Case Law[2024] ZAWCHC 137South Africa
My Vote Count NPC v President of the Republic of South Africa and Others (10607/24) [2024] ZAWCHC 137 (27 May 2024)
Headnotes
an interim interdict remains operative in the event of an appeal noted against an order discharging the rule on the return date. This court held that this is incorrect. The proposition, that a rule nisi should only be granted where there is sufficient justification in the evidence placed before the court, was not disturbed. See also Ex parte Saiga Properties (Pty) Ltd 1997 (4) SA 716 (E) at 720G -721A].
Judgment
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## My Vote Count NPC v President of the Republic of South Africa and Others (10607/24) [2024] ZAWCHC 137 (27 May 2024)
My Vote Count NPC v President of the Republic of South Africa and Others (10607/24) [2024] ZAWCHC 137 (27 May 2024)
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sino date 27 May 2024
IN THE HIGH COURT OF
SOUTH AFRICA
(WESTERN CAPE
DIVISION, CAPE TOWN)
Case No: 10607/24
In the matter between
MY
VOTE COUNT NPC
APPLICANT
AND
PRESIDENT
OF THE REPUBLIC OF SOUTH AFRICA
1
st
RESPONDENT
MINISTER
OF JUSTICE AND CORRECTIONAL SERVICES
2
nd
RESPONDENT
MINISTER
OF HOME AFFAIRS
3
rd
RESPONDENT
ACTING
SPEAKER OF THE NATIONAL ASSEMBLY
4
th
RESPONDENT
And
In the application for
intervention of
THE
DEMOCRATIC ALLIANCE
INTERVENING
APPLICANT
In re the matter between
MY
VOTE COUNTS NPC
APPLICANT
AND
PRESIDENT
OF THE REPUBLIC OF SOUTH AFRICA
1
st
RESPONDENT
MINISTER
OF JUSTICE AND CORRECTIONAL SERVICES
2
nd
RESPONDENT
MINISTER
OF HOME AFFAIRS
3
rd
RESPONDENT
ACTING
SPEAKER OF THE NATIONAL ASSEMBLY
4
th
RESPONDENT
Date of Hearing:
17 May 2024
Date of Judgment: 27 May
2024 (to be delivered via email to the respective counsel)
JUDGMENT
THULARE J
[1] This is an opposed
application wherein the applicant (MVC) sought a
rule nisi
calling
upon any interested person to show cause on a return date to be
determined by the court why an order in the following terms
should
not be made final:
1.1. pending the earlier
of:
(i) the finalization of
proceedings to declare sections 29(g) and (h) of the Electoral
Matters Amendment Act, 2024 (Act No.14 of
2024) (the EMAA) and
amended regulations 7(1) and 9 of schedule 2 to the Political Parties
Funding Act, 2018 (the PPFA) inconsistent
with the Constitution and
invalid, and other relief, which must be instituted within 20 days of
the order, and
(ii) the determination of
the upper limit in the amended regulation 7(1) of schedule 2 of PPFA
(the upper limit) and the disclosure
threshold in the amended
regulation 9 of schedule 2 of the PPFA (the disclosure
threshold):
1.1.1.
The upper limit shall
be deemed to have been determined at R15 million per annum;
1.1.2.
The disclosure
threshold shall be deemed to have been determined at R100 000 per
annum.
1.2 Pending the return
date, the relief sought in 1.1, 1.1.1 and 1.1.2 immediately to
operate as an interim order.
The applicant further
prayed that the costs of the application be borne by the first to
third respondents, together with any other
party which opposed the
relief sought herein, jointly and severally, to be taxed on the basis
of Scale B and also granting the
applicant such further or
alternative relief as the court may deem reasonable and necessary.
[2] The Democratic
Alliance (the DA) applied to intervene in the application as the
fifth respondent, praying for the dismissal
of the application and
the order that MVC pay for its costs on scale B. In the alternative
in the event that the application was
not dismissed and with
retrospective effect from 8 May 2024, the DA sought the court to
declare that the upper limit was R15 million
per annum and the
threshold limit was R100 000-00 for as long as the President did not
set a different disclosure threshold in
terms of Regulation 6 and 9
respectively, of schedule 2 to the PPFA. Only the applicant opposed
the intervention application by
the DA. The second and fourth
respondent did not oppose the main application. The fourth
respondent, however, filed an explanatory
affidavit and also made
submissions at the hearing.
APPLICATION FOR
INTERVENTION
[3] The starting point in
considering the DA’s application, is what is before me in this
urgent application. An inductive
consideration of the DA’s
application for intervention as well as its submissions showed that
the DA is already dealing with
what MVC clearly said should be left
for later determination. MVC said in this application that any
interested person, referring
to parties like the DA, should be called
upon for the return date, to deal with what MVC is raising, and to
show cause why the
terms sought by MVC in this application should not
be made final. The matter before me was the founding application, and
not the
return date of the
rule nisi.
Against this background,
the question whether the DA was ‘any interested person’
‘called upon’ to ‘show
cause on the return date’,
in the interests of justice, is best left for the court of the return
date, if the application
succeeds. The interests of justice do not
permit that a judge sitting alone in an urgent court should pronounce
on a matter which
may be the subject of proper ventilation, maybe
even before a full bench, on a return date, perhaps with even more
parties who
may be interested in joining the litigation, exposing the
return date court to an expanded festival of ideas as we enrich our
jurisprudence
in construction of the new South Africa. The DA was
well within its right to exercise its right to join the process at
this stage,
and did so well-advised of the consequences of the
exercise of its rights to join. However, the stage at which it
decided to join,
as an early bird, did not change the nature of the
application it sought to oppose.
[4] The Supreme Court of
Appeal (SCA) dealt with the exposition of a
rule nisi
in
Member of the Executive Council for the Department of Health,
Eastern Cape v BM
(213/2021)
[2022] ZASCA 140
(24 October 2022).
At paras
“
The
rule nisi procedure
[12]
A rule nisi is an order issued by a court, at the instance of a
party, calling upon another party
or parties to show cause on a
stipulated date before that court why relief, as claimed, should not
be granted. The procedure, which
derives from English law, has been
employed by our courts for well over a century [3] [
Setlogelo v
Setlogelo
1914 AD 221
; see also
Grant-Dalton v Win and Others
1923 WLD 180
at 185.] Its use and development is underpinned by
the principle that a court will not grant relief which impacts or
constrains
the rights and interests of a party without affording that
party an opportunity to be heard (
audi alteram partem
). It is
also premised on the acceptance that the interests of justice require
the balancing of rights and interests to ensure that
what is worthy
of immediate protection is not prejudiced by the time it takes to
hear all interested parties.
[13]
The
rule nisi
is generally used in ex parte applications. Van Zyl[4] [G B Van Zyl,
The Judicial
Practice of South Africa
Vol
1 4 ed at 401.] explains that,
‘
This
rule, or order, for after all it is really an order, is granted only
on an ex parte application. This application should be
by petition
setting forth fully all of the circumstances of the applicant’s
cause of complaint, so as to induce the Court
to grant his prayer. He
must [show] a good prima facie cause to entitle him to this rule, and
a good reason must be assigned, or
[shown] for the urgency of the
application, and why it should be ex parte instead of serving the
respondent with the notice of
motion.’
[14]
Since those observations were made, the practice relating to
rules
nisi
has been used
in various contexts. The essential character and purpose of the
procedure, however, remains to ensure that (a) notice
is given to an
affected party; (b) a prima facie case is made out for the relief
sought; and (c) such relief may be granted unless
cause is shown why
it should not be granted.[5] [
Safcor
Forwarding (Johannesburg) (Pty (Ltd) v Chairman, National Transport
Commission
1982 (3)
SA 654
(AD) at 674H-675A;
National
Director of Public Prosecutions v Mohammed
2003 (4) SA 1
(CC) para 29;
Du
Randt v Du Randt
1992 (3) SA 281
(E) at 289E-F;
Ex
parte St Clair Lynn
1980 (3) SA 163
(W) at 164E-H. It should be noted that Du Randt was
overruled by this Court in
MV
Snow Delta: Serva Ship Ltd v Discount Tonnage
2000 (4) SA 746
(SCA) para 6.
Du
Randt
held that an
interim interdict remains operative in the event of an appeal noted
against an order discharging the rule on the return
date. This court
held that this is incorrect. The proposition, that a
rule
nisi
should only be
granted where there is sufficient justification in the evidence
placed before the court, was not disturbed. See
also Ex parte Saiga
Properties (Pty) Ltd
1997 (4) SA 716
(E) at 720G -721A].
[15]
The authorities demonstrate that the use of the rule nisi procedure
and its adaptation to new
circumstances has occurred in a manner
consistent with the principles of procedural law. In each instance,
it has occurred in the
context of application proceedings, requiring
the granting of a
rule nisi
to be supported by evidence which
warrants the granting of the rule.”
The SCA said set out the
nature, scope and content of a
rule nisi,
and this exposition
also indicated why the DA was wrong in the test it sought this court
to apply at this stage. The question before
the court was not to
determine whether there was a
lacuna
in the legislation. At
this stage, all that was required for the court to decide was whether
MVC placed before it sufficient justification,
or as it is sometimes
referred to, a
prima facie
case to claim a
lacuna,
and
therefore a case for an order in the terms sought
.
The DA’s
own arguments suggest that it grudgingly accepted that MVC may have a
prima facie
case. At para 25.3 of its heads of argument, the
DA under the heading “THE ALTERNATIVE DECLARATORY RELIEF”,
said:
“
25.3.
As MVC’s application illustrates, whether the donation limit
and disclosure threshold remain in effect is a live issue,
both in
this litigation and in government circles.”
I use the term grudgingly
because the DA submitted, in the preceding paragraphs of the same
heading, (that is para 23 to 25.2) that
should the court not dismiss
MVC’s application, it was urged to grant declaratory relief
which had the same effect as what
MVC asked for in its application.
It went further, and prayed for a declaratory relief retrospective to
8 May 2024.
[5] Until proper notice
was given to all affected parties, it was simply premature to make a
final decision on this matter, and
dismiss it, as the DA urged this
court to do. The affected parties, if any others join, as determined
by the return date court,
may support or oppose the application, and
they have a right to be heard in fulfilment of our sacred principle
of
audi alteram partem.
The DA also rightly referred the court
to
Caesarstone Sdot-Yam Ltd v The World of Marble and Granite
2013
(6) SA 499
(SCA). At para 2 and 3 of that judgment it was said:
[2] As its name
indicates, a plea of
lis alibi pendens
is based on the
proposition that the dispute (
lis
) between the parties is
being litigated elsewhere and therefore it is inappropriate for it to
be litigated in the court in which
the plea is raised. The policy
underpinning it is that there should be a limit to the extent to
which the same issue is litigated
between the same parties and that
it is desirable that there be finality in litigation. The courts are
also concerned to avoid
a situation where different courts pronounce
on the same issue with the risk that they may reach differing
conclusions. It is a
plea that has been recognised by our courts for
over 100 years.
[3] The plea bears an
affinity to the plea of
res judicata
, which is directed at
achieving the same policy goals. Their close relationship is evident
from the following passage fromVoet
44.2.7:2
'Exception of
lis
pendens
also requires same persons, thing and cause.-The
exception that a suit is already pending is quite akin to the
exception of res
judicata, inasmuch as, when a suit is pending before
another judge, this exception is granted just so often as, and in all
those
cases in which after a suit has been ended there is room for
the exception of res judicata in terms of what has already been said.
Thus the suit must already have started to be mooted before another
judge between the same persons, about the same matter and on
the same
cause, since the place where a judicial proceeding has once been
taken up is also the place where it ought to be given
its ending.'
The decision whether the
DA was ‘any interested person’ in the context of the
issues in this matter, its engagement
with the issues including
whether the applicant had proved the
lacuna
and the DA’s
prayer for dismissal of the application, are simply ahead of their
times, which time was on the return date.
The DA’s application
for intervention and its arguments are premature. They belong to the
return date, as that court is the
appropriate court to make those
determinations. The DA should simply hold its horses. Its excitable
steed cannot be the reason
why other horses should not join the race.
Other interested persons should have an opportunity to join.
NON-JOINDER
[6] Although the DA
raised this issue in its founding papers, it did not pursue it in its
heads of arguments. Both the first and
third respondents persisted
with their non-joinder, in that MVC failed to join political parties
as well as the Independent Electoral
Commission (the IEC). Neither
the first nor the third respondent indicated how the alleged
non-joinder prejudiced them. The respondents
do not share
responsibilities and resources, in particular governing jurisdiction,
legal relationships and shared responsibility
for another’s
actions with political parties or the IEC. In fact, their
constitutional responsibilities and rights are sometimes
in tension
with, if not outright opposed to, those of some or sometimes all
political parties and sometimes even the IEC. In
Judicial Service
Commission and Another v Cape Bar Council and Another
2013 (1) SA
170
(SCA) it was said at para 12:
“
The
non-joinder issue
…
“
[12]
It has by now become settled law that the joinder of a party is only
required as a matter of necessity — as opposed to
a matter of
convenience — if that party has a direct and substantial
interest which may be affected prejudicially by the
judgment of the
court in the proceedings concerned (see eg Bowring NO v Vrededorp
Properties CC and Another
2007 (5) SA 391
(SCA) para 21). The mere
fact that a party may have an interest in the outcome of the
litigation does not warrant a non-joinder
plea. The right of a party
to validly raise the objection that other parties should have been
joined to the proceedings, has thus
been held to be a limited one
(see eg
Burger v
Rand Water Board and Another
2007 (1) SA 30
(SCA) para 7; and Andries Charl Cilliers, Cheryl Loots
and Hendrik Christoffel Nel Herbstein & Van Winsen
The
Civil Practice of the High Courts of South Africa
5 ed vol 1 at 239 and the cases there cited).”
I am persuaded that
political parties may have a direct and substantial interest in this
litigation. However, having regard to the
nature of the application
now before me, for a
rule nisi,
that is not the only enquiry.
In contested elections like the one the country is faced with on 29
May 2024, with the number of parties
contesting the elections,
including independent candidates who will be doing so for the first
time, I am not persuaded that the
interests of justice permit that
the applicant should be burdened with the responsibility, at this
stage, to join every political
party and candidate registered with
the IEC to contest in the elections, or all political parties already
represented in Parliament.
The parties themselves and the candidates
would have an opportunity to consider whether they elect to join the
litigation or not.
I am unable to comprehend how the granting of a
rule nisi
would necessarily prejudice the interests of third
parties that have not been joined, in circumstances where the rule
prayed for,
called upon them to show cause, before the rule was made
final. What I think may be necessary, is notice of both the
application
for the
rule nisi,
as well as the order that
follow, before the return date, to be publicly displayed at the
courthouse.
PRIMA FACIE CASE
[7] The crisp issue
raised by MVC was whether the upper limit and the disclosure
threshold survived the EMAA. MVC’s case was
that EMAA removed
the R15 million annual limit on donations a political party may
receive from a single donor, and the R100 000
thousand threshold over
which individual donations to political parties must be disclosed.
MVC’s argument was that there
was since 8 May 2024 no upper
limit and disclosure threshold and that political parties could now
receive these amounts without
disclosing this to the public. It is
against this premise that MVC sought an interim interdict that would
revive the upper limit
and the disclosure threshold.
[8] On 8 May 2024 the
EMAA came into effect by Proclamation Notice 165 of 2024 by order of
the first respondent. In terms of the
preamble, the EMAA amended the
PPFA to
inter alia
“amend the powers of the President to
make regulations on certain matters, and to amend Schedule 2 in
respect of the formula
for the allocation of money in the Funds on a
proportional and equitable basis, in respect of the upper limit of
donations and
the disclosure limit for donations.” Previously
section 8(2) of the PPFA provided that “a political party may
not accept
a donation from a person or entity in excess of the
prescribed amount within a financial year”. The “prescribed
amount”
was previously stipulated in regulation 7 of the
Regulations, as follows:
“
7.
Upper limits of donations
The amount contemplated
in section 8(2) of the Act is fifteen million rand within a financial
year”.
Section 9(1)(1) of the
PPFA provided that a political party must disclose every donation
received “above the prescribed threshold”.
Regulation 2
of the Regulations defines “prescribed threshold” as
“
9.
Disclosure limit
The threshold referred to
in section 9(1)(a) of the Act is R100 000-00 within a financial
year.”
[9] Sections 8(2) and
9(1)(a) of the PPFA have been largely preserved in the EMAA, which
required that both political parties and
now independent candidates
disclose any donation received above a prescribed threshold and
prohibit the acceptance of donations
exceeding the limit. The
significant change introduced by EMAA granted the President the
discretion to determine the upper limit
and disclosure thresholds
amounts after a National Assembly (NA) resolution. In terms of
section 29(g) of the EMAA, Regulation
7 of the PPFA now read:
“
7(1)
Upper limit of donations
The president may, from
time to time after a National Assembly resolution and by notice in
the Gazette, determine the amount contemplated
in section 8(2) of the
Act.”
In terms of section 29(h)
of the EMAA, regulation 9 of the PPFA now read:
“
9.
Disclosure limit
The President may from
time to time after a National Assembly resolution and by notice in
the Gazette, determine the threshold referred
to in section 9(1)(a)
of the Act.”
Without the resolution of
the NA, the power to determine the respective amounts did not vest in
the first respondent. This was also
made clear by section 27 of the
EMAA which amended section 24 of the PPFA and provided that the
enactment of regulations by the
first respondent, which included the
setting of the upper limit and the disclosure threshold, could only
proceed following a resolution
by the NA. As at 15 May 2024, the NA
had not passed such resolution.
[10] It is what this
means that the parties were not agreed. MVC says this meant that upon
commencement of the EMAA on 8 May 2024
there was no upper limit to
donations in regulation 7(1) or disclosure threshold for donations in
regulation 9, as the previous
limit of R15 million and the threshold
of R100 000-00 had been deleted. Moreover there was no NA resolution
authorizing the first
respondent to determine the upper limit and the
disclosure threshold. This, according to MVC, meant that any amounts
might be given
and need not be reported. According to MVC this was an
untenable and unconstitutional situation, invidious to the right to
make
an informed vote, the right to vote more generally and the very
purpose of the PPFA. The applicant also referred to an order paper
of
the NA dated 9 May 2024 whose relevant parts read:
“
No
18 -2024 SIXTH SESSION, SIXTH PARLIAMENT
…
NATIONAL ASSEMBLY
ORDER PAPER
THURSDAY, 9 MAY 2024
Meeting of House: 10:00
MOTIONS
1.
Draft resolution (Chief
Whip of the Majority Party): That the House –
(1). Notes that section
24(1) of the Political Party Funding Act, 2018 (Act No. 6 of 2018)
(“Political Party Funding Act”)
requires that the
President, acting on a resolution of the National Assembly, may by
proclamation in the Gazette make regulations
in respect of amongst
others”
(a) the maximum amount of
a donation that may be accepted from a person or entity, within a
financial year as contemplated in section
8(2); and
(b) the threshold amount
which all donations received must be disclosed as contemplated in
section 9(1)(a);
(2) further notes that
with the Electoral Matters Amendment Bill, 2024 [B42B-2023], being
assented to and specifically with the
operation of section 29(g) or
(h), a gap in the law will exist unless the amounts contemplated in
section 8(2) and 9(1)(a) respectively
have been set by resolution of
the Assembly to empower the President to make regulations as
contemplated in section 24 of the Political
Part Funding Act, and
(3) resolves in terms of
section 24 of the Political Party Funding Act –
(a) to set the amount
contemplated in section 8(2) of the Act at fifteen million rand
within a financial year, and the threshold
amount referred to in
section 9(1) of the Act at one hundred thousand rand within a
financial year, and
(b) that the amounts
contemplated in paragraph (a), inform regulations to be made by the
President under the Political Part Funding
Act.”
The discussions of the
resolutions did not take place on 9 May 2024 and were postponed to
the next week, 16 May 2024. The applicant
held the view that the need
for consultation which informed the NA’s postponement, had the
risk of a postponement potentially
indefinitely, and launched this
application 0n 10 May 2024.”
[11] The developments in
the NA on 16 May 2024 are somewhat problematic, if not confusing. Up
until that date, it is safe to accept
that the NA would have shared
the view with MVC that there was a lacuna and that the NA needed to
begin the filling of the gap
in the law by resolving on the amounts
to be forwarded to the President to consider determining for purposes
of regulations of
the upper limit and the disclosure threshold. In
other words, the NA was to write on a new slate of the new
legislation regulating
upper limits and disclosure threshold from 8
May 2024. However, what the NA did, now suggested that the NA shared
in the view that
there were amounts contemplated in section 8(2) and
9(1)(a) set out in Regulations 7 and 9 of Schedule 2 of the PPFA. A
reading
of the Regulation 7 and 9 since 8 May 2024 does not provide
one with the amounts, which would enable the President to determine
the amounts on the advice of or after a resolution of the NA. The
resolution of the NA, to make sense, must be a resolution on
an
amount for purposes of regulations 7 and 9 of schedule 2 of the PPFA.
The only way that the NA resolution may not be confusing,
is if the
NA still relied on regulation 7 and 9 as it read before 8 May 2024.
If the NA did not rely on the regulations before
8 May 2024, and
sought to rely on them as they read after that day, then the NA had
not been helpful to the first respondent with
its resolution of 16
May 2024. The first respondent still did not know what the amounts
for the upper limit and the disclosure
threshold which were resolved
by the NA for his consideration were.
[12] With this problem on
his desk, I do not understand how the first respondent arrives at a
conclusion that reading section 11
and 12 of the PPFA is helpful to
resolve the problem that MVC is complaining about in this
application. Especially sections 12
and 12A are long and the sections
are not repeated in this judgment to avoid an unnecessary long
judgment. Suffice it to state
that there is still room for the first
respondent and the fourth respondent to better articulate their case
to the return date
court. If the NA still believed as it did on 9 May
that there was a lacuna, then the NA unfairly created more problems
for the
first respondent in respect of his determination of the upper
limit and the disclosure threshold. To illustrate the point, I will
just refer to the submission which Civil society formations submitted
to the members of the Select Committee on Security and Justice,
of
the NCOP, on 19 March 2024. The organisations included the Ahmed
Kathrada Foundation, Alliance of NPO Networks, Amabhungane
Centre for
Investigative Journalism, Ambassadors for Change, Centre for Civic
and Democracy Education, Centre for Good Governance
and Social
Justice, Council for the Advancement of the South African
Constitution, Defend our Democracy Movement, Direct Democracy
South
Africa, media Monitoring Africa, My Vote Counts, Organisation Undoing
Tax Abuse, Progressive Tamil Movement, Rising Stars
Youth Development
Netowrk, Sekunjalo Health and Poverty Alleviation, South African
Conversations, The Southern African Institute
for responsive and
Accountable Governance, Westside Park Community Crisis Centre and
Youth Empoering Initiative Democracy. Bullet
2 and 3 of those
submission read:
“
Why
EMAB is unconstitutional
The EMAB is plainly
unconstitutional for
inter alia,
the reasons set forth below.
1.
The EMAB and
specifically the amendments to regulation 7 and 9 if schedule 2 of
the PPFA, provides that the President has the sole
discretion to
determine (i) the upper limit of donations made by private parties in
terms of section 8(2) of the PPFA, and (ii)
the minimum amount
required for political parties to disclose donations received from
private parties, in terms of section 9(1)(a)
of the PPFA. Entrusting
the President with the discretion to establish these financial
thresholds places a substantial amount of
political influence within
the grasp of one individual, who is a political actor and would
typically be the head of a political
party who would be disadvantaged
or benefited by the changes. This is unconstitutional because the
President, as the leader of
a political party, inherently possesses a
vested interest in the outcomes of such decisions. The ability to
influence the financial
dynamics of political competition, including
the flow of private donations, can significantly impact the political
landscape to
favour the President’s party. This arrangement
essentially allows the President to set rules that could
disproportionately
benefit their political interests, creating an
unequal playing field for other political entities. The apprehension
of personal
and institutional bias is palpable and plainly gives rise
to a subversion of the rule of law. It is also irrational to vest
these
powers in the President.
2.
Moreover, there are not
even meaningful guidelines provided for the exercise of this critical
power by the President. It is a rule
of law requirement, as
underscored by several Constitutional Court judgments, that the law
be free of vagueness and speak with
clarity. This is clearly not
achieved by the EMAB.”
These submission were
made when the EMAA was still a Bill. These submission not only
indicate that the circle for interested persons
may be bigger than
just political parties registered or in Parliament and independent
candidates, as it may attract civil society
organisations and others,
but also highlight the vulnerability to which the first respondent is
exposed by the NA not resolving
on the amounts, but leaving him to
determine the amounts without the NA duly processing the amounts
resolved.
[13] Reliance on section
27(5) of EMAA is basically on the same footing as reliance on section
11 of the Interpretation Act, 1957
(Act No. 33 of 1957) (the IA).
Section 27(5) of EMAA amends section 24 of the PPFA and reads:
“
(5)
Each regulation in schedule 2 is a transitional regulation and shall
become inoperative on the date that a regulation replacing
the said
regulation made by the President in terms of subsection (1) becomes
effective.”
Section 11 of the IA
reads:
“
11
Repeal and substitution
When a law repeals wholly
or partially any former law and substitutes provisions for the law so
repealed, the repealed law shall
remain in force until the
substituted provisions come into operation.”
The new Regulation 7 and
9 came into operation on 8 May 2024. In other words, the substituted
provisions came into operation. I
am persuaded by the applicant’s
case that the old regulations have been repealed and substituted. The
upper limits and threshold
have been repealed. The legislation, the
PPFA, since the amendment through the EMAA, no longer has the upper
limit and the disclosure
threshold. It seems to me that by the time
section 27(5) came into operation, the R15 million in regulation 7
and the R100 000-00
in regulation 9 had already left the stable, and
the NA had to pass a resolution and the first respondent had to
determine the
amounts in the respective regulations. Section 27(5)
upon which the third respondent relied may save the day in each
regulation
in schedule 2 from 8 May 2024, but not before then in my
view. The applicant has established a prima facie case. The first and
third respondents, and having regard to the views I expressed in this
judgment the fourth respondent as well, had extremely truncated
times
within which to consider the matter and fairly engage with it. For
instance, the first and third respondents did not in their
answering
papers or in argument deal with their position on the resolutions of
the NA on 16 May 2024 and what their position thereto
was. A careful
reading of their answering affidavits left me with the impression
that they may have pinned their hopes on that
the NA would “advice
on or recommend” amounts to the first respondent through a
resolution on the amounts to be determined,
to enable the first
respondent to apply his mind to the figures and numbers resolved. The
opportunity of a return date allows the
first and third respondents,
in the interests of justice, an opportunity to help fully ventilate
the applicant’s cause of
complaint, including by supplementing
tneir papers. It may well be that the return date court is convinced
otherwise.
REMEDY
[14] In
My Vote Counts
NPC v Minister of Justice and Correctional Services and Another
2018
(5) SA 380
(CC), the Constitutional Court said at para 45 to 52:
“
Transparency,
accountability and corruption
[45] Secrecy enables
corruption and conduces more to a disposition by politicians that is
favourable towards those who funded them
privately once elected into
public office. This is likely to flourish even where I
information on private funding is 'held'
at the discretion of the
funded and unlikely to be exposed to 'the light of publicity'. For
this reason, information on private
funding must be compulsorily
'held'. PAIA captures 'record' in sufficiently broad terms to ensure
that as much information as possible
in the envisaged categories is
'held'.
[46] Because the right of
access to information cannot be exercised in a vacuum, s 32(1)(b)
alludes to the need to explain that
the purpose for seeking
information 'held' by another person is for the exercise or
protection of any rights. If it were not an
implicit constitutional
requirement for information relating to the proper exercise of
certain constitutional rights to be 'recorded'
and 'held', it is
conceivable that 'another person' could easily cave in to the
temptation not to hold some sensitive and potentially
revealing
information, or having 'held' it to destroy it, so that there would
be nothing available to disclose. But, even apart
from disclosure
being an aid that could discourage corruption, information does help
one to know more about an entity or person.
[47] The loophole or
leeway 'not to hold' or not to preserve information, and the
consequential non-disclosure of information relating
to private
funding or quantifiable support in kind, constitutes fertile ground
for undermining or even subverting the real 'will
of the people' that
is expressible through voting. If the door is left open to
potentially or actually compromised political parties
or independent
candidates to be voted into and hold public office, then the
government birthed by such flawed political players
could hardly be
described as truly based on the 'will' of the people. That government
or legislative body would not find it easy
to implement the good
governance and efficiency-enhancing practices prescribed by s 195 of
the Constitution.
[48] The foundational
values of our constitutional democracy — like openness,
responsiveness, accountability and the realisation
of the
constitutional vision of building a united nation and improving the
quality of life of all — could thus be at the
mercy of unknown
and even unscrupulous funders. For, there is indeed no free lunch.
This is not to say that all funders are, without
more, intent on
furthering selfish or sectional interests at the expense of national
interests. But some big political campaign
funders, even in old
democracies, have been exposed as being inclined 'to use money for
improper purposes'. They reportedly tend
to determine or influence,
in a meaningful way, the policy direction to be pursued by those in
whose political life or fortunes
they 'invested' their resources. And
when elected public office bearers are illegitimately dictated to,
that is likely to poison
the broader political landscape and
governance, thus weakening or throttling our shared values and
constitutional vision. Lack
of transparency on private funding
provides fertile and well-watered ground for corruption or the
deception of voters.
[49] Unsurprisingly, the
United Nations Convention against Corruption, which our Parliament
has duly ratified, enjoins state parties
to —
'consider
taking appropriate legislative and administrative measures,
consistent with the objectives of this Convention and in accordance
with the fundamental principles of its domestic law, to enhance
transparency in the funding of candidatures for elected public
office
and, where applicable, the funding of political parties'.
[50] In the same vein,
the African Union Convention on Preventing and Combating Corruption,
which we have also ratified, says:
'Each
State Party shall adopt legislative and other measures to:
(a)
Proscribe the use of funds acquired through illegal and corrupt
practices to finance political parties; and
(b)
Incorporate the principle of transparency into funding of political
parties.'
[51] Transparency in the
area of the private funding of political parties and independent
candidates helps in the detection or discouragement
of improper
influence and the fight against corruption. Both the African Union
and the United Nations have come to this realisation
and have taken
appropriate steps to help inject transparency and root out corruption
in relation to private funding. Politicians
who use public office in
the furtherance of the agendas of benefactors, at the expense of the
best interests of all, are very likely
to be found out where there is
transparency. The recordal, preservation and disclosure of
information on the private funding of
political players will thus
keep voters better equipped to make out the real interests these
politicians are likely to serve.
[52] Access to this
information helps voters and contestants to speak against and expose
the corrupt 'pay-back-time' political practices.
The known
possibility of voters and political rivals being able to make the
necessary connection between private funding and the
likely or actual
stance of political parties and independent candidates on policy
matters of importance, does have the predictable
effect of
discouraging the pursuit of corrupt or selfish sectarian agendas.
And, it also frees our public representatives to do
what they promise
and are obliged to do, unencumbered by potentially corrupt deals that
could be enabled by undisclosable private
funding. If secrecy
thrives, then our constitutional project would be at risk of being
betrayed or shipwrecked.”
At para 58 the court
continued:
[58] Section 16(1)(b)
guarantees 'everyone' the right to 'freedom to receive or impart
information or ideas'. This is an omnibus
provision so wide that it
appears incapable of leaving any willing passenger behind. In a
political environment like elections,
information on funding is
needed by party members or supporters of a political cause to
recruit, campaign and generally impart
information or ideas. All of
them, including NGOs, the media and academia, need to 'receive'
information relevant to voting to
in turn be able to 'impart' and
cause others to 'receive' processed information from them. These are
rights open to them to exercise
or protect. The state's
constitutional obligation, to ensure that this information is not
deceptively or selectively recorded,
is preserved and reasonably
accessible to voters, also extends to all, especially
information-disseminating and public-interest-advancing
establishments.
At para 72 to 74 it was
said:
“
[72]
It is enough to lay down a principle that requires the state to
ensure that the information be recorded, preserved and disclosable
in
a reasonably accessible manner and that it is not to be paid for.
Millions of voting South Africans are unemployed. And even
those who
are employed need every rand they earn to meet their basic
necessities. Those who stand to benefit from these people's
vote or
participation in the elections ought to be agreeable to a regulatory
framework that facilitates the recordal, preservation
and reasonable
access to information that could shed more light on who they really
are and whose favours they might have to return.
That information is
indeed essential for voting and imparting information.
[73] More importantly, it
remains the primary duty of the state to ensure that it facilitates
access to information that would enhance
the enjoyment of fundamental
rights. For this reason, the nature of the information on private
funding is such that Parliament
might, if so advised, impose on the
state or any of its organs the duty to hold, preserve and disclose
that information, so that
voters may have ready or reasonable access,
as envisaged by s 32(1)(a) of the Constitution. Be that as it may,
whatever Parliament
might decide to do, the state is obligated by a
proper reading of s 32 with ss 19 and 7(2) to make this information
reasonably
accessible to the public.
[74] The consequence of
all this is that political parties and independent candidates are
constitutionally obliged to record, preserve
and disclose information
on private funding. But, because s 7(2) imposes the obligation on the
state to facilitate the enjoyment
of rights in the Bill of Rights,
and s 32(2) requires the enactment of national legislation to
essentially provide for the recordal
or 'holding' and disclosure of
required or needed information, it thus falls on the shoulders of the
state to honour its s 7(2)
obligations.
[75] How best to fulfil
that obligation should be left to Parliament which bears the
legislative authority of the Republic.”
In concluding the
heading, ‘What is to be done’ under which para 72 to 74
fell, the court said at para 76:
“
[76]
It does not fall within the remit of this court to prescribe to
Parliament whether the recordal, preservation and disclosure
of all
information relating to private funding should be regulated in terms
of PAIA, or PAIA and another legislation or PAIA and
other measures.
Again, that is a decision to be taken by Parliament itself. Our duty
is to articulate the unfulfilled obligation
in broad terms, but with
sufficient clarity to give Parliament a fair sense of what is
required of it. We are required to provide
broad guidelines on what
could be considered by parliamentarians in developing a fitting
regulatory framework in this connection.
The fundamental principle
that must be underscored here is that information on the private
funding of political parties and independent
candidates must be
'held' or 'recorded', preserved and be reasonably accessible.”
The applicant’s
case was that the PPFA was a statute through which Parliament aimed
to comply with the constitutional requirements
as set out in this
Constitutional Court judgment, with specific reference to impose an
obligation on political parties to disclose
donations above R100
000-00 and the limit on an amount that a political party may receive
from an individual or entity within a
financial year, which placed a
cap at R15 million. That was the law until Tuesday 8 May 2024. After
8 May 2024 a political party
was entitled to receive as much money as
a person or entity was willing to give without any requirement to
disclose that donation.
This, according to the applicant, was what
the judgment said should be avoided. The EMAA did not have a
transitional mechanism.
The upper limit and the disclosure threshold
now waited for the NA to pass a resolution of the amount, which would
trigger the
powers of the first respondent to determine and publish
the regulations on amounts. The resolution was now stuck in the
bureaucratic
machinery of the NA, and the first respondent had no
power to fill the gap on his own.
[15] This court is not
seized with the proceedings to declare sections 29(g) and (h) of EMAA
and amended regulations 7(1) and (9)
of Schedule 2 of the PPFA
inconsistent with the Constitution and invalid. It seems that those
proceedings are yet to be instituted.
The reliance by the applicant
on section 172 of the Constitution, in my view, is simply misplaced.
The section reads:
“
172.
Powers of courts in constitutional matters
(1) When deciding a
constitutional matter within its power, a court-
(a)
must declare that any law or conduct that is inconsistent with the
Constitution is invalid to the extent of its
inconsistency; and
(b)
may make any order that is just and equitable, including-
(i)
an order limiting the retrospective effect of the declaration of
invalidity; and
(ii)
an order suspending the declaration of invalidity for any period and
on any conditions, to allow the competent
authority to correct the
defect.
(2)(a) The Supreme Court
of Appeal, the High Court of South Africa or a court of similar
status may make an order concerning the
constitutional validity of an
Act of Parliament, a provincial Act or any conduct of the President,
but an order of constitutional
invalidity has no force unless it is
confirmed by the Constitutional Court.
[Para. (a) substituted by
s. 7 of the Constitution Seventeenth Amendment Act of 2012 (wef 23
August 2013).]
(b) A court which makes
an order of constitutional invalidity may grant a temporary interdict
or other temporary relief to a party,
or may adjourn the proceedings,
pending a decision of the Constitutional Court on the validity of
that Act or conduct.
(c) National legislation
must provide for the referral of an order of constitutional
invalidity to the Constitutional Court.
(d) Any person or organ
of state with a sufficient interest may appeal, or apply, directly to
the Constitutional Court to confirm
or vary an order of
constitutional invalidity by a court in terms of this subsection.”
This court is not making
an order of constitutional invalidity and it follows that this court
cannot rely on section 172(2)(b) to
grant the temporary interdict
which the applicant prayed for, pending the return date. Furthermore,
an ample and flexible remedial
jurisdiction, for purposes of section
172(2)(b) to forge an order that placed substance over form can
follow once the court makes
findings on the dispute, not before. It
is only following its findings that a court is best placed to
determine whether the matter
called for structural interdicts or just
supervisory orders, in its quest to require parties to take steps
directed at substantive
resolution of the dispute.
[16]
Prima facie,
the
determination of the upper limit in the amended regulation 7(1) and
the disclosure threshold in the amended regulation 9 are
pending. The
responsibility to resolve the upper limit and disclosure threshold
was with Parliament, and the determination thereof
with the
President. If the return date court found that the determination was
indeed pending, it would be best positioned to decide
on what was to
be done. Persons in the position of the applicant who sought access
to information on private funding of political
parties with specific
reference to the highest limit donated at or beyond R15 million
within one financial year and/or any donations
beyond R100 000-00,
which was previous threshold, had sections 32(1)(b) of the
Constitution, the provisions of PAIA and the other
provisions of the
PPFA as amended by EMAA, some of which the first respondent referred
to in this application, to exhaust in the
interim. They are not
totally without recourse. The stage of the process in this matter did
not justify this court to usurp the
legislative functions of the
Legislature and the political judgment of the first respondent.
Whilst seized with a
rule nisi,
it would be wrong to clothe
myself with powers of review. For these reasons I make the following
order:
(a)
The application to
intervene, by the Democratic Alliance, is dismissed with costs on the
basis of scale B.
(b)
The prayer of
non-joiner by the opposing respondents is dismissed with costs on the
basis of scale B.
(c)
The application is
heard on an urgent basis and the applicant’s non-compliance
with the rules relating form, service and time
period and hearing is
condoned.
(d)
The issue of a
rule
nisi
is authorized
calling upon any interested person to show cause on 12 August 2024
(the return date), why an order in the following
terms should not be
granted.
1.1. pending the earlier
of:
(i) the finalization of
proceedings to declare sections 29(g) and (h) of the Electoral
Matters Amendment Act, 2024 (Act No.14 of
2024) (the EMAA) and
amended regulations 7(1) and 9 of schedule 2 to the Political Parties
Funding Act, 2018 (the PPFA) inconsistent
with the Constitution and
invalid, and other relief, which must be instituted within 20 days of
the order, and
(ii) the determination of
the upper limit in the amended regulation 7(1) of schedule 2 of PPFA
(the upper limit) and the disclosure
threshold in the amended
regulation 9 of schedule 2 of the PPFA (the disclosure
threshold):
1.1.1. The upper
limit shall be deemed to have been determined at R15 million per
annum;
1.1.2. The
disclosure threshold shall be deemed to have been determined at R100
000 per annum.
(e) The prayer for the
terms of the order set out above, to immediately operate as an
interim order, is dismissed with costs on
the basis of Scale B.
(f). The first and third
respondent, together with the Democratic Alliance, are to pay the
costs of the
rule nisi
jointly and severally, to be taxed on
the basis of Scale B.
(g) The applicant should
assist the Registrar to ensure that a copy of this order is publicly
displayed on a prominent notice board
where members of the public
have access, in the courthouse building.
DM THULARE
JUDGE
OF THE HIGH COURT
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