Case Law[2023] ZAWCHC 5South Africa
Becker v Minister of Mineral Resources and Energy and Others (3473/2022) [2023] ZAWCHC 5; [2023] 2 All SA 73 (WCC); [2023] 4 BLLR 329 (WCC) (19 January 2023)
High Court of South Africa (Western Cape Division)
19 January 2023
Headnotes
HEADNOTE:THE MINISTER AND ULTERIOR MOTIVES
Judgment
begin wrapper
begin container
begin header
begin slogan-floater
end slogan-floater
- About SAFLII
About SAFLII
- Databases
Databases
- Search
Search
- Terms of Use
Terms of Use
- RSS Feeds
RSS Feeds
end header
begin main
begin center
# South Africa: Western Cape High Court, Cape Town
South Africa: Western Cape High Court, Cape Town
You are here:
SAFLII
>>
Databases
>>
South Africa: Western Cape High Court, Cape Town
>>
2023
>>
[2023] ZAWCHC 5
|
Noteup
|
LawCite
sino index
## Becker v Minister of Mineral Resources and Energy and Others (3473/2022) [2023] ZAWCHC 5; [2023] 2 All SA 73 (WCC); [2023] 4 BLLR 329 (WCC) (19 January 2023)
Becker v Minister of Mineral Resources and Energy and Others (3473/2022) [2023] ZAWCHC 5; [2023] 2 All SA 73 (WCC); [2023] 4 BLLR 329 (WCC) (19 January 2023)
Download original files
PDF format
RTF format
make_database: source=/home/saflii//raw/ZAWCHC/Data/2023_5.html
sino date 19 January 2023
HEADNOTE:
THE
MINISTER AND ULTERIOR MOTIVES
ADMINISTRATIVE
– Review –
Executive
or administrative action
–
Minister
discharging director at Board of National Nuclear Regulator –
Administrative action – Audi principle
applying especially
with allegations of misconduct – Minister predetermining
decision and acting in bad faith and
with ulterior motives –
Decision reviewed and set aside.
(Western
Cape Division, Cape Town)
Reportable
Case
No: 3473/2022
In
the matter between:
PETER
BECKER
Applicant
vs
MINISTER
OF MINERAL RESOURCES & ENERGY
First Respondent
NATIONAL
NUCLEAR REGULATOR
Second Respondent
CHAIRPERSON
OF THE BOARD OF DIRECTORS
OF
THE NATIONAL NUCLEAR REGULATOR
Third Respondent
JUDGMENT
DELIVERED 19 JANUARY 2023
MANTAME
J
A
Introduction
[1]
This is an application for judicial review of a decision by the first
respondent (“
the Minister
”) to discharge the
applicant (“
Mr Becker
”) as a director of the third
respondent (“
the Board
”) for misconduct in terms
of section 9(1)(c) of the National Nuclear Regulation Act 47 of 1999
(“
the Act
”). Mr Becker was discharged from his
position pursuant to some utterances or statements he made and were
recorded in an article
published in the online magazine ‘
Energize’
on 30 June 2021 and some further reasons that were put forward by the
Minister. Mr Becker does not dispute such statements, but
contends
that if due regard is heard to his statements, there were no grounds
to sustain a conclusion of misconduct, and that the
Minister’s
decision is vitiated by various irregularities, bad faith and an
ulterior purpose, and is accordingly unconstitutional,
unlawful and
invalid.
[2]
The first, second and third respondents opposed this application on
the basis that
Mr Becker’s statements and actions evidenced
that he had allowed himself to be caught in a conflict of interest.
This, on
its own constitutes misconduct which justified a discharge
from his directorship in terms of section 9(1)(c) of the Act by the
Minister.
B
Factual Background
[3]
On 10 June 2021, the Minister appointed Mr Becker as a non-executive
director of the
Board of the second respondent
(“the
Regulator
”) in terms of section 8(4)(a)(iii) of the Act.
Essentially, Mr Becker represented communities who may be affected by
nuclear
activities on the Board. His appointment emanated from his
nomination to this position by a number of civil society
organisations
including the Koeberg Alert Alliance (“
the
KAA
”), the Southern African Faith Communities Environmental
Institute, and the Pelindaba Working Group. Mr Becker was the
spokesperson
of the KAA before his appointment to the Board and
remained as such after his appointment as a director of the Board.
The KAA is
an informal group of approximately 1080 individuals who
are concerned about the safety of the continued use of nuclear power
in
South Africa and has called for a review of such use. The KAA made
its views known that it is concerned about the safety of the
nuclear
activities at Koeberg Power Station (“
Koeberg
”)
and is opposed to the further building of reactors at Koeberg, and is
further concerned about Koeberg’s lifespan
being extended on
its expiry in 2024. As a spokesperson for the KAA, Mr Becker held
these views when he was appointed by the Minister.
[4]
Mr Becker stated that, at the time of his appointment, his position
concerning nuclear
safety at Koeberg were known by the Minister and
were not hidden. Prior to his appointment, he delivered his
curriculum vitae
to the Regulator which clearly reflected his
personal views on the desirability of nuclear activities. Likewise,
in his letter
of nomination, the KAA described itself as ‘a
group of community members in South Africa concerned about nuclear
power and
in particular Koeberg Nuclear Power Station just outside of
Cape Town.’
[5]
Days after his appointment, Mr Becker was said to have made these
contentious remarks
and was quoted in an article published in the
online magazine
Energize
on 30 June 2021. The article is
titled ‘
Thyspunt nuclear hearings distract from Koeberg
problems,’
and it is undisputed that he stated as follows:
(a)
“It is disappointing to see money and time being spent on
pursuing nuclear power for
the Thyspunt site after the government had
stated that there was no money to fund a new nuclear build.”
(b)
“The existing Koeberg plant is more of a concern, where Reactor
1 was down since January
due to an increasing leak rate of a steam
generator within the containment building. The plant manager Velaphi
Ntuli was then suspended
on 4 June 2021 and two (2) weeks later
Reactor 1 was running again. Was the leak actually fixed in that
short period or did the
new acting plant manager override Ntuli’s
concerns? We call for transparency and that Ntuli be allowed to speak
publicly
about his decision not to restart the reactor.”
(c)
“We should be worrying about the safety of the existing plant
at Koeberg, especially
as it approaches the end of its design
lifetime.”
(d)
“There are several issues that need to be addressed before the
Koeberg plant can be
considered safe by modern standards, and that
will come with a significant cost. Much like, an old car, there comes
a time when
it is just not worth repairing it to the point where it
is as safe as a new car. It was unwise to spend money refurbishing
the
plant before finding out what would have to be done to obtain a
licence to extend its life. We are probably going to have load
shedding for the next two (2) or three (3) years. It will only make
the situation worse to repeatedly shut down Koeberg for refurbishing
work over that time. Eskom has said the refurbishing of Koeberg to
allow the life extension would cost R20 billion. Based on other
large
Eskom projects, this is likely to double or even triple.”
[6]
In this article, Mr Becker said he was quoted as the spokesperson of
the KAA. He did
not purport to represent the Board. On 5 July 2021,
he concluded an individual performance agreement (“
IPA
”).
He was thereafter inducted as a member of the Board on 8 July 2021.
According to Mr Becker, the article was published
before he had
performed any duties as a director of the Board, and before he
received any information or documents from the Regulator
in relation
to his performance of those functions.
[7]
On 15 July 2021, the Technical Committee of the Board held its
meeting online. After
the conclusion of the meeting, Mr Becker
requested two (2) documents, related to the presentation of Ms Louisa
Mphete
(“Ms Mphete”)
on a report back on the most
recent emergency drill conducted by the Regulator at Koeberg and
which described two (2) instances
of non-compliance observed during
the drill. According to Mr Becker this request was in response to the
information received during
his induction from the Chairperson of the
Board, Dr Thapelo Motshudi
(“Dr Motshudi”)
that
they could request information from any staff member of the Regulator
at any time if it was necessary to fulfil their oversight
duties.
[8]
On 19 July 2021, Mr Becker communicated with Mr Gino Moonsamy (“
Mr
Moonsamy
”), the Regulator’s Communications and
Stakeholder Relations Manager and informed him that he would be
“hosting
a meeting of civil organisations in his (my) capacity
as rep (
sic
) on the Board. The goal is to collect the top
concerns/questions relating to nuclear safety across organisations”.
He enquired
further what appropriate channels are available for civil
society to raise concerns around nuclear safety.
[9]
On 22 July 2021, he convened a two-hour virtual meeting with civil
society organisations
and did not do so as a representative of the
Board, and did not purport to do so as a representative of the Board.
Indeed, various
issues were raised around nuclear safety. He noted
and collated them so as to provide to the Regulator as he promised in
his email
exchanges with Mr Moonsamy of the Regulator. At the end of
this meeting, Mr Becker sent an email to Mr Moonsamy that indicated
various issues that emerged from the meeting, in particular,
concerning the process and sequence by which authorisations are
granted.
In response to this email, it appears that there was a
confusion between Mr Moonsamy and Dr Bismark Mzubanzi Tyobeka (“
Dr
Tyobeka
”) the CEO of the Regulator. Dr Tyobeka was of the
opinion that he met civil society organisation as a representative of
the
Board. Mr Becker said, he certainly did not do so. However, it
appears that one of the reasons for his discharge was that he
allegedly
represented the Board without authority to do so. This, Mr
Becker said, is not true.
[10]
Similarly, on 27 July 2021, Mr Becker sent an email to the
Chairperson of the Board, with the
subject heading “Request for
guidance – incremental decisions.” In this email, Mr
Becker raised the same concerns
that he had addressed in his
“
Energize”
article regarding the inappropriateness
of allowing Eskom to spend money on “incremental steps”
at Koeberg (including
a major project to replace steam generators).
The Minister stated that this was in anticipation of an application
to extend its
life span after July 2024. The Minister’s concern
was that Mr Becker plainly indicated that this consideration of
economic
viability, or desirability should shape the way the Board
dealt with applications regarding Koeberg. It was stated by Mr Becker
that it is untenable that his request for information could be
construed as misconduct. Mr Becker referred to an issue which came
up
at a meeting of the Technical Committee of the Board concerning
“steps that are being approved at Koeberg relating to
the steam
generator replacement process and other aspects of LTO (“
Long
Term Operation
”).” He questioned the current licence
for Koeberg that was expiring in 2024, and the replacement of steam
generators
in 2022 that is not economically viable if the life of the
plant is not extended after July 2024. His concern was whether the
Regulator
was “at risk of in effect giving tacit approval for
LTO by approving all these processes so close to the end of the
current
licence”.
[11]
Mr Becker stated that his queries regarding the Long Term Operation
at Koeberg and the potential
extension of its operations and licence
were made internally to the Chairperson and other members of the
Board. His conduct was
in no way inconsistent with his duties and
functions as a member of the Board. At no stage did he bring the
Board into disrepute.
[12]
As a result thereof, on the Regulator’s first Board meeting of
29 July 2021, a portion
of the meeting was dedicated to the conduct
of Mr Becker. The Board felt that Mr Becker conflated his activist
work, and his function
on the Board; he might have breached various
provisions of the Act, which would constitute an offence; he found
himself in a self-created
conflict between his functions for the KAA,
and that which he did as a member of the Board; this conduct might
require an independent
legal opinion to inform the Board on the way
forward and might also necessitate the referral of the matter to the
Minister. It
is on this background that the Board resolved to obtain
an independent legal opinion on this matter. MacRobert Attorneys was
subsequently
instructed by the Board to give an opinion in respect of
Mr Becker’s conduct.
[13]
A day after the Board meeting, that is, 30 July 2021, Mr Becker sent
an email to the Chairperson
of the Board in which he advised that his
meeting of 22 July 2021 had been held virtually and was attended by a
group of over thirty-five
(35) activists from organisations concerned
with issues of radiation and nuclear safety. Mr Becker had been asked
to relay their
concerns regarding access to the Board’s
meetings and applications for nuclear authorisations, and to request
that public
participation process started sooner. These participants,
it was recorded, they sought a suspension or termination of the
National
Nuclear Regulator’s process in considering an
application from Eskom to approve a site for the proposed new nuclear
power
station at Thyspunt in the Eastern Cape (known as a Nuclear
Installation Site Licence or NISL).
[14]
On 18 August 2021 Mr Moonsamy received an email from a reporter,
Francesca Villette querying
whether Eskom has as yet submitted a
safety case for the extension of the lifespan of Koeberg.
[15]
On 6 October 2021, the Board received a legal opinion from MacRobert
Attorneys
(“MacRobert’s opinion”)
, which
amongst others, recommended the discharge of Mr Becker from the
Board. Pursuant to this opinion on 7 October 2021, the Chairperson
of
the Board addressed a letter to the Minister requesting that he acts
based on this opinion. On 14 October 2021, the Minister
received a
correspondence from Mr Becker which placed on record his disagreement
with MacRobert’s opinion and the purported
facts upon which it
was based. On 29 October 2021 a meeting of the Board was held to
discuss this opinion. The Board decided to
wait for the Minister’s
response on this opinion. It agreed to afford Mr Becker an
opportunity to respond in writing to the
allegations against him.
[16]
In turn, Mr Becker procured his own legal opinion and was transmitted
to the Minister on 17 January
2022 which substantively differed with
MacRobert’s opinion. On 18 January 2022, the Minister addressed
a letter to Mr Becker’s
attorneys advising that, as the
allegations levelled against him are of a serious nature, and his
continued presence on the Board
may prejudice its efficient
functioning, the Minister considered it prudent to suspend Mr Becker
with immediate effect, pending
a final decision in terms of Section
9(1) of the Act. Mr Becker was afforded an opportunity to furnish
written representations
as to why he should not be discharged from
office as a director of the Board. On the same day, Mr Becker states
that a sub-committee
of the Board held a meeting which began at
09h00. Even though the Minister suspended him on that day, at 14h00
when he received
the letter of suspension, he was already excluded
from accessing Board documents, and precluded from receiving meeting
invitations
and Board packs.
[17]
It was then that he launched an urgent application to this Court
seeking an order (i) declaring
that the suspension decision was
ultra
vires
the Minister’s powers in the Act and therefore
unlawful; (ii) that while the Minister has the statutory powers to
appoint
directors to the Board (Section 8(4)(a) of the Act) and to
discharge directors of the Board from office (Section 9(1) of the
Act),
he has no express power in terms of the Act or otherwise in law
to suspend a director. Such power is also not implied by the
provisions
of the Act or otherwise by the law; (iii) and an order
reviewing and setting aside the suspension. This application was
settled
by the parties on the basis that Mr Becker would provide
written representations to the Minister by 11 February 2022; the
Minister
would by 15 February 2022 decide whether to discharge him;
the Board and its committees would not hold any meeting or make any
decisions pending the Minister’s decision.
[18]
On 2 February 2022, after Mr Becker’s suspension, he was again
quoted on Daily Maverick’s
online news platform in an article
titled “
Koeberg nuclear power plant rejuvenation: Protesters
say silence is a killer (first published on 16 December 2021).”
In this article, Mr Becker was quoted as the spokesperson of KAA
and he stated that “a safety case study for the extension
of
the lifespan of Koeberg is not one for a bunch of engineers to decide
alone, but rather one that should involve consultation
with members
of the public … This has a moral component, a society
component, an intergenerational ethics component –
this is not
for a bunch of engineers to decide alone. That is why the community
needs to be consulted and the public needs to have
their say.”
According to the Minister, this is nothing short of a clarion call
for the Regulator to base its decision on
its own assessment of
desirability, rather than a safety case.
[19]
As agreed, Mr Becker provided written representations to the Minister
dated 9 February 2022 under
cover of a letter from his attorney dated
10 February 2022. In his representations, Mr Becker pointed out that
MacRobert’s
opinion made allegations against him. The Minister
had not indicated the basis on which he was considering discharging
him. There
are three grounds under Section 9(1) of the Act on which a
director may be discharged. The Minister did not indicate which
ground
was alleged to apply to him, and what factual basis it was
alleged to apply. He emphasised that his views and membership of the
KAA were known when he was appointed, and did not give rise to an
impermissible conflict with the position as a director. Further,
having diverse views on the Board enhances its ability to regulate
nuclear activities safely. Furthermore, he had never purported
to
represent the Board when meeting civil society organisations. He has
not disclosed confidential information when he was quoted
in the
meeting. He was merely quoted as a spokesperson for KAA. By making
internal inquiries around the conduct and decision-making
of the
Regulator, he has not caused any disruption. Lastly, he has not made
any defamatory statements about the Board or Regulator
or the
Regulator’s employees.
[20]
On 15 February 2022, Mr Becker received a correspondence from the
Minister in response thereto,
conceding that he had not indicated the
grounds on which he was contemplating discharging him. The Minister
proceeded to state
the grounds on which he was considering
discharging him. He further provided him with an opportunity to make
representations by
18 February 2022 and undertook to make a decision
as to his discharge by 23 February 2022.
[21]
After an engagement on these timelines with legal representatives of
the parties, it was agreed
that Mr Becker would actually provide his
submissions by 21 February 2022 and the Minister would make his
decision by 25 February
2022. Mr Becker having furnished the
submissions on 21 February 2022, the Minister discharged him on 25
February 2022 on the basis
of misconduct in terms of section 9(1)(c)
of the Act. In essence, the Minister discharged him on the basis that
he had a conflict
of interest which arose from him having expressed
critical views concerning the desirability of nuclear energy. Mr
Becker pointed
out that the Minister’s decision is vitiated by
multiple material irregularities, irrationality, unreasonableness and
unlawfulness.
C
Issues
[22]
This Court is called upon to decide whether there are valid grounds
to sustain a conclusion of
misconduct by the Minister, and / or
whether the Minister’s decision is vitiated by various
irregularities, bad faith and
an ulterior purpose, and is therefore
accordingly unconstitutional, unlawful and invalid.
D
The Impugned decision
[23]
Mr Becker stated that it is important for this Court to identify
precisely what the Minister’s
reasons were for discharging him
on 25 February 2022, and to differentiate them from new matter and
reasons on which the respondents
now seek to rely on in this
application.
(i)
Reasons for discharge on the correspondence dated 25 February 2022
[24]
In the correspondence of 25 February 2022, the Minister acknowledged
that the Regulator is an
independent regulator that does not promote
or oppose nuclear activities in South Africa and its primary concern
is with the safe
conduct of nuclear activities in South Africa. The
Minister confirmed that Mr Becker’s appointment on 10 June 2021
is that
of a non-executive director in terms of section 8(4)(a)(iii)
of the Act (as a person representing communities which may be
affected
by nuclear activities). Mr Becker, in accepting such an
appointment, entered into a fiduciary relationship with the Regulator
and
its Board, and accepted the common law obligations to display the
utmost good faith towards the Regulator, and in his dealings on
its
behalf. A position of directorship at a regulatory body such as the
Regulator entails serving the public interest. This position
places
an even higher duty on a director to act independently and with the
utmost good faith.
[25]
The Minister made reference to various documents that were issued to
Mr Becker during his induction
and therefore agreed to conduct
himself as guided and abide by them. Shortly after his appointment,
Mr Becker conducted himself
in a manner which was of concern to the
Board. The Minister
inter alia
stated that:
25.1 Mr Becker made
statements to ‘
Energize’
magazine. These
statements created an impression that a member of the Regulatory
Board was against a process run by the Regulator
and suggested that
the Regulator and the Government had not taken seriously their
regulatory and oversight obligations with regard
to the Koeberg
Nuclear Power Station (“
Koeberg
”).
25.2 Mr Becker made
communication to the Chairperson of the Regulatory Board suggesting
that the Board had made ‘incremental
decisions’ that
would disable it from making an objective decision in relation to the
extension of Koeberg lifetime. Further,
the Regulatory Board would
not be able to bring an unbiased mind to the question of whether the
life of Koeberg should be extended,
thereby ignoring their fiduciary
duties.
25.3 Mr Becker in
his engagement with civil society groups, created an impression that
he was representing the Board. The
Board Charter is clear that the
Chairperson is the spokesperson of the Regulatory Board, unless those
functions have been delegated
to some other individual.
25.4 Mr Becker made
public statements to suggest that the Regulator and the Government
will not diligently and properly carry
out the Constitutional
statutory obligations in regard to any decision as to whether to
extend the life of Koeberg. These statements
were made despite Mr
Becker being advised by the Chairperson of the Regulatory Board that
any decision related to the extension
of the life of Koeberg will
only be taken in strict compliance with the Act and once the public
and all stakeholders have been
consulted.
25.5 Whether Mr
Becker was inherently and indirectly conflicted in his role as an
anti-nuclear activist and the spokesperson
for KAA, and his role or a
member of the Board.
[26]
The Minister’s concern was that while Mr Becker was appointed
to the Regulatory Board to
represent communities which may be
affected by nuclear activities, his conduct should reflect the
totality of all communities and
not one organisation. Mr Becker
confirmed that it is only the KAA that is opposed to any new nuclear
plants being established,
as well as the extension of the life of
Koeberg. If he holds those views, he could be unable to make an
objective decision when
presented with objective, scientific evidence
in respect of the extension of the life of Koeberg and any decision
he would make
in that regard will be prejudicial as he has made his
views known.
[27]
Proper governance in Minister’s view entails that every member
of the Board, irrespective
of their personal views, regardless of
their appointment category, should bring an independent mind to bear
in an unbiased, fair
and even-handed manner when making decisions.
The Minister stated that conflict of interest does not only arise
from financial
conflict or to assets or property but includes
personal affiliations, associations and confidential information. The
Constitutional
rights to freedom of expression and association that
Mr Becker has asserted did not prevent him from being disqualified as
a director
if he was conflicted.
[28]
Having said so, the Minister stated that Mr Becker placed himself in
a position in which he has
a personal interest which conflicts with
his duties to the Regulator, he publicly vocalised his opinions on
nuclear activity and
his opposition to the lifespan extension of
Koeberg, which is in conflict with the independent / neutral role and
functions of
the Regulator. There can be little doubt on how he would
vote, were he still to be a member of the Regulatory Board, he was
therefore
unqualified to make a decision on the Board; Mr Becker’s
continued involvement, when he was unable to bring an independent
mind to bear on decisions in relation to the safe operation and / or
extension of Koeberg, because he has already indicated his
position,
in the Minister’s view, amounts to misconduct. Mr Becker hosted
meetings with civil society organisations either
in his capacity as a
member ‘
on’
or ‘
of’
the
Regulatory Board and gave the impression that he was acting on behalf
of the Regulatory Board, with no authority to do so.
He has acted in
conflict with his obligations both in law and in contract; and
according to the Minister the conflict of interest
that existed is
material and fundamental as it is impossible for him to avoid or
manage the actual conflict as well as the appearance
of conflict. It
would on the face of it appear that he had no hesitation to make the
public aware of his conflict. With those reasons,
the Minister was
satisfied that Mr Becker has committed misconduct and discharged him
from office as director of the Regulatory
Board with immediate
effect.
(b)
Reasons for discharge in the respondent’s answering affidavits
[29]
Mr Becker stated that it is impermissible for the Minister being a
decision-maker in an affidavit
opposing review proceedings to
supplement or give different reasons for a decision, to those that it
provided contemporaneously
when the decision was made.
[1]
The decision-maker is bound by the reasons it provided when making
the decision. Reasons provided after the fact (in litigation)
amount
to a “
moving
target
”
and “
it
is a fundamental principle of administrative law that judicial review
of agency action is limited to the ground that the agency
invoked
when it took the action.
[2]
Similarly, the Chairperson of the Regulatory Board was accused of
advancing reasons that did not form part of the Minister’s
decision.
[30]
The Minister, it was said, may therefore not assert new reasons and
different allegations and
accusations to justify his decision.
Equally, the Chairperson of the Regulatory Board cannot advance
reasons and allegations which
did not form the basis of the
Minister’s decision. There is some irony in the Minister
accusing Mr Becker of raising irrelevant
matters in his papers, where
the shoe is in fact on the other foot. Mr Becker highlighted three
(3) different reasons proffered
impermissibly by the Minister and the
Chairperson of the Regulatory Board.
[31]
First
, in his affidavit, the Minister abandoned the contention
that Mr Becker holds certain views concerning the desirability of
nuclear
energy and therefore automatically disqualified himself from
bringing an independent mind as a member of the Board to making
decisions
concerning the safety of nuclear activities. It was stated
that the Minister had to disavow that reason because:
31.1 It is
unrealistic to expect persons sitting on the Board not to have any
views concerning the desirability of nuclear
energy or other
activities. Some other members of the Board indeed have positive
views about desirability. This reasoning demonstrated
an
irrationality in the Minister’s decision as there is no
necessary link between a person’s views as to desirability
and
their views about safety.
31.2 In his
answering affidavit the Minister contends that Mr Becker should
however be singled out because, Mr Becker had
shown “single-minded
commitment to promote his own political views that led to the
ineluctable conclusion that he could not
remain true to his neutral
role as a director of the Regulator, as well as his legal and
contractual obligations to the Regulator.”
31.3 The publicly
expressed views of Mr Becker concerning desirability are said to be a
“contagion” that would
“infect” the Board’s
decision-making.
31.4 The Minister
cannot now abandon a reason which he gave when he made the decision,
and which demonstrates the irrationality
of his decision, in favour
of a new argument. If the reason he initially gave was bad he cannot
now abandon or change the reason.
It was stated that on his own
version at the time, the “bad” reason influenced his
decision: “Once the bad reasons
played an appreciable or
significant role in the outcome, it is … impossible to say
that the reasons given provide a rational
connection to it …
The same applies where it is impossible to distinguish between the
reasons that substantially influenced
the decision, and those that
did not.
[3]
[32]
Second
, that Mr Becker’s conduct has harmed the Board’s
reputation. It was said that much of the Chairperson’s
affidavit
attempted to support this proposition.
32.1 Mr Becker
stated that before the Minister discharged him he called for
submissions and accused Mr Becker of harming the
Board’s
reputation. Mr Becker addressed this accusation in his written
representations, and had denied having harmed the
Board’s
reputation.
32.2 From the
summary of the official reason for the decision, the Minister did
include the harming of the Board’s reputation
as a reason. He
jettisoned this ground clearly because he accepted Mr Becker’s
submission that there was no reputational
damage to the Board. This
ground cannot now be resuscitated to justify the decision.
32.3 For the first
time in his answering affidavit, the Minister referred to a Daily
Maverick article published in December
2021. In the article, Mr
Becker is quoted to have referred to Eskom employees as “bunch
of engineers” and that the
decision to extend the lifespan of
Koeberg is both a technical one, and a political, economic and social
one. It was said that
the Minister has clearly misunderstood what Mr
Becker said and now seeks to rely on to justify his decision. Mr
Becker said, a
decision to extend the Koeberg lifespan is
self-evidently partly technical and partly policy-based.
32.4 Also reference
was made to a KAA statement for which Mr Becker was not responsible.
It stated certain facts about how
the Regulator received most of its
funding from licence applications by Eskom and the Minister draws
conclusions therefrom. The
Minister, it was said did not put this to
Mr Becker before he made the decision. Mr Becker would have an answer
if he was invited
to provide one.
32.5 The
Chairperson of the Board suggested that Mr Becker had reduced the
staff morale at the Regulator. This was said to
be a conclusory
statement. No evidence was produced to show that indeed this
occurred. In any event, it cannot be used so belatedly
to justify the
Minister’s decision.
[33]
Third,
the Chairperson of the Regulator stated that Mr Becker
is said to have refused to recuse himself from decisions and
discussions
concerning the extension of Koeberg’s lifespan. Mr
Becker stated that this reason is untenable. If such a decision will
only
be made in 2024 it is unclear how Mr Becker failed to recuse
himself. Not a single example is provided of a meeting where Mr
Becker
should have recused himself, but did not do so. Nothing was
said about other Board members who have positive views about
desirability,
having to recuse themselves. It was contended that the
new reasons were addressed in order to demonstrate that the
Minister’s
references to new reasons is invalid.
[34]
In response thereto, the Minister asserted that the decision to
discharge Mr Becker was an exercise
of “
administrative
action
”
subject to review in terms of the grounds in section 6(2) of the
Promotion of Administrative Justice Act 3 of 2000 (“
PAJA
”).
Alternatively, he suggested that the same grounds apply pursuant to
this Court’s power to review the Minister’s
decision
based on “
legality
review
,”
in terms of section 1(c) of the Constitution. In
Gijima
,
[4]
it was stated that the characterisation of the impugned actions
cannot be side-stepped. The Court held that it had to determine
whether PAJA applied, and only revert to legality review as “
a
safety net
”
or a measure of last resort when the law allows no other avenues to
challenge the unlawful exercise of public power. It
cannot be the
first port of call or an alternative path to review, when PAJA
applies.
[35]
Mr Becker’s contention was that whether or not a section 9(1)
decision to discharge him
is an administrative action, the principles
of
audi
alteram partem
apply
to the Minister’s decision. In
Motau
,
Khampepe J observed that “
our
law has a long tradition … of strongly entrenching audi
alteram partem (‘hear the other side’) which attains
particular force when prejudicial allegations are levelled against an
individual.
”
[5]
It was pointed out that “
dismissal
from service has been recognized as a decision that attracts the
requirements of procedural fairness.
”
[6]
[36]
Mr Becker’s submissions were that Ackerman J held in
Mohamed
that:
[7]
“
as a matter of
statutory construction, the audi rule should be enforced unless it is
clear that the Legislature has expressly or
by necessary implication
enacted that it should not apply or that there are exceptional
circumstances which would justify a court
not giving effect to it
.”
[37]
It was stressed that the accusations of misconduct by a Minister call
for an opportunity to be
heard before an adverse decision is made.
There is nothing in the Act which contemplates that the
audi
principle should not apply to decisions to discharge directors.
The opposite is the case: in light of the purpose of the Act and
how
closely circumscribed the power is the
audi
principle further
constrains the Minister’s power to remove directors of an
independent body which oversees the conduct of
his department.
[38]
The Minister disagreed with this contention and stated that Mr
Becker’s argument regarding
procedural fairness in respect of
the general public find no application if the Minister’s
decision is characterised as executive
action.
[8]
His decision to dismiss Mr Becker is clearly an executive act
provided for under national legislation as envisaged in section 85(2)
of the Constitution. As such, it was argued, it is excluded from the
application of PAJA. In
Masetlha,
the
President’s power under the Constitution and Legislation to
appoint and dismiss the Director-General of the National Intelligence
Agency, was found to be executive in nature.
[39]
In
Motau
, the Minister stated, the Constitutional Court had to
similarly characterise a Ministerial decision to dismiss members of
Armscor’s
board of directors. The Court held that whether the
Minister’s decision amounted to administrative or executive
action is
important: If it amounts to administrative action, it is
subject to a higher level of scrutiny in terms of PAJA. If it is
executive
action, it is subject to the less exacting constraints
imposed by the principle of legality. The Constitutional Court
concluded
that the Minister’s decision was executive and not
administrative in nature.
[40]
The fact that the Minister, Mr Becker said, failed to call on him to
answer violates the
audi alteram partem
principle and renders
the decision procedurally irregular, irrational and vitiates it. The
Minister sought to resuscitate allegations
against which he
jettisoned in his official reasons that rendered the procedure to be
unfair.
[41]
The Minister demonstrably, it was submitted, failed to consider the
written representations of
Mr Becker in that:
41.1 the Minister
ignored Mr Becker’s repeated explanation that he had not
purported to represent the Board in meeting
civil society, but rather
had met with them as their representative
on
the Board.
41.2 in his
official reasons the Minister failed to engage with or consider Mr
Becker’s submissions that the Minister:
was aware of his views
when he was appointed, and never explained how continuing to hold
those views after appointment was misconduct.
The decision memorandum
prepared for the Minister by his Department also failed to engage
with these submissions at all.
[42]
According to Mr Becker, the
audi
principle does not only
require an opportunity to make representations. It also requires the
decision-maker to seriously consider
and address such representations
in the decision.
[43]
Notwithstanding, it was argued, the Minister not only failed to give
Mr Becker procedural fairness,
but also treated the public in a
procedurally irregular manner. Section 8(7) of the Act explicitly
requires a form of public consultation
when certain directors are
appointed to the Board, including the director to represent affected
communities. The decision to discharge
such director, including for
alleged misconduct – also requires the Minister to obtain the
views of the public and affected
communities as to the reasons for
such removal. It was said this is for two (2) reasons:
43.1 the decision
to remove the only director on the Board who is expressly required to
represent communities who may be affected
by nuclear activities
plainly, materially and adversely affects the rights of the public,
or a class of persons (which is included
in the definition of
“
public
”
in PAJA) are materially and adversely affected; namely, communities
who may be affected by nuclear activities. Section 4
of PAJA requires
the Minister to ensure that his decision was procedurally fair, and
provided “
specific
mechanisms that are designed to afford large numbers of people a
hearing.”
[9]
43.2 it is
well-established that in order to act in a procedurally rational
manner a decision-maker may be required to consult
with parties who
may be specifically affected by the decision.
[10]
In other words, some decisions “must include an opportunity
where the affected parties are given notice and afforded an
opportunity to make representations” concerning the
decisions.
[11]
Mr Becker was
nominated by civil society organisations and was appointed to
represent affected communities. It was therefore incumbent
on the
Minister to provide an opportunity to members of the public to
express their views as to his removal. The Minister’s
failure
to do so renders his decision irrational, as he has no way of knowing
what the views are of the constituency Mr Becker
was appointed to
represent. His constituency’s views on whether his actions
constituted misconduct, if they did, whether
he should not be removed
for other reasons.
[44]
The Minister contended that procedural fairness in respect of the
general public find no application
if the Minister’s decision
is characterised as an executive decision.
[12]
The Minister, exercised a value judgment in discharging Mr Becker.
His value judgment took into account that Mr Becker could not
disentangle his views on nuclear energy from his role on the Board
and by so doing disqualified himself. In this instance, the
Court
should show deference – unless the Minister’s decision is
irrational which in this instance is not the case.
The Minister’s
power to appoint directors of the Regulator is an extension of the
State’s role to ensure a safety policy
in respect of nuclear
installation.
[45]
The Chairperson of the Regulator and the Regulator supported the
Minister’s discharge of
Mr Becker. It was their contention that
not long after his appointment to the Board, Mr Becker embarked upon
a conduct which led
the Board to believe that he did not comply with
his fiduciary obligations as a director of the Regulator. He
conducted himself
in the public sphere in a manner that damaged the
reputation and goodwill of the Regulator, and which indicated that he
was potentially
conflicted.
[46]
The Regulator, in line with its obligations under section
7(1)(g)(iii) of the Act, regarded it
necessary to inform the Minister
of its concerns regarding Mr Becker’s conduct which cast doubt
as to his ability to conduct
himself as a director of the Regulator
according to his contractual and statutory obligations. In their
opinion Mr Becker struggled
to maintain the objectivity and
independence as a director of the Regulator.
[47]
After his public statements, the Board queried Mr Becker as to the
potential conflict arising
from his position on the Board and his
position as a KAA member, and invited him to explain how he would
manage situations where
he had to take a position at civil society
that was opposed to that of a Regulator. His response was that he had
not made any statements
that he was representing the Board. His
engagements had been in his capacity as a representative of all civil
society on the Regulator.
Mr Becker assured the Board that his
statements to the media were not based on any confidential
information which he had acquired
by virtue of his status as a
director.
[48]
Pursuant to the Board meeting of 29 July 2021, the Board took a view
that Mr Becker’s statements
in the
Energize
article had
to be withdrawn as it was an incorrect representation of what the
Regulator does and of the decisions it makes. Mr
Becker indicated
that there might be an opportunity to amend the statement so as to
remove the impression that the Regulator was
pursuing a pro-nuclear
power stance. However, no steps were taken by Mr Becker to that
effect.
[49]
The Regulator and the Chairperson of the Board highlighted that Mr
Becker’s evident conflict
was apparent from the statement by
the KAA which was forwarded to the Regulator’s representative
by a member of the press,
where the KAA commented on speculation that
Eskom had concluded a contract to extend the life of the Koeberg
nuclear power plant.
KAA’s view was that since Eskom required a
new licence to be granted by the Regulator to authorise it to operate
beyond 2024,
and since no public participation had been conducted on
the issue, an inference could be drawn that the Regulator was
allowing
Eskom to ignore due process and to go ahead with its plans
as if the extension was a “
done deal
.” This,
according to KAA called into question the independence of the
Regulator. Mr Becker, it was said sought to disassociate
himself from
these statements. It was further said, he cannot disassociate himself
sufficiently to establish an independent view
from that expressed by
the association for which he is the spokesperson, and is publicly
known as such.
[50]
KAA it was said, called into question the objectivity and
independence of the Regulator and speculated
as to the Regulator’s
preparedness to collude with Eskom with regard to the decision on
whether or not to approve the extension
of the lifespan of Koeberg,
inter alia
, because it was beholden to Eskom for 75% of its
revenue. The Regulator stated that this allegation is profoundly
damaging to it
and to the members of its Board who are directly
implicated in the insinuated conduct. Based on this conduct, the
Minister formed
a view that Mr Becker’s public statements
constituted misconduct warranting his discharge as a director.
[51]
Mr Becker stated that the Minister’s decision is vitiated by
the fact that even before
he received his written representations, he
had already decided to discharge him. When the Minister suspended him
on 18 January
2022, he called on Mr Becker to make written
representations by 11 February 2022 as to why he should not be
discharged as a director.
However, on 3 February 2022, before
representations were made or due, the Minister was interviewed on
Newsroom Afrika and he stated:
“
But it is
simple, you are an anti-nuclear activist you can’t sit on the
Board of nuclear, and get all the details of the plans
and go and
plan a program against that entity. It is not allowed.
”
[52]
Mr Becker was therefore of the opinion that the Minister had already
prejudged him and decided
to remove him. The representations process
was a sham. The Minister, in response to this allegation stated that
this was merely
a “
prima facie view
.” He could
have been convinced otherwise by his representations, but such
contentions were not borne out by the facts.
[53]
On 7 May 2022, and after Mr Becker was removed as a director, the
Minister made further public
comments which confirmed that he had a
fixed view with a predetermined outcome and he stated that:
“
If you resist
nuclear and you [are] a board member, I fire you, simple. You can’t
be in a board of something you’re
not advocating for.
”
[54]
In justifying his utterances, the Minister stated that he did not
intend to suggest that members
of the Board would be removed for
holding personal views on the desirability of nuclear which were
different from those of the
Government.
[55]
The Minister emphasized that his decision to discharge Mr Becker was
based on misconduct. Misconduct
is not defined in the Act. However, a
useful point of reference was found in the guidelines of the
Institute of Directors South
Africa relating to “Director’s
Misconduct” which defines the concept as follows:
“
Any action by a
director that is in breach of his / her role, responsibilities,
function, duties or the standard of conduct expected
of that
director, whether stipulated in terms of legislation, common law or
Board and / or company policies, would be considered
as misconduct.
Whether or not the action was wilful, intentional, or unintentional
will merely affect the degree of sanction required
for such
misconduct in the specific circumstances.
[13]
[56]
According to the Institute of Directors South Africa, conflict of
interest constitute misconduct.
The following are examples of
misconduct:
-Disclosing confidential
information (including information relating to boardroom discussions)
with authorisations;
-Acting or speaking on
behalf of the company with appropriate authorisation.
-Failing to disclose
conflict of interest and acting upon such conflict;
-Competing with the
business of the company
-Taking any action which
would be in breach of a fiduciary duty;
-Violating a law.
[57]
The Minister suggested that once a person accepts an appointment as a
director, a fiduciary relationship
becomes established in relation to
the company and is obliged to display the utmost good faith towards
the company and in his dealings
on its behalf. A decision made under
circumstances where a clear conflict of interest can be demonstrated
is often regarded as
void
[14]
and thus consequently reviewable. The same principles are applicable
to a director of the Regulator, which is borne out by several
relevant legislative and governance prescripts - which assist in a
proper understanding of their expected conduct and the duty
to avoid
conflicts. As required in his letter of appointment, on 5 July 2021,
Mr Becker signed an Individual Performance Agreement,
the Board
Charter, the Code of Conduct and Ethics and the Media Policy.
[58]
The Minister acknowledged that although the Regulator is a juristic
person, it is not incorporated
in terms of the Companies Act.
However, the principles pertaining to directors as contained in the
Companies Act and incorporated
in Mr Becker’s Individual
Performance Agreement provides a useful guide. For instance, Section
76 of the Companies Act determines
the standards required from
directors in the execution of their duties. These provisions embody
the common law fiduciary duties
but are not an all-encompassing list
of all common law fiduciary duties. The King IV Report, which is
incorporated in Mr Becker’s
Individual Performance Agreement
sets out the roles and responsibilities of the board and is often
used by the courts as the benchmark
against what is reasonably
expected of a competent director. Once appointed a director accepts
the full extent of the duties and
responsibilities as imposed. A core
element of a director’s fiduciary duty is to avoid a conflict
of interest.
[15]
This is a
duty not to place themselves in positions in which their personal
interest’s conflict with the organisation’s
interest and
that includes disclosing fully, facts related to what they may
believe may become a conflict. A director, it was stated
can thus
never place their own interests before the organisations. These
sentiments were shared by the Chairperson of the Board.
[59]
Mr Becker asserted that the Minister’s action was based on
“
speculative
”
conclusions or false inferences. The Minister disagreed with such
contentions and stated that he does not have to wait until
Mr Becker
actually exercises his power in a manner which displays his bias. The
Minister stated that there was an existing and
reasonable
apprehension of the appearance of bias which is definitive, and not
an inferential leap
[16]
that
Mr Becker will display in future.
[60]
For instance, the Chairperson of the Board stated that Mr Becker
decided to ignore his advice
that any decision relating to the
extension of the licence of Koeberg will, as required by law, be
preceded by a public participation
process and that the Regulator and
its Board will diligently carry out their legislative and regulatory
mandate. Mr Becker owed
a fiduciary responsibility to the Regulator
from the date of his appointment to the Board. If he had doubts as to
the integrity
and compliance by the Regulator, he ought to have
questioned same at Board level rather than engaging with these issues
at media
level.
[61]
The Chairperson of the Board pointed out that even though nominee
directors may in fact be representing
the interest of those who
nominated them, they are in law obliged to serve the interest of the
company to the exclusion of the
interests of their nominators.
[17]
It was contended that since Mr Becker has allowed himself to be
involved in a conflict of interest situation, his discharge by
the
Minister was justifiable.
[62]
Mr Becker re-iterated that a fixed view and a predetermined outcome
by the Minister are inconsistent
with procedural fairness. The value
of natural justice is to promote an objective and informed decision.
There is no point in making
representations if the decision-maker has
already made its decision. The affected party will then have to
convince the decision-maker
that he is wrong.
[18]
In
Blom,
Corbett
CJ noted that a “right to be heard after the event, when a
decision has been taken, is not an adequate substitute
for a right to
be heard before the decision is taken.” The Chief Justice
pointed out that there is a “natural human
inclination to
adhere to a decision once taken.”
[19]
[63]
It was therefore submitted that the Minister had an ulterior motive
to get rid of a director
who may raise challenging questions
concerning nuclear energy in South Africa, and in that context
concerning the extension of
Koeberg’s lifespan and other
nuclear projects. The Minister conjured up allegations of misconduct
where there was none so
as to achieve this purpose. The Minister’s
decision was taken in bad faith, because the complaints do not
demonstrate any
act of misconduct. The Minister has applied a
standard to Mr Becker which he has not applied to other members of
the Board. In
the circumstances it was said, the Minister’s
decision is not one which a reasonable decision-maker could reach.
This Court
should therefore declare the Minister’s decision to
be unlawful, unconstitutional and invalid, including an order
reviewing
and setting aside the Minister’s decision with costs.
E
Discussion
[64]
The appointment of Mr Becker to the Board commenced with an
invitation to the members of the
public to submit nominations for the
various positions on the Board. After receipt of the nominations, the
Minister appointed a
panel that compiled a shortlist from the persons
who were so nominated. Mr Becker went through this process and on 10
June 2021
he was appointed by the Minister in terms of section
8(4)(2)(iii) of the Act, to represent communities who may be affected
by nuclear
activities. Mr Becker was appointed as such after his
nomination was supported by civil society organisations, such as the
KAA,
the South African Faith Communities’ Environmental
Institute, and the Pelindaba Working Group. This therefore means that
he served on the Board not in his personal capacity, but in a
representative capacity. The Minister does not deny the fact that
he
knew Mr Becker’s background when he appointed him to the Board.
The KAA in particular in which Mr Becker is its spokesperson,
has
always raised its concern about the safety of the continued use of
nuclear power in South Africa and has called for the review
of such
use. KAA, in particular is also opposed to the further building of
reactors at Koeberg and the extension of the Koeberg’s
lifespan
in 2024. This did not come as a surprise after the appointment of Mr
Becker to the Board.
[65]
Shortly after his appointment came into effect, Mr Becker was quoted
in an article published
in the online magazine
Energize
. He
was quoted as a spokesperson of KAA, stating that it was
disappointing to see money and time being spent on pursuing nuclear
power for the Thyspunt site after government had stated that there
was no money to fund a new nuclear build. This article noted
that Mr
Becker had recently been appointed to the Board. Mr Becker was
further quoted as stating that ‘we should be worrying
about the
safety of the existing plant at Koeberg, especially as it approaches
the end of its design lifetime. He was concerned
that there are
several issues that need to be addressed before the Koeberg plant can
be considered safe by modern standards and
that will come with a
“significant cost” and “much like an older car,
there comes a time where it is just not
worth repairing it to the
point where it is as safe as a new car, it was unwise to spend money
refurbishing the plant before finding
out what would have to be done
to obtain a licence to extend its life.”
[66]
At the time of making these statements, he was only armed with his
letter of appointment to the
Board that was effective from 10 June
2021. It may be safely assumed that Mr Becker could not have made
them on behalf of the Board
or for the Board as he was not yet
inducted and the induction of the Board members took place on 8 July
2021. Although the signature
of the documents took effect from the
date of appointment, i.e. 10 June 2021, factually all the new Board
members were not appraised
on how to conduct themselves on the Board
until 8 July 2021. In my opinion, when Mr Becker made those remarks
on the
Energize
magazine, he embarked on his civil society
activist duties. It was only on 5 July 2021 when Mr Becker formally
accepted his appointment
and signed an Individual Performance
Agreement, and apprised of the Code of Conduct and Ethics, the
Regulator’s Media Policy,
the
Public Finance Management Act 1
of 1999
, the
Companies Act 71 of 2008
and any other laws applicable
to the governance of State owned entities and the duties of a
director and that his conduct should
adhere to such prescripts. These
documents though it was said that they were effective from the date
of appointment (10 June 2021),
in my view they cannot have a
retrospective effect. One cannot be held liable for an information
that has not yet come to his/her
attention. The effective date should
be the date of signature.
[67]
On 19 July 2021, Mr Becker forwarded an email to Mr Moonsamy advising
him that he would be “hosting
a meeting of civil society
organisations” in his capacity as representative
on
the
Board. The goal was to collect the top concerns / questions relating
to nuclear safety across organisations. The purpose of
the meeting
was to ascertain the views of the civil society and bring those
concerns to the Board – since he was the representative
of the
communities affected by nuclear activities. Clearly, there was
nothing untoward with this prior notice to the Regulator
as he made
his intentions known.
[68]
It appears that there was an internal exchange of emails at the
Regulator which caused some confusion
about Mr Becker’s
involvement with the communities that he represents on the Board.
Although Mr Moonsamy seemed to have plainly
understood what Mr Becker
meant in his email and supported the engagement with civil society, a
misunderstanding ensued after Mr
Becker reported to Mr Moonsamy about
the outcome of his two-hour virtual meeting with civil society
organizations on 22 July 2021.
He reported that various issues
emerged and in particular concerning the process and sequence by
which authorisations are granted.
After Mr Moonsamy forwarded this
email to the CEO of the Regulator, Dr Tyobeka, he seemed to think
that Mr Becker hosted the meeting
as a representative “
of
”
the Board and not “
on
” the Board. It is not
clear how Dr Tyobeka, made this confusion as Mr Becker was clear in
his email of 19 July 2021 that
he was hosting a meeting for the civil
society organizations in his capacity as rep (sic) on the board. In a
situation where he
made the agenda of the meeting known to the
Regulator, it is inconceivable how the allegation of him representing
the Board without
authorisation to do so came about.
[69]
A further issue emanated from an email dated 27 July 2021 that Mr
Becker addressed to the Chairperson
of the Board raising a query
regarding the Long-Term Operation (LTO) of Koeberg, an internal
communication Mr Becker said he sought
guidance on issues of concern
after the Board members were encouraged by the Chairperson of the
Board to seek guidance internally
if they needed clarity. It came as
a surprise to him when he was called to account in their first Board
meeting of 29 July 2021,
and accused of raising these issues publicly
and bringing the Board into disrepute. However, the Board resolved to
seek a legal
opinion on his conduct. The legal opinion essentially
concluded that he committed misconduct in various ways and as a
result thereof
the power to discharge Mr Becker rested with the
Minister.
[70]
After the Minister received a legal opinion from the Board and a
legal opinion from Mr Becker
he proceeded to suspend Mr Becker on 18
January 2022. Mr Becker challenged the Minister’s decision to
suspend him as there
was no express authority to proceed as such.
After some negotiations by the parties, The Minister invited him to
make representations
by 11 February 2022 why he should not be
discharged. Before Mr Becker made those representations, the Minister
made public pronouncement
on 3 February 2022 in Newsroom Afrika
suggesting that he had made up his mind to discharge him. As a
result, his discharge on 25
February 2022 came as no surprise to Mr
Becker.
[71]
Mr Becker identified at least nine (9) areas or mistakes that the
Minister relied on in discharging
him:
71.1 The Minister
made public statements on 7 May 2022 at an ANC conference and was
quoted on News 24 to have said:
“
If you resist
nuclear and you [are] a board member, I fire you, simple. You can’t
be in board of something you’re not
advocating for. We want
nuclear there in Port Elizabeth.
”
Mr Becker stated that his
comments are entirely consistent with the reasons he provided for
discharging him as a Director of the
Board. The Minister thought it
is the business of the Board to advocate for nuclear energy. His
decision was clearly influenced
by a mistaken understanding. The
Regulator is an independent regulator that does not promote or oppose
nuclear activities in South
Africa and its primary concern is with
the safe conduct of nuclear activities in South Africa.
71.2 The Minister
harboured under the wrong impression that a member of the Board can
be fired for opposing nuclear. It was
stated that that was an
irrelevant consideration and a fatal misdirection. It is irrational
and is not authorised by the Act.
71.3 The Minister
in his decision stated that Mr Becker expressed his views publicly on
the desirability of nuclear energy.
As his views did not align with
government policy that would create a conflict of interest when he
participates in the Board’s
decision-making. Mr Becker stated
that no evidence was provided to that effect and there is no conflict
when regard is had to the
object of the Regulator and the Board.
71.4 The Minister
believed wrongly that he can discharge a member because he thought he
would be biased. For instance, Mr
K Maphoto who was already on the
Board, made a radio interview on desirability of nuclear energy and
no-steps were taken against
him. The Minister’s reasons it was
said were merely based on future perception.
71.5 The Minister
wrongly equated the obligation of a Board member with the obligations
of a Board of Company. The Regulator
is not a company but an
independent regulator. He was supposed to act in the public interest
in accordance with the Act. Section
8(2)(a) of the Act give guidance
on the objects of the Regulator.
71.6 The Minister
wrongly thought it is misconduct for the Board member to disclose his
views on desirability of nuclear energy.
71.7 The Minister
wrongly thought that the Board is a representative of the
shareholder. It was stressed that the Board is
an independent body.
71.8 The Minister
seems to think that Mr Becker has been leading marches. Mr Becker
denied that he has ever led a march against
any decision of the
Board.
71.9 The Minister
wrongly thought that Mr Becker would not be able to bring his
independent mind to bear in an unbiased, fair
and even handed manner
when making decisions. It was said that this is material reason put
forward by the Minister based on incorrect
information.
[72]
For this Court to fully come to grips with whether the decision taken
by the Minister was administrative
or executive action it would
assist to analyse the facts starting from Mr Becker’s
appointment up until Mr Becker’s
discharge. If that is clearly
ascertained, this Court would be able to conclude whether or not the
process was vitiated by procedural
unfairness or the principle of
legality should apply.
[73]
The Constitutional principles subjects every exercise of public power
to the rule of law, including
the administrative and executive
actions. Therefore, Courts are there to effect a system of checks and
balances to avoid abuse
of power. In my view, this is a separate
inquiry altogether and does not amount to judicial overreach and / or
violation of the
doctrine of separation of powers. However, if the
Courts find that the executive should be allowed to regulate its
functions, they
would not hesitate to defer to that arm of
government.
[74]
In
Motau
(supra)
[20]
,
the Constitutional Court stated that:
“
It is also true
that the distinction between executive and administrative action is
often not easily made. The determination needs
to be made on a
case-by-case basis; there is no ready-made panacea or solve-all
formula”.
[75]
It appears that a determination of whether the Minister’s power
in discharging Mr Becker
exercised an administrative or executive
decision requires some level of scrutiny. This therefore means that
there is no blanket
application of these concepts. Each case has to
be decided according to its own merits, hence there has been
incrementally conflicting
judgments. Khampepe J,
[21]
stated that the starting point is to identify the nature of power
involved – where is it derived from. Where power flows
directly
from the Constitution, one could deem the power to be executive in
nature, and if the power is sourced in legislation,
it is likely to
be administrative in nature. Substantial constraints on the power
would be an indication that the power is administrative
in nature.
However, the Courts have repeatedly stated that the nature of the
power can be determined with reference to the appropriateness
of
subjecting the power to the stricter form of judicial scrutiny
represented by the edifice of administrative law contained in
PAJA.
As stated in
Motau
above, the Constitutional Court warned that the consideration of
factors in the interrogation of power is not decisive.
[76]
Throughout these proceedings the Minister characterised his decision
as an executive action,
and thus subjecting his decision to the lower
level of scrutiny. He relied extensively on the
Masetlha
decision and he interpreted it to exclude procedural fairness.
[77]
In this matter, in making his decision, the Minister derived his
power from Section 9(1) of the
Act. It should be recalled that the
process of appointment of Mr Becker was a public one. There was a
call for nominations for
candidates to be appointed to the Board. Mr
Becker was subsequently nominated by various civil society
organisations to serve on
the Board. After a shortlist was made, the
Minister appointed him in terms of Section 8(4)(iii) of the Act –
“a person
representing communities, which may be affected by
nuclear activities.”
[78]
Section 8 –
Control and management of affairs of Regulator
– envisages divergent component of the Board. The twelve-member
Board is constituted by representatives from, labour, organised
business, communities affected by nuclear activities, department of
Minerals and Energy and Environmental Affairs, and so on. In
my view,
different knowledge and background of these individuals would enhance
the level of discussion of issues related to the
objects of the
Board. The legislature deemed it meet to include all these
representations in order to heighten the level of deliberations
and
engagement at the Board. The Minister, likewise, was not mistaken
when he appointed Mr Becker on the Board. The presence of
a
representative from a community affected by nuclear activities was of
vital importance as instructed by legislation.
[79]
It appears Mr Becker’s views were not of concern when he was a
non-board member. His utterances
became of utmost concern days after
he was appointed to the Board. On considering the record, it does not
appear that there was
any constructive engagement between the Board
and Mr Becker on how to conduct himself in accordance with the
prescripts of the
Board shortly after he made the first statement. In
my opinion, the Chairperson of the Board would have done much greater
to invite
Mr Becker in an informal or formal meeting (with or without
the involvement of the full Board for that matter) to counsel him on
how to conduct himself publicly as a newly appointed member of the
Board. The correspondence between Mr Becker and the Regulator
is
telling that he always sought “guidance” from the
Regulator on the issues that he needed clarity. For instance,
his
correspondence of 19 July 2021 and subsequent correspondence serve as
proof to that effect.
[80]
Mr Becker has been a spokesperson of KAA, prior to his appointment to
the Board. He therefore
remained the KAA spokesperson and a member of
the Board. Without him being advised that it – would not bode
well with the
public if he wore those two (2) hats simultaneously –
he remained none the wiser. The manner in which the Board dealt with
Mr Becker is not commendable. The Board should have addressed Mr
Becker’s conduct promptly after the
Energize
article was
published on 30 June 2021 given the fact that the new board members
were not yet inducted at that time. In my opinion,
the Board did not
address and deal with Mr Becker’s conduct swiftly, considering
that his conduct was of grave concern to
them. These complaints were
only dealt with in their first Board meeting of 29 July 2021
albeit
in a confrontational manner, after Mr Becker sent various
correspondences to the Regulator on various issues. In my view, Mr
Becker’s
conduct should have been dealt with better and in a
more constructive manner than the one that presents itself before
Court. It
would not have escalated to this level if the Board had
managed it pragmatically and in a more professional manner. The
Board,
after a resolution to seek legal opinion from MacRoberts
attorneys unanimously agreed with the conclusion to discharge Mr
Becker
and proceeded to report the alleged misconduct to the
Minister.
[81]
Based on MacRobert’s legal opinion, Mr Becker was suspended on
18 January 2022. Notwithstanding,
there is nothing on record to
suggest that the communities that nominated Mr Becker to the Board
were advised of his suspension.
This was the individual who was
appointed on the Board in his representative capacity to represent
the communities affected by
the nuclear activities. The Minister’s
contention that this issue has nothing to do with the public is
unassailable. Nonetheless,
the Minister afforded him an opportunity
to make representations by 11 February 2022 why he should not be
discharged. This process,
again failed to acknowledge that he was
nominated by civil society organisations and are therefore entitled
to be informed about
their representative’s alleged misconduct.
Public interest is of utmost importance in this matter.
[82]
On 29 July 2021, the Board queried the potential conflict arising
from Mr Becker’s position
on the Board and his position as a
KAA member, and invited him to explain how he would manage situations
where he had to take a
position at civil society that was opposed to
that of the Board. This query is difficult to reconcile with the
Minister’s
appointment of Mr Becker knowing well that he was a
KAA member and the Board’s subsequent argument that it is not
condemning
Mr Becker’s KAA’s membership or his stance on
anti-nuclear activity. It appears to be the Board’s concern
that
his failure to disassociate himself from public comments made by
KAA which openly challenges the integrity of the Regulator and
its
institutional independence is of utmost concern.
[83]
In its attempt to water down Mr Becker’s argument that the
decision is one which affects
the public and as such the public ought
to be heard, the Minister suggested that KAA has not filed anything
in support of Mr Becker.
Mr Becker was not only nominated by KAA to
the Board. In a situation where the Minister has not advised the
communities that he
intended to suspend and or/ discharge their
representative, it is inconceivable therefore at what stage, he
expected KAA or any
other organisation for that matter to support Mr
Becker. If the communities have a right to representations on the
Board, equally,
they have a right to be formally advised that such
right is about to be terminated and they should make representations
so that
their views could be considered.
[84]
Despite the reasons that were given by the Minister for discharging
Mr Becker on 25 February
2022, he subsequently provided further
reasons,
inter alia
that Mr Becker refused to recuse himself
from decisions and discussions concerning the extension of Koeberg
lifespan. It boggles
one’s mind why Mr Becker’s input on
the Board should be sanctioned, even before such discussions are
tabled for discussion.
Instead, the Board should have considered
themselves fortunate to have a representative who represent
communities affected by nuclear
activities. Their input should have
enlightened the Board since it would have brought a different
perspective to their discussions
other than the government policy
that was referred to by the Minister. Much to this Court’s
dismay, in a Board consisting
of twelve (12) members it is not clear
how Mr Becker’s only opinion could have swayed all other
members to his direction,
unless his reasons are valid. Also, the
allegations that his public views concerning desirability of nuclear
energy are said to
be ‘contagion’ that would ‘infect’
the Board’s decision is fanciful. In my view, having Mr Becker
on the Board should have enhanced the Board and brought fresh and
robust ideas on the table for discussion. In any event, the
subsequent reasons by the Minister in his answering affidavit are
impermissible.
[85]
A decision-maker is bound by the reasons it advanced for its decision
and is barred from relying
on additional, or
post
hoc
reasons.
Cachalia JA in
National
Lotteries Board (supra)
[22]
stated:
“
The duty to
give reasons for an administrative decision is a central element of
the constitutional duty to act fairly. And the failure
to give
reasons, which includes proper or adequate reasons, should ordinarily
render the disputed decision reviewable. In England
the courts have
said that such a decision would ordinarily be void and cannot be
validated by different reasons given afterwards-even
if they show
that the original decision may have been justified. For in truth the
later reasons are not the true reasons for the
decision, but rather
an ex post facto rationalisation of a bad decision.”
[86]
However, in interrogating the power of the Minister to discharge Mr
Becker, this Court concludes
that he embarked on an administrative
action. It is trite that the Minister is bound to exercise his power
lawfully, reasonably,
and procedurally fair and within the confines
of the provisions of Section 33 of the Constitution.
[87]
Such decisions, in my view, should be rationally related to the
purpose for which the power was
given, otherwise they are in effect
arbitrary and inconsistent with the requirement. In
Pharmaceutical
Manufacturers Association of South Africa: Ex Parte President of the
Republic of South Africa
[23]
,
the
Constitutional Court stated:
“
Rationality in
this sense is a minimum threshold requirement applicable to the
exercise of all public power by members of the Executive
and other
functionaries. Action that fails to pass this threshold is
inconsistent with the requirements of our constitution and
therefore
unlawful…A decision that is objectively irrational is likely
to be made only rarely but, if this does occur, a
Court has the power
to intervene and set aside the irrational decision.”
[88]
In the circumstances, I agree with Mr Becker’s contention that
the
audi
principle should apply in discharging non-executive
directors especially where there are allegations of misconduct. This
consideration
is made fully aware that Mr Becker was appointed as a
Board member of the regulatory body. His conduct and duties cannot be
equated
with the fiduciary duties of a director appointed in terms of
the
Companies Act. In
the same token, the Minister’s decision
is not policy related and is not an executive decision. As stated,
some higher level
of accountability is required. In fact, the present
matter is distinguishable from that of
Masetlha (supra),
as
the exercise of executive power in that matter included a high degree
of policy consideration. In this case, the alleged misconduct
of Mr
Becker has nothing to do with the government policy. As indicated, it
is my considered view that the Minister’s decision
should be
subjected to a higher level of scrutiny in terms of PAJA. I repeat,
there is no evidence to sustain the contention that
the Minister’s
decision is an executive action. The Minister simply preferred the
executive action since it is subject to
the less exacting constraints
imposed by the principle of legality.
[89]
Given the sensitivity of matters that the Regulator may be required
to pronounce upon at the
Board level, and more so that its objects
and functions,
inter alia
, are to provide for safety standards
and regulatory practices for protection of persons, property and the
environment against nuclear
damage it is inevitable that the views of
the general public would be left unheard.
[90]
On the other hand, it has always been said that if the higher level
of scrutiny is not appropriate
given the fact that the power bears on
particularly sensitive subject matter or policy matters – the
Court should show the
executive a greater level of deference.
However, this is not the case. In my view, the Board may not
formulate government policy
regarding the desirability or not of
nuclear power. In turn, for the Courts to defer to the executive, it
must demonstrate that
its decision was clearly rational. The fact
that the Minister did not seek the views of the constituency
represented by Mr Becker
on the Board and the fact that the Minister
did not advise the constituency he represented that he has removed
him from the Board,
in my view, was totally irrational. Mr Becker did
not serve in his own capacity on the Board.
[91]
Most shockingly, on 3 February 2022, before Mr Becker made his
representations, the Minister
made statements on Newsroom Afrika
which suggested that he had prejudged Mr Becker and had decided to
remove him from the Board.
Even though the Minister and the Board
denied that to be so, however, the ultimate decision on 25 February
2022 proved to be consistent
with his utterances. I tend to agree
with Mr Becker’s submissions that the Minister predetermined
his decision. In so doing,
the Minister acted in bad faith and with
ulterior motives.
[92]
Misconduct is not provided for in the Act. The submissions by the
respondents that the Directors
Misconduct is provided for in the
publication by the Institute of Directors South Africa does not find
application in this instance.
As indicated above Mr Becker was
appointed as a non-executive director of the Board, his duties are
distinct from those of a Company
director. In giving his reasons for
the discharge, the Minister relied on the comments on the
Energize
article; hosting the meeting with civil society organisations as
their representative on the Board; public engagement for the Board
without authorisation (delegated authority); bringing the Board and
staff moral into disrepute - as the reasons constituting misconduct.
As stated previously, the reasons that were proffered in the
answering affidavit are impermissible. Misconduct as defined “
on
the online dictionary-Merriam-webster.com: 1. Mismanagement
especially of government military responsibilities
2:
intentional wrongdoing, specifically: deliberate violation of law or
standard especially by a government official
.
”
Emphasis added
. In my view, for purposes of transparency to
the public, on acceptance of his position of a non-executive director
of the regulator,
Mr Becker should have relinquished his position as
a spokesperson of KAA for the lines not to be blurred. His activism
as the spokesperson
of KAA while a seating member of the Board was
clearly undesirable in the circumstances. However, the complaints
raised about his
conduct could have been sorted out by a counselling
session and would not have amounted to the alleged misconduct
befitting a sanction
of discharge.
[93]
In
Albutt
v Centre for the Study of Violence and Reconciliation and Others,
[24]
the issues concerned the power of the President to grant pardon under
section 84(2)(i) of the Constitution to people who claimed
that they
were convicted of offences committed with a political motive. An
interdict was brought against the President to prevent
him from
hearing the cases without the views of the victims. The issue was
raised whether the President’s power amounted
to an
administrative decision or an executive decision. It then follows
that if the decision is an executive one, it would not
be constrained
to a need for procedural fairness. The Court found that in order to
act rationally and constitutionally, one would
have to hear the other
side in order to reach a decision on whether the crimes committed
were politically motivated.
[94]
Similarly, in this matter, the process leading to the discharge of Mr
Becker is patently vitiated
by procedural unfairness. Fairness
dictates that the rules that ensures the principles of natural
justice are upheld. Fair procedure
requires that decisions should not
be taken that plainly have an adverse effect on the rights of the
public or class of persons
included in the definition of public in
PAJA without consulting them first. The Minister bent over backwards
to discharge Mr Becker
without allowing a fair process to unfold.
This Court finds the process leading to his discharge to be
procedurally unfair.
[95]
In conclusion, the statements made in public, the request for
information from the Regulators
employees, and the meeting with the
members of his constituency cannot be construed as misconduct by Mr
Becker as stated in Section
9 (1) (c) of the Act. Even if there was a
perception of conflict of interest, in my view, it was capable of
being mitigated. It
then follows that a sanction of discharge is
unsustainable.
[96]
In the result, I make the following order:
96.1 The decision
of the Minister taken on 25 February 2022 to discharge Mr Becker with
immediate effect is declared unlawful,
unconstitutional and invalid
in terms of Section 172(1)(a) of the Constitution;
96.2 The reasons
and decision of the Minister taken on 25 February 2022 to discharge
Mr Becker from his office as a Director
of the Board is reviewed and
set aside.
96.3 The first,
second and third respondent are ordered to pay costs of this
application including costs of two (2) Counsel.
MANTAME
J
WESTERN
CAPE HIGH COURT
In
the High Court of South Africa
(Western
Cape Division, Cape Town)
[Reportable]
Case
No: 3473/2022
In
the matter between:
PETER
BECKER
Applicant
vs
MINISTER
OF MINERAL RESOURCES & ENERGY
First Respondent
NATIONAL
NUCLEAR REGULATOR
Second Respondent
CHAIRPERSON
OF THE BOARD OF DIRECTORS
OF
THE NATIONAL NUCLEAR REGULATOR
Third Respondent
Coram:
B P MANTAME, J
Judgment
by: B P MANTAME, J
FOR
APPLICANT:
ADV G BUDLENDER
082 442
2022
gbudlender@capebar.co.za
ADV
M DE BEER
079 270
8740
Mitchell.debeer@capebar.co.za
Instructed
by:
Mr A Dorer
Chennells Albertyn –
0216858354
andrew@chennellsalbertyn.co.za
FOR
1
st
RESPONDENT:
ADV D BORGSTROM SC
083 233 2340
borgstrom@capebar.co.za
ADV
C CAWOOD
083 887
6780
Clairecawood@capebar.co.za
Instructed
by:
State Attorney
Ms C Bailey –
0214419200
cobailey@justice.gov.za
FOR
2
ND
& 3
RD
RESPONDENTS:
ADV I JAMIE SC
082 900 6775
jamie@capebar.co.za
ADV L STANSFIELD
082 458
3258
lstansfield@capebar.co.za
Instructed
by:
Mr K T Diong
MacRobert Attorneys –
012425353
ktumbadiong@macrobert.co.za
Date
(s) of Hearing:
9 November 2022
Judgment
Delivered on:
19 January 2023
[1]
National Energy Regulator of South Africa and Another v PG Group
(Pty) Limited and Others
2020 (1) SA 450
(CC) at para 39; and
Minister of Defence and Military Veterans v Motau and Others 2014
(5) (SA) 69 (CC) at 55 fn 85 and National
Lotteries Board and Others
v South Africa Education and Environment Project
[2011] ZASCA 154
;
[2012]1 All SA 451 (SCA);
2012 (4) SA 504
(SCA) at para 27 - 28
[2]
Forum De Monitoria De Orcamento v Chang and Others
[2022] 2 All SA
157
(GJ) at para 85, citing Department of Homeland Security v
Regents of the University of California 591 US_____ (2020) (slip op)
[3]
Rustenburg Platinum Mines (Ltd) (Rustenburg section) v Commission
for Conciliation, Mediation and Arbitration
2007 (1) SA 576
(SCA) at
para 34 per Cameron JA
[4]
State Information Technology Agency SOC Ltd v Gijima Holdings (Pty)
Ltd (641/2015)
[2016] ZASCA 143
;
[2016] 4 All SA 842
(SCA); 2017(2)
SA 63 SCA (30 September 2016) at para 35-38 (The Minister
acknowledged that the judgment was partially overturned
by the
Constitutional Court in
2018 (2) SA 23
(CC), but the principle was
not brought into doubt.
[5]
Motau at para 83
[6]
Motau at para 83, citing Administrator, Transvaal and Others v
Zenzile and Others
1991 (1) SA 21(A)
at 37A-G and 39A
[7]
National Director of Public Prosecutions and Another v Mohamed NO
and Others
2003 (4) SA 1
(CC) at para 37
[8]
Masetlha v President of the Republic of South Africa and Another
[2007] ZACC 20
;
2008 (1) SA 566
(CC) at para 77; Minister of Home Affairs &
Others v Scalabrini Centre and Others
2013 (6) SA 421
(SCA) para 67
and 72
[9]
Esau and Others v Minister of Co-Operative Governance and
Traditional Affairs and Others
2021 (3) SA 593
(SCA) at para 86
[10]
Minister of Home Affairs and Others v Scalabrini Centre (
supra
)
at para 68
[11]
e.tv (Pty) Limited v Minister of Communications and Digital
Technologies and Others
2022 (9) BCLR 1055
(CC) at para 51
[12]
Masetlha (supra) at para 77 and Minister of Home Affairs v
Scalabrini Centre (supra) at para 67 and 72
[13]
The institute of Directors of South Africa in its publication
“Director Misconduct - General guidance note on how to
approach director misconduct” dated 20 March 2020 accessed at
https://cdn.ymaws.com/www.loDSA_Guidance_for_Boards_-_Director_Misconduct.pdf.
The
Institute sets out that “Ethical leadership is characterised
by integrity, competence, responsibility, accountability,
fairness
and transparency”.
[14]
Grobbelaar v Grobbelaar
1959 (4) SA 719
(AD) at 724 to 725
[15]
Movie Camera Company (Pty) Ltd v Van Wyk and Another
[2003] 2 All SA
291
(C)
[16]
Govan v Skidmore
1952 (1) SA 732
(N) at 734 C - D
[17]
Fisheries Development Corporation of SA Ltd v Jorgensen; Fisheries
Development Corporation of SA Ltd 1980 (4) SA 156 (W) 163
[18]
Baxter Administrative Law (1984) at 587
[19]
Attorney-General, Eastern Cape v Blom
1988 (4) SA 645
(A) at 668 D -
F
[20]
Motau
supra at para 36
[21]
Motau supra at para 41 - 42
[22]
At
para 27
[23]
[2000] ZACC 1
;
2000
(2) SA 674
(CC) at para
[90]
[24]
[2010] ZACC4;
2010 (3) SA 293
(CC);
2010 (5) BCLR 391
(CC)
sino noindex
make_database footer start
Similar Cases
Becker v Minister of Mineral Resources & Energy and Others (3473/2022) [2023] ZAWCHC 189; [2023] 8 BLLR 848 (WCC) (26 May 2023)
[2023] ZAWCHC 189High Court of South Africa (Western Cape Division)100% similar
Becker v Brits (14156/2019) [2022] ZAWCHC 44; [2022] HIPR 199 (WCC) (23 March 2022)
[2022] ZAWCHC 44High Court of South Africa (Western Cape Division)99% similar
Bewley v Minister of Home Affairs and Another (2025/019372) [2025] ZAWCHC 477 (15 May 2025)
[2025] ZAWCHC 477High Court of South Africa (Western Cape Division)98% similar
Bester N.O and Others v Mirror Trading International (Pty) Ltd (in liquidation) t/a MTI and Others (15426/2021;19201/2020) [2023] ZAWCHC 83; [2023] 3 All SA 101 (WCC); 2024 (1) SA 112 (WCC) (26 April 2023)
[2023] ZAWCHC 83High Court of South Africa (Western Cape Division)98% similar
Webber v Minister of Police (12612/2019) [2024] ZAWCHC 277 (25 September 2024)
[2024] ZAWCHC 277High Court of South Africa (Western Cape Division)98% similar