Case Law[2024] ZAWCHC 167South Africa
Member of the Executive Council for Local Government, Environmental Affairs and Development Planning, Western Cape Province v Knysna Municipality and Others (1345/2021 ; 1330/2021) [2024] ZAWCHC 167; [2024] 3 All SA 529 (WCC) (18 June 2024)
Judgment
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# South Africa: Western Cape High Court, Cape Town
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## Member of the Executive Council for Local Government, Environmental Affairs and Development Planning, Western Cape Province v Knysna Municipality and Others (1345/2021 ; 1330/2021) [2024] ZAWCHC 167; [2024] 3 All SA 529 (WCC) (18 June 2024)
Member of the Executive Council for Local Government, Environmental Affairs and Development Planning, Western Cape Province v Knysna Municipality and Others (1345/2021 ; 1330/2021) [2024] ZAWCHC 167; [2024] 3 All SA 529 (WCC) (18 June 2024)
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FLYNOTES:
MUNICIPALITY
– Senior manager –
Appointment
–
Lack
of clarity whether candidate met minimum competency requirement of
experience at senior management level – Nothing
on record to
indicate that council sought to obtain clarity before impugned
decisions taken – Appointment and employment
resolutions
were irrational and unlawful – Not authorised by
Local
Government: Municipal Systems Act 32 of 2000
, the
Local
Government: Municipal Finance Management Act 56 of 2003
and the
Competency Regulations – Council ignored relevant
considerations – Resolutions and employment contract
set
aside.
IN
THE HIGH COURT OF SOUTH AFRICA
(EASTERN
CIRCUIT LOCAL DIVISION, THEMBALETHU)
Case
No.: 1345/2021
In
the matter between:
MEMBER
OF THE EXECUTIVE COUNCIL FOR LOCAL
GOVERNMENT,
ENVIRONMENTAL AFFAIRS AND
DEVELOPMENT
PLANNING, WESTERN CAPE PROVINCE
Applicant
and
KNYSNA
MUNICIPALITY
First
Respondent
DR
SANDILE
NGQELE
Second
Respondent
ERICK
VAN ASWEGEN
Third Respondent
COUNCILLOR
PATRICK MAKHETHA
Fourth Respondent
COUNCILLOR
MERTLE GOMBO
Fifth Respondent
COUNCILLOR
MNCENDISI SKOSANA
Sixth Respondent
COUNCILLOR
SITHEMBELE NGQEZU
Seventh Respondent
COUNCILLOR
MANDLA MATIWANE
Eighth Respondent
COUNCILLOR
THANDO MATIKA
Ninth Respondent
COUNCILLOR
LORRAINE OPPERMAN
Tenth Respondent
COUNCILLOR
CLAUDINE CROUTZ
Eleventh Respondent
COUNCILLOR
MILLICENT NAKI
Twelfth Respondent
COUNCILLOR
AUBREY TSENGWA
Thirteenth Respondent
COUNCILLOR
WELCOME SALAZE
Fourteenth Respondent
MERTLE
GOMBO
Fifteenth Respondent
MNCENDISI
SKOSANA
Sixteenth Respondent
SITHEMBELE
NGQEZU
Seventeenth Respondent
MANDLA
MATIWANE
Eighteenth Respondent
THANDO
MATIKA
Nineteenth Respondent
LORRAINE
OPPERMAN
Twentieth Respondent
CLAUDINE
CROUTZ
Twenty First Respondent
MILLICENT
NAKI
Twenty Second Respondent
AUBREY
TSENGWA
Twenty Third Respondent
WELCOME
SALAZE
Twenty Fourth Respondent
DAWID
ADONIS
Twenty Fifth Respondent
AND
Case
No.: 1330/2021
In the matter between:
WILLIAM
CLAYTON
Applicant
and
KNYSNA
MUNICIPALITY
First
Respondent
DR
SANDILE
NGQELE
Second
Respondent
MEMBER OF EXECUTIVE
COUNCIL
FOR LOCAL GOVERNMENT
Third Respondent
Heard on:
1 December 2023
Delivered
on:
18
June
2024
JUDGMENT
Pillay AJ:
INTRODUCTION
1
The key issue for determination in this matter
is the lawfulness of a
decision by the Municipal Council of the Knysna Municipality (“
the
Council
”) to appoint and employ Dr Sandile Wiseman Ngqele
(“
Dr Ngqele
”) to the position of Director:
Community Services, a Senior Manager and to remunerate him on a
particular scale.
2
Three separate applications were instituted:
(a) one application was
brought by the MEC for Local Government, Environmental Affairs and
Development Planning, Western Cape Province
(“
the MEC
”);
(b) another application was brought by Mr William Clayton (“
Mr
Clayton
”); and (c) a third application was brought by the
Accountability Group under case number 1234/2021(“
the AG
application
”).
3
These applications were
consolidated pursuant to an Order of Court granted on
16
October 2023
.
[1]
On or about
30
October 2023
the
AG application was withdrawn. Accordingly, this judgment
pertains to applications brought by the MEC and Mr Clayton, as
consolidated.
4
The matter came before me on
27 November 2023
and was
postponed to
1 December 2023
in order to afford Dr Ngqele an
opportunity to file Heads of Argument.
5
At regards the substantive relief sought:
5.1
The MEC seeks Orders reviewing and setting aside the resolutions
taken by the
Council:
(a) On
29 April 2021
to appoint Dr Ngqele to the position of
Director: Community Services (“
the appointment resolution
”).
(b) On
12 July 2021
to make an offer of employment to Dr Ngqele for
the position of Director: Community Services (“
the
employment resolution
”).
(c)
On
29 July 2021
to offer Dr Ngqele a total remuneration
package of R 1 133 463.00 (“
the remuneration
resolution
”).
5.2
Mr Clayton seeks some overlapping and other different relief,
viz
:
(a)
The decision and resolution taken by the Council on
29 April 2021
appointing Dr Ngqele to the position of Director: Community
Services is unlawful, unconstitutional and is reviewed and set
aside. As stated, I shall refer to this as the “
the
appointment resolution
”.
(b)
The failure and/or refusal of the Municipal Council to appoint Mr
Clayton to the position of Director: Community Services is
unlawful, unconstitutional and is reviewed and set aside.
(c) The
Council’s decision of
29 April 2021
is substituted with
a decision appointing Mr Clayton to the position of Director:
Community Services with effect from one month
of the date of the
Court Order alternatively, with effect from such date determined to
be just and equitable by this Court (“
the substitution
order
”).
THE
LEGAL FRAMEWORK
The
Systems Act
6
The appointment and employment resolutions
must comply with the Local
Government: Municipal Systems Act No 32 of 2000 (“
the
Systems Act
”).
7
Section 56 of the Systems Act reads as follows:
“
56
Appointment of managers directly accountable to municipal managers
(a)
A municipal council, after consultation with the municipal
manager, appoints a manager directly accountable to the municipal
manager.
(b)
A person appointed as a manager in terms of paragraph (a),
must have the relevant skills and expertise to perform the duties
associated with the post in question, taking into account the
protection or advancement of persons or categories of persons
disadvantaged
by unfair discrimination.”
The
Senior Manager Regulations
8
In terms of the Local Government: Regulations
on Appointment and
Conditions of Employment of Senior Managers published under GN21 in
GG 37245 of 17 January 2014 (“
the Senior Manager
Regulations
”):
8.1
These regulations must be
read in conjunction with the Local Government: Municipal
Regulations on Minimum Competency Levels,
2007, issued in terms of
the Municipal Finance Management Act, as published under
Government Notice 493 in Government Gazette
29967 of 15 June 2007.
[2]
8.2
Selection must be
competence-based to enhance the quality of appointment decisions and
to ensure the effective performance by municipalities
of their
functions.
[3]
8.3
No person may be
appointed as a Senior Manager on a fixed term contract, on a
permanent basis or on probation, to any post on the
approved staff
establishment of a municipality, unless he or she: (a) is a
South African citizen or permanent resident; and
(b) possesses the
relevant competencies, qualifications, experience, and knowledge set
out in Annexures A and B to the Regulations.
[4]
8.4
A person appointed as a
Senior Manager in terms of these Regulations “must have the
competencies as set out in Annexure A”.
[5]
8.5
A person appointed as a
Senior Manager in terms of these Regulations “must comply with
the minimum requirements for higher
education qualification, work
experience and knowledge as set out in Annexure B.”
[6]
8.6
An application for the
vacant post of Senior Manager must be submitted on an official
application form (attached as Annexure C to
the regulations),
“accompanied by a detailed curriculum vitae.”
[7]
8.7
An applicant for a Senior
Manager post must, disclose,
inter
alia
,
his or her academic qualifications, proven experience and
competencies.
[8]
8.8
Any misrepresentation or
failure to disclose information contemplated in subregulation 3 and 4
is a breach of the Code of Conduct
for Municipal Staff as provided
for in Schedule 2 to the Act and shall be dealt with in terms
of the disciplinary regulations.
[9]
8.9
A Municipal Council must
appoint a selection panel to make recommendations for the appointment
of candidates to vacant Senior Manager
posts.
[10]
8.10
Screening of the
shortlisted candidates must take place within 21 days of the
finalisation of the shortlisting by: (a) conducting
the necessary
reference checks; (b) contacting a candidate’s current or
previous employer; (c) determining the validity of
a candidate’s
qualifications; and (d) verifying whether a candidate has been
dismissed previously for misconduct or poor
performance by another
employer.
[11]
8.11
Before making a decision
on an appointment, a Municipal Council must satisfy itself that
[12]
:
(a)
the candidate meets the relevant competency requirements for the
post,
as set out in Annexures A and B to the regulations;
(b)
screening of the candidates has been conducted in terms of
regulation
14;
(c)
the candidate does not appear on the record of staff members
dismissed for misconduct as set out in Schedule 2 to the Regulations.
8.12
Regulation 35 reads as follows:
“
35
Upper limit of total remuneration package of senior managers
(1)
The Minister must by notice in the Gazette annually determine the
upper limit of the total remuneration package of senior managers
according to different categories of municipalities.
(2)
The upper limit of the total remuneration package of senior
managers for a financial year, must be determined by the Minister
before
31 March of the following financial year, after consultation
with the Minister for Public Service and Administration, the Minister
of Finance, the MECs for local government, and organised local
government, by notice in the Gazette after taking into consideration-
(a)
the classification of municipalities according to different
grades;
(b)
the respective duties, powers and functions and responsibilities
of the municipality;
(c)
the affordability of different levels of remuneration, the number
of municipal employees, and the salary and wage bill of the
municipality;
(d)
the population, operating budget and assets of the municipality;
(e)
the current principles and levels of remuneration in society in
general;
(f)
the need for the promotion of equality and uniformity of salaries,
allowances and benefits for equal work performed;
(g)
the provision of uniform norms and standards nationally to address
disparities; and
(h)
inflationary increases.”
8.13
In Annexure B, minimum competency requirements are prescribed.
The
terms “middle management level” and “senior
management level” are defined and the competencies for
various
positions including that of a Community Services Manager and that of
other Senior Managers are prescribed. “Senior
Management
Level” is defined as:
“
A management
level associated with persons in senior management positions
responsible for supervising staff in middle management
positions, and
includes-
(a)
The municipal manager of a municipality or the chief executive
officer of a municipal entity;
(b)
Any manager directly accountable to-
(i)
the municipal manager, in the case of a municipality; or
(ii)
the chief executive officer, in the case of a municipality; or
(c)
A person that occupied a position in a management level
substantially similar to senior management level, outside the local
government
sphere;”
9
The work-related experience and knowledge of
a Community Services
Manager is identified as five years’ experience at middle
management level and having proven successful
institutional
transformation within the public or private sector.
10
The work-related experience and knowledge of other Senior Managers
is
identified as five years’ experience in: (a) good knowledge and
interpretation of policy and legislation; (b) good knowledge
of
performance management system; (c) good governance; and (d) good
knowledge of Supply Chain Management Regulations and the
Preferential
Procurement Policy Framework Act No 5 of 2000
.
The
MFMA
11
The Local Government:
Municipal Finance Management Act No 56 of 2003 (“
the
MFMA
”
)
makes clear that its provisions (which includes the Regulations
adopted thereunder) apply to all municipalities and that in the
event
of any inconsistency on any aspect of the fiscal and financial
affairs of a municipalities, the provisions of the MFMA prevails.
[13]
12
Section 83(1) of the MFMA under Part 2 which deals with “Financial
Administration” makes clear that Senior Managers “must
meet the prescribed financial management and competency levels.”
The
Minimum Competency Regulations
13
In terms of the Municipal Regulations on Minimum Competency Levels,
2007 published under GN R 493 in GG 29967 of 15 June 2007 (as amended
by GN 1146 in GG 41996 of 26 October 2018) (“
the Minimum
Competency Regulations
”):
13.1
“Senior Management Level” is defined as:
“
A management
level associated with persons in senior management positions
responsible for supervising staff in middle management
positions, and
includes-
(a)
The municipal manager of municipality or the chief executive
officer of a municipal entity;
(b)
Any manager directly accountable to-
(i)
the municipal manager, in the case of a municipality; or
(ii) the
chief executive officer, in the case of a municipality entity; or
(c)
A
person that occupied a position in a management level substantially
similar to senior management level, outside the local government
sphere;”
13.2
“Senior Manager” is defined as:
“
(a)
in relation to a municipality, means a manager
referred to in section
56 of the Municipal Systems Act; or
(b)
in relation to a municipal entity,
means a manager directly
accountable to the chief executive officer of the entity;”
13.3
Regulation 6 reads as follows:
“
6
General competency levels for Senior Managers
(1)
A Senior Manager of a municipality must generally have the skills,
experience and capacity to assume and fulfil the responsibilities
and
exercise the functions and powers assigned in terms of the Act to
that Senior Manager.
(2)
A Senior Manager of a municipal entity must generally have the
skills, experience and capacity to assume and fulfil the
responsibilities
and exercise the functions and powers assigned in
terms of the Act to that Senior Manager.
(3)
A Senior Manager must note that any failure to comply with any
financial management responsibilities, functions and powers entrusted
to that Senior Manager may constitute financial misconduct.”
13.4
Regulation 7 reads as follows:
“
7
Minimum competency levels for Senior Managers
A Senior Manager of a
municipality or municipal entity must comply with the minimum
competency levels required for higher education
qualification, work
related experience, core managerial and occupational competencies and
be competent in the unit standards prescribed
for financial and
supply chain management competency areas as set out below”.
13.5
The minimum competence levels for Senior Managers in
the present
instance requires a minimum of 7 years at senior and middle
management level, of which at least 2 years must be at
Senior
Management Level.
BACKGROUND
The
advertisement
14
On
1 March 2021
the position for Director: Community
Services was advertised by the Municipality. According to the
advertisement, the
stipulated requirements included seven years’
relevant experience at senior and middle management level, of which
two years
should be at senior management, preferably in the local
government sector.
Dr
Ngqele’s curriculum vitae
15
According to the curriculum vitae submitted by Dr Ngqele as part of
his application:
15.1
He held the position of Senior Manager: Strategic Services
at the
Mossel Bay Municipality from
1 December 2019
until present. It
is explained that the position was “to provide an efficient and
proactive strategic service to the Council,
the Municipal Manager and
the entire organisation by managing the legislative, administrative,
operational and developmental processes
associated with the
identification, facilitation, execution, implementation, monitoring,
assessing and reporting with respect to”
a range of functional
disciplines.
15.2
He held the position of Manager: IDP, PMS and
Public
Participation from
April 2016 to November 2019
. The purpose of
the position is described as to oversee and manage the provision of
Integrated Development Planning / corporate
strategic planning,
organisational performance management and public participation of the
municipality.
15.3
He held the position of part-time lecturer at South
Cape College from
February 2019 until July 2019
.
15.4
He held the position of Manager: IDP and PMS at the
George
Municipality since
March 2011 until June 2015
. This, he
described as “a professional advisory and coordinating service
to the municipality with respect to the effective
and efficient
implementation of strategic planning, organisational performance
management and public participation.”
15.5
He held the position of Manager: IDP and PMS at
the Ndlambe
Municipality from
July 2009 until February 2011
. He
describes his responsibilities as including the oversight function
for all IDP -related activities and project implementation.
The
reason given for having left was that he accepted a senior position
within a bigger municipality.
15.6
He held the position of Coordinator: IDP and Budget
Integration at
Buffalo City Metropolitan Municipality since
October 2008 until
June 2009
. He described his duties in this regard as assisting
the Manager: IDP and Budget Integration in a number of respects.
15.7
He held the position of Coordinator: IDP, Strategy and
Performance
Management at the Knysna Municipality from
January 2004 until
August 2008
. He explains that this period includes an acting
period from January 2004 to December 2005.
15.8
He held the position of Administrative Officer: Development
Facilitation and Public Participation at Knysna Municipality from
October 1999 until December 2003
.
15.9
He held the position of Field Worker/Community Liaison
Officer
(Housing Project) at Knysna Municipality from
January 1999 until
September 1999
.
The
Municipality’s assessment
16
According to the Master List for the position, it was recorded that
Dr Ngqele was a Senior Manager for Strategic Services since December
2019 to date. However, in the comments section, it was
recorded
that Dr Ngqele had no senior management experience.
17
According to the Screening Report, Dr Ngqele held a PhD
qualification.
It was noted that his financial record disclosed three
judgments and two default judgments against him and that he had
received
negative feedback from his current and previous employers.
It was further noted that his references had given positive feedback.
18
According to the minutes of the Shortlisting Panel for the position
of Director: Community Services which was held on
24 and 25 March
2021
, it was noted, amongst other things, that:
18.1
Each candidate was scrutinised through comparing their
skill sets,
qualifications and experience against the criteria for the position.
18.2
After a detailed comparison of the candidates on the
long list, five
candidates were proposed for shortlisting to the position. Mr Clayton
was among these five candidates whereas Dr
Ngqele was not among
them.
18.3
A Councillor had proposed that Dr Ngqele be added to
the shortlist.
The Panel had declined to do so “as there was concern with
regard to his lack of senior managerial experience”.
18.4
After debate on this issue, the Committee had decided
to reconvene
the next day to consider the inclusion of Dr Ngqele on the
shortlist. The Panel reconvened on 25 March 2021
and after a
detailed discussion it had agreed to include Dr Ngqele on the
shortlist.
18.5
It was recommended that the appointed service provider
be instructed
to conduct screening on the shortlisted candidates and report back to
the Panel before the interviews took place.
19
According to the Selection Report:
19.1
A total of 36 applications were received, of which one
was late.
19.2
Six candidates were shortlisted and invited to assessment
and
interview sessions which were held on
13 April 2021
. The
selection process consisted of the following primary components:
(a)
Screening process (contacting of current and previous employers,
references by candidates, verifying qualifications, financial
history, criminal status and disciplinary history).
(b) Psychometric
testing, where applicable.
(c)
Case study evaluation.
(d)
An intensive structured interview based on 15 competency
areas.
19.3
In the interviews, Dr Ngqele ranked top.
19.4
According to the knowledge and experience competencies,
Dr Ngqele was
found to have been competent in all areas. The criteria noted in
respect of Work Related Experience: “five
years’
experience at a middle management level and have proven successful
management experience in administration.”
19.5
The findings recorded that Dr Ngqele was not suitable
for appointment
for three reasons: (a) he did not conform to the requirements
of the advertisement and lacked senior managerial
experience which
may result in a costly dispute for the municipality; (b) his
personality and integrity report categorised him
in the Elimination
Frame; and (c) the Screening Report shows three judgments and two
default judgments on his financial history.
19.6
It was recommended,
inter alia
, that: (a) the Acting
Municipal Manager extend an offer of employment to Mr Clayton who was
deemed to be suitable under the
circumstances; (b) if Mr Clayton
should decline the offer or not to sign an employment contract within
one month of the Council
resolution, the position be offered to the
next qualifying candidate; (c) if the Council decided not to appoint
any of these candidates,
the Acting Municipal Manager shall be
authorised to re-advertise the position.
20
According to a report from the Municipal Manager, Dr Ngqele was noted
as not being suitable for appointment for the following reasons:
20.1
Investigation shows that he does not conform to the
requirements of
the advertisement and lacks senior managerial experience which may
result in a costly dispute for the municipality.
20.2
His personality and integrity report categorised him
in the
Elimination Frame.
20.3
The Screening Report shows three judgments and two default
judgments
on his financial history.
The
appointment resolution and notification to the MEC
21
On
29 April 2021
the Council resolved to appoint Dr Ngqele to
the position of Director: Community Services.
22
On
6 May 2021
the Acting Municipal Manager advised the MEC
that the Municipality had resolved to appoint Dr Ngqele to the
position of Director:
Community Services, subject to the
conclusion of the contract of employment and performance agreement.
Engagement
between the Office of the MEC and the Office of the Executive Mayor
23
On
10 June 2021
the MEC addressed correspondence to the
Executive Mayor, which,
inter alia
:
23.1
Set out the legislative and regulatory framework (including
the
definition of Senior Management Level) and expressed the view that
none of the positions set out in Dr Ngqele’s employment
history
“was at Senior Management Level, as contemplated in the MMC
Regulations”.
23.2
Referred to the competency assessment which was undertaken
by Steele
and Associates whereby Dr Ngqele was found to be competent but not
suitable for appointment for the reasons that it had
given.
23.3
Referred to the Council minutes which do not disclose
the reasons as
to why the Council did not resolve to appoint Mr Clayton who was the
Selection Panel’s preferred candidate.
Attempts
at obtaining and verifying information
after
the appointment
resolution had been adopted
Engagement
between the Knysna Municipality and the Ndlambe Municipality
24
On
10 June 2021
, the Knysna Municipality addressed
correspondence to the Ndlambe Municipality which stated,
inter
alia
, as follows:
“
We write to
advise that the Knysna Municipal Council at its meeting held on the
29
th
of April
2021, resolved to appoint Dr S Ngqele as the Director: Community
Service.
In terms of the
provisions of the Regulations on the Appointment and Conditions of
Service for Senior Managers, the resolution of
Council was reported
to the office of MEC Bredell.
The office of the MEC
reverted to the Knysna Municipality on even date and made the
following submissions:
“
I am of the
view that none of the below listed positions in Dr Ngqele’s
employment history was at
senior
management level
as
contemplated in the MMC regulations:”
Manager: IDP,
PMS-Ndlambe Municipality
In order for the
office of the Executive Mayor
to respond comprehensively
to
MEC Bredell, we would be pleased if you could provide us with:
-
A copy of the organogram for the directorate where Dr Ngqele
reported;
-
Whether the position of Manager: IDP, PMS at the Ndlambe
Municipality is that of a manager directly accountable to the
Municipal
Manager as contemplated in the aforementioned regulations
.
We have five days to
respond to the office of the MEC and would be pleased if you would
respond to our enquiries as a matter of
urgency…..”
(Emphasis added)
25
In response on
11 June 2021
the Manager: Human Resources at
the Ndlambe Municipality advised:
“
Kindly note
that the position occupied by Dr Ngqele at the time at Ndlambe
Municipality
reported
directly
to the
Municipal Manager and was/is a permanent position.”
(Emphasis added)
26
Also on
11 June 2021
, the Knysna Municipality followed up with
a request as to whether Mr Ngqele was a Section 56 Manager as defined
in the Systems
Act, to which the response was “no”.
Engagement
between the Knysna Municipality and the Mossel Bay Municipality
27
On
10 June 2021
, the Knysna Municipality addressed an email to
the Mossel Bay Municipality along the lines of what was stated in the
email to the
Ndlambe Municipality as quoted above.
28
The response to that email (dated
10 June 2021
) attached the
organogram and stated:
“
The position of
Manager: Strategic Services: T 16 (Dr Ngqele) at Mossel Bay
Municipality is that of a manager directly accountable
to Director
Corporate Services: Mr Edward Jantjies (section 56 position).
Dr
Ngqele is therefore not accountable to the Municipal Manager as
contemplated in the regulations
.”
The
advice sought and obtained by the Municipality from Legal Services
after
the appointment resolution had been adopted
29
According to a memorandum from the Manager: Legal Services, addressed
to the Office of the Executive Mayor and dated
22 June 2021
,
the following was noted (among other things):
29.1
Its purpose was to provide the Office of the Executive
Mayor with a
short report on the information gathered with the view of responding
to the correspondence from the office of the
MEC in relation to the
appointment of the Director: Community Services.
29.2
In order to respond to the office of the MEC in relation
to the
experience of Dr Ngqele as Senior Manager, the Manager: Legal
Services had addressed correspondence to the previous employers
of Dr
Ngqele as contained in his CV which he submitted together with his
application for the position.
29.3
All three municipalities responded: “Dr Ngqele
was not employed
by them in a Senior Manager position, as contemplated in the MMC
regulations”.
29.4
What the Council needs to consider is “whether
having had
regard to the documents attached hereto in relation to the experience
of Dr Ngqele, they regard their resolution of
29 April 2021, to
appoint Dr Ngqele to be lawful.”
29.5
It is further recorded that “should Council, after
having
considered all relevant documentation at their disposal, be of the
view that the decision is legal and will withstand scrutiny,
they may
proceed to extend an offer of employment to Dr Ngqele.” It was
however also noted that should Council be of the
view that the
decision will not pass muster, that decision must be set aside.
29.6
Reference is made to a different appointment.
According to the
memorandum “one could therefore argue that a precedent has been
established by the Knysna Municipality in
setting aside a decision
which they were of the view was invalid.”
29.7
According to the records, the decision of Council to
appoint Dr
Ngqele has never been communicated to him. It is pointed out in this
regard that vested rights would only accrue after
an offer of
employment has been extended.
29.8
The final two paragraphs of the memorandum read as follows:
“
46.
It is our considered view, having regard to the legislative
provisions, the summary of academic
qualifications and experience of
Dr Ngqele that his appointment is not legislatively permissible.
47.
In the premises, it is our recommendation that the Office of the
Mayor submit the
appointment of Dr Ngqele to Council to consider the
legitimacy of same, having regard to relevant information.”
The
Municipality’s adoption of the Employment Resolution and its
offer to Dr Ngqele
30
According to the minutes of a Special Municipal Council meeting that
was held on
12 July 2021
, it was resolved by a majority that:
30.1
The report regarding the appointment of an Acting Director:
Community
Services, be noted.
30.2
That the Acting Municipal Manager appoint Dr Ngqele
as the Director:
Community Services before the end of the day as per the official
appointment letter.
31
On
13 July 2021
the Municipality made an offer to Dr Ngqele
which stated as follows in its first paragraph:
“
We write to
advise that Council, at its meeting held on the 29
th
of April
2021 resolved to offer you the position of Director: Community
Services on a fixed term contract of 5 years, in terms
of
section
56(a)
of the
Local Government: Municipal Systems Act 32 of 2000
.”
32
A contract of employment was concluded in execution of the resolution
of the majority of Councillors, as of
1 August 2021
.
Further
engagement between the Municipality and the MEC
33
On
14 July 2021
the Municipality addressed correspondence to
the MEC advising that at its meeting on
12 July 2021
Council
resolved, by majority vote, to extend an offer of employment to Dr
Ngqele.
34
On
17 August 2021
the MEC addressed a further letter to the
Executive Mayor in which he:
34.1
Referred to his previous correspondence of 10 June 2021
and advised
that though he had not received a response to the letter, he had been
advised on 14 July 2021 by the Municipality that
it had made an offer
of employment to Dr Ngqele on 13 July 2021, which offer was made in
spite of possible non-compliance that
the MEC had brought to the
Municipality’s attention.
34.2
Explained that he had been advised by his Office, based
on the
reporting information previously submitted by George and Mossel Bay
Municipalities that none of the posts held by Dr Ngqele
at these two
municipalities are at a Senior Management Level.
34.3
Advised that the MEC had received no assurance from
the Municipality
that its Council had satisfied itself that Dr Ngqele possesses the
required senior management experience and that
the MEC had therefore
made direct contact with the Director: Corporate Services at
Ndlambe Municipality “to confirm
if the post held by Dr Ngqele
at the Ndlambe Municipality was at Senior Manager Level during his
tenure” and that a response
was awaited.
34.4
Advised further that “even in the unlikely event
that the
Ndlambe Municipality advises that the post of Manager: IDP and
PMS was at Senior Manager Level, the duration of
his appointment,
being June 2009 – February 2011, does not amount to the
required two (2) years.”
34.5
Urged the Municipality to provide its views, including
any
documentation and information it deems necessary to respond to
possible areas of non- compliance, raised in his prior
correspondence.
35
On
17 August 2021
the Municipality addressed correspondence to
the MEC advising,
inter alia
:
35.1
Council had considered the matter and had resolved by
a majority that
“they were satisfied that Dr Ngqele had the necessary
qualifications, skill, experience and expertise to
be appointed to
the position. At a special meeting of Council held on the 12
th
of July 2021, Council by majority vote resolved to extend a formal
offer of employment to Dr Ngqele. Your office was informed
of
same on the 14
th
of July 2021.”
35.2
Expressed concern at “how fixated” the office
of the MEC
had become with the appointment of Senior Managers by the current
political leadership.
35.3
Advised that the Mayor’s Office had perused personnel
files of
other persons where the office of the MEC had only submitted
comments, even at times where the Office of the MEC “knew
or
ought reasonably to have known” that an individual did not
possess the requisite academic qualifications for appointment.
35.4
Advised further that Dr Ngqele had commenced with employment
and a
contract of employment had been concluded in execution of the
resolution of the majority of Councillors, as of
1 August 2021
.
THE
APPOINTMENT AND EMPLOYMENT RESOLUTIONS WERE TAINTED BY REVIEWABLE
IRREGULARITIES
The
evidence
36
According to the MEC’s founding affidavit:
36.1
The advertisement for the position of
Director:
Community Services of the Municipality expressly indicated that
applicants should have seven years’ relevant experience
at
senior or middle management level, of which two years should be at
Senior Management Level.
36.2
It was expressly recorded that Dr Ngqele had no senior management
experience.
36.3
The Screening Report showed that Dr Ngqele was the only
candidate
with negative references from current and previous employers.
36.4
The Acting Municipal Manager’s Report recommended
the
appointment of Mr Clayton on the basis that he met all the
requirements for the advertised position.
36.5
The Selection Report stated that Dr Ngqele was not suitable
for
appointment for the following reasons:
“
Investigation
shows that he does not conform to the requirements of the
Advertisement and lacks senior management experience which
may result
in a costly dispute for the municipality;
Dr S Ngqele’s
personality and integrity report categorised him in the elimination
frame;
Our screening report
shows three judgments and two defaults on his financial history.”
36.6
The Selection Report recommended that the
Selection Panel considers the suitability of each of the candidates
in order of preference,
which is Mr WB Clayton, followed by Me S
Somnath and Me Boyce and “that the Acting Municipal Manager
extends an offer of
employment to Mr Clayton who is deemed to be
suitable under current circumstances.”
37
In response to these
paragraphs, the Councillors state as follows in their answering
affidavit:
“
21.
I set out extensively in the AAG case why those of us who voted in
favour of Dr Ngqele believed, good faith, that he has
the necessary
skills and qualifications for the position he now holds.”
38
In the Councillors’
affidavit in the AG matter, it is alleged,
inter
alia
, as
follows:
38.1
Ms Paulsen erred in her email engagement with the Ndlambe
Municipality by simply asking whether Dr Ngqele was a
section 56
manager. This question was predicated upon the misconceived
view that for one to hold senior managerial experience, one should
have been appointed to a position specifically under section 56 of
the Systems Act.
38.2
When proper regard is had to Dr Ngqele’s CV and
his experience,
he met the qualification as advertised – and as required by
law.
38.3
Dr Ngqele did have senior managerial experience. At
Ndlambe
Municipality, he held a senior managerial position so much so that he
was directly accountable to the Municipal Manager.
His position at
Mossel Bay Municipality as Senior Manager, Strategic Services also
qualifies as a senior management position. The
Panel misconstrued the
“Senior Management Level” experience requirement to mean
that a person must have been a section
56 manager.
38.4
Ms Paulsen overlooked the fact that Dr Ngqele’s
previous
position at Ndlambe Municipality was akin to a Senior Manager
position as contemplated in section 56 of the Systems Act.
Dr
Ngqele was regarded as a manager (a senior one) so much so he
reported directly to the Municipal Manager.
38.5
Ms Paulsen failed to consider whether this reality meant
that in
substance (qualitatively), Dr Ngqele satisfied the requirements
envisaged in section 56 of the Systems Act read with the
MMC
Regulations.
38.6
Ms Paulsen failed altogether to take a purposive approach
to the
interpretative task, applying as she did, a literalist style, which
has been discarded by our Courts.
39
The Councillors
allege that Dr Ngqele:
39.1
“did in fact have
senior
managerial experience
”;
39.2
had “senior (or substantially similar)
managerial experience”; and
39.3
“substantially complied with the
requirements”.
40
Dr Ngqele alleges
that:
40.1
Though he had never
held the position of director as defined in term of section 56 of the
Systems Act, he has “from time to
time acted in the capacity of
Director: Corporate Services whilst employed by the Mossel Bay
Municipality.”
40.2
He has at least 8
years’ Senior Management Level experience which is based on:
(a)
Having been employed as Senior Manager: Strategic Services at Mossel
Bay
Municipality from December 2019 up until August 2021 where he
reported to the Director Corporate Services which “entailed
the
management of the Municipality’s entire integrated development
programme (IDP) which is the overall strategy plan of
the
Municipality’s main function.”
(b)
From March 2011 to June 2015 he was employed at the George
Municipality
where he “reported to the Municipal Manager”.
(c)
From July 2009 up until February 2011 he was employed at Ndlambe
Municipality
where he also reported to the Municipal Manager.
40.3
He “has been employed in [his] current position since
the date
of [his] appointment on 1 August 2021 and [remains] so employed…”.
The
lack of clarity as to Dr Ngqele’s experience at Senior
Management Level
41
There is much
uncertainty as to Dr Ngqele’s compliance with the requirement
of
two
years’
experience
at Senior Management Level:
41.1
First
, this information does not appear from Dr Ngqele’s
CV, to which reference has been made. As indicated, Dr Ngqele’s
CV indicates that he held the position of Senior Manager: Strategic
Services at the Mossel Bay Municipality from
1 December 2019
until present, which amounts to a period of less than two years.
No other reference is made in Dr Ngqele’s CV to his
experience
at Senior Management Level.
41.2
Second
, it is clear that at the time that the appointment
resolution was adopted, the Council did not have before it evidence
of whether
his prior positions at,
inter alia
, Mossel Bay
Municipality and Ndlambe Municipality were at Senior Management Level
for a period of two years. Hence, further
information was
sought on 10 June 2021. Although the Municipality sought this
information in order for “the office
of the Executive Mayor
to
respond comprehensively
to MEC Bredell”, it appears that
the correct position is that the Municipality did not have
information before it to show
that Dr Ngqele had two years’
experience at Senior Management Level. Had this information
been to hand, it would have
been in a position to respond to the MEC
directly and without having to engage previous employers
after
the appointment resolution had been adopted.
41.3
Third
, the assertion in his CV that Dr Ngqele held a position
as a Senior Manager (with due regard to the definition of this term
in
the Competency Regulations as a manager referred to in section 56
of the Systems Act) does not accord with the feedback received
from
the Mossel Bay Municipality which stated that Dr Ngqele is
therefore not accountable to the Municipal Manager as contemplated
in
the regulations. Notably, “Senior Manager” is
defined in the Regulations (in relation to a municipality) as
a
manager referred to in section 56 of the Municipal Systems Act.
The latter provision, in turn refers to “a manager
directly
accountable to the municipal manager.”
41.4
Fourth
, based on the information provided by the Ndlambe
Municipality, Dr Ngqele had
reported directly
to the Municipal
Manager. This information however does not appear from Dr
Ngqele’s CV. This issue is further
complicated by the
fact that according to the Ndlambe Municipality, Dr Ngqele was not a
Section 56 Manager as defined in the Systems
Act.
41.5
Fifth
, according to Dr Ngqele’s answering affidavit in
the MEC’s application, he makes reference to his prior
experience
which was at Senior Management Level. This has been set
out above. This information however does not appear from the
documents
that served before the Council in the appointment process.
41.6
Sixth
, in the Heads of Argument filed on behalf of Dr Ngqele,
he disputes the contention that he lacked senior management
experience
but “conceded that he did not have the 7 years’
experience in the sense that he was not responsible for supervising
staff at middle management level … but that he had senior
management experience based on his past employment in his capacity
Senior Manager: Strategic Services…”
41.7
Seventh
, according to the Heads of Argument filed on behalf of
the Councillors the proper question was whether Dr Ngqele’s
experience
was of the type “associated with persons in senior
management positions” which often entails “supervising
staff
in middle level management positions”. The
Councillors argue that this exercise had to be done with substantive
and
qualitative reference to Dr Ngqele’s CV and the nature of
positions he held in his previous employment. There is however no
evidence before me to show that this exercise was done. This
notwithstanding, the Councillors conclude that Dr Ngqele had
the
requisite experience with due regard to the following:
(a)
At Ndlambe Municipality, Dr Ngqele held a senior managerial position
so much so that he was directly accountable to the Municipal Manager,
which was confirmed by Ndlambe Municipality.
(b)
Dr Ngqele’s managerial position at Mossel Bay Municipality,
in
which he held the designation “Senior Manager, Strategic
Services” also qualifies as a Senior Management Level position
within the contemplation of the regulation.
(c)
His experience at Ndlambe and Mossel Bay Municipalities combined
meant he (at the very least) had
more than two years’
experience at Senior Management Level.
42
It is unsurprising that there is such a remarkable lack of clarity
as
to whether Dr Ngqele met the minimum competency requirement of 2
years’ experience at Senior Management Level given that:
(a)
this information does not appear from the documents that served
before Council; (b) as a result, the Municipality had to seek
further
information
after
the appointment decision had been taken; (c)
the information that was elicited did not resolve the issue and nor
did it accord
with certain information that appeared in Dr Ngqele’s
CV and for which there is no explanation. There is nothing on
the record to indicate that the Council sought to obtain clarity on
this key issue before any of the impugned decisions were taken.
Findings
43
I agree with the
arguments advanced on behalf of the MEC and Mr Clayton that the
appointment and remuneration resolutions are vitiated
by reviewable
irregularities.
44
The following
considerations are, in my view, of key importance: (a) based on the
information that served before the Council when
the appointment
resolution was adopted, it did not have the relevant information
before it to show compliance with the threshold
requirement of two
years’ experience at Senior Management Level; (b) the
Municipality sought to obtain the information
after
the appointment
resolution had been adopted but
before
the employment
resolution had been adopted; (c) leaving aside whether it was
competent for the Municipality to seek this information
at the stage
that it did, there is no evidence before me to suggest that the
Council considered and interrogated the further
information in light
of what had already served before it in order to ascertain whether
the threshold requirement of two years’
experience at Senior
Management Level had been complied with; (d) further new evidence has
been placed before the Court in these
proceedings in circumstances
where it is unclear as to why such information was not placed before
the decision-maker and the basis
on which I am to assess the
reviewability of the impugned decisions in light of such new
information.
45
In light of the
aforegoing, I am of the view that the appointment and employment
resolutions were irrational and unlawful
because they
did not comply with and were not authorised by the Systems Act, the
MFMA and the Competency Regulations, and the Council
ignored relevant
considerations (compliance with the minimum competency regulations in
respect of 2 years’ experience at
Senior Management Level).
These are recognised grounds of review under both the principle of
legality and the Promotion of
Administrative Justice Act No 3 of 2000
(“
PAJA
”).
46
I
am also of the view that, for reasons given, the appointment
resolution and the employment resolution are
vitiated
by unreasonableness. This is a recognised ground of review
under PAJA but not under the principle of legality.
[14]
47
The reliance on substantial compliance by the Councillors fails
because,
as was argued on behalf of the MEC, the Competency
Regulations make no provision for ‘substantial compliance’.
Regulation
7 makes it clear that the competency levels it prescribes
for Senior Managers are ‘minimum competency levels’.
48
I am not satisfied that the evidence demonstrates that the
appointment
resolution and the employment resolution were (a)
influenced by bias; (b) made for an ulterior motive or purpose;
and/or (c) made
in bad faith. I am also not satisfied that the
impugned decisions were tainted by procedural unfairness
in
that they were plainly influenced by bias. I agree with the
arguments advanced on behalf of the Councillors in this regard.
49
None of these grounds of review are, in my view, sustainable on the
evidence which has been addressed above in some detail. More
particularly: (a) an improper motive was alleged but what that
motive
entailed was not identified; (b) disagreeing with legal advice does
not, in my view, without more, necessarily
disclose
bias, improper motive and/or bad faith.
THE
DECISION TO APPOINT DR NGQELE TO THE POSITION OF DIRECTOR:
COMMUNITY SERVICES WAS IRRATIONAL AND/OR UNREASONSABLE BECAUSE
HE WAS
CATEGORISED IN THE ELIMINATION FRAME AND THE SCREENING REPORT SHOWED
THAT HE HAD THREE JUDGMENTS AND TWO DEFAULT JUDGMENTS
AGAINST HIM
50
It was further argued that the Selection Report found that Dr Ngqele
was not suitable for appointment for three reasons: (a) he did
not comply with the requirements of the position and lacked
senior
managerial experience; (b) his Personality and Integrity Report
categorized him in the Elimination Frame; and (c) the Screening
Report showed that he had three judgments and two defaults on his
financial history.
51
I have already made a determination in respect of the first of these
factors.
52
As regards the latter two considerations, they do not, in my view,
found a reviewable irregularity. This is so for the following
reasons:
52.1
The criteria for the appointment of a Senior Manager
are carefully
prescribed by the legislative and regulatory framework.
52.2
Neither of these considerations are identified as relevant
criteria
in the legislative and regulatory framework.
53
In the circumstances, I conclude that this ground of challenge must
fail. In reaching this conclusion, I make clear that this is
not to suggest that these factors may not be considered in the
overall decision-making process. However, they do not, in my
view, constitute a basis on which to found a reviewable irregularity.
THE
FAILURE AND/OR REFUSAL OF THE MUNICIPAL COUNCIL TO APPOINT MR CLAYTON
TO THE POSITION OF DIRECTOR OF COMMUNITY SERVICES WAS
TAINTED BY
REVIEWABLE IRREGULARITIES
54
I accept that the decision appoint Dr Ngqele (i.e. the appointment
and employment resolutions) fall to be reviewed and set aside for
reasons indicated.
55
I also accept that the decision not to appoint Mr Clayton to the
position falls to be reviewed and set aside. I agree with the
arguments advanced on behalf of Mr Clayton that this is so for
the
following reasons:
55.1
There is no record or justification whatsoever in the
Council records
(including its minutes) for the decision not to appoint Mr Clayton as
recommended in the reports or why he was
considered unsuitable for
appointment.
55.2
The Council clearly had before it the report of the
Acting Municipal
Manager on the selection of the Director: Community Services which
recorded the findings of the Selection Report
that that Dr Ngqele was
not suitable for appointment to the position. This notwithstanding,
there is no evidence to show that the
Council engaged with these
findings.
56
In the circumstances, I am of the view that the decision not to
appoint
Mr Clayton falls to be reviewed and set aside on the basis
that relevant considerations were ignored and irrelevant were
considered
and it was, as a result, irrational. These are
recognised grounds of review under both the principle of legality and
PAJA.
57
I make clear that in reaching this conclusion I do not express any
view whatsoever on the merits of Mr Clayton’s application for
the position and whether he ought to have been appointed or
not.
REVIEWABILITY
OF THE APPOINTMENT AND EMPLOYMENT RESOLUTIONS UNDER THE PRINCIPLE OF
LEGALITY AND /OR PAJA
58
There was a dispute as to whether the appointment and employment
resolutions fall within the purview of the definition of
“administrative action” in PAJA. Though this
determination
bears on the grounds of review that apply to the
challenge, it is of little significance in the present matter given
that I find
that the impugned decisions are reviewable on grounds of
review that are recognised grounds of review under both PAJA and the
principle
of legality. I do however also make a finding of
reviewability on the ground of unreasonableness, which is a ground of
review
under PAJA and not the principle of legality. For that
reason, I am required to make a finding on whether the appointment
resolution and the employment resolution fall within the definition
of administrative action under PAJA.
Overlapping
grounds of review under both PAJA and the principle of legality
59
In
Premier, Gauteng and Others v Democratic Alliance and
Others
2022 (1) SA 16
(CC) the Constitutional Court restated
the key principles underpinning a review founded on the principle of
legality as follows:
“
[66]
It is trite that the principle of legality is but
one aspect of the rule of law, which is a value enshrined
in s 1(c)
of the Constitution. In
Fedsure
this
court held, in respect of the powers of both the legislative and
executive arms of government, that —
'it
is a fundamental principle of the rule of law, recognised widely,
that the exercise of public power is only legitimate where
lawful.
The rule of law — to the extent at least that it expresses this
principle of legality — is generally understood
to be a
fundamental principle of constitutional law. . . .
. . .
It
seems central to the conception of our constitutional order that the
Legislature and Executive in every sphere are constrained
by the
principle that they may exercise no power and perform no function
beyond that conferred upon them by law.' In terms
of the
principle of legality, the exercise of public power will only be
legitimate where lawful. Thus, to exercise more power than
what has
been conferred in terms of the law would be ultra vires. This is now
firmly settled in our law.”
60
The Court further
observed that the principle of legality has developed significantly
in our jurisprudence since
Fedsure
and that the grounds for
a legality review have expanded along with it. The
Constitutional Court summarised that they now
include lack of
authority, abuse of power, and jurisdictional facts as well as
rationality.
[15]
61
In
DA v President of the RSA
2013 (1) SA 248
(CC) the
Constitutional Court held (in the context of a legality review) that:
61.1
Both the process by which
the decision is made and the decision itself must be rational.
[16]
61.2
The conclusion that the
process must also be rational in that it must be rationally related
to the achievement of the purpose for
which the power is conferred,
is inescapable and an inevitable consequence of the understanding
that rationality review is an evaluation
of the relationship between
means and ends. The means for achieving the purpose for which the
power was conferred must include
everything that is done to achieve
the purpose. Not only the decision employed to achieve the purpose,
but also everything done
in the process of taking that decision,
constitutes means towards the attainment of the purpose for which the
power was conferred.
[17]
61.3
A failure to take into
account relevant considerations in the process of making a decision
can render it irrational where: (a) the
factors ignored are relevant;
(b) the failure to consider the material concerned is rationally
related to the purpose for which
the power was conferred; and (c)
ignoring relevant facts of a kind that colours the entire process
with irrationality and thus
renders the final decision irrational.
[18]
62
Unreasonableness is not a
ground of review under the principle of legality but is a recognised
ground of review under PAJA.
[19]
In respect of unreasonableness, the Constitutional Court has held
that the Court is required to examine the decision for
the reasons
motivating the decision reached. According to the
Constitutional Court, if the reasons advanced rationally support
the
outcome arrived at, interference with the decision on the basis of
unreasonableness would not be justified. This would be the
position
even if the Court does not agree with the reasons furnished.
[20]
The
reasonableness requirement protects parties from arbitrary decisions
which are not justified by rational reasons.
[21]
Are
the appointment and employment resolutions reviewable under PAJA?
63
The Constitutional Court has held in
Minister of Defence &
Military Veterans v Motau
2014 (5) SA 69
(CC) at paragraph
33 that the rather unwieldy definition of “administrative
action” in PAJA can be distilled into seven
elements in that
there must be (a) a decision of an administrative nature; (b)
by an organ of state or a natural or juristic
person; (c) exercising
a public power or performing a public function; (d) in terms of any
legislation or an empowering provision;
(e) that adversely affects
rights; (f) that has a direct, external legal effect; and (g) that
does not fall under any of the listed
exclusions.
64
In
Motau
,
the Constitutional Court also held that in the determination of what
constitutes administrative action: (a) courts must make a
'positive
decision in each case whether a particular exercise of public power .
. . is of an administrative character'; and (b)
a decision is not
administrative action merely because it does not fall within one of
the listed exclusions in section 1(i) of
PAJA. A reviewing court must
undertake a close analysis of the nature of the power under
consideration.
[22]
65
In this matter, the dispute between the parties focussed on whether
the impugned decisions constitute an exercise of executive power or
an administrative function.
66
In making this determination, I am guided by the following
considerations:
66.1
The determination of what
constitutes administrative action does not occur by default; the
court is required to make a positive
decision in each case whether a
particular exercise of public power or performance of a public
function is of an administrative
character.
[23]
66.2
The question of whether
the decision is taken by a public official or authority is central to
the enquiry.
[24]
66.3
The question is not
whether the action concerned is performed by a member of the
executive arm of government but rather what the
nature of the
function is.
[25]
66.4
In terms of section 156(1) of the Constitution a municipality
has
executive authority in respect of, and has the right to administer
the local government matters listed in Part B of Schedule
4 and Part
B of Schedule 5 and any other matter assigned to it by national or
provincial legislation.
66.5
Conduct of an
administrative nature is generally understood as “the conduct
of the bureaucracy…”. In this
regard, the
Constitutional Court has held
[26]
:
“
[37]
Executive powers are, in essence, high-policy or broad
direction-giving powers. The formulation of policy is a paradigm
case
of a function that is executive in nature. The initiation of
legislation is another. By contrast, '
(a)dministrative
action is . . . the conduct of the bureaucracy (whoever the
bureaucratic functionary might be) in carrying out
the daily
functions of the state, which necessarily involves the application of
policy, usually after its translation into law,
with direct and
immediate consequences for individuals or groups of individuals'
.
Administrative powers are in this sense generally lower-level powers,
occurring after the formulation of policy. The implementation
of
legislation is a central example….”
66.6
It may be useful to
consider the source of the power, though “special care”
must be exercised. Where a power flows
directly from the
Constitution, this could indicate that it is executive rather than
administrative in nature, as administrative
powers are ordinarily
sourced in legislation.
[27]
66.7
The constraints imposed
on the power should be considered, though caution must be exercised.
The fact that the scope of a
functionary's power is closely
circumscribed by legislation might be indicative of the fact that a
power is administrative in nature.
[28]
66.8
It should be considered
whether it is appropriate to subject the exercise of the power to the
higher level of scrutiny under administrative-law
review. It may be
that this level of scrutiny is not appropriate given that the power
bears on particularly sensitive subject-matter
or policy matters for
which courts should show the executive a greater level of
deference.
[29]
67
On an application of the above-mentioned considerations, I am of the
view that the appointment and employment resolutions fall within the
definition of administrative action in terms of PAJA.
I reach
this conclusion with due regard to the fact that it meets all of the
threshold elements for it to constitute administrative
action and
more particularly, it is a decision of an administrative nature and
not the exercise of an executive power in that:
67.1
It is an exercise of a public power or public function
in terms
legislation (the Systems Act and the MFMA), which adversely affects
the rights of any person and which has a direct, external
legal
effect.
67.2
Decisions concerning the appointment of Senior Managers
concern “the
conduct of the bureaucracy” in carrying out the daily functions
of the State.
67.3
There are several constraints on the exercise of the
power in that
objective minimum competencies are stipulated. As such, the
exercise of the power to appoint a Senior Manager
is carefully
circumscribed by legislation and regulations.
67.4
The power is of such a nature that its exercise ought
to be subject
to a higher threshold of scrutiny under PAJA than what would apply
under the principle of legality. It is clear from
the statutory
framework that the underlying reason for selection to be competence
based is to ultimately ensure “the effective
performance by
municipalities of their functions.” As such, the
appointment of Senior Managers are, in my view, central
to the
effective discharge by municipalities of key constitutional functions
in respect of service delivery.
67.5
The power to appoint Senior Managers does not fall within
the purview
of the exclusion of executive powers or functions of a municipal
council. The executive functions of a municipality
as
contemplated by section 156(1) of the Constitution read with Part B
of Schedules 4 and 5.
67.6
Section 11 of the Systems Act (under the heading of
Executive and
Legislative Authority) provides that the executive and legislative
authority of a municipality is exercised by the
Council of the
municipality. Section 11 further provides that a municipality
exercises its legislative or executive authority
by,
inter alia
,
establishing and maintaining an administration. Section 67(1)
of the Systems Act (under the heading of Human Resource Development)
provides that a municipality must develop and adopt
appropriate
systems and procedures
to ensure fair, efficient, effective and
transparent personnel administration, including the recruitment,
selection and appointment
of persons as staff members. These
provisions are directed at the systems and procedures (such as
recruitment policies) which
pertain to,
inter alia
, the
appointment of staff as distinct from decisions to appoint and employ
particular individuals.
68
My conclusion that a decision by a Municipal Council to appoint a
Senior Manager constitutes administrative action aligns with the
following case law where it was held that a decision by a Municipal
Council to appoint a Municipal Manager constitutes administrative
action:
68.1
In
Mlokoti
v Amathole District Municipality and Another
(1428/2008)
[2008] ZAECHC 184; 2009 (6) SA 354 (ECD) ; [2009] 2 BLLR 168 (E);
(2009) 30 ILJ 517 (E) (6 November 2008)
the
Court held that while the formulation of a municipality’s
recruitment policy may constitute executive action, its
implementation
clearly constitutes administrative action. The Court
held: “
Seen
against the enabling framework of the legislation, including the
Constitution it is clear in my view that the power given to
a Council
to appoint Municipal Managers is a necessary administrative adjunct
of its functioning.” As such, the Court
held that a
decision to appoint a Municipal Manager is an administrative act
which is susceptible to review.
68.2
In
Notyawa
v Makana Municipality and Others
(683/2017)
[2017] ZAECGHC 95; [2017] 4 All SA 533 (ECG) (24 August 2017)
at
para 46 the Court concluded that the
decisions
sought to be reviewed and set aside (which included the appointment
of a Municipal Manager) amounted to administrative
action as
envisaged in PAJA. In
Notyawa
v Makana Municipality and Others
(CCT115/18)
[2019] ZACC 43; 2020 (2) BCLR 136 (CC); [2020] 4 BLLR 337 (CC);
(2020) 41 ILJ 1069 (CC) (21 November 2019)
the majority decision of
the Constitutional Court held that it was
not
necessary to determine whether the challenged decisions were
administrative or executive actions. However, in the concurring
judgment of Froneman J, he observed that the High Court’s
determination that the impugned decision was administrative action
that fell under PAJA was unassailable but that it was not necessary
to go into any further detail on that.
69
I have considered the
matter of
Democratic
Alliance v City of Johannesburg Metropolitan Municipality and Others
(2023-041913)
[2023] ZAGPJHC 1374 (7 November 2023)
which
was argued on the basis that
“
since
‘the Council is a deliberative body which exercises both
legislative and executive functions,’ and the impugned
decisions are executive, they are most likely administrative.”
The Court disagreed with this submission and referred
to the
exception in paragraph (cc) of the definition of “administrative
action” in PAJA, noting that the executive
functions of a
Municipal Council are therefore expressly excluded from the
definition of administrative action. There can
be no dispute
that the executive functions of a Municipal Council are expressly
excluded from the definition of administrative
action. However,
I reach the conclusion, for reasons addressed, that the decision of a
Municipal Council to appoint a Senior
Manager is a decision that is
of an administrative nature and does not constitute the exercise of
an executive power.
70
In the circumstances, I agree with the arguments advanced on behalf
of the MEC that the appointment and employment resolutions are
reviewable under PAJA.
71
The remuneration resolution, in my view, clearly falls within the
purview of administrative action in that it clearly accords with the
criteria referred to above.
THE
REMUNERATION RESOLUTION WAS INCONSISTENT WITH PEREMPTORY STATUTORY
AND REGULATORY REQUIREMENTS
72
The 2020 Upper Limits Notice provides, in item
8, that the upper limits of the annual remuneration package payable
to managers accountable
to municipal managers in a ‘Category 3’
municipality are R894,447 (minimum); R1,022,226 (midpoint) and
R1,133,463 (maximum).
73
The Knysna Municipality is a ‘Category 3’
municipality by virtue of the points allocated to it in terms of
items 2,
3, and 4 of the 2020 Upper Limits Notice, read with the
table under item 5 thereof.
74
In terms of item 9.2 of the 2020 Upper Limits
Notice, the criteria for an offer of a total remuneration package at
the maximum level
are:
74.1
Relevant qualification.
74.2
Applicable
to persons who have more than 10 years’ experience as provided
in the Regulations.
[30]
74.3
Applicable to persons who have demonstrated a
superior competency as measured against the competency framework.
75
In terms of the
remuneration resolution,
Dr
Ngqele was given a total remuneration package of R1 133 463.00.
This is the maximum total remuneration package
for managers directly
accountable to the Municipal Manager in Category 3 municipalities.
76
According to a report that was sent to the Council by the Acting
Municipal
Manager it was recommended:
‘
[a]
That the Council approves the remuneration offer for the Director
Community Services at midpoint in the amount of R1 022 226.00;
[b]
That the Acting Municipal Manager inform Dr Sandile Ngqele of the
decision of the Council and conclude the contract of employment
in
accordance with (a) above.
’
77
The Councillors raised two key arguments in
opposition to the challenge to the remuneration resolution,
viz
:
77.1
First
, that
the
“Councillors
who voted in favour of the total remuneration package offered to Dr
Ngqele believed in good faith that Council
has the overriding
discretion to decide the conditions of employment of its employees,
in particular salaries.” The Councillors
go on to explain that
there can be no doubt that such a belief was reasonably held and that
while a Minister may make regulations, this does
not denude Council of its overriding discretion to determine matters
such as conditions
of employment of employees.
77.2
Second
,
the Council is a “deliberative legislative assembly with
legislative and executive powers recognised in the Constitution
itself”.
[31]
Neither the “national nor provincial government may compromise
or impede on a municipality’s ability or right
to exercise its
powers or functions”.
[32]
As such, this Court should not interpret the Upper Limits Notices
(made by a Minister) so as to deprive
in
toto
a
municipal council of the power to decide matters relating to the
terms and conditions of employment of its employees.
I
was referred to the matter of
Manana
v King Sabata Dalindyebo Municipality
[2011]
3 All SA 140
(SCA)
on
behalf of the Councillors in support of an argument that
the
Upper Limits Notices do not have the effect of depriving Municipal
Councils of their ultimate constitutional authority to decide
how
much to pay its employees.
78
I do not accept the correctness of either of the two submissions made
on behalf of the Councillors:
78.1
As to the first submission, good faith and a reasonably
held belief
is not sufficient to meet a charge of a reviewable irregularity on
the grounds brought.
78.2
As to the second
submission, the Upper Limit Notices are, in my view, clear.
They provide in clear and unambiguous terms for
minimum, midpoint and
maximum thresholds and for the threshold to be met for a
total
remuneration package at the maximum level. For me to give an
alternative interpretation to the Upper Limit Notices,
I would be
placing undue strain on the language of the notices.
[33]
79
I have carefully considered the case of
Manana
and do not
agree that it is authority for the proposition that was advanced on
behalf of the Councillors. This is so for
the following
reasons:
79.1
The principle applied in
Manana
is that ordinary
legislation is not constitutionally capable of divesting a municipal
council of its executive authority –
or any part of it –
and the construction of a statute that would produce that result must
be avoided
if
it is possible to do so
.
[34]
This principle was laid down by the Constitutional Court in
Hyundai
.
79.2
On the evidence in
Manana
,
a resolution had been adopted by the Municipal Council. It was
however argued that the resolution was not relevant because
the power
to appoint employees vests in the Municipal Manager and not in the
Municipal Council.
[35]
79.3
The Court observed that
there was a resolution by the Municipal Council which had not been
reviewed or set aside. This notwithstanding,
it was argued that
the resolution was invalid and not binding on the municipality.
According to the SCA, a duly adopted resolution
of a local authority
may not be ignored by its officials if they have a belief that it is
invalid, even if that belief is well-founded.
[36]
80
I am of the view that
the remuneration resolution is reviewable because
Dr
Ngqele did not meet the requirements prescribed in the 2020 Upper
Limits Notice to be offered a total remuneration package at
the
maximum level. The Council accordingly lacked the power to
offer Dr Ngqele a total remuneration package at the maximum
level and
consequently, the remuneration resolution was irrational and
unlawful. Moreover, the Council ignored relevant considerations
(compliance with the 2020 Upper Limits Notice). These are
recognised grounds of review under both the principle of legality
and
PAJA.
SUBSTITUTION
81
Mr Clayton argues that:
81.1
Dr Ngqele has no personal knowledge of the matters dealt
with in the
reports regarding the suitability of appointing Mr Clayton and the
recommendations that he be so appointed. Mr Clayton
relies on the
fact that the Municipality has provided no reasons in this regard and
has taken a decision not to oppose the review
and substitutionary
relief sought by Mr Clayton.
81.2
Remitting the appointment decision to the Council will
be a waste of
time, will result in further delay and unjustifiable prejudice to Mr
Clayton. It is submitted that the end result
that Mr Clayton should
be appointed to the position is in any event a foregone conclusion in
the absence of a challenge to the
contents of and recommendations in
the two selection reports before the Council. In such circumstances,
substitutionary relief
as provided for in section 8(1)(ii)(aa) of
PAJA is appropriate.
82
I am of the view that an Order for substitution would not be
appropriate
in light of the well-established legal principles as set
out by the Constitutional Court in
Trencon Construction (Pty) Ltd
v Industrial Development Corporation of South Africa Ltd and
Another
2015 (5) SA 245
(CC), with particular reference to
the following:
82.1
In exceptional
circumstances, a court has the discretion to make a substitution
order.
[37]
82.2
In our constitutional
framework, a court considering what constitutes exceptional
circumstances must be guided by an approach that
is consonant with
the Constitution. This approach should entail affording appropriate
deference to the administrator. The idea
that courts ought to
recognise their own limitations still rings true. It is informed not
only by the deference courts have to
afford an administrator but also
by the appreciation that courts are ordinarily not vested with the
skills and expertise required
of an administrator.
[38]
82.3
Given the doctrine of
separation of powers, in conducting this enquiry there are certain
factors that should inevitably hold greater
weight. The
first is whether a court is in as good a position as the
administrator to make the decision. The second
is whether the
decision of an administrator is a foregone conclusion. These two
factors must be considered cumulatively. Thereafter,
a court should
still consider other relevant factors. These may include delay, bias
or the incompetence of an administrator. The
ultimate consideration
is whether a substitution order is just and equitable. This will
involve a consideration of fairness to
all implicated parties.
[39]
83
In my view, issues of appointment of Senior Managers at
municipalities
are eminently matters that fall outside the expertise
of judicial officers, particularly in light of the range of
considerations
that are relevant to such a determination. I do
not accept that exceptional circumstances have been shown. I
also do
not agree that the outcome is a foregone conclusion.
While it is so that a preference for Mr Clayton is expressed in the
reports that served before the Council, it must be emphasised that
the Council must nevertheless bring an open mind to bear in making
the appointment and employment determinations. The role of the
Council is not to rubber stamp a particular outcome that is
supported
by the recommendations. The fact that the Council did not
consider Mr Clayton’s application at all and that
further
information came to light after the appointment resolution was
adopted (in respect of which the Council’s views are
unknown),
this Court does not consider a substitution to be the appropriate
course. I am also cognisant of the fact that
the present
composition of Council is materially different to the Council that
considered and appointed Dr Ngqele in 2021.
In these
circumstance, there is no reason to assume that they will not bring
an open mind to bear on the matter.
COSTS
84
In the MEC’s application costs are sought against the named
Councillors on the following grounds:
84.1
These Councillors voted in favour of the three resolutions
in
circumstances where they were informed and advised that the
resolutions would be unlawful and that they could be personally
liable for costs. They were further advised that they would be:
(a) in dereliction of their duties under the Systems Act;
(b) acting
with bias, bad faith and improper motive.
84.2
When the Councillors made the employment resolution,
they were fully
apprised of the findings and recommendations of Ms Paulsen and their
votes were cast in direct conflict with the
legal advice that Dr
Ngqele’s appointment was not legislatively permissible.
As such, they were motivated by bias,
improper motive and bad faith.
85
Section 28(1) of the
Local Government: Municipal Structures Act No 117 of 1998 (“
the
Structures Act
”
)
provides, under the heading ‘Privileges and immunities’,
that provincial legislation must provide ‘
at
least
’
:
“
(a)
that councillors have freedom of speech in a municipal council and in
its committees, subject to the
relevant council’s rules and
orders as envisaged in section 160(6) of the Constitution; and
(b)
that councillors are not liable to civil or criminal proceedings,
arrest, imprisonment
or damages for –
(i)
anything that they have said in, produced before or submitted to the
council or any of its committees;
or
(ii)
anything revealed as a result of anything that they have said in,
produced before or submitted to the
council or any of its
committees.”
86
The Western Cape
Privileges Act, published in terms of section 28 of the Structures
Act, provides for ‘Freedom of speech of
councillors’
(section 2) and ‘Immunity of councillors’ (section
3).
86.1
Section 2 provides:
‘
2.
Freedom of speech of councillors
(1)
A councillor has
freedom of speech in any meeting of the council of which he or she is
a member, and in any committee or subcouncil
or mayoral committee of
that council.
(2)
A councillor’s
right to freedom of speech in terms of subsection (1) –
(a)
includes
participation in the deliberations and voting on any resolution,
decision, report, paper or minutes adopted or approved
by the council
or any of its committees or subcouncils or its mayoral committee; and
(b)
is subject to the
council’s rules and orders and the Code of Conduct.’
86.2
Section 3 provides:
‘
3.
Immunity of councillors
‘
(1)
A councillor is not liable to civil or criminal proceedings, arrest,
imprisonment or damages for
–
(a)
anything that the councillor has said in, produced before or
submitted to the council of which he or she is a member, or any
committee
or subcouncil or mayoral committee of that council; or
(b)
anything revealed
as a result of anything that the councillor has said in, produced
before or submitted to that council or any of
its committees or
subcouncils or its mayoral committee.
(2)
A councillor who is not otherwise protected in terms of this Act in
respect of any
decision of a council, committee or subcouncil or
mayoral committee, is not liable to civil or criminal proceedings in
respect
of that decision if the councillor –
(a)
voted against the decision; or
(b)
where the matter concerned was not put to the vote, before the
decision was taken,
requested his or her opposition to the decision
to be recorded.’
87
In
Swartbooi v Brink
2006 (1) SA 203
(CC) the
Constitutional Court held as follows:
87.1
In making its costs
order, the High Court relied on the conduct of the appellants in
supporting the council resolutions that had
been set aside, which
falls within the purview of section 28(1)(b) of the Structures
Act.
[40]
87.2
The precise delineation
of a particular function of a council as being legislative, executive
or administrative is not determinative
of the bounds of protection
afforded by the legislation in the context of the Constitution. The
words of section 28 are certainly
wide enough to exempt members of a
municipal council from liability for their participation in
deliberations of the full council.
[41]
It does not matter whether the resolution ultimately adopted by the
full council after its deliberations can properly be
classified as an
administrative or an executive decision or a legislative act.
[42]
87.3
As regards resolutions that are subsequently set aside:
“
[19]
It was also submitted on behalf of the respondents that s 28
protection should not apply to the conduct of members
of a municipal
council in support of resolutions subsequently set aside. The basis
of the submission was that all unlawful acts
of a municipal council
are contrary to the Constitution and that neither the Constitution
nor s 28 could have contemplated protection
for conduct of members of
a municipal council in support of an unconstitutional decision.
[20]
This submission is wrong. If it were correct, the protection would
not be afforded for conduct of
any councillor in support of a
decision which had been set aside for any reason whatsoever. It would
not then matter whether the
member of the council knew that the
resolution that was being supported would be or was inconsistent with
the Constitution. A member
of the municipal council would be liable
even if she had no knowledge of the unconstitutionality of the
resolution. On this interpretation,
the section would protect only
that conduct of members of the municipal council in support of lawful
resolutions. There is no warrant
for reading this limitation into the
wide wording of the section. If the section were to protect only that
conduct in support of
lawful resolutions of a council, the protection
would, in my view, be too limited to fulfil the purpose of the
protection. That
purpose is to encourage vigorous and open debate in
the process of decision-making. This is fundamental to democracy. Any
curtailment
of that debate would compromise democracy. The protection
is not limited to conduct in support of lawful resolutions.”
88
In
Swartbooi
,
the Court also held (obiter) that interesting hypothetical questions
were raised as to the outer limits of this protection, for
example,
whether councillors would attract personal liability if they utilise
the processes of the council for a party political
or some other
ulterior purpose.
[43]
That
obiter finding does not however, in my view, find application in the
present matter given the absence of evidence in this
regard.
89
In
MEC for Local Government, Housing and Traditional Affairs, KZN
v Yengwa
2010 (5) SA 494
(SCA) the SCA held:
“
[13] In
my view the appellant's earlier insistence that the councillors
should pay the costs was futile and ill-conceived
in the light of the
decision in Swartbooi and Others v Brink and Others, which laid down
that councillors cannot be held personally
liable for costs incurred
in the performance of their functions as councillors. The appellant
would also have been aware of the
protection they enjoy, under
s
28(1)(b)
of the
Local Government: Municipal Structures Act 117 of
1998
, from personal liability for the costs of legal proceedings. It
is difficult to understand why the appellant pressed on and insisted
on payment of costs in the light of the abovementioned authority on
the point. He surely would have had access to legal advice
in the
matter. I do not see any reason why the appellant should not be
ordered to pay the costs of the councillors, even though
the appeal
is decided substantially in his favour.”
90
With due regard to the aforementioned authorities, I make the
following
findings:
90.1
Section 28 of the Structures Act exempts the named members
of the
Municipal Council in this matter from liability. In this
regard, I am bound by the decision of the Constitutional
Court in
Swartbooi
and the SCA in
Yengwa
.
90.2
While the Constitutional Court in
Swartbooi
left open
hypothetical questions as to the outer limits of this protection and
whether the protection would apply, those considerations
do not arise
on the evidence in this matter.
91
In light of the aforegoing, the question arises as to which party
ought to bear the costs of this application. The following is
of relevance in this regard:
91.1
Costs were sought by Mr Clayton against the Knysna Municipality.
91.2
The MEC sought costs against the Knysna Municipality
in the
alternative.
91.3
In the circumstances, the Knysna Municipality was fully
aware that
costs orders were being sought against it. This
notwithstanding, it did not oppose the application.
91.4
Even though the
Municipality did not oppose the application, in my view, it ought to
bear the costs given that the “root cause
of the litigation”
is the reviewable irregularities as committed by the Municipal
Council.
[44]
92
The costs referred to above do not include the costs of the
postponement
on 27 November 2023. The costs occasioned by the
postponement on 27 November 2023 was as a result of Dr Nqgele needing
an
opportunity to file Heads of Argument. In the circumstances,
I am of the view that the costs of 27 November 2023 (which shall
include the costs of two counsel where so employed), ought to be
borne by Dr Ngqele.
REMEDY
93
The first question is
whether I declare the appointment resolution, the employment
resolution and the remuneration resolution invalid.
The
Constitutional Court has held in this regard
[45]
:
“
[30]
Logic, general legal principle, the Constitution and the binding
authority of this court all point to a
default position that requires
the consequences of invalidity to be corrected or reversed where they
can no longer be prevented.
It is an approach that accords with the
rule of law and principle of legality.”
94
In light of the conclusion that I reach in respect of the merits of
the challenge, I am of the view that the appointment resolution, the
employment resolution and the remuneration resolution fall
to be
declared unconstitutional, unlawful and invalid.
95
The second question is whether I set aside the appointment
resolution,
the employment resolution and the remuneration
resolution. The Councillors submit that if the Court is to find
that the appointment
and employment resolutions are unlawful, it
should nevertheless exercise its discretion to decline to set the
resolution aside.
They advance the following grounds in support
thereof: (a) Dr Ngqele himself has “done nothing wrong”;
(b) there
would be practical prejudice to Dr Ngqele; and (c) there
would be prejudice to the Municipality as it would have to undergo
another
process of recruitment and expend monies on induction
training for a new appointee. I disagree for the following
reasons:
95.1
The issue of minimum competences of Senior Managers
is, in my view, a
central issue that has a significant bearing on the ability of a
municipality to execute its constitutional and
statutory functions.
For that reason alone, I am of the view that a Court should be slow
to depart from the prescribed threshold
in the name of just and
equitable relief.
95.2
Even at this stage, there are various unanswered questions
as to: (a)
the actual extent of Dr Ngqele’s experience at Senior
Management Level; (b) an explanation in respect of the various
inconsistencies that appear between (i) the information as initially
submitted as part of the application process; (ii) the information
that was subsequently obtained from Dr Ngqele’s previous
employers; and (iii) some of the additional new matter raised by
way
of evidence in this matter.
95.3
When ordering just and equitable relief I do not accept
that Dr
Ngqele’s interests bear paramountcy. There are competing
interests in respect of: (a) Mr Clayton and his rights;
and (b) the
Municipality and its rights and obligations and the impact thereof
for the broader public. Furthermore, Dr Ngqele
may apply for
the position as part of the process attendant on this Court’s
Order.
95.4
While it is correct that the Municipality would have
to undergo
another process of recruitment and expend monies on induction
training for a new appointee, the Municipality itself
has placed no
evidence before this Court as to why this is unduly expensive or
onerous.
96
For all of these reasons, I am of the view that the resultant
contract
that was entered into between the Municipality and Dr Ngqele
must be declared unconstitutional, unlawful and invalid and be set
aside.
97
I am of the view that the declarations of invalidity and setting
aside should be suspended for a period of six weeks in order for
alternative arrangements to be put in place.
98
The third question that arises is what becomes of decisions and
actions
that were taken by Dr Ngqele in light of the declaratory
relief that I have ordered. I am of the view that it should not
follow that all actions and decisions that he took are invalid.
This would, in my view result in chaos for the Municipality.
99
The fourth question relates to the issue of costs which I have
determined
as set out above.
100
In the circumstances I make the following order:
100.1
The following resolutions of the Municipal Council of the Knysna
Municipality
(“
the Council
”) are declared
unconstitutional, unlawful and invalid and are reviewed and set
aside:
(a)
The resolution of
29 April 2021
to appoint Dr Ngqele to the
position of Director: Community Services.
(b)
The resolution of
12 July 2021
to make an offer of employment
to Dr Ngqele for the position of Director: Community Services.
(c)
The resolution of
29 July 2021
to offer Dr Ngqele a total
remuneration package of R 1 133 463.00.
100.2
The employment contract and/or performance contract that the
Municipality
concluded with Dr Ngqele pursuant to the resolutions in
subparagraph (1) are declared unconstitutional, unlawful and invalid
and
is/are set aside.
100.3
The failure and/or refusal of the Municipal Council to appoint Mr
Clayton
to the position of Director: Community Services is
declared unlawful, unconstitutional and invalid and is reviewed and
set
aside.
100.4
The orders in subparagraphs (1) to (3) are suspended for a period of
six weeks
from the date of this Order for the Municipality to put in
place alternative measures.
100.5
Decisions taken and acts performed by Dr Ngqele in his official
capacity will
not be invalid solely by reason of the declarations of
invalidity in paragraphs (1) to (3).
100.6
Remuneration paid by the Municipality to Dr Ngqele since having been
appointed
to the position of Director: Community Services will
not be invalid solely by reason of the declarations of invalidity in
paragraphs (1) to (3).
100.7
The costs of this application (save for the costs occasioned by the
postponement
on 27 November 2024) shall be paid by the Knysna
Municipality which costs shall include the costs of the
consolidation, and shall
include the costs of two counsel where so
employed.
100.8
The costs occasioned by the postponement on 27 November 2023 (which
shall
include the costs of two counsel where so employed), shall be
borne by Dr Ngqele.
___________________________
Pillay AJ
Acting Judge of the
High Court
APPEARANCES:
For the MEC: Advocate
Michelle Norton SC & Advocate Ashleigh Christians
Instructed by: State
Attorney (Ref: S Appalsamy)
For Mr Clayton: Advocate
Sheldon Margardie
Instructed by: Shortles
Attorneys Inc. (Ref: E Shortles)
For Dr Sandile Ngqele:
Advocate Jerome van der Schyff
Instructed by: Beddy
Phillips Attorneys Inc.
For the Counsellors:
Advocate Michael Tsele
Instructed by: Nandi
Bulabula Inc.
[1]
It was ordered that the
costs in respect thereof shall stand over for later determination.
[2]
Regulation 2(2).
[3]
Regulation 6(3).
[4]
Regulation 8(1).
[5]
Regulation 9(1).
[6]
Regulation 9(2).
[7]
Regulation 11(1).
[8]
Regulation 11(4)(a).
[9]
Regulation 11(5).
[10]
Regulation
12(1).
[11]
Regulation 14(1).
[12]
Regulation 17(1).
See too Regulation 17(2).
[13]
Section 3(2).
[14]
DA
v President of the RSA
2013
(1) SA 248
(CC) at para 41.
[15]
At
para 67.
[16]
At para 34.
[17]
At para 36.
[18]
At para 39.
[19]
DA v
President of the RSA
2013
(1) SA 248
(CC) at para 41.
[20]
Duncanmec
(Pty) Ltd v Gaylard NO and Others
2018
(6) SA 335
(CC) at para 50.
[21]
Ibid
at
para 43.
[22]
Motau
at para 34.
[23]
Sokhela
and Others v MEC for Agriculture and Environmental Affairs
(Kwazulu-Natal) and Others
2010
(5) SA 574
(KZP) at para 61.
[24]
Sokhela
and Others v MEC for Agriculture and Environmental Affairs
(Kwazulu-Natal) and Others
2010
(5) SA 574
(KZP) at para 60.
[25]
President
of the Republic of South African and Others v South African Rugby
Football Union and Others
2000
(1) SA 1
(CC) at para 141.
[26]
Motau
at para 37. See
too:
Grey's
Marine Hout Bay (Pty) Ltd and Others v Minister of Public Works and
Others
[2005] ZASCA 43
;
2005
(6) SA 313
(SCA) at para 24.
[27]
Motau
at
para 39 and 40.
[28]
Motau
at para 41 and 42.
[29]
Motau
at para 43.
[30]
‘
Regulations’
is defined in the 2020 Upper Limits Notice as meaning ‘the
Local Government: Regulations on Appointment
and Conditions of
Employment of Senior Managers issued in terms of Government Notice
No. 21 as published under Government Gazette
No. 37245 of 17 January
2014’.
[31]
Fedsure
Life Assurance Ltd v Greater Johannesburg Transitional
Metropolitan Council
[1998] ZACC 17
;
1999
(1) SA 374
(CC) at para 2.
[32]
Johannesburg
Metropolitan Municipality v Gauteng Development Tribunal
2010
(6) SA 182
(CC) at para 43-4.
[33]
In
Investigating
Directorate: Serious Economic Offences and Others v Hyundai Motor
Distributors (Pty) Ltd and Others: In re Hyundai
Motor Distributors
(Pty) Ltd and Others v Smit NO and Others
[2000] ZACC 12
;
2001
(1) SA 545
(CC) (“Hyundai”)
,
the Constitutional Court held: “[24] Limits must,
however, be placed on the application of this principle.
On
the one hand, it is the duty of a judicial officer to interpret
legislation in conformity with the Constitution so far as
this is
reasonably possible. On the other hand, the Legislature is under a
duty to pass legislation that is reasonably clear
and precise,
enabling citizens and officials to understand what is expected of
them. A balance will often have to be struck
as to how this
tension is to be resolved when considering the constitutionality of
legislation.
There
will be occasions when a judicial officer will find that the
legislation, though open to a meaning which would be
unconstitutional,
is reasonably capable of being read 'in conformity
with the Constitution'. Such an interpretation should not, however,
be unduly
strained
.”
[34]
At para 14.
[35]
At para 15.
[36]
At para 20 and 21.
[37]
At para 34.
[38]
At para 43.
[39]
At para 47.
[40]
At para 12.
[41]
At para 16.
[42]
At para 18.
[43]
At para 22.
[44]
Magnificent
Mile Trading 30 (Pty) Ltd v Celliers NO
2020
(4) SA 375
(CC) at para 65 and 66.
[45]
Allpay
Consolidated Investment Holdings (Pty) Ltd and Others v Chief
Executive Officer, South African Social Security Agency and
Others
2014
(4) SA 179
(CC).
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