Case Law[2022] ZAWCHC 18South Africa
Wideopen Platform (Pty) Ltd v City of Cape Town and Others (7973/2020) [2022] ZAWCHC 18 (10 February 2022)
Headnotes
by a public body, the First Respondent, in terms of the Promotion of Access to Information Act 2 of 2000 (“PAIA”).
Judgment
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# South Africa: Western Cape High Court, Cape Town
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## Wideopen Platform (Pty) Ltd v City of Cape Town and Others (7973/2020) [2022] ZAWCHC 18 (10 February 2022)
Wideopen Platform (Pty) Ltd v City of Cape Town and Others (7973/2020) [2022] ZAWCHC 18 (10 February 2022)
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sino date 10 February 2022
IN THE HIGH COURT OF
SOUTH AFRICA
(WESTERN CAPE
DIVISION, CAPE TOWN)
REPORTABLE
CASE NO: 7973/2020
In
the matter between:
WIDEOPEN
PLATFORM (PTY) LTD
Applicant
###
and
CITY
OF CAPE TOWN
First
Respondent
CHARLYNNE
BLANCE ARENDSE
Second
Respondent
ALDERMAN
DIRK SMIT
Third
Respondent
TRACTOR
OUTDOOR (PTY) LTD
Fourth
Respondent
CAPITALGRO
(PTY) LTD
Fifth
Respondent
ON
TAP TWELVE PROPERTY (PTY) LTD
Sixth
Respondent
## JUDGMENT DELIVERED
ELECTRONICALLY: THURSDAY, 10 FEBRUARY 2022
JUDGMENT DELIVERED
ELECTRONICALLY: THURSDAY, 10 FEBRUARY 2022
NZIWENI AJ
Introduction and
background
[1]
In these proceedings, the Applicant seeks to enforce its right to
access records held
by a public body, the First Respondent, in terms
of the Promotion of Access to Information Act 2 of 2000 (“PAIA”).
The First Respondent is the City of Cape Town Municipality (“the
City”). This case involves a refusal by the
City to
impart information in its possession related to third parties to the
request.
[2]
The Applicant is a company with its registered office in
Johannesburg. The Applicant’s
business entails the
erection of large outdoor advertising structures. The Second
and Third Respondents are employees of
the City who took the impugned
decisions on behalf of the City. According to the Applicant,
the Fourth to Sixth Respondents
are merely cited in these proceedings
because they are either owners of the media displayed on the signage,
or the landowners of
the property on which the signage structure
relevant to this case is situated.
[3]
This matter has its genesis in the approval by some of the
Respondents of
the erection of signage within the City of Cape Town.
The history between the First Respondent and the Applicant has been
dominated by a series of requests for access to official documents,
which the Applicant believes to be at the disposal of the City,
and
to which it claims a right of access in accordance with PAIA.
[4]
This review application is brought in terms section 78 of PAIA.
The application
is the sequel to an exhausted internal appeal
process, in which the Applicant appealed the refusal of its request
to access records
pertaining to outdoor advertising signage erected
by the third parties. The Applicant’s internal appeal was
partially
successful, in that the City disclosed some of the
requested records. However, it refused to disclose the
currently requested
records on grounds that they contain information
exempted from disclosure.
[5]
In this application, the Applicant seeks to invoke the provisions of
section 82 (a)
and (b) of PAIA. The Applicant desires that this
Court should review and set aside the decisions of the internal
appeal and
direct the First to Third Respondents to furnish the
Applicant with the approval records issued by the City. The
Applicant
holds the view that the information sought
falls
within the ambit of the mandatory disclosures set out in
section
46 of PAIA
.
[6]
As things stand, the stalemate between the parties concerns a request
by the Applicant
for access to information pertaining to only five
signage structures located around the City of Cape Town.
Consequently,
the Applicant seeks access to specific copies of the
approval documents for the signage, in respect of the following five
applications:
(a) Erf 173335,
Paarden Eiland;
(b) Erf 1158, Sea
Point;
(c) Erf 30959,
Milnerton;
(d) Erf 4217,
Montague Gardens; and
(e) 199 Loop
Street.
[7]
This is not the first legal dispute of this nature involving the City
and the Applicant,
pertaining to the same issues. The
Applicant lodged the instant application whilst the parties were
expecting a judgment,
from this Court, on some similar issues.
In the other matter, Steyn J dismissed the Applicant’s
application with a
punitive cost order.
[8]
Notably, sometime later, after the Applicant had already launched
this application,
it amended its notice of motion in this matter.
In the original notice of motion the Applicant sought access to 105
documents.
In the amended notice of motion, the Applicant only
sought access to 19 documents. Only during the hearing of this
application,
did the Applicant reduce its request to five documents.
However, the grounds for seeking the relief remained the same.
[9]
The First to Fourth Respondents oppose this application. Only
the City and the
Fourth Respondent have filed answering affidavits.
The Fifth Respondent has filed a notice to abide.
According to the
Fourth Respondent, the terms, conditions and period
of the approvals constitute information that would likely cause harm
to its
commercial or financial interests.
[10]
The City persists in its refusal to disclose information related to
the approval documents. The
City justifies the non-disclosure
on two grounds: firstly, the disclosure of the applications for
approval would reveal financial,
commercial, scientific, or technical
information, in contravention of s 36 (1) (b) of PAIA; secondly, the
disclosure of the confidential
information could reasonably put the
third party at a disadvantage in contractual or other negotiations,
or prejudice the third
party in commercial competition, contrary to s
36 (1) (c) of PAIA.
The Parties’
submissions
The Applicant’s
submissions
[11]
The Applicant submits that it seeks to find out whether:
(a) a sign was
approved;
(b) what type of
sign was approved; and
(c) the conditions
of the approval.
[12]
It is the Applicant’s contention that the information it seeks
can be obtained from the approval
records. The Applicant points
out that the Respondents, by concealing information from the public,
are defeating the purpose
of PAIA, which is transparency and
accountability. The Applicant further strongly contends that,
because the approval authorises
third parties to display advertising
to the public, the corollary of this is that any person is entitled
to see the terms, conditions
and period of the approvals.
[13]
Moreover, the Applicant contends that no harm can be occasioned to
the Fourth Respondent if such information
is given as, so the
argument continues, any genuinely protectable information contained
in the approval form can be severed from
the rest of the record.
[14]
It is also the Applicant’s contention that it seeks to level
the playing field in Cape Town,
amongst competitors in the outdoor
advertising industry. The Applicant staunchly contends that the
City issued the approvals
illegally and/or irrationally.
Accordingly, it was asserted on behalf of the Applicant that the
Fourth Respondent - the biggest
player in the industry in Cape Town -
is also guilty of contravening bylaws and has unlawfully profited
from illegal signs.
[15]
The Applicant maintains that it should be granted the order that it
seeks, because the First to Third
Respondents did not provide
independent reasons for refusing its requests to be given access to
the approvals, as they do not provide
any elaboration. The
Applicant further contends that the Respondents have not established
which information falling
within the ambit of section 36 (1) (b) and
(c) would be disclosed, or the probable harm, disadvantage or
prejudice the third parties
will suffer if such information were to
be disclosed to the Applicant.
[16]
Furthermore, it is the Applicant’s firm view that it is not in
the public interest not to disclose,
because the disclosure of the
approvals could well reveal evidence of the contravention of by-laws
or that the City officials were
biased.
[17]
Additionally, the Applicant disputes that the applications for
approval contain the following:
(a) financial,
commercial, scientific or technical information, other than trade
secrets, of a third party, the disclosure
of which would be likely to
cause harm to the commercial or financial interests of that third
party; or
(b) information
supplied in confidence by a third party, the disclosure of which
could reasonably be expected to:
(b1) put the third party
at a disadvantage; or
(b2) prejudice the third
party in commercial competition.
[18]
The Applicant contends that the provisions of section 46 of PAIA are
applicable because:
(a) The
applications for approval do not require any confidential or
proprietary information to be contained in such application.
(b) The
applications were available for inspection by interested parties
before
their approval; they were also published to neighbouring properties
and certain information was made available to interested
parties
.
The argument continues that once the information enters the
public domain, a party cannot contend that such information
contains
[A1]
anything
the disclosure of which will cause harm to the commercial interests
of the party.
(c) Regarding the
owners of the properties on which the signs were erected, their
identities are public knowledge; the applicant
already obtained their
identities from the deeds office.
(d) The Respondents
can redact information in the application if it considers it
confidential.
(e) The
[A2]
decision of the City is irrational.
(f) The
Third Respondent ignored and paid lip service to the Applicant’s
allegation that the advertising
signs were illegal, on the basis that
the parties were involved in a competitive industry.
(g) The Second and
Third Respondents did not apply their minds to the matter, as they
did not even realise that the information
requested had already been
made public; on the Respondents’ version, certain information
contained in the application had
already been made available to the
affected party.
(h) The details
concerning the specifications of the signs and products used are
already, and readily, available to the public.
(i)
There is an issue of public interest. The Applicant, as a
member of the public, has an interest in viewing
the approvals
granted to determine why they were given, notwithstanding the fact
that they appear to contravene the by-laws of
the City.
(j) The
disclosure may reveal evidence of a contravention, by the holder of
the approval, during the erection.
(k) Public interest
in the disclosure outweighs third party interests.
[19]
According to the Applicant, the City’s decision should be set
aside on the following grounds:
(a) The City paid
no or insufficient regard to mandatory disclosure of information in
the public interest in terms of section
46 of PAIA.
(b) The City’s
approval of the applications could not contain any confidential or
propriety information of the third
party, nor could it implicate
either section 36 (1) (b) or (c) of PAIA.
(c) The Second
Respondent did not indicate the nature of the information furnished
to it by the third party, or how the disclosure
of the information
could put the third party at a disadvantage as envisaged by section
36 (1) (c) of PAIA.
(d) The disclosure
of the application for approval of the signage could not be a breach
of confidence owed to a third party,
as the application was made
available for inspection by neighbouring properties and other role
players prior to the approval being
granted, and no undertaking of
non-disclosure was given by any of such parties.
(e) The City failed
to discharge its onus in terms of section 81 (3) of PAIA, which
provides that the burden of showing that
the refusal of a request for
access to information complies with the provisions of PAIA, rests
upon a party claiming that it complied.
(f) The
Applicant has a constitutional right of access to information, which
constitutional right could only be
vindicated if the Second and Third
Respondents properly and adequately account for and justify their
refusal to provide the information
requested.
Respondents’
submissions
The First to Third
Respondents’ response
[20]
The City contends that the Applicant’s case is predicated on a
misguided view. It is the
City’s contention that it
cannot furnish the information sought by the Applicant, because the
relevant information contains
protectable financial, commercial or
technical information of third parties. The argument continues
that section 36 (1) (c)
(ii) of PAIA allows the City to refuse the
request.
[21]
It is the City’s contention that the information required
contains inside information, the disclosure
of which will prejudice
the third party in commercial competition.
[22]
The City describes the Applicant’s submission regarding the
pre-printed form
as cynical. According to the City, the
Applicant is requesting a populated form with the details of the
third party, and not
a blank application form. It is strongly
contended that when the application form is filled out, it becomes
protected.
According to the City, the form contains more
information about the details of the property owner than what is
contained in the
deed search. It also contains contact or
personal details of the contact person.
[23]
Furthermore, the City’s contention is that the application for
approval form (annexure ‘FA
36’ to the founding
affidavit) is accompanied by attachments that contain information
which is mostly technical and proprietary
to the applicant.
According to the City, the information contained in the
application form may include technical and scientific
information,
environmental information, and heritage impact and traffic
assessments.
[24]
The City submits that the compilation of the information required in
the approval form, is the result
of effort, research and expertise.
It is further contended on behalf of the City that the approval
application form, by its
very nature, does require technical
information; for instance:
(a) Photomontage;
(b) Photographs
with scale bar markings;
(c) Technical
drawings showing structural details;
(d) Site plans; and
(e) Technical
lighting details.
[25]
It is staunchly contended by the City that its policy pertinently
indicates that an application is
likely to be approved, if an
applicant can outline in it that the signage will fit the
architectural design of the building.
According to the City,
the financial information includes banking records of applicants,
banking transaction with the City, details
of the third parties’
suppliers and details of the property owner.
[26]
It is the City’s submission that the information contained in
the record as required in terms
of the by-law, indicates the duration
of the lease, details of the property owner, and the details of the
agent that the property
owner uses to negotiate with prospective
signage tenants.
[27]
According to the City, the Applicant wants to obtain, at all costs;
information relating to its competitors’
financial, commercial
and technical information. The City staunchly contends that
disclosure of this information, would enable
the Applicant to
identify and approach key role players, determine the duration and
terms of the leases, and to gain a competitive
advantage in
negotiating with landlords.
Public domain response
[28]
The City contends that the Applicant is making sweeping statements in
this regard, as it does not state
which applications were published
to neighbouring properties. According to the City, it only
provided one application to
a neighbouring property, because of the
proximity of the signage to the neighbouring residential property.
It is further
the City’s contention that the fact that the
information was made available to a particular neighbour, does not
make it publicly
available, within the meaning of PAIA. None of
the affected parties stood to benefit from the disclosures made to
them.
[29]
It is further the City’s submission that, to reveal information
to interested parties and directly
affected parties, does not make
the information not protectable commercial proprietary information.
According to the City,
the determining factor as to whether the
information is protectable or not, is whether the party that seeks
the specific information,
may benefit from the disclosure to the
detriment of the third party.
Public interest
[30]
The City contends that an issue does not simply become of public
interest because a requester is a
member of the public.
Equally, the mere fact that a person is a member of the public does
not mean that the person is acting
in the public interest, or that
the information will benefit the broader public.
[31]
It is further submitted that the Applicant does not furnish
information to explain why the disclosure
of the information required
would be in the interest of society in general. The Applicant
merely makes speculative submissions
that the disclosure could well
reveal evidence of a violation of the law. No evidence is
provided to support the assertion.
It is also asserted that the
information required would be to the Applicant’s competitive
advantage.
Constitutional right
to access
[32]
The City maintains that no right is unlimited, and that the Applicant
is also faced with an insurmountable
hurdle pertaining to the
constitutional principle of subsidiarity.
Duration of the
approval
[33]
The approval form contains the duration of the contract, information
that is critical to competitors.
The approval form contains
similar information to the application document.
The relevant
provisions of PAIA
[34]
Insofar as the provisions of section 46 of PAIA are concerned, they
reaffirm that there is no blanket
prohibition in accessing personal
information.
[35]
Section 46 of PAIA reads:
‘
46 Mandatory
disclosure in public interest.
–Despite any other provision
of this Chapter, the information officer of a public body must grant
a request for access to
a record of the body contemplated in section
. . . 36 (1) . . . if –
(a) the
disclosure of the record would reveal evidence of-
(i) a substantial
contravention of, or failure to comply with, the law; or
(ii) an imminent and
serious public safety or environmental risk; and
(b) the
public interest in the disclosure of the record clearly outweighs the
harm contemplated in the provision in
question.’
[36]
On the other hand, in chapter 4 of PAIA, under the heading ‘GROUNDS
FOR REFUSAL OF ACCESS TO
RECORDS’, it is quite clear that PAIA
specifically and intentionally draws a clear distinction between
peremptory and mandatory
grounds to refuse access to information.
The specific sections read as follows:
‘
33.
Interpretation.
- (1) The information officer of a public body-
(a)
must
refuse a
request for access to a record contemplated in section 34 (1), 35
(1),
36 (1)
, 37 (1) (a), 38 (a), 39 (1) (a), 40 or 43 (l); or
(b) may refuse a request
for access to a record contemplated in section 37 (1) (b), 38 (b), 39
(1) (b), 41 (1)(a) or (b), 42 (1)
or (3), 43 (2), 44 (1) or (2) or
45,
unless the provisions of
section 46 apply.
(2) A provision of this
Chapter in terms of which a request for access to a record must or
may or may not be refused, may not be
construed as—
(a) limited in its
application in any way by any other provision of this Chapter in
terms of which a request for access to a record
must or may or may
not be refused; and
(b) not applying to a
particular record by reason that another provision of this Chapter in
terms of which a request for access
to a record must or may or may
not be refused, also applies to that record.’
Section 36 of PAIA
justifies the refusal to grant access to information on various
grounds. The terms of section 36 (1)
are peremptory
and
not discretionary. Section 36 stipulates the following:
‘
36. Mandatory
protection of commercial information of third party.
(1) Subject
to subsection (2), the information officer of a public body must
refuse a request for access to a record of the body
if the record
contains—
(a) trade secrets of a
third party;
(b) financial,
commercial, scientific or technical information, other than trade
secrets, of a third party, the disclosure of which
would be likely to
cause harm to the commercial or financial interests of that third
party; or
(c) information supplied
in confidence by a third party the disclosure of which could
reasonably be expected—
(i) to put that third
party at a disadvantage in contractual or other negotiations; or
(ii) to prejudice that
third party in commercial competition.
(2) A record may not be
refused in terms of subsection (1) insofar as it consists of
information—
(a) already publicly
available;
(b) about a third party
who has consented in terms of section 48 or otherwise in writing to
its disclosure to the requester concerned;
or
(c) about the results of
any product or environmental testing or other investigation supplied
by a third party or the result of
any such testing or investigation
carried out by or on behalf of a third party and its disclosure would
reveal a serious public
safety or environmental risk.
(3) For the purposes of
subsection (2) (c), the results of any product or environmental
testing or other investigation do not include
the results of
preliminary testing or other investigation conducted for the purpose
of developing methods of testing or other investigation.’
The contention by the
Applicant
[A3]
has
been labelled as misguided. According to the City, onus of
proof is applicable to an application to court and not
to an internal
appeal process, and that it was premature for purposes of this
application.
[37]
In these proceedings the Applicant has an onus to show that any
records which the City has and is refusing
to disclose, contain any
information as contemplated in
section
46 of PAIA.
[38]
The City contends that it does not make drawings available to any
external party which is not involved
with the application.
Analysis
[39]
It is of paramount importance to take cognisance of the fact that the
request for access to information
is predicated upon the
Constitution. It has been stated that access to state held
information is one of the cornerstones
of an open and democratic
society. Affording citizen access to official documents, which
are inter alia in possession of
public bodies, signifies and enhances
good administration, together with transparent and good governance.
See
Brümmer
[A4]
v
Minister for Social Development and Others
2009 (6) SA 323
(CC), at paragraph 62.
[40]
The right of access to information has been extensively hailed and
acknowledged as a right that guarantees
that citizens are provided
with the necessary information in order to effectively participate in
the democratic dispensation. It
also promotes accountability,
as it can bolster the monitoring and public scrutiny of government
institutions. The obvious
corollary of this is that accesses to
information can effectively thwart the scourge of corruption.
[41]
The Constitution, in section 32, reaffirms the right of a person to
access information. While
at first it may seem that the right
of access to information may be a blanket or unqualified general
right, the law, however, in
the form of PAIA does not impose a
general obligation upon authorities to impart information.
[42]
Albeit PAIA is a tool to give effect to the general right to
information afforded by section 32 of
the Constitution, it also
serves as a restriction to that right. In other words, PAIA
grants an exemption to the general
right.
[43]
Consequently, the right of access to information is subject to
certain formalities, which may in turn
restrict the right. For
purposes of this case, it is of critical importance to acknowledge
that the law does prescribe restrictions
or limitations to the right.
The right to have access to public documents is thus not an
absolute one.
[44]
Information received in confidence by the City is protectable.
Certainly, public institutions in
possession of protectable information should always be vigilant of
competitors using PAIA to obtain
important and crucial commercial
information about the activities, prospects and plans of third
parties.
Hence,
it is highly important to maintain a healthy balance between the
right of access to information, and the right to privacy.
As
far as I am concerned, there is a thin line which divides
the
right of access to information and the right to privacy and/or
confidentiality.
[45]
I am well alive to the fact that if a public institution is in
possession of personal information,
it has an onerous task of
handling such information with the greatest care and sensitivity, in
order to protect the rights of the
owner of the personal information.
Naturally, if a public institution is in possession of private
or confidential information,
the test to gain access to such
information is strict. Without doubt, when considering
imparting information the authorities
involved have to consider the
impact and scale of that access. Ordinarily, privacy trumps
access. The right to privacy
protects the privacy of personal
information in the custody of a public institution. Inherently,
the right to privacy can
also effectively restrict the right of
access to information.
[46]
In the instant case, it is the City’s strong contention that it
is refusing to impart the information
to protect the rights of
others. As mentioned previously, the City is relying on section
36 (1) (b) and (c) of PAIA, in refusing
access to the requested
information. Of course, the Applicant is not willing to accept
the justification that the restriction
is necessary.
[47]
It seems that the City is contending that it did not entirely refuse
or hinder the Applicant’s
access to the information it sought.
It only took some measures and merely restricted it.
Thus, the refusal was not
a generic one. According to the City,
it was justified in its refusal as it has, in the context of this
case, legitimate
reasons to refuse to impart the information sought
as it is protecting the interests and rights of others.
What is the nature of
information sought?
[48]
Access to information cannot be granted merely because a requester
demands it. I think it is
highly important to take note of the
fact that the relief sought by the Applicant has morphed
significantly since the issuance
of the original notice of motion.
The Fourth Respondent strongly maintains the view that the
Applicant’s persistence
in seeking disclosure of the records,
evinces that the Applicant is highly competitive and that the
information sought by the Applicant
is not trivial, but valuable, and
that it is confidential information that is useful in a competitive
industry.
[49]
In
Sibex Engineering Services (Pty) Ltd v Van Wyk and Another
1991
(2) SA 482
, at 502D-F, it was stated that there are two types of
proprietary interests capable of protection. The first one is
the ‘trade
connections’ of the business, also known as
its goodwill, which consists of its relationships with customers,
potential customers,
suppliers and others. The second one is
the ‘trade secrets’ of the business, consisting of all
the confidential
matters which are useful for the carrying on of the
business and which, if disclosed to a competitor, can be used to gain
a competitive
advantage over the business.
[50]
First, the question which aptly arises is whether the information in
the custody of the City is information
as contemplated in s 36 (1)
(b) and (c) of PAIA. As previously mentioned, the Applicant
firmly disputes that the application
for approval contains
protectable information.
[51]
It is the Fourth Respondent’s contention that the approval
records sought by the Applicant contains:
details of the person or
entity that has a right to consent to a site development; the
conditions of the approval; the duration
of the approval; the expiry
of the approval; and technical information such as structural details
and site plans. Furthermore,
it is the Fourth Respondent’s
strong contention that the information sought also includes protected
information. According
to the Fourth Respondent, the Applicant
is trying to access the location and photomontage of the site, that
is communicated only
to a person who may be impacted
.
[52]
When it comes to the aspect of what type of information is currently
in possession of the City, this
Court is faced with conflicting
versions. When dealing with the apparent dispute of facts, I am
well alive to what was stated
in the case of
President of the
Republic South Africa and others v M & G Media Ltd
2012 (2)
SA 50
CC, when Ngcobo CJ opined the following at paragraphs 34-36:
‘
[34] The facts
upon which the exemption is justified will invariably be within the
knowledge of the holder of information. In
these circumstances,
the requester may have to resort to a bare denial of the facts
alleged by the holder of information justifying
refusal of access. A
bare denial will normally not be sufficient to raise a genuine
dispute of fact, and the
Plascon-Evans
rule would
require that the application be decided on the factual allegations
made by the party refusing access to the record.
[35] On the other hand, a
holder of information who needs to rely on the contents of the record
itself, in order to justify the
exemption claimed, will be prevented
from doing so by the provisions of ss 25 (3) (b) and 77 (5) (b) of
PAIA, which preclude “any
reference to the content of the
record” in order to support a claim of exemption.
[36]
Courts should therefore approach these disputes mindful of both the
disadvantage at which requesters are placed in challenging
evidence
put forward by the holder of the record, and the restraints placed on
the party holding the information in terms of how
it may refer to the
contents of the record in justifying refusal of access. In the
light of these challenges in producing
and refuting evidence, courts
have been empowered by s 80 to call for additional evidence in the
form of the contested record so
that they may test the validity of
the exemptions claimed.’
(Internal
footnote omitted.)
[53]
Turning to the instant case, besides the affidavits of the parties, I
also have the benefit of being
placed in possession of a sample of
the form [Annexure FA 36 to the founding affidavit] used for the
application for approval and
the by-laws relevant in the completion
of the application form in question. Moreover, t
he
Fourth Respondent,
who
also happens to be a third party and in a better position, than the
Applicant to identify why disclosure cannot be permitted
[A5]
,
categorically states that the information sought is protected
information.
[54]
As far as my perusal of the blank application form [Annexure FA 36]
is concerned, I get the distinct
impression that the information
required from the application form does not only involve the listing
of personal details.
The application form requires, amongst
others, site plans, elevations and signs details, structural details,
drawings showing structural
details, photographs or a photomontage
indicating the position and appearance of the sign, registered
property owner details, and
details of the authorised agent.
[55]
The City’s “
Outdoor Advertising and
Signage By-law 2001”
pertinently states what is required
for the competitor to enter the arena of signage business in Cape
Town. Additionally,
it is easily discernible
from the by-law [under the heading “Part B – Submission
of Applications”] what information
is required to be filled in
on the application form. The by-law requires that the
application form, for instance, should
contain the following
information:
‘
2.1
A
site plan showing the site on which it
is proposed that the sign is to be erected or displayed, drawn to a
scale
. . . showing clearly and
accurately the position of the sign and the building, if any, to
which it is to be attached and showing
every building and the
existing signs on the site,
existing and
proposed landscaping
, . . . with
dimensions, of the sign or sign in relation to the boundaries of the
site and the location of the streets abutting
the site,
together
with its existing approved zoning conditions
.
2.2
A drawing
,
which complies with the requirements of the National Building and
Regulations Standards Act . . . and is
in sufficient detail to
enable the Municipality to consider the appearance of the sign and
all relevant construction detail, including
a description of the
materials of which the sign is to be constructed,
the colours to
be used, and whether or not the sign is to be illuminated; and in the
latter event, the plan shall indicate whether
or not the sign is an
electronic sign and, if so, full details shall be furnished.’
(My own underlining)
[56]
Merely from the above two extracts of the bylaw, it is quite clear
that
the information requested in the instant case is not only
about personal information or details filled out in the course of
completing
a blank form. Rather it also discloses information
which relates to the design of the signage, agent’s details,
materials
used to construct the sign, and drawings in compliance with
the National Building and Regulations Standards Act 103 of 1977.
Is
[A6]
the
information contained in the undisclosed records worthy of
protection?
[57]
From the onset I wish to state that it is evident that there was an
expenditure of
skill and labour in the
gathering of the information required in completing the application
form for approval. Plainly, the
information required in the
application form calls, amongst others, for data relating to the
specifications of the sign, and the
process of design, either of
which has been arrived at by the expenditure of skill. It is
undeniable that designs and drawings
have an artistic element to
them, relating to the specifications of a product. Through
illustrations, detailed information
and ideas about the object are
provided or conveyed.
[58]
Undoubtedly today’s market is extremely competitive.
Therefore, it is highly important
and necessary for an entity to
protect itself by protecting its confidential information.
Otherwise the entity may lose the
leverage it has against its
competitors.
[59]
T
he Applicant submits that the information sought cannot be
deemed confidential and thus it is not worthy of protection. To
the contrary, I consider that the information is used in the Fourth
Respondent’s business, and offers an opportunity to gain
an
advantage over its competitors who are not privy to it. The
information can also be used to steal designs or to get a
head start
in design development.
[60]
Counsel on behalf of the Applicant emphatically stated that the
information related to the approvals
is contained in a letter and
nothing is protectable about it. Beyond the merely possible or
speculative, the information sought
by the Applicant (regarding
duration of approval, terms and conditions of approval, details of
the agents and land owners) can
most certainly afford a party
lead-time, which can put the Applicant at an advantage. In
other words, there is a real probability
that the information can
provide insight into opportunities in order to pre-empt them.
[61]
Inasmuch as some of the information sought may not be innovative or
novel, nonetheless the information
will empower the Applicant to
navigate the Cape Town signage market sooner than it would have
otherwise been able to. The
information can also help the
Applicant to determine or identify where the Fourth Respondent, as a
competitor, is in the market.
As previously mentioned, if the
access to information sought by the Applicant is granted, it may also
help to thwart the Fourth
Respondent’s or other third parties’
actions or developments. Consequently, information cannot be
disclosed if
its disclosure is going to open the floodgates, or
create opportunities for pre-emption.
[62]
With the information sought, the Applicant will also be able to
identify the potential moves of the
Fourth Respondent or the other
third parties. The Applicant can thus be able to pre-empt the
strategies of the Fourth Respondent
or other third parties before
they formulate them. In the context of this case, it is not
farfetched that the information
the Applicant seeks can be used to
compete with the Fourth Respondents or other third parties.
[63]
As a result, if the Applicant obtains the information it seeks it may
be able to make an offensive
manoeuvre and snatch away the head start
from the Fourth Respondents, or the other third parties, who are
already in the signage
business in Cape Town. The Applicant’s
statement in its papers that it wants to level the playing field in
Cape Town
is quite illuminating.
[64]
The information can be used to sabotage contractual relationships or
negotiations of third parties.
For instance, in order to stay
ahead of the competition, the Applicant may use the information to
secure the site currently used
by the Fourth Respondent, for a period
after the expiry of the current approval. Therefore, with the
benefit of the ‘inside
information’ in its possession,
the Applicant would be able to engage the owner of the site in
negotiations and will not
have to wait until the duration of the
approval by the City expires.
[65]
Given the above mentioned, the Fourth Respondent cannot be faulted
when it contends that if
information provided in confidence is
used, it would be to the detriment of its business, as it will be of
great value to its competitor.
[66]
The other information sought by the Applicant in this regard falls
within the realm of designs and
technical information. Thus it
constitutes protectable information as contemplated by PAIA. It
is therefore unnecessary
to divulge the
details
of the person or entity that has the right to consent to a site
development; the conditions of the approval; the duration
of the
approval; the expiry date of the approval; personal information; or
the drawings of plans,
unless
the
requirements of section 46 of PAIA are satisfied.
[67]
An institution can refuse to impart records
if these would constitute personal information.
Conversely, an institution
cannot refuse
disclosure of personal
information falling within the
provisions of section 46 of PAIA
The City replied, and
comprehensively so, to the request by the Applicant.
Is
the information public knowledge?
[68]
It is settled now that information which is public knowledge is not
protectable.
[69]
The Fourth Respondent contends that the Applicant is not
seeking information that has entered the public domain.
[70]
The contention by the Applicant ignores the fact that, if the
information is given to a restricted
number of people who also happen
to be affected parties, this does not mean that that information is
in the public domain, or that
it is public knowledge.
[71]
I have already made a finding that the information
that the Applicant seeks
is protectable information.
The public interest
test
[72]
Public interest plays a critical role in the overall assessment as to
whether it is necessary to disclose
information, particularly the
disclosure of information which is encompassed by the provisions of
PAIA under the mandatory protected
commercial information of third
parties.
[73]
The Applicant is of the view that its request, in the circumstances
of this matter, is an issue of
public interest. However, public
interest is significantly distinguishable from what is of interest to
the public.
The mere fact that the public is interested in
information does not translate itself to mean that the information is
of public
interest.
[74]
The question which aptly begs, is whether in the context of this
matter there is an inherent public
interest which calls for
disclosure of the confidential information.
[75]
It is undeniable that the need for disclosure of information can be
indispensable if public interest
demands disclosure to ensure
transparency in public entities, irrespective of whether the
disclosure will cause harm to the business
of a third party.
Public interest, transparency and accountability in governments go
hand in hand.
[76]
Of particular significance in the present context is that the mere
fact that the relevant information
contains personal data, does not
necessarily mean that such information cannot be accessed. If
the benefits of disclosure
outweigh the harm to the third party,
disclosure is peremptory. For instance, one can argue that
personal information which
also reveals illegalities, is a matter of
public interest as well and, therefore, important for a public debate
or accountability.
[77]
An institution can be mandated under PAIA to disclose protected
information, if the factors listed
under section 46 of PAIA, for
instance public interest; outweigh the right to privacy. Put
differently, in order for a public
institution to disseminate
protected information, the requester has to show
the need
for
the information, and one of those reasons is public interest.
[78]
In the instant case, the City strongly contends that the Applicant’s
request does not fall within
the ambit of public interest. The
City contends in this matter that the Applicant’s concerns have
absolutely nothing
to do with the interests of the public at large;
but have everything to do with its own business interests.
[79]
On the other hand, the Applicant suggests that there might have been
arbitrary decision-making or wrongdoing
involved in the approvals
granted. Evidently, the Applicant harbours some suspicion
regarding the approval process.
[80]
Based on all the facts stated by the Applicant in its papers, I am
not satisfied that there is a reasonable
suspicion of wrongdoing on
the part of the City, or the City’s employees. Even on
the Applicant’s own version,
there is no cogent reason for the
perception of wrongdoing. Instead, the Applicant avers that the
disclosure
may
reveal evidence of a contravention by the
holder of the approval during the erection; or that the approvals
appear to contravene
the by-laws of the City.
[81]
Surely, there must be some sort of evidence that supports the
suspicion of wrongdoing. For that
matter, the photos filed by
the Applicant, depicting the City’s employee together with one
of the third parties, also do
not help without any context to them.
The Applicant in this regard is not reporting an act of wrongdoing,
it merely suspects
wrongdoing. Consequently, in this matter,
there is no scintilla of information to show that reasonable grounds
exist to believe
that wrongdoing was committed.
[82]
Chiefly, disclosure of protectable information is permissible in
matters which are of interest to society
as a whole, and not only to
the individual who demands disclosure. Obviously, there is
public interest in the exercise of
a discretion by public
institutions; public officials’ honesty or objectivity;
influence on public officials to act improperly;
management of
government funds or property; and in ensuring competitors can compete
on a ‘level playing field’, etc.
[83]
In this matter, it is also a weighty consideration that a competitor
seeks access to information under
the guise of public interest.
In the context of this matter, the Respondents cannot be faulted for
contending that the Applicant
seeks the information for his private
interest and not for a public good or concern. This aspect also
does not assist the
Applicant in using the public interest argument
in order to access to information. Particularly in light
of the fact
that there is no tangible evidence that it would be in
the interest of the public to release the information.
[84]
To determine whether it is in the public interest to release the
information, I have to ask the question
whether the information
sought is necessary or not, and consider the purposes of seeking the
information, and the role of the person
seeking the information in
the bigger scheme of things.
[85]
It is my firm view that the information requested has nothing to do
with open governance; this court
is clearly dealing with a competitor
which simply wants to pry and meddle in the businesses of other
entities. At the risk
of repetition, there is nothing in this
matter to suggest that public welfare will benefit if the information
is disclosed.
Onus of proof
[86]
In relation to the onus of proof, given the fact that the City is
refusing to grant access, in terms
of section 81 (3) of PAIA, the
City bears the onus to prove that the non-disclosure is justified.
See
M & G Media Ltd
, supra, at paragraph 13.
[87]
In the context of this case, I am satisfied that the City, on a
balance of probabilities, discharged
the burden of showing that the
refusal of access to information was justified.
Application to strike
out
[88]
The First to the Third Respondents launched an application to strike
out certain paragraphs of the
Applicant’s papers. I am
however not convinced that if the relief sought by the First to Third
Respondents is not granted
that they would suffer prejudice.
Consequently, this Court is not inclined to grant the said relief.
Costs
[A7]
[89]
In
Wideopen
Platform v City of Cape Town
and
Others,
unreported judgment
dated
7 December 2020, (Case Number 12671/2019), Steyn J, stated the
following at paragraph 62-63 and 101
“
62
attached, ‘
SA2
’, details some technical
information which was required of an applicant in this matter.
I was referred to the wording
of the relevant By-Law that describes
the procedure to be followed and the criteria to be used when
obtaining approval for a sign
applicable to outdoor advertising in
the City of Cape Town. It recognises that there is an
extensive
amount of technical details applicable
63.
It cannot be maintained, as Wideopen does, that no technical
information is required in this application
and approval process . .
. Moreover, it has been established that Wideopen is
familiar with the By-Law which describes
the present application
/approval process as arduous and very technical. Wideopen’s
alleged ignorance of the fact that
the relevant application forms for
signage and approval do not require technical information is
doubtful. .. The evidence indicates
that Wideopen has an interest in
applications and approvals for advertising and signage space made by
its competitors . . .
[101] I
am satisfied that the persistence with litigating penalised with a
punitive cost order.”
[90]
Having regard to the above extract, the Applicant’s assertion
that the judgment of Steyn J, does
not address the approvals is
unfathomable. Likewise, it is not clear why the
Applicant’s counsel would maintain
that this case is
distinguishable from the facts decided by Steyn J.
[91]
Notwithstanding the fact that the judgment of Steyn, J involved a
different third party, I tend to
align myself with the sentiments as
expressed on behalf of the Respondents; that the Judgment of Steyn J,
cannot be completely
ignored. Disclosure of approvals was
sought in that matter as well. The assertion on behalf of the
Applicant that the
Applicant is no longer seeking disclosure of 19
approvals, following the judgment of Steyn J, is quite telling.
[92]
Overall considered, the facts of this matter plainly evinces that
these proceedings were instituted
without sufficient grounds.
Moreover, even though the judgment of Steyn J was a clear indication
that the claim launched
by the Applicant was unsustainable, it
persisted in this matter in seeking the relief claimed. The
actions of the Applicant
are highly disingenuous, irresponsible and
an abuse of court processes. In my view, it is undeniable that
this application
is vexatious and frivolous litigation.
[93]
It was argued on behalf of the Respondents that the conduct of the
Applicant justifies a punitive cost
order. It is my view that a
punitive cost order in this instance, would serve to mark this
court’s displeasure of the
conduct displayed by the Applicant.
[94]
The employment of two counsel by the First to Third Respondents was
warranted due to the complexity
of the matter.
In the premises, I make
the following order:
1. The applicant’s
application is dismissed;
2. The Applicant is
ordered to pay the costs on attorney and client scale.
3. Costs awarded to
include the costs of the employment of two counsel by First to
Third Respondents.
CN NZIWENI
Acting Judge of the
High Court
[A1]
Amended
to avoid repetition.
[A2]
Apologies
Judge, the intended meaning of this sentence is unclear, please
consider rephrasing.
[A3]
Apologies
Judge, is this perhaps the Applicant’s contention (regarding
the City’s onus)?
[A4]
Apologies
Judge, did you mean to refer to paras 62-63 of the Brümmer
matter?
[A5]
Respectfully
Judge, in a better position than whom?
[A6]
Format
amended for consistency.
[]
[A7]
Please
remember to fill in this aspect.
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