appointed to conduct the assessment and interview
process, or not. The
parties blamed each other but ultimately, both
sides were guilty of traversing unnecessary avenues in this matter.
Accordingly,
I remain unconvinced that the orders which I intend
granting and the findings made above, should be reconsidered in light
of the
various further affidavits and multiple heads of argument
filed subsequent to 20 July 2023.
Costs
190.
The respondents tendered to pay the applicant’s costs from the
launching of the application to 3 June
2023. The applicant motivated
its submission for a personal costs order against each of the first
to fourth respondents because,
according to the applicant, they
conducted themselves in a grossly negligent manner and the residents
of Knysna should not foot
the bill for their conduct in the
litigation. The further motivation was that the respondents did not
comply with the section 54A
duty even though correspondence had
warned them of the problem with the appointment. It was further
submitted that if the Court
was not inclined to agree on the remedy
sought by the applicant, then it should invoke the
Biowatch
principle
[138]
.
This principle states that the general rule is not to award costs
against unsuccessful parties when they litigate against the
State in
a matter of constitutional importance
[139]
.
191.
Aside from the delays and the condonation issues which I made
findings on above, the matter was actually
resolved in the sense that
agreement was reached that the Council’s decision was null and
void and was to be set aside. This
matter, with respect, was a case
of the applicant shifting the goal posts insofar as the remedy was
concerned, and later, the respondents
going beyond what the Court
allowed when it granted orders in the first striking out application.
The fact that the applicant did
not wait for the MEC to act as he was
mandated to do in terms of section 54A, set this ball rolling, which
ultimately snowballed
into something larger than simply the
determination of a competent and proper order and remedies to set
aside the impugned decision
of the Council. Yet, my view remains that
the “jumping the gun” ahead of the MEC should not be held
against the applicant,
which approached the Court on its own
standing.
192.
Insofar as condonation is concerned, the explanations in this matter
were accepted and each party should
pay its own costs. The
respondents were largely successful in their striking out application
and should be awarded the costs attendant
on that application. The
new or changed consequential relief eventually had a knock on effect
in that it led to the respondents’
collateral challenge raised
after the hearing, but which I indicated above, was unnecessary to
determine. All in all, I am not
convinced that any punitive costs
order in this application is warranted upon the respondents who were
entitled to place before
the Court, their explanatory affidavit, and
the affidavit and correspondence made it clear that they did not
agree with all the
review grounds and allegations made against
Sebola.
193.
Furthermore, Sebola cannot be blamed for the unlawful appointment as
he did not appoint himself, and to order
him to pay costs in these
circumstances would, in my view, be unjust. The way the application
progressed and was litigated, from
both sides, and the outcome, do
not justify the invocation of the
Biowatch
principle.
The main order is ultimately one which was agreed upon, albeit that
the parties differed on whether all or some of the
review grounds
were to be determined. The main aspect when it comes to costs, in my
view, is that on the issue of setting aside
Sebola’s orders and
the further remedial relief seeking remission to the Council, the
respondents’ arguments prevailed.
194.
Putting aside the other aspects which made the matter more convoluted
than was necessary, the respondents
were largely successful and but
for the specific costs orders mentioned above and the tender up to 3
June 2023, there is no cogent
reason why the applicant should not be
ordered to pay the respondents’ costs subsequent to that date.
Lastly, while
I had given thought to an order that each party pays
his/its own costs (subsequent to 3 June 2023), ultimately I cannot
lose sight
of the fact that on the Sebola decisions and remedial
orders, the respondents are successful, hence the exercise of my
discretion
insofar as costs are concerned, is in their favour.
195.
Recently, Uniform Rule 67A dealing with a party and party award of
costs was inserted by Government Notice
R4477 in Government Gazette
50272 and took effect on 12 April 2024. Subsequent to the amendment
of the Rules, ON 22 April 2024,
Wilson J delivered a judgment on Rule
67A in
Mashavha
v Enaex Africa (Pty) Ltd
[140]
.
As the amendment came into effect after the matter was argued and
Mashavha
was
delivered very recently, I am of the view that the parties should be
afforded an opportunity to make brief submissions on whether
the
amended Rule 67A applies to any costs order(s) I intend to make in
this application, and furthermore, the scale thereof with
reference
to Rule 67A(3) read with sub-rule (9). Counsel will be afforded 10
days from date of judgment to provide a brief Note
on Rule 67A and
the scale of costs.
THE MEC’S
APPLICATION – CASE NUMBER 4441/2023
Costs
196.
The only issue to determine is that of costs, and as an opening
remark, the order granted in the DA’s
application is not
necessarily duplicated in the MEC’s application for the reasons
set out below. The MEC sought an order
declaring the decision of the
Knysna Municipal Council null and void, and in the further orders, in
the event of any opposition,
an order of costs was sought. I have
already set out the chronology of events and the correspondence
between the MEC and Executive
Mayor, alerting the latter on 23
February 2023, of the basic rating of Sebola and that his appointment
was made in contravention
of the Regulations to the Act
[141]
.
197.
As was seen, the Executive Mayor’s response was to not only
disagree that Sebola was not competent,
but to rely on the Gijima
report’s finding after the fact to support his views that
Sebola was, in his view, competent and
had the necessary competencies
for the post
[142]
. The
explanatory affidavit which was also in parts, an opposing affidavit,
was also filed after the MEC’s heads of argument
were filed in
the matter. Insofar as case number 4441/2023 was concerned, the
Speaker recognised that the MEC acted in terms of
his powers under
section 54A(8), read with section 54A(3).
198.
I already addressed and ruled on condonation in the other application
above but in this matter, the explanation
differed and must be
considered for what it is. In the MEC’s application, the reason
for the delay in filing the respondents’
affidavit, contributes
to my finding on costs. The explanation for the delay was that
because of the DA’s application, the
compilation of the
explanatory affidavit in the MEC’s matter was overlooked.
[143]
The submission was that despite the MEC’s warnings, the
Executive Mayor forged ahead and in an explanatory affidavit, the
Municipality and other respondents actually opposed the application
and only conceded the unlawfulness thereof on 3 June 2023.
199.
The MEC argued that he was forced to launch this application given
the stance of the respondents, and despite
warnings that the Sebola
appointment was invalid. The further submissions were that the Court
should grant a costs order and approach
the matter similarly as in
the
Central
Karoo District
[144]
judgment.
In that matter, Gamble J found that the Municipality had acted in a
“
somewhat
cavalier manner”
[145]
by
failing to respond to the MEC’s correspondence, filing an
affidavit contrary to the timetable, raising points
in
limine
and
then abandoning it, and advancing a case which lacked merit. The
Court found that in the circumstances where the application
was
opposed, it was just and equitable to grant a costs order
[146]
.
200.
The MEC’s further argument, with reference to judgments such as
MEC
Kwa-Zulu Natal for Local Government, Housing and Traditional Affairs
v Yengwa and Others
[147]
,
was
that State entities should avoid litigation against each other and
should endeavour to co-operate and make every reasonable
effort to
resolve their disputes before resorting to litigation. Counsel for
the MEC argued that the litigation in this matter
was mainly because
of the stance of the Executive Mayor. Furthermore, that the
Municipality derived its funds mainly from the rates
and service
charges of the Knysna residents, and the Province obtained its funds
from the National Revenue Fund and was also a
front-line provider.
201.
The respondents’ averment was that the costs sought by the MEC
was inappropriate as this was a dispute
between two spheres of
government and thus a costs order will simply result in a situation
where public money then flows from the
Municipality to the Province.
The further submission was that the Municipality was reasonable by
accepting that the Council’s
decision was unlawful. The
respondents blame the DA, which is the applicant in 4247/2023, for
(them) being in Court, and submitted
that the MEC made an election to
come to Court, while the Municipality acted reasonably by making the
concession of an unlawful
appointment.
202.
The submission was that should the Court grant a costs order, it
should only be up to 1 June 2023, when the
Municipality accepted that
the decision was unlawful. I am asked to not place too much emphasis
on the Notice of Opposition as
the application was not opposed. In
other words, the order proposed by the respondents’ counsel was
that each party paid
his/its own costs or that costs be limited to 1
June 2023. In reply, counsel for the MEC made a good point that there
was no tender
of costs up to 1 June 2023 and that had the explanatory
affidavit been filed earlier, the issue of costs would not have
arisen.
203.
Having regard to the submissions, the important aspect to note is
that this application’s costs issue
does not relate to the DA’s
matter. In other words, the costs order granted in that matter, would
not necessarily follow
in the MEC’s application purely because
the main relief was the same and both applicants’ sought the
impugned decision
to be set aside or declared null and void. I also
highlight the fact that the respondents’ affidavit in this
matter was not
a replica or duplicate of that filed in the other
application.
204.
From
SANRAL
v City of Cape Town
[148]
,
it
is evident that the Municipality’s funds do not derive from the
National Revenue Fund, but from rates and service charges
imposed on
the residents of that municipality. It is also not unusual nor a
blanket rule that one organ of State cannot be ordered
to pay the
costs of the other, and the Gamble J order in
Central
Karoo District
is
one such example. In this particular matter, it was easy to blame the
applicant in 4247/2023 in order to escape the responsibility
and
liability of costs, but the truth of it is that the applicant in that
matter brought the application on its own steam and under
the
auspices of an own-interest litigant.
205.
The MEC was bound to act in terms of section 54A(8) given the
Executive Mayor’s denial of any unlawfulness
in the Sebola
appointment even when the MEC’s correspondence set out the
issues in detail. Still, the Executive Mayor was
unmoved and
persisted with the stance that the appointment was lawful and that
Sebola had met the requirements of the Regulations.
In my view, had
the DA’s application not occurred, this application would
either have been opposed or the concession would
have been made after
the fact. As it is, I am inclined to agree with the MEC that the
Executive Mayor’s conduct lead to the
MEC acting in his
supervisory capacity to approach the Courts in terms of section 54A.
The concession regarding invalidity only
came almost four months
after the Executive Mayor was alerted to the invalidity in
correspondence
[149]
.
206.
While I agree with most of the MEC’s submissions, I differ that
this was an opposed application. This
was an unopposed application
where the unlawfulness was conceded and confirmed in the explanatory
affidavit of the Speaker. In
my view, this conduct after the horse
had bolted, persuades me to limit the costs order I intend to grant.
While I align myself
with the Gamble J findings, the difference in
this matter is the fact that the Executive Mayor did respond to the
MEC’s correspondence
and the respondents accepted on 1 June
2023 that the decision was unlawful and was to be declared unlawful.
As things turned
out, their arguments regarding the setting aside of
decisions and remedies, albeit that it was not part of this
application, proved
to be successful in the other application.
207.
The remaining aspect relates to the
Mashavha
judgment
and the amended Rule 67A and I afford counsel in this matter the same
opportunity as indicated in the DA’s application,
to provide a
note within 10 days of the order regarding the applicability or
otherwise of Rule 67A and the appropriate scale of
costs.
208. In
the result, the following Orders are granted:
ORDER IN CASE
NUMBER 4247/2023
1.
The applicant is granted condonation for the late
filing of its Heads of Argument.
2.
The first to fourth respondents are granted
condonation for the late delivery of their explanatory affidavit.
3.
The first to fourth respondents’ application
to strike out, dated 18 July 2023 is granted to the extent set out in
the judgment.
The applicant is ordered to pay the costs of the
striking out application.
4.
It is declared that the decision taken by the
Knysna Municipal Council on 25 January 2023, appointing Mr O P Sebola
(fourth respondent)
as municipal manager, is null and void.
5.
The appointment of Mr O P Sebola in consequence of
the Knysna Municipal Council’s decision as referred to in the
preceding
paragraph, is set aside.
6.
The Orders granted in paragraphs 4 and 5 above
shall have prospective effect only and thus not affect the validity
of decisions
made/taken by the fourth respondent in his capacity as
municipal manager from the date of his appointment to the date of
this Order.
For the sake of clarity, this Order does not affect the
rights of any person/party who wishes to challenge a decision,
contract
and/or appointment made or taken by the fourth respondent in
his capacity as municipal manager on grounds other than the
invalidity
of his appointment.
7.
The matter of the appointment of a municipal
manager is remitted to the Knysna Municipal Council which is directed
to start the
advertisement process afresh.
8.
The first to third respondents are ordered to pay
the costs of the applicant, jointly and severally, from the date of
the launching
of its application to 3 June 2023, which shall include
costs of two counsel where so employed.
9.
The applicant is ordered to pay the costs of the
first to fourth respondents from 4 June 2023 to date of this Order,
and such costs
shall include costs of three counsel where so
employed.
10.
Counsel for the applicant and for the first to
fourth respondents are required to provide a brief Note on the scale
of costs in
terms of Uniform Rule 67A, read with Rule 69, within 10
(ten) days of date of this Order (Court days).
ORDER IN CASE
NUMBER 4441/2023
1.
It is declared that the decision taken by the
Knysna Municipal Council on 25 January 2023, appointing Mr O P Sebola
(fourth respondent)
as municipal manager, is null and void.
2.
The appointment of Mr O P Sebola in consequence of
the Knysna Municipal Council’s decision as referred to in the
preceding
paragraph, is set aside.
3.
The Orders granted in paragraphs 1 and 2 above
shall have prospective effect only and thus not affect the validity
of decisions
made/taken by the fourth respondent in his capacity as
municipal manager from the date of his appointment to the date of
this Order.
For the sake of clarity, this Order does not affect the
rights of any person/party who wishes to challenge a decision,
contract
and/or appointment made or taken by the fourth respondent in
his capacity as municipal manager on grounds other than the
invalidity
of his appointment.
4.
The matter of the appointment of a municipal
manager is remitted to the Knysna Municipal Council which is directed
to start the
advertisement process afresh.
5.
The first to third respondents are ordered to pay
the applicant’s costs, jointly and severally, up to 1 June
2023, the one
paying the other to be absolved. No costs order is
granted against the fourth respondent in his personal capacity. Costs
subsequent
to 2 June 2023, shall be on the basis that each party pays
his own costs.
6.
Counsel for the applicant and for the respondents
are required to provide a brief Note on the scale of costs in terms
of Uniform
Rule 67A, read with Rule 69, within 10 (ten) days of date
of this Order (Court days).
M PANGARKER
ACTING JUDGE OF THE
HIGH COURT
Appearances
in case number 4247/23
For
applicant:
M
BISHOP
O
MOTLHASEDI
Instructed
by:
Minde
Schapiro and Smith Inc.
For
first to fourth respondents:
D
BORGSTROM SC
M
TSELE
K
NGQATA
Instructed
by:
Nandi
Bulabula Inc.
Appearances
in case number 4441/23
For
applicant:
H
DE WAAL SC
M
VASSEN
Instructed
by State Attorney, Cape Town
For
Respondents:
Appearances
as in 4247/23
[1]
Amended
reserved judgment date is 16 August 2023. The explanation for delay
in delivery of the judgment was communicated to the
Acting Judge
President.
[2]
SS3
[3]
SS4
[4]
SS5
[5]
The
reference during the hearing and in written submissions has been to
Steele
consultants
,
which is the description used interchangeably herein
[6]
SS6
[7]
SS6,
par 5.1
[8]
SS6,
par 5.2.1
[9]
SS7
[10]
SS7,
p65
[11]
SS8
[12]
SS9
[13]
SS9,
p79
[14]
SS10,
[15]
AB6
in case no 4441/2023
[16]
32 of
2002
[17]
SS11
[18]
Fifth
Respondent
[19]
SS17
[20]
Case
no UM130/2020, an unreported judgment of the North West Division
Mahikeng delivered by Gura J on 25 October 2021
[21]
SS17,
par. 6
[22]
SS17,
par 7
[23]
See
Gijima report, p136 - 145
[24]
SS13
[25]
The
MEC gave the Municipality five days to remedy the appointment of
Sebola
[26]
AB11
in case no 4441/2023
[27]
See
record and Chronology of Events handed in by the DA’s counsel
during the proceedings
[28]
The
reference naturally excludes the confirmatory affidavits, and later
affidavits by other individuals such as Mr Steele and
Mr Peters
[29]
3 of
2000
[30]
Item
6 of Annexure A to the Regulations
[31]
Act
108 of 1996
[32]
Paragraph
117, p43
[33]
SS18
[34]
Paragraph
18, p211
[35]
See
MS2
[36]
Paragraph
47, p218
[37]
Paragraph
67, p222
[38]
In
that it applies to promotions and not appointments
[39]
Steele
report, par 5.3.3
[40]
That
is, interview, written case study and psychometric test
[41]
Sebola
alleges that he commenced but did not complete the case study
assessment, hence he disputed the reference in the Steele
report to
“
constrictive
progress”
[42]
This
interaction related to the content of the Fundudzi report
[43]
Record,
page 245
[44]
Page
248, par 182
[45]
Record,
p251
[46]
For
purposes of findings made in the matter, I do not set out the
applicant’s statements in their replying affidavit regarding
self-review
[47]
Briefly,
one of the aspects raised was the fact that Sebola had complained to
Phillips during the assessment process and this
differs from Steele
and Peters’ version. The applicant’s view was that the
complaint about the competency was a new
ground of review which
should be disallowed.
[48]
Page
288
[49]
Paragraph
32.2, p
288
[50]
SS11
[51]
Nkandla
Local Municipality and Others v MEC for the Department of
Co-operative Governance and Traditional Affairs; Mthonjaneni
Local
Municipality and Others v MEC for the Department of Co-operative
Governance and Traditional Affairs
[2020] ZASCA 153
par 15
[52]
Ss14
[53]
[
2019]
ZACC 43
par 8
[54]
Footnote
8 omitted from judgment but the reference is to section 54A(9) of
the Systems Act
[55]
See
section 54A(8)
[56]
Full
citation is Nkandla Local Municipality and Others v MEC for the
Department of Co-operative Governance and Traditional Affairs
and
Mthonjaneni Local Municipality and Others v MEC for the Department
of Co-operative Governance and Traditional Affairs [2020]
ZASCA 153
[57]
[2023]
ZAWCHC 66
[58]
Supra
[59]
Paragraph
44 of the judgment
[60]
[2012]
ZASCA 15
para 43-44
[61]
Section
195(1)(a), (f), (g) Constitution. See also
Recycling
and Economic Development Initiative of South Africa NPC v Tubestone
(Pty) Ltd
[2021] ZAWCHC 270
par 40
[62]
(2016)
37
ILJ 1857 (LAC)
[63]
Paragraph
67
[64]
[2012]
ZACC 28
[65]
Paragraphs
29 - 51
[66]
Paragraph
41.3; see also Minister of Home Affairs v Eisenberg & Associates
In re: Eisenberg & Associates v Minister
of Home Affairs
and Others
[2003] ZACC 10
para 25, 28
[67]
Paragraphs
37 - 41
[68]
Paragraphs
33 and 34 – footnotes are excluded
[69]
Footnote
included in reference: Supreme Court of Appeal judgment above n 1 at
para 14, quoting Wade and Forsyth
Administrative
Law
9r
ed (Oxford University Press, New York 2004) at 281, as approved in
Oudekraal
Estates (Pty) Ltd v City of Cape Town and Others
2004
(6) SA 222
(SCA) at para 28.
[70]
Specifically,
paragraphs 6 and 7 of Amended Notice of Motion
[71]
I
have not set out all the timelines in the Order
[72]
See
EJ2
[73]
EJ4
[74]
EJ4,
par 4
[75]
See
EJ5
[76]
The
facts indicate that
[77]
EJ10
[78]
Menziwa
v Ndokwana and Others
[2023] ZAWCHC 294
par 3-4
[79]
The
respondents only proceeded with paragraphs 2.2 to 2.4, and 3 of the
striking out application
[80]
Counsel
had applied for a postponement in respect of the opportunity to
address these paragraphs
[81]
The
Notice to Strike Out is undated - Record, p204-206
[82]
The
reference to paragraphs relate to those paragraphs and words or
phrases sought to be struck out – so as to not overburden
the
judgment, short summaries are provided
[83]
Par
109, page 41
[84]
SS16
[85]
P236
[86]
See
Erasmus Superior Court Practice, 2
nd
Edition,
Rule 6(15) at D1-92, Service 20, 2022
[87]
Record,
p
289
[88]
Para
28-31, Record, p214
[89]
My
emphasis
[90]
[2008]
ZACC 4
[91]
I
have not included the entire paragraph 45 of
Mjongi
.
The finding by Yacoob J in this paragraph follows the learned
Judges’ consideration in paragraph 44 of
Mjongi
supra
about
a discussion by Professor L Baxter in his book Baxter Administrative
Law (Juta, Cape Town 1984) at p 355 where the author
addresses the
retrospectivity of unlawful administrative actions and the finding
of the Full Court on the question of nullity
being a consequence of
the principle of legality
[92]
See
Annexure A to Regulations of the Act, Table 5, Competency
Descriptions
[93]
2019
(5) SA 1 (CC)
[94]
See
para [61] and [62]
[95]
[2015]
ZACC 30
[96]
Par
59 Airports Company supra; Para 25, 26 Eke v Parsons supra
[97]
Premier,
Gauteng and Others v Democratic Alliance and Others; All Tshwane
Councillors who are Members of the Economic Freedom
Fighters and
Another v Democratic Alliance and Others; African National Congress
v Democratic Alliance and Others
2022 (1) SA 16
(CC) para 220-221,
which dealt with a direct appeal of an order granted by the High
Court
[98]
2010
(3) SA 293 (CC)
[99]
[2023]
ZACC 19
[100]
Paragraph
[1] of the judgment
[101]
See
paragraph [1] of Bliss Brands supra
[102]
Regulation
16 requires a competency assessment
[103]
SS6,
Steele report, par 5.1
[104]
SS18
to supplementary founding affidavit
[105]
The
entity which compiled the Gijima report
[106]
Record,
p123
[107]
SS18
[108]
Regulation
11(4)
[109]
This
was the date on which the Municipal Council made its decision which
forms the subject matter of the DA’s application
[110]
Prior
to the decision of 25 January 2023
[111]
From
the facts, I would presume the reference is to the Mayor’s
failure to place the Fundudzi report before the Council
[112]
Section
54A(3)(b)
[113]
Applicant’s
main heads of argument, page 22
[114]
[2022]
ZAGPJHC 105
[115]
Phalatse
supra, par 86 and see the authorities cited at footnote 20 of the
judgment
[116]
See
Allpay Consolidated Investment Holdings (Pty) Ltd and Others v Chief
Executive Officer, South African Social Security Agency
and Others
2014 (1) SA 604
(CC) par 56 – the default position in terms of
a PAJA review
[117]
Phalatse
Order, par 11
[118]
This
was the prayer that all Sebola’s decisions were invalid and
were to be set aside
[119]
S
eale
v Van Rooyen NO and Others; Provincial Government, North West
Province v Van Rooyen NO and Others
2008 (4) SA 43
(SCA) par 13
[120]
2019
(6) SA 68 (SCA)
[121]
Motala
supra, par 94
[122]
Supra
– see footnote 117 above for full citation
[123]
Seale
supra, par 13 and Headnote (p43). Seale references Oudekraal Estates
(Pty) Ltd v City of Cape Town and Others
2004 (6) SA 222
(SCA) par
31-33 wherein this principle was enunciated
[124]
[2018]
ZACC 23
para 32-34 – certain references in footnotes are
omitted in this judgment
[125]
Oudekraal
above
at para 31 (n30 deleted)
[126]
2006
(4) SA 355
(C)
[127]
Par
126
[128]
Mgoqi
supra, p
ar
126
[129]
The
impugned decisions were reviewed in terms of the principle of
legality – see paragraphs 85 and 86 of the Phalatse judgment
[130]
Phalatse,
par
12
[131]
Section
62(4) is the authority which enables the municipal manager to hear
appeals in certain circumstances – see Part 3
of the Act
[132]
Nkandla
Local Municipality and Others v MEC for the Department of
Co-operative Governance and Traditional Affairs; Mthonjaneni
Local
Municipality and Others v MEC for the Department of Co-operative
Governance and Traditional Affairs
[2020] ZASCA 153
par 71
[133]
“
Administrative
action”, section 1, PAJA ; see also Grey’s Marine Hout
Bay (Pty) Ltd v Minister of Public Works
[2005] ZASCA 43
;
2005 (6) SA 313
SCA par 21
[134]
Case
number UM130/2020, Gura J, delivered on 25 October 2021j
[135]
See
paragraphs 8-23 of the Speaker’s affidavit filed 1 August
2023, and Annexure MS1 thereto
[136]
In
other words, a remission to the Knysna Municipal Council as per
Dilotsothle
[137]
2004
(6) SA 222
(SCA) par 26
[138]
Biowatch
Trust v Registrar Genetic Resources and Others
[2009] ZACC 14
para
56-59
[139]
Biowatch,
par 56; Lawyers for Human Rights v Minister in the Presidency and
Others
[2016] ZACC 45
para 15-18
[140]
Gauteng
Local Division, Johannesburg,, case number 2022-18404, delivered on
22 April 2024
[141]
AB9
[142]
AB10
[143]
Record,
par 33, p236
[144]
Supra
[145]
Central
Karoo District, supra, para 36; see also para37-38
[146]
Supra,
par 36
[147]
[2010]
ZASCA 31
par 14
[148]
2017
(1) SA 468
(SCA) par 111
[149]
SS17
sino noindex
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