Case Law[2024] ZACC 25South Africa
Govan Mbeki Local Municipality v Glencore Operations South Africa (Pty) Ltd and Others; Emalahleni Local Municipality v Glencore Operations South Africa (Pty) Ltd and Others (CCT 189/22; CCT 191/22) [2024] ZACC 25; 2025 (2) BCLR 111 (CC); 2025 (2) SA 238 (CC) (19 November 2024)
Constitutional Court of South Africa
19 November 2024
Headnotes
Summary: Municipal planning by-laws — transfer embargoes — delegated powers under section 32(1) of the Spatial Planning and Land Use Management Act 16 of 2013 — constitutionality of section 76 of the Govan Mbeki Spatial Planning and Land Use Management By law — constitutionality of section 86 of the Emalahleni Municipal By-law on Spatial Planning and Land Use Management 2016 — section 118(1) of the Systems Act — right to property — order of invalidity
Judgment
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## Govan Mbeki Local Municipality v Glencore Operations South Africa (Pty) Ltd and Others; Emalahleni Local Municipality v Glencore Operations South Africa (Pty) Ltd and Others (CCT 189/22; CCT 191/22) [2024] ZACC 25; 2025 (2) BCLR 111 (CC); 2025 (2) SA 238 (CC) (19 November 2024)
Govan Mbeki Local Municipality v Glencore Operations South Africa (Pty) Ltd and Others; Emalahleni Local Municipality v Glencore Operations South Africa (Pty) Ltd and Others (CCT 189/22; CCT 191/22) [2024] ZACC 25; 2025 (2) BCLR 111 (CC); 2025 (2) SA 238 (CC) (19 November 2024)
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FLYNOTES:
MUNICIPALITY – Powers –
Property transfers –
Section 76 of Govan Mbeki By-law
and section 86 of Emalahleni By-law – Transfer embargoes to
enforce compliance with
municipal planning, land use and building
regulation requirements – Purport to regulate deeds
registration and transfer
– No scope for additional
incidental legislative powers to be conferred on municipalities
directly by section 156(5)
of Constitution – No
constitutional or legislative source for power to make by-laws
imposing transfer embargoes –
Sections inconsistent with the
Constitution and invalid..
CONSTITUTIONAL
COURT OF SOUTH AFRICA
Case CCT 189/22
In
the matter between:
GOVAN
MBEKI LOCAL MUNICIPALITY
Applicant
and
GLENCORE OPERATIONS SOUTH AFRICA
(PTY)
LIMITED
First Respondent
DUIKER MINING (PTY)
LIMITED
Second Respondent
TAVISTOCK
COLLIERIES (PTY) LIMITED
Third Respondent
UMCEBO
PROPERTIES (PTY) LIMITED
Fourth Respondent
IZIMBIWA
COAL (PTY) LIMITED
Fifth Respondent
Case CCT 191/22
In
the matter between:
EMALAHLENI
LOCAL MUNICIPALITY
Applicant
and
GLENCORE OPERATIONS SOUTH AFRICA
(PTY)
LIMITED
First Respondent
DUIKER
MINING (PTY) LIMITED
Second Respondent
TAVISTOCK
COLLIERIES (PTY) LIMITED
Third Respondent
UMCEBO
PROPERTIES (PTY) LIMITED
Fourth Respondent
IZIMBIWA
COAL (PTY) LIMITED
Fifth Respondent
GOVAN
MBEKI LOCAL MUNICIPALITY
Sixth Respondent
Neutral
citation:
Govan
Mbeki Local Municipality v Glencore Operations South Africa (Pty) Ltd
and Others; Emalahleni Local Municipality v Glencore
Operations South
Africa (Pty) Ltd and Others
[
2024]
ZACC 25
Coram:
Chaskalson AJ, Dodson AJ, Kollapen J,
Mathopo J, Mhlantla J, Rogers J, Schippers AJ and
Tshiqi J.
Judgments:
Chaskalson AJ (majority): [1] to [98]
Dodson AJ (dissenting): [99] to
[288]
Rogers J (dissenting): [289] to
[305]
Heard
on:
16 November 2023
Decided
on:
19 November 2024
Summary:
Municipal planning by-laws —
transfer embargoes — delegated powers under
section 32(1)
of
the
Spatial Planning and Land Use Management Act 16 of 2013
—
constitutionality of
section 76
of the Govan Mbeki Spatial
Planning and Land Use Management By law
—
constitutionality of
section 86
of the Emalahleni Municipal
By-law on
Spatial Planning and Land Use
Management 2016 —
section 118(1) of the Systems Act
—
right to property
— order of
invalidity
ORDER
On
appeal from the Supreme Court of Appeal (hearing an
appeal from the Mpumalanga Division of the High Court, Middelburg):
1.
Leave to appeal is granted.
2.
The appeal against the order of the Supreme Court of Appeal
is dismissed with
costs, including the costs of two counsel.
3.
The cross-appeal against the order of the Supreme Court of Appeal
is upheld
with costs, including the costs of two counsel.
4.
The order of the Supreme Court of Appeal is varied by:
4.1 the
substitution of the following for paragraph 3 of the order in
Case No 334/2021:
“
3.
Section 76 of the Govan Mbeki Spatial Planning and Land Use
Management By Law 2016 is
declared to be inconsistent with the
Constitution and invalid”; and
4.2 the
substitution of the following for paragraph 3 of the order in
Case No 338/2021:
“
3.
Section 86 of the Emalahleni Municipal By Law on Spatial
Planning and Land Use Management
2016 is declared to be inconsistent
with the Constitution and invalid.”
JUDGMENT
CHASKALSON AJ (Mathopo J,
Mhlantla J, Schippers AJ and Tshiqi J concurring):
Introduction
[1]
This matter concerns municipal by laws which attempt to
enforce municipal planning schemes by preventing the registration of
transfer of properties without proof that there has been full
compliance with all municipal planning requirements in respect of
the
properties in question. The applicant municipalities both
adopted municipal planning by-laws containing transfer embargoes
along these lines. The Mpumalanga Division of the High Court,
Middelburg (High Court) and the Supreme Court of Appeal
declared the transfer embargo provisions of the municipalities’
by-laws to be inconsistent with the Constitution and invalid.
The applicant municipalities now appeal to this Court against the
decision of the Supreme Court of Appeal.
Background
[2]
The applicants are Govan Mbeki
Local Municipality (Govan Mbeki) and Emalahleni Local
Municipality (Emalahleni).
They are both municipalities in
Mpumalanga which have adopted municipal planning by-laws containing
transfer embargoes that are
intended to enforce compliance with
municipal planning requirements.
[1]
[3]
The respondents are Glencore Operations South Africa (Pty)
Limited, Duiker Mining (Pty) Limited, Tavistock Collieries (Pty)
Limited,
Umcebo Properties (Pty) Limited and Izimbiwa Coal (Pty)
Limited. Except for Umcebo Properties, which is a property
holding
company, the other four are mining companies. All of
the respondents intend to transfer immovable properties in the
jurisdictional
areas of the applicants. In this judgment, I
will refer to the applicants as “the municipalities” and
to the
respondents as “the property owners”.
[4]
The Govan Mbeki and Emalahleni
by-laws are intended to operate within the framework of the Spatial
Planning and Land Use Management
Act
[2]
(SPLUMA). Both sets of by-laws
refer to SPLUMA as “the Act”.
[3]
Many of the chapters of the
by laws have introductory provisions that show that they are
expressly designed to give effect
to the framework provisions enacted
in SPLUMA.
[4]
[5]
Section 74 of the Govan Mbeki By-Law and section 84
of the Emalahleni By Law deal with requirements for the
first transfer of properties out of a new development scheme or
sub-division. They build on the provisions of section 53
of SPLUMA which states:
“
The
registration of any property resulting from a land development
application may not be performed unless the municipality certifies
that all the requirements and conditions for the approval have been
complied with
.”
[6]
Section 74 of the Govan Mbeki By-Law states the
following:
“
74
Restriction of transfer and registration
. . .
(2)
No Erf/Erven and/or units in a land development area, may be
alienated or transferred
into the name of a purchaser nor shall a
Certificate of Registered Title be registered in the name of the
owner, prior to the Municipality
certifying to the Registrar of Deeds
that:
(a)
All engineering services have been designed and constructed to the
satisfaction of
the Municipality, including guarantees for services
having been provided to the satisfaction of the Municipality as may
be required;
and
(b)
all engineering services and development charges have been paid or an
agreement has
been entered into to pay the development charges in
monthly instalments; and
(c)
all engineering services have been or will be protected to the
satisfaction of the
Municipality by means of servitudes; and
(d)
all conditions of the approval of the land development application
have been complied
with or that arrangements have been made to the
satisfaction of the Municipality for the compliance thereof within 3
months of
having certified to the Registrar in terms of this section
that registration may take place; and
(e)
that the Municipality is in a position to consider a final building
plan; and
(f)
that all the properties have either been transferred or shall be
transferred simultaneously
with the first transfer or registration of
a newly created property or sectional title scheme.”
[7]
Section 84 of the Emalahleni By-Law is, for practical
purposes, identical to section 74 of the Govan Mbeki By-Law.
Neither of these two by-laws are challenged by the property owners.
[8]
Instead, the property owners’ constitutional challenge
targets section 76 of the Govan Mbeki By-Law and section 86
of the Emalahleni By-Law. These impugned provisions deal with
all property transfers and are not confined to original transfers
out
of new development schemes and sub-divisions of properties.
Section 76 of the Govan Mbeki By-Law states the
following:
“
76
Certification by Municipality
(1)
A person may not apply to the Registrar of Deeds to register the
transfer of a land
unit, unless the Municipality has issued a
certificate in terms of this section.
(2)
The Municipality may not issue a certificate to transfer a land unit
in terms of any
law, or in terms of this By-law, unless the owner
furnishes the Municipality with¾
(a)
a certificate of a conveyancer confirming that funds due by the
transferor in respect
of land, have been paid;
(b)
proof of payment of any contravention penalty or proof of compliance
with a directive
contemplated in Chapter 9;
(c)
proof that the land use and buildings constructed on the land unit
comply with the
requirements of the land use scheme;
(d)
proof that all common property including private roads and private
places originating
from the subdivision, has been transferred; and
(e)
proof that the conditions of approval that must be complied with
before the transfer
of erven have been complied with.
(f)
Proof that all engineering services have been installed or
arrangements have been
made to the satisfaction of the Municipality.”
[9]
Section 86 of the Emalahleni By-Law includes no
equivalent to section 76(2)(f) of the Govan Mbeki By-Law.
In all
other respects, it is, for practical purposes, identical to
section 76 of the Govan Mbeki By-Law.
[10]
Section 76 of the Govan Mbeki By-Law and section 86
of the Emalahleni By Law seek to use transfer embargoes to
enforce compliance with municipal planning, land use and building
regulation requirements. They do so by requiring all property
owners who want to apply to the Registrar for a transfer of their
land first to obtain a certificate from the municipality (a “planning
certificate”). The planning certificate confirms that all
spatial planning, land use management and building regulation
requirements and payments applying to the land unit in question have
been complied with.
[11]
The transfer embargoes in the
impugned by-laws extend not only beyond those contemplated by
section 53 of SPLUMA. They
also extend beyond the transfer
embargoes created by section 118(1) of the Local
Government: Municipal Systems Act
[5]
(Systems Act) which were considered by
this Court in
Mkontwana
.
[6]
Section 118(1) of the Systems Act
requires the presentation of “rates clearance certificates”
as a precondition
for transfer of properties. A rates clearance
certificate certifies only the payment of amounts that became due in
the preceding
two years for municipal rates and services in respect
of a property. In contrast, paragraph (a) of the impugned
by-laws
requires a certificate confirming payment by the transferor
of all amounts due in respect of the property, irrespective of when
those amounts became due. As the property owners point out,
this means that a transferor must now prove payment of rates
liabilities that may have arisen decades ago and that have not yet
prescribed because the prescription period for taxes is thirty
years.
[7]
Paragraphs (d), (e) and (f) of
the Govan Mbeki By-Law (and paragraphs (d) and (e) of the
Emalahleni By-Law)
also make the current land owner responsible
for ensuring that the original developer of the property complied
with land use and
planning requirements relating to the development.
[12]
Unlike section 118 of the
Systems Act, the impugned by-laws do not place obligations
directly on the Registrar of Deeds.
They merely prohibit an
applicant from applying for transfer without obtaining a planning
certificate under the by laws.
Nevertheless, the Office of
the Mpumalanga Registrar of Deeds has taken the position that it will
refuse to process transfer applications
without the production of a
planning certificate required by the by-laws.
[8]
Litigation
history
High
Court
[13]
On 18 July 2019, the
property owners launched an application in the High Court for
orders declaring the impugned by-laws
unconstitutional and
invalid.
[9]
The constitutional case of the
property owners was based on several alternative causes of action.
First, the property owners
alleged that the impugned by-laws were
inconsistent with section 25 of the Constitution, as their
application led to an arbitrary
deprivation of property.
Second, they submitted that the impugned by-laws were
unconstitutional because they legislate on
matters which fall outside
the scope of powers assigned to local government in terms of
section 156 read with Part B
of Schedule 4 and Part B
of Schedule 5 to the Constitution. Third, they contended
that the impugned by-laws
were invalid because they were inconsistent
with section 118 of the Systems Act. The property
owners also sought
a wide range of administrative review and
interdictory relief in the alternative to their primary
constitutional relief.
For reasons that appear below, this
relief is no longer relevant.
[14]
Relying on
Mkontwana
,
the High Court held that the impugned by laws constituted a
deprivation of property within the meaning of section 25(1)
of
the Constitution.
[10]
Having regard to the historical
exclusion of mining properties from land use schemes,
[11]
the High Court held that the
application of paragraph (c) of subsection (2) of the
impugned by-laws to the property
owners’ mining properties
amounted to an arbitrary deprivation of property.
[12]
[15]
The High Court also held that
the impugned by-laws were inconsistent with section 118 of the
Systems Act because they
purported to “amend” the
provisions of that section by imposing additional requirements before
transfer applications
could be processed at the office of the
Registrar of Deeds. It concluded that this inconsistency with
section 118 of
the Systems Act was an independent ground of
invalidity of the by laws.
[13]
[16]
The High Court then
considered whether the by-laws were covered by the municipalities’
legislative competence over “municipal
planning” under
section 156(1)(a) read with Part B of Schedule 4 to
the Constitution. The High Court
cited
DVB
Behuising
,
[14]
where this Court held that the
registration of land rights was a residual national competence.
[15]
The High Court accordingly
concluded that the municipal planning competence under Part B of
Schedule 4 did not extend
to matters concerning the registration
and transfer of properties.
[16]
The High Court also held
that the creation of the by-laws did not fall within the incidental
powers conferred on municipalities
by section 156(5) of the
Constitution read with section 156(2).
[17]
As a result, the High Court
concluded that there was no enabling authority for the municipalities
to make the impugned by-laws
and that the by-laws were inconsistent
with the constitutional principle of legality. On the basis of
this reasoning, the
High Court declared the impugned by-laws to
be unconstitutional and invalid.
[18]
[17]
For reasons that do not emerge
clearly from the judgment, the High Court qualified its orders
of invalidity of the impugned
by-laws in two respects.
[19]
First, it limited the orders of
invalidity to circumstances covered by provisions of paragraphs (a)
and (c) of subsection (2)
of the impugned by-laws in
relation to the property owners’ mining properties, although
these provisions were relevant only
to the property challenge and not
to the legality challenge.
[18]
Second, it invoked section 172(1) of the Constitution to
suspend its orders of invalidity for a period of six months to allow
the constitutional defect in the by-laws to be corrected. Apart
from being unreasoned, the suspension of invalidity was a
misdirection on the part of the High Court. The only party
with legislative authority to amend by-laws is the municipality
that
made those by-laws in the first place. As the High Court
had concluded that the municipalities lacked any enabling
power to
make by-laws relating to registration and transfer of property, it
would not have been possible for them to amend the
by-laws in any way
that corrected the constitutional defect in a manner other than an
unqualified order of invalidity would have
corrected the defect.
Supreme
Court of Appeal
[19]
The municipalities appealed to the Supreme Court
of Appeal against the judgment and order of the High Court.
The property owners cross-appealed against the two provisions of the
High Court order that qualified the orders of invalidity.
[20]
The Supreme Court
of Appeal identified the legality issue as the first issue that
had to be addressed because, if the
property owners were correct on
the legality issue, that would render all other issues academic.
[20]
The Supreme Court of Appeal
discussed the scheme of local government powers under Chapter 7
of the Constitution and
sections 155 and 156 of the
Constitution.
[21]
It also analysed the provisions of
SPLUMA to consider whether the by-laws were authorised by the
enabling authority of section 32(1)
of SPLUMA, which states that
a “municipality may pass by-laws aimed at enforcing its land
use scheme”.
[22]
[21]
It concluded that there was no
enabling authority for the impugned by-laws.
[23]
The Supreme Court of Appeal
reasoned that the impugned by-laws were not authorised as part of the
municipal legislative
competence over municipal planning because
their true subject matter was not municipal planning but registration
and transfer of
property:
“
As
this enforcement mechanism in the by-laws is a restriction on
transfer, these are not aspects of municipal planning, but matters
pertaining to the transfer and registration of property that are
regulated by the Deeds Registries Act. That is not a municipal
legislative competence, but a national one
.
”
[24]
[22]
It concluded that the by-laws
were beyond the by-law-making power conferred by section 32(1)
of SPLUMA because “the system
of enforcement envisaged in
section 32 of SPLUMA does not provide for a restriction of the
transfer of land”.
[25]
Further, it held that the
by-laws did not fall within the incidental powers conferred on
municipalities by section 156(2) of
the Constitution read with
section 156(5). It stated the following in this regard:
“
The
restriction on transfer of land is not a necessary power incidental
to land-use management, as enforcement mechanisms of its
land-use
scheme are already provided for in Chapter 9 of the by-laws.
The registration of transfer of property is expressly
regulated
by the Deeds Registries Act and section 118 of the Systems Act.
There is thus no room for an implied
municipal power to
regulate the registrar’s statutory power to register the
transfer of properties. The embargo therefore
cannot be
incidental to the effective enforcement of a land-use scheme.”
[26]
[23]
The Supreme Court
of Appeal accordingly upheld the legality challenge to the
impugned by-laws. It also endorsed
the High Court’s
conclusion that the impugned by laws were inconsistent with
section 118 of the Systems Act and
pointed out that, once the
by-laws were not sourced in any lawful authority, the deprivation of
property that they effected amounted
to an arbitrary deprivation and
was additionally inconsistent with the Constitution on this
ground.
[27]
The Supreme Court of Appeal
accordingly dismissed the municipalities’ appeals with costs.
[24]
On the cross-appeal, the
Supreme Court of Appeal noted that the High Court
provided no reasons for its order suspending
the declaration of
invalidity. The Supreme Court of Appeal held that it
was not competent for the High Court
to suspend the declaration
of invalidity without any apparent reasons for doing so. It
accordingly upheld the cross-appeals
of the property owners with
costs and set aside the suspension of the declaration of invalidity
of the by-laws.
[28]
[25]
Apparently due to an oversight,
the Supreme Court of Appeal did not address itself to the
second aspect of the cross-appeals
which sought to remove the
qualifications in the High Court order that limited the orders
of invalidity to circumstances covered
by provisions of
paragraphs (a) and (c) of subsection (2) of the impugned
by laws in relation to the property owners’
mining
properties.
[29]
In
this Court
[26]
Aggrieved by the Supreme Court of Appeal’s decision,
both municipalities filed applications in this Court for leave to
appeal
and to set aside the High Court’s order (main
application). Govan Mbeki also filed a condonation application
for
the late filing of the record due to the length of time it took
to prepare the record whilst relying on the services of a third-party
company. The property owners oppose the municipalities’
appeals. They also seek leave to cross-appeal against
the
failure of the Supreme Court of Appeal to remove the
qualification in the High Court orders that limited
the orders
of invalidity to circumstances covered by provisions of
paragraphs (a) and (c) of subsection (2) of the
impugned by-laws in relation to the property owners’ mining
properties.
The
arguments of the municipalities
[27]
Govan Mbeki complains that the property owners’
application in the High Court was premature because the property
owners
failed to show any live disputes with the municipality in
relation to planning certificate applications for any of the
properties
that they allegedly wanted to transfer.
[28]
On the legality issue, the municipalities submit that
section 156(2) of the Constitution authorises the promulgation
of by-laws
as original legislation. They argue that the power
to create by-laws derives from the Constitution itself and is not
subject
to the limits of the enabling authority conferred by SPLUMA.
According to the municipalities, the impugned by-laws fall under
the
“municipal planning” competence in Schedule 4 to the
Constitution because the impugned provisions are simply
an
enforcement mechanism to give effect to the remainder of the by-laws
which directly address municipal planning issues.
[29]
In this context, both
municipalities invoke the decision of this Court in
DVB Behuising
which held that “functional
areas must be purposively interpreted in a manner which will enable
the national Parliament and
the provincial legislatures to exercise
their respective legislative powers fully and effectively”.
[30]
The municipalities argue that
the transfer embargo in the impugned by-laws falls within their
original constitutional powers because
it is a reasonable mechanism
chosen to enforce municipal planning and building regulation
requirements. In this context,
Emalahleni contends that this
Court must defer to the municipalities’ choice of the most
appropriate enforcement mechanisms
for ensuring compliance with
municipal planning requirements.
[30]
In the alternative to their
primary argument that the impugned by-laws fall within original
municipal powers over municipal planning
and building regulations,
both municipalities argue that, as mechanisms designed to enforce
municipal planning and building regulations
provisions, the impugned
by-laws fall within the “necessary and incidental”
municipal competence conferred by section 156(5)
of the
Constitution. In this regard, Govan Mbeki cites a series
of judgments of this Court
[31]
and foreign courts
[32]
that confirm that one tier of
government may have incidental powers to legislate validly within an
area of exclusive legislative
competence of another tier of
government.
[31]
Govan Mbeki also alleges, at the level of fact, that a
transfer embargo is a necessary municipal planning enforcement
mechanism
and thus one which may be legislated within the
municipality’s incidental powers over municipal planning,
because it is not
feasible for the municipality to bear the cost of a
municipal planning inspectorate to enforce the by-laws.
[32]
Alongside the municipalities’ argument that they have
the power to make the impugned by laws under their original
constitutional
powers, Emalahleni submits that section 32(1) of
SPLUMA independently authorises the making of the by-laws because
that section
should be interpreted broadly so as to empower
municipalities to choose any reasonable enforcement mechanisms to
include in their
by-laws.
[33]
The municipalities also urge
this Court to reject the conclusions of the High Court and the
Supreme Court of Appeal
that the impugned by-laws are
inconsistent with section 118(1) of the Systems Act.
In this regard, Emalahleni cites
the judgment of this Court in
Telkom
[33]
which held:
“
For
section 156(3) to be activated, there must be real conflict
between the challenged by-law and national legislation. And
for
a conflict to arise, the two pieces of legislation must be incapable
of operating alongside each other. In other words,
they must be
mutually exclusive. If they are reasonably capable of
co-existing, conflict as envisaged in section 156(3)
would not
have arisen.”
[34]
[34]
Emalahleni submits that,
applying the
Telkom
test,
there is no conflict between the by-laws and section 118(1)
because it is possible for property owners to comply with
both sets
of statutory requirements. Section 118(1) and the by-laws
merely impose two separate sets of requirements
both of which must be
satisfied before land may be transferred. Emalahleni also cites
the decision of this Court in
Maccsand
[35]
as authority for the proposition that
different tiers of government can impose separate requirements before
private parties may
perform certain acts and that, in such cases,
compliance with the separate requirements is required cumulatively.
[35]
Finally, in relation to the property challenge, both
municipalities appear to accept that the by-laws amount to a
deprivation of
property. However, they emphasise the importance
of the purpose of the impugned by-laws – namely, the
enforcement of
independent legal obligations in relation to municipal
planning and building regulations. They argue that, having
regard
to this purpose, the limited deprivation of property rights
effected by the by-laws is not arbitrary and thus does not violate
section 25(1).
The
arguments of the property owners
[36]
The property owners defend the findings of unconstitutionality
made by the Supreme Court of Appeal and the High Court
and adopt the reasoning of the Supreme Court of Appeal.
They argue that the impugned by-laws constitute an extensive
and
arbitrary deprivation of property under section 25 of the
Constitution. They also contend that the impugned by-laws
are
unlawful as they go beyond the constitutional competence over
“municipal planning” or “building regulations”.
In this regard, they contend that the transfer embargo deals with
land registration matters, not municipal planning or building
regulation matters, that the impugned by-laws are not necessary or
incidental to those local government competences within the
meaning
of section 156(5) of the Constitution, and fall beyond the
enabling authority of section 32(1) of SPLUMA.
[37]
The property owners also contend that the impugned by-laws
conflict with section 118 of the Systems Act, and are thus
invalid under section 156(3) of the Constitution. This, so
it argued, was because the by-laws render section 118
meaningless and take away the owner’s right to submit transfer
documents to the Registrar and to demand transfer upon production
of
a section 118 certificate.
The
issues before this Court
[38]
The applications raise the following issues:
(a)
preliminary questions of condonation and prematurity;
(b)
jurisdiction and whether leave to appeal should be granted;
(c)
legality issues: namely whether the municipalities have the
power to
make the impugned by-laws either under their original constitutional
powers or under the powers delegated to them by section 32(1)
of
SPLUMA;
(d)
if the municipalities have the power to make the impugned by-laws,
whether the by-laws are inconsistent with section 118(1) of the
Systems Act;
(e)
if not, whether the impugned by-laws violate the fundamental
right to
property; and
(f)
if the impugned by-laws are invalid in whole or in part,
what remedy
this Court should grant under its powers in terms of section 172(1)
of the Constitution.
Preliminary
issues
[39]
The first preliminary issue is condonation. Govan Mbeki
filed an electronic copy of the record within the deadline stipulated
in the directions of this Court. However, it failed to file
hard copies of the record within that deadline. Govan Mbeki
has
provided a reasonable explanation for its failure timeously to file
hard copies of the record. This failure did not interfere
with
the Court’s preparation for the hearing. Nor did it
prejudice the property owners in any material respects.
This
Court, therefore, grants Govan Mbeki condonation for the late
filing of hard copies of the deadline.
[40]
The second preliminary issue is Emalahleni’s complaint
that the property owners’ application in the High Court
was premature, because the property owners failed to show any live
disputes with the municipality in relation to planning certificate
applications for any of the properties that they allegedly wanted to
sell. At the hearing in this Court, counsel for Emalahleni
rightly did not press this prematurity complaint.
[41]
Since the early years of
South African constitutional law, this Court has held that an
applicant has standing to challenge
the constitutionality of laws in
the abstract if those laws threaten or affect the applicant’s
rights. Applicants do
not have to wait until they are subjected
to adverse consequences under the laws in question.
[36]
[42]
Property owners who want to sell their properties and who
contend that section 86 of the Emalahleni By-Law is
constitutionally
invalid do not have to go through the process of
applying under section 86 for planning certificates in advance
of transferring
their properties before they can challenge the
constitutionality of section 86. If the section affects
their rights
to transfer their properties, they are entitled
proactively to challenge the section in the abstract.
Jurisdiction
and leave to appeal
[43]
The applications for leave to appeal to this Court concern the
constitutional powers of local government and the fundamental right
to property. These are plainly matters within the
constitutional jurisdiction of this Court.
[44]
The issues raised by the municipalities are not frivolous.
They are constitutional issues of substance and in respect of which
a
decision by this Court will be in the interests of justice.
Accordingly, leave to appeal must be granted.
Analysis
[45]
As illustrated by the Supreme Court of Appeal
judgment, an analysis of the constitutional validity of the impugned
by-laws
must start with the legality issue. Legal authority is
the logical starting point because, without legal authority, the
municipalities
cannot make any valid by-laws. It follows that,
if the legality challenge is successful, the by-laws are invalid and
it would
be unnecessary to investigate the property challenge or the
complaint that the by-laws are inconsistent with section 118 of
the Systems Act.
[46]
Any investigation into whether
municipalities have authority to make the impugned by-laws must
consider the scheme of local government
legislative competence under
the Constitution. There are four important features of the
Constitution relevant to this scheme.
The first is that, with
the advent of the interim Constitution, the status of local
government changed.
[37]
In
Fedsure
this Court emphasised that
local government no longer depends on national or provincial
legislation for its existence and powers.
Rather, it is an
entrenched sphere of government with original powers that derive
directly from the Constitution.
[38]
As this Court stated in
Robertson
:
[39]
“
The
Constitution has moved away from a hierarchical division of
governmental power and has ushered in a new vision of government
in
which the sphere of local government is interdependent, ‘inviolable
and possesses the constitutional latitude within which
to define and
express its unique character’ subject to constraints
permissible under our Constitution. A municipality
under the
Constitution is not a mere creature of statute, otherwise moribund,
save if imbued with power by provincial or national
legislation. A
municipality enjoys ‘original’ and constitutionally
entrenched powers, functions, rights and duties
that may be qualified
or constrained by law and only to the extent the Constitution
permits. Now, the conduct of a municipality
is not always
invalid only for the reason that no legislation authorises it. Its
power may derive from the Constitution or
from legislation of a
competent authority or from its own laws.”
[40]
[47]
The municipalities are correct when they submit that they do
not need to point to a source in SPLUMA for the power to make the
impugned
by-laws if they can show that this power is vested by the
Constitution itself.
[48]
The second relevant feature of
the Constitution concerns the specific nature of the legislative
powers conferred on municipalities
by the Constitution. The
powers of municipalities are governed by section 156 of the
Constitution. The primary
original powers vested in
municipalities are executive powers, not legislative powers.
Section 156(1)(a) provides that
municipalities have the original
executive authority to administer any functional areas of competence
listed in Part B of
Schedules 4 and 5 (local
government schedule matters).
[41]
[49]
The original legislative powers vested in municipalities are
narrower and are conferred only in relation to, and in aid of, the
executive powers of the municipalities. These original
legislative powers are conferred by section 156(2) of the
Constitution
which states that a municipality “may make . . .
by-laws for the effective administration of the matters which it has
the
right to administer”.
[50]
The constrained by-law making
power vested by the Constitution in municipalities differs materially
from the legislative powers
vested in Parliament and the provincial
legislatures by section 44(1)(a)(ii) and section 104(1)(b)
respectively.
The latter sections confer legislative power in
direct terms. They do not define the legislative powers of the
National Assembly
or the provincial legislatures with reference to
the executive powers of national or provincial governments.
[42]
Parliament and the provincial
legislatures both have unqualified legislative power within their
functional areas of competence.
In obvious contrast, the
original local government legislative power is limited only to the
making of laws for the effective exercise
of local government
executive power over local government schedule matters. The
lesser status of local government legislative
power under the
Constitution is also reflected in section 156(3) of the
Constitution which invalidates local by-laws that
conflict with
national or provincial legislation.
[43]
[51]
The Constitution confers only
limited legislative powers on municipalities because, mindful of the
acute legacy of apartheid at
a local level,
[44]
the constitutional scheme contemplates
that the primary duties of municipalities must be in relation to
service delivery,
[45]
which is quintessentially an executive
function, not a legislative function. The limited legislative
role of local government
is also reflected in the fact that the
Constitution does not create separate legislative and executive
bodies for local governments,
as it does in the case of the national
and provincial governments. Rather, it vests the legislative
powers of local government
in the same councils that are the
executive authorities of municipalities.
[46]
[52]
In terms of section 156(5),
municipalities also have the right to exercise powers over matters
that are “reasonably necessary
for, or incidental to, the
effective performance of [their] functions”.
[47]
Whatever the ambit of the necessary or
incidental
executive
powers vested in municipalities by
section 156(5), there is only limited scope for necessary or
incidental local government
legislative
powers deriving directly from
section 156(5) of the Constitution. This is because the
primary legislative power of municipalities
is, itself, framed in the
nature of a power that is incidental to the original executive powers
vested in municipalities –
it is a power which is limited to
the making of “by laws for the effective administration of
the matters which [a municipality]
has the right to administer”.
Reading section 156(5) as a direct source of incidental
municipal legislative powers
would render section 156(2)
superfluous.
[53]
However, section 156(5) may serve as an indirect source
of legislative power. If, in terms of section 156(5),
certain
executive powers are reasonably necessary for or incidental
to the effective performance of a municipality’s functions in
respect of local government schedule functions, such additional
executive powers are vested directly in the municipality by
section 156(5)
of the Constitution. Section 156(2)
then empowers the municipality to make by-laws to assist in the
effective implementation
of these additional executive powers.
[54]
This principle is illustrated
by the judgment of this Court in
Mazibuko.
[48]
One of the issues in
Mazibuko
concerned the installation of pre-paid
water meters by the City of Johannesburg. In this context, this
Court had to decide
whether a by-law which referred to a “metered
full pressure water connection” should be interpreted to refer
only to
post-paid meters and thus not to permit the City to exercise
powers vested in respect of “metered full pressure water
connections”
in relation to pre-paid meters. This Court
found that—
“
the
power to install pre-paid meters is one which is reasonably
incidental to providing services to citizens in a sustainable manner
that permits cost recovery [and therefore] it is a power that is
reasonably incidental to the effective performance of the functions
of a municipality.”
[49]
Having
found that the power to install pre paid meters was incidental
to what was an executive function of the City (providing
services in
a sustainable manner), this Court interpreted the by-law so as to
assist the effective administration of this incidental
executive
power. So, it held that references to “metered full
pressure water connections” included pre-paid meters.
[50]
[55]
The third feature of the
Constitution relevant to the scheme of local government competence
flows from
Gauteng
Development Tribunal
[51]
where this Court stated that “barring
functional areas of concurrent competence, each sphere of government
is allocated separate
and distinct powers which it alone is entitled
to exercise”.
[52]
There are numerous judgments of this
Court that emphasise that the powers allocated to different spheres
of government are not contained
in hermetically sealed compartments
and that some overlap is necessary.
[53]
However, the provision in the
Constitution for exclusive powers of provincial and local government
is a feature that departs from
the scheme of the interim
Constitution. With very few exceptions, the latter did not vest
exclusive powers in provincial
or local government and generally
contemplated a regime in which the powers of provincial and local
government would be exercised
concurrently with those of national
government.
[54]
Judgments addressing the approach to
the interpretation of powers in relation to functional areas under
the interim Constitution
were not affected by concerns of a scheme of
exclusivity running through the Constitution and may not reflect the
correct approach
to similar questions under the Constitution today.
[56]
The fourth relevant feature of
the Constitution is the scheme of co-operative government under the
Constitution. Both subsections (2)
and (5) of section 156
must be interpreted within the broader context of how powers are
distributed under the Constitution
within this scheme of co-operative
government. If municipalities want powers over functional areas
falling within national
or provincial competence, they are entitled
to request that such powers be vested in them or even assigned to
them as contemplated
by sections 99, 126, 156(1)(b), 156(4), and
238 of the Constitution
[55]
in the case of executive powers or
sections 44(1)(a)(iii) and 104(1)(c) of the Constitution in the
case of legislative powers.
[56]
[57]
If municipalities have a legitimate claim to powers falling
within the functional areas of provincial and national competence in
order to enforce or support their own powers over local government
schedule matters, the system of co-operative government will
operate
to ensure that such powers are assigned to them. In this
regard, apart from the general co-operative government obligations
to
local government under Chapter 2, national and provincial
government are bound by the specific obligations in sections 154(1)
and 156(4) of the Constitution which state:
“
154
Municipalities in co-operative government
(1)
The national government and provincial governments, by legislative
and other measures,
must support and strengthen the capacity of
municipalities to manage their own affairs, to exercise their powers
and to perform
their functions.”
“
156
Powers and functions of municipalities
. . .
(4)
The national government and provincial governments must assign to a
municipality,
by agreement and subject to any conditions, the
administration of a matter listed in Part A of Schedule 4
or Part A
of Schedule 5 which necessarily relates to local
government, if—
(a)
that matter would most effectively be administered locally; and
(b)
the municipality has the capacity to administer it.”
[58]
Where a municipality wants to exercise powers over matters
falling outside Part B of Schedule 4 or 5 merely because it
considers such powers desirable to support its powers over local
government schedule matters, the national government or provincial
government with authority over the relevant non-local government
schedule matters may choose to assign the relevant powers to the
municipality that requests them. Equally, however, it may
choose not to assign the relevant powers to the municipality.
[59]
The choice to vest municipalities with powers over matters
that are not local government schedule matters is ordinarily a choice
that is to be made by the national government or the relevant
provincial government. It is not a choice that can simply be
assumed by a municipality invoking incidental executive powers under
section 156(5) or the incidental legislative competence
under
section 156(2). So, a municipality cannot routinely invoke
sections 156(2) or 156(5) to lay claim to powers
over matters
falling outside of the local government schedules merely because the
municipality considers that it would be convenient
or desirable to
have access to such powers for the purpose of performing its
functions over local government schedule matters.
[60]
Having regard to this broad
scheme of local government competence under the Constitution, it is
necessary to consider the three
possible sources of legal authority
for the impugned by-laws that the municipalities assert. First,
there is the power under
section 156(2) of the Constitution to
make by-laws for the effective administration of “municipal
planning” or
“building regulations”, which are
local government schedule matters over which the municipalities are
given authority
under section 156(1)(a) of the Constitution.
Second, there is the incidental power of municipalities under
section 156(5)
of the Constitution. The third potential
source relied upon by the municipalities is section 32(1) of
SPLUMA.
As pointed out above, in section 32(1) of SPLUMA,
Parliament has expressly assigned by-law making powers in respect of
the
enforcement of land use schemes to municipalities.
[57]
Each of these potential sources of
authority for the impugned by-laws will be considered in turn.
Section 156(2)
[61]
The municipalities’
invocation of section 156(2) as a source of legal authority for
the impugned by-laws was based on
submissions as to how this Court
approached the subject matter of a law with respect to functional
areas of competence in
DVB Behuising
and
Abahlali
.
[58]
These cases, however, are not
appropriate reference points because they dealt respectively with
questions of provincial executive
competence under the transitional
provisions under the interim Constitution and provincial legislative
competence under the current
Constitution. Both of these
competences were competences which the respective constitutions
vested in provinces in relation
to functional areas of competence in
unqualified terms. In contrast, the limited legislative
competence vested in municipalities
is an incidental competence,
vesting a municipality only with the power to make laws for the
effective administration of the matters
which they have the executive
power to administer.
[62]
For similar reasons, there is
not much assistance to be gained by looking to other cases dealing
with the characterisation of subject
matter of legislation in
relation to the legislative powers of the provinces under the interim
Constitution,
[59]
the legislative powers of national or
provincial government under the Constitution,
[60]
or the unqualified executive authority
of municipalities over local government schedule matters under the
Constitution.
[61]
The question to be answered in this
case is not whether the impugned by-laws are properly characterised
as laws with respect to
the functional areas of municipal planning
and building regulations. It is the materially different
question of whether the
impugned by-laws fall within the legislative
competence of the municipalities to make by-laws for the effective
administration
of municipal planning and building regulations.
[63]
Once the question is framed correctly, the municipalities’
claim of original legislative competence under section 156(2)
does not stand up to scrutiny for two separate reasons. First,
the by-law making power conferred by section 156(2) on
a
municipality is a power to make by-laws “for the effective
administration of matters which it has the right to administer”.
Implicit in section 156(2) power is that the effective
administration contemplated by the Constitution is administration by
the municipality itself, rather than by organs of state under the
control of the national or provincial executives. The purpose
of a transfer embargo is not for a municipality itself to administer
municipal planning and building regulations. Rather,
it is a
device designed to enlist the Registrar of Deeds, a national
government organ of state, in the administration of a function
that
the Constitution designates as a municipal responsibility.
[64]
Even if it were notionally possible for by-laws to be made
under section 152 to enlist the support of national or
provincial
executive authorities in the administration of local
government matters, the by-laws in this case would not fall into such
a category.
[65]
Govan Mbeki argued that it could not “effectively
perform its municipal planning functions without a suitable
enforcement
mecha
nism”
and that the
transfer embargo in the impugned by-laws was the most suitable
enforcement mechanism available to it. The Supreme Court
of Appeal gave short shrift to this argument, holding:
“
The
restriction on transfer of land is not a necessary power incidental
to land-use management, as enforcement mechanisms of its
land-use
scheme are already provided for in Chapter 9 of the
by-laws.”
[62]
[66]
The Chapter 9 enforcement
mechanisms to which the Supreme Court of Appeal referred
include the creation of criminal
offences for contraventions of the
by laws,
[63]
municipal powers to serve compliance
notices on owners and persons suspected of unlawful land use or
construction activity,
[64]
municipal powers to direct owners and
occupiers to demolish unauthorised building work,
[65]
and municipal powers of entry onto
private properties for the purposes of enforcing the by-laws.
[66]
These enforcement mechanisms
supplement
[67]
and amplify the enforcement mechanisms
contained within section 32 of SPLUMA.
[68]
The by-laws also make clear
that, in addition to these enforcement powers, the municipality
retains its power to approach the courts
for interdictory and other
appropriate relief to enforce the by-laws.
[69]
[67]
Govan Mbeki sought to bolster its claim to transfer embargoes
as a power required for it “effectively [to] perform its
municipal
planning functions” by alleging that the cost of
setting up a municipal planning inspectorate was beyond its means.
Emalahleni did not put up any evidence of its own in this regard but
advanced a similar argument, relying on the evidence of Govan
Mbeki.
However, on proper analysis, the evidence of Govan Mbeki undermines
the proposition for which the municipalities sought
to use it.
[68]
The proposed budget for a planning inspectorate prepared by
the Govan Mbeki deponent, Mr van der Merwe, estimated the
start-up
cost per planning inspector, including equipment, training,
first year salary and vehicle expenses, at only R564 800.
After once-off start-up costs were stripped out of this budget, the
recurrent cost of the entire proposed five-person planning
inspectorate was not much more than R2.5 million per annum.
This cost is not one that should be beyond the means of
a
municipality the size of Govan Mbeki if it is a functional
municipality.
[69]
Govan Mbeki put up no information relating to its overall
budget to suggest that it could not afford the R2.5 million per
annum
cost of the inspectorate that it regarded as necessary to
enforce the by-laws. Emalahleni put up no evidence whatsoever
relating
to the affordability of a planning municipal inspectorate.
So, on the evidence before this Court, cost considerations do not
support the notion that transfer embargoes are a power vested in
municipalities by the Constitution to enforce their municipal
planning schemes and building regulations effectively because
inspectorates are unaffordable.
[70]
Quite aside from the absence of evidence to support the
municipalities’ cost argument, there is a principled problem
with
this argument. In effect, the municipalities are asking to
be allowed to slough off the executive responsibilities vested
in
them by section 32 of SPLUMA and Chapter 9 of their own
by-laws, and to replace the pro-active administrative enforcement
system designed by SPLUMA and the by-laws with one which depends on
the retrospective enforcement of planning requirements by property
owners themselves and the Registrar of Deeds when a property is
sold. This is an unlawful abdication of executive obligations
imposed on the municipalities.
[71]
Chapter 9 of the by-laws does not give the municipalities
a discretion to decline to enforce planning requirements
proactively.
It includes provisions which impose on the
municipalities clear enforcement obligations that require a
functional municipal planning
inspectorate. Thus, both by-laws
state that:
“
The
Municipality
must comply and
enforce compliance with
—
(a)
the provisions of this By-law;
(b)
the provisions of a land use scheme;
(c)
conditions imposed in terms of this By-law or previous planning
legislation; and
(d)
title deed conditions.”
[70]
(Emphasis added.)
“
The
Municipality
must serve a
compliance notice
on a
person if it has reasonable grounds to suspect that the person or
owner is guilty of [a planning related offence created by
the
by-laws].”
[71]
(Emphasis added.)
[72]
The requirement for a
functional municipal planning inspectorate is also contemplated by
the provisions of section 32 of SPLUMA
quoted above.
[72]
In the circumstances, if a
municipality objectively lacks the financial resources to create a
functional municipal planning inspectorate,
its remedy is to call on
the national government to provide it with the necessary
allocation of additional revenue under section 214
of the
Constitution,
[73]
as part of the co-operative government
obligations of national government under sections 151(4)
[74]
and 154(1)
[75]
of the Constitution. Its remedy
is not to look for shortcuts that will enable it to abdicate its
executive responsibilities.
[73]
The superficial attraction of
the municipalities’ argument that a transfer embargo should be
seen as falling within the original
by-law making power conferred by
the Constitution flows from fact that the municipal planning function
and the national deeds registration
functions are capable of being
confused with one another. The Constitution, however, treats
the national deeds registration
function separately from the
municipal planning function.
[76]
Once these two functions are
separated, there is no basis to treat a by-law dealing with the
national function as falling within
the competence to make by laws
for the effective administration of the municipal competence, simply
because it is used to
enforce matters relating to that municipal
competence.
[74]
As the property owners pointed out in argument, if an embargo
on registration of transfer is seen as falling within the original
municipal legislative competence conferred by the Constitution simply
because the municipality would want to use it to enforce
compliance
with town planning by-laws or building regulations, there would be no
principled basis for distinguishing cases where
a municipality wanted
to use a transfer embargo to enforce compliance in relation to
another municipal competence. So, a
municipality would be
entitled to make by-laws placing an embargo on registration of
transfer without certificates confirming that,
for example:
(a)
“
smart” electricity and
water meters had been installed at the property in accordance with a
municipal policy that all properties
should now have meters of this
nature installed;
[77]
(b)
no public nuisance was being created at the property; or
(c)
no sale of food or liquor to the public had been taking place
at the
property otherwise than in accordance with a lawfully issued licence,
and any fines in relation to unlawful food or liquor
trade from the
property had been paid in full.
[75]
Such embargoes would be no less capable of being characterised
as by-laws made for the effective administration of the underlying
municipal competences over water services, electricity reticulation,
the control of public nuisances or the control of undertakings
that
sell food or liquor to the public, than the embargoes in the present
case can properly be characterised as by-laws made for
the effective
administration of the municipal competences over building regulations
and municipal planning.
[76]
In fact, the logical problem goes much further. If the
transfer embargo in the impugned by-laws is seen as falling within
the original municipal legislative competence conferred by
section 156(2) of the Constitution and not as an impermissible
attempt to exercise legislative power within the national government
area of competence over deeds registration matters, there would
be no
principled basis for distinguishing cases where a municipality wanted
to legislate within the fields of other provincial
or national
government competences to create embargoes to enforce compliance with
building regulations and municipal planning requirements.
So,
on the logic of the municipalities’ approach, the original
legislative power conferred on them by the Constitution, compliance
with building regulations and municipal planning requirements could
be enforced by by-laws requiring certificates of the sort
contemplated by the by-laws at issue in the present case as a
pre-condition for—
(a)
the owner or occupant of a property to apply for an identity
document
or a passport;
(b)
the owner or occupant of a property to apply for a cellphone
SIM
card; or
(c)
the owner or occupant of a property to export goods that had
been
manufactured or stored at the property.
[77]
The two problems described above would also operate
interchangeably. On the logic of the municipalities’
argument, the
Constitution would empower municipalities to enforce
compliance with legal requirements in relation to any municipal
functional
area of competence by imposing embargoes in relation to
any functional area of provincial or national competence.
Provided
only that the purpose of the embargo was to enforce
requirements relating to a matter within municipal competence, there
would
be no limits to the functional areas in which municipalities
could impose embargoes through by-laws.
[78]
The examples above show that there is no merit to the
municipalities’ argument that any measure to enforce compliance
with
by-laws addressing local government schedule matters is a power
vested in municipalities directly by the Constitution. The
judgment of my Colleague, Dodson AJ, (the second judgment)
disagrees and asserts that the transfer embargoes in the present
case
are somehow distinguishable. However, the second judgment is
unable to provide any conceptual basis for distinguishing
the
transfer embargoes in the impugned by-laws from the notional
embargoes contemplated above. The only suggestion it offers
in
this regard is that if a municipality were to use transfer embargoes
to enforce by-laws relating to municipal competences other
than
municipal planning and building regulations it would still have to
show that those transfer embargoes were not invalid under
sections 25(1) and 156(3) of the Constitution. But
that conflates two separate issues. The issue to be determined
first is the issue of legislative competence – whether the
Constitution confers original power on municipalities to make
the
impugned transfer embargo by-laws. The question of invalidity
for inconsistency with section 25(1) and 156(3)
of the
Constitution is an entirely different enquiry and one that
presupposes legislative competence.
Section
156(5)
[79]
As pointed out above, there is no scope for additional
incidental legislative powers to be conferred on municipalities
directly
by section 156(5) of the Constitution because the
primary legislative power under section 156(2) is, itself,
framed as
an incidental power, and section 156(5) should not be
interpreted so as to render section 156(2) superfluous.
[80]
To the extent that section 156(5) can operate, together
with section 156(2) indirectly to vest additional legislative
powers in municipalities for the effective implementation of
additional executive powers vested by section 156(2), it does
not assist the municipalities. In support of its argument on
incidental powers, Govan Mbeki referred to a range of judgments,
local and foreign, dealing with the issue of incidental powers vested
by a constitution. These judgments are illustrative
of the
types of powers that courts have recognised as incidental powers in a
constitutional context—
(a)
the power to charge service fees for
the provision of services within a functional area of competence, as
recognised by this Court
in the
Certification
judgment as an incident of the
authority over the functional area in question;
[78]
(b)
the power to procure or install
equipment relating to the relevant functional area of competence, for
example, the power to install
pre-paid meters as an incident of
municipal competence over the functional area of water services, as
recognised by this Court
in
Mazibuko
;
[79]
(c)
the power to incorporate a body to
perform functions within the areas of competence assigned to the
United States Government by
the individual States within the US
Federal system, that was the incidental power of the United States
Government recognised by
the United States Supreme Court in
M’Culloch v State of
Maryland
;
[80]
and
(d)
the power to create a civil claim for
anti-competitive acts that the Canadian Supreme Court recognised
as an incident of the
Canadian Federal Government’s authority
over the regulation of trade and commerce in
General
Motors of Canada
.
[81]
[81]
Counsel for Emalahleni went so
far as to describe these powers (and other similar powers, such as
the power to create criminal offences
or to impose administrative
fines in relation to local government schedule matters) as
“colourless powers”, in the
sense that they did not
relate specifically to a single functional area of competence, but
rather were powers that could be used
to reinforce any functional
area of competence. The concept of “colourless powers”
may be open to question.
[82]
However, the narrow ambit of the
incidental powers recognised in the constitutional authorities cited
by the municipalities reflects
the fact that incidental powers cannot
be invoked loosely to exercise power over matters falling within
functional areas assigned
to other tiers of government and
implicating the duties of state officials under the control of
executive authorities in other
tiers of government.
Section 32(1)
of SPLUMA
[82]
There remains the third possible source of legal authority for
the impugned by laws. It is the authority to make by-laws
under section 32(1) of SPLUMA which vests municipalities with
the power to make by-laws “aimed at enforcing its land
use
scheme”.
[83]
It is clear from
sections 44(1)(a)(iii), 104(1)(c) and 156(1)(b) of the
Constitution that Parliament and the provincial legislatures
can
assign powers, including by law making powers, in municipalities
over matters which fall outside the functional areas
of original
municipal competence.
[83]
So, section 32(1) of SPLUMA
could, notionally, have vested municipalities with the power to make
enforcement by laws that
impose transfer embargoes.
However, the scheme of local government powers under the Constitution
demands that any by-law
making power vested in municipalities by
national or provincial legislation does not ordinarily extend beyond
the power to make
by-laws in relation to local government schedule
matters unless the contrary intention is clear in the enabling
provision in the
national or provincial legislation.
[84]
There is nothing in
section 32(1), or indeed in SPLUMA more broadly,
[84]
which suggests an intention to confer
by-law making powers which would vest municipalities with powers
generally to embargo the
transfer of properties without the
production of planning certificates. SPLUMA has considered when
municipalities should
be vested with registration embargo powers
relating to planning compliance. Section 53 of SPLUMA
confines such powers
to cases of registration arising out of original
land development applications. It provides that in such cases
transfer shall
not be registered “unless the municipality
certifies that all the requirements and conditions for the approval
have been
complied with”. Section 74 of the Govan
Mbeki By-Law and section 84 of the Emalahleni By-Law adumbrate
section 53
of SPLUMA by restating the transfer embargo it
imposes and setting out in detail the requirements and conditions
that must be certified
by the municipality before transfer can
proceed. These by-laws clearly fall within the by-law making
power conferred by section 32(1)
of SPLUMA read with section 53
thereof.
[85]
However, the embargoes in sections 76 and 86 of the
respective Govan Mbeki and Emalahleni By-Law do not confine
their
operation to original registrations arising out of land
development applications. They purport to apply to all
transfers
of property after such original registrations. In so
doing, they purport to regulate deeds registration and transfer in a
manner that goes beyond not only section 53 of SPLUMA but also
section 118 of the Systems Act. Embargoes that
encroach in this way on the national competence over land transfer
and deeds registration are not obviously contemplated by SPLUMA.
Therefore, section 32(1) cannot be interpreted to confer on
municipalities the power to impose transfer embargoes of the sort
contained in the impugned by-laws.
The
second judgment
[86]
The second judgment finds that the impugned by-laws fall
within the by law making power conferred by section 156(2)
of
the Constitution. I have engaged with some of the reasoning
in the second judgment in my discussion above. My broad
conceptual differences with the second judgment are summarised in the
following paragraphs.
[87]
First, the second judgment seeks to negate the clear wording
of the Constitution that distinguishes between the unqualified
legislative
competences conferred by the Constitution on Parliament
and provincial legislatures and the limited legislative competence
conferred
by the Constitution on municipalities in terms that are
framed as an incidental power to municipalities’ executive
powers.
The second judgment cannot account for the clear
textual differences between section 156(2) on the one hand, and
sections 44(1)(a)(ii)
and 104(1)(b) on the other. So, it
effectively turns a blind eye to these differences.
[88]
The second judgment states that
“the conferral of legislative authority on provincial
legislatures in terms of section 104(1)(b)
is as circumscribed
as its conferral on municipalities in section 156(1) and
(2)”.
[85]
This is simply incorrect.
Section 104(1)(b) does not confer legislative power on a
province “for the effective
administration of the matters which
it has the right to administer”. It confers legislative
power on a province—
“
to
pass legislation for its province with regard to—
(i)
any matter within a functional area listed in Schedule 4;
(ii)
any matter within a functional area listed in Schedule 5;
(iii)
any matter outside those functional areas, and that is expressly
assigned to the province
by national legislation; and
(iv)
any matter for which a provision of the Constitution envisages the
enactment of provincial
legislation.”
The
manner in which section 104(1)(b) confers legislative power on
the provinces is self evidently broader than the manner
in which
section 156(2) confers legislative power on municipalities.
[89]
The second judgment repeatedly
conflates issues of legislative competence (which is an issue of
whether a power exists) with issues
of constitutional consistency
(which is an issue of whether a power that does exist, has been
exercised in a manner that is unconstitutional).
I have already
commented above on the second judgment’s conflation of
questions of legislative competence and questions of
consistency with
sections 25(1) and 153 of the Constitution.
[86]
There is a similar conflation in the
second judgment of questions of legislative competence and
questions of consistency with
section 41(1)(f) of the
Constitution.
[87]
[90]
The second judgment’s
invocation of the provisions of section 3(1)(b) of the
Deeds Registries Act fails to take
account of the fact that if a
municipality does not have the competence to legislate for a transfer
embargo, a by-law purporting
to impose a transfer embargo falls out
of the category of “any other law” contemplated in
section 3(1)(b).
[88]
The second judgment also draws a false
analogy between a by-law made beyond the legislative competence of a
municipality (which
“may exercise no power and perform no
function beyond that conferred upon them by law”) and
dispositions made in the
wills by testators who do not need to source
their powers of testation in any law.
[89]
[91]
For similar reasons, the
reliance in the second judgment on
OUTA
and
Robertson
is misplaced. Neither of those
judgments concerned the legislative powers of local government.
OUTA
involved
a constitutional challenge based on the exclusive legislative powers
of
provincial government
and the exclusive
executive
powers of local government.
Robertson
involved the original constitutional
power of a municipality (conferred by section 229(1) of the
Constitution) to raise revenue
through property rates. As
OUTA
and
Robertson
did not concern the by-law making
power of municipalities, neither of those judgments had to consider
the ambit of the by-law making
powers conferred by section 156(2)
of the Constitution.
OUTA
and
Robertson
both confirm that the
status of local government under the Constitution is different from
what it was in the pre-constitutional
era and that local government
is an entrenched sphere of government with original powers that
derive directly from the Constitution.
[90]
But that still begs the competence
question, namely whether or not the by-law making powers that a
municipality asserts can properly
be sourced in the Constitution.
[92]
Finally, the second judgment
impermissibly invokes its conclusions as to the desirability of
transfer embargoes to justify its conclusions
in relation to the
legislative competence of municipalities to make by-laws imposing
transfer embargoes.
[91]
Transfer embargoes may or may not be
desirable. That is an issue that must be separated from the
constitutional question whether
municipalities have the legislative
competence to enact by-laws imposing transfer embargoes. By way
of comparison, it may
have been desirable for better resourced
provincial appeal tribunals to exercise some oversight over the
executive decisions of
municipalities on local government schedule
matters. However, this Court has had no difficulty in
repeatedly determining
this competence issue against the provinces
without regard to questions of desirability.
[92]
Conclusion
[93]
As there is no constitutional or legislative source for the
power of the municipalities to make by-laws imposing transfer
embargoes
as enforcement mechanisms for their town planning schemes
and building approval matters, the impugned by-laws are inconsistent
with the Constitution, unlawful and invalid.
[94]
In view of the fact that the legality challenge to the
by-laws succeeds, there is no need to consider the property owners’
further challenges based on section 118(1) of the Systems Act
and section 25(1) of the Constitution.
Remedy
[95]
If the by-laws are unlawful and invalid, the property owners
are entitled to an unqualified order of invalidity. Invalid
by-laws
are invalid in their entirety and in their application to all
properties, not only to mining properties. There is no reason
to limit the orders of invalidity to circumstances covered by the
application of the provisions of paragraphs (a) and (c)
of
section (2) of the impugned by-laws in relation to the property
owners’ mining properties.
[96]
The appeal must therefore fail
and the cross-appeal must succeed. The municipalities are
organs of state. Hence, they
do not receive the protection of
Biowatch
[93]
and the property owners are entitled
to their costs.
[97]
The orders of the High Court and the Supreme Court
of Appeal link the unconstitutionality of the by-laws to
section 25
of the Constitution and section 118 of the
Systems Act. This judgment does not do so.
Therefore, the order
of this Court should not sustain the specific
reference to these provisions in the High Court order.
Order
[98]
The following order is made:
1.
Leave to appeal is granted.
2.
The appeal against the order of the Supreme Court of Appeal
is dismissed with costs,
including the costs of two counsel.
3.
The cross-appeal against the order of the Supreme Court of Appeal
is upheld
with costs, including the costs of two counsel.
4.
The order of the Supreme Court of Appeal is varied by:
4.1 the
substitution of the following for paragraph 3 of the order in
Case No 334/2021:
“
3.
Section 76 of the Govan Mbeki Spatial Planning and Land Use
Management By-Law 2016 is declared
to be inconsistent with the
Constitution and invalid”; and
4.2 the
substitution of the following for paragraph 3 of the order in
Case No 338/2021:
“
3.
Section 86 of the Emalahleni Municipal By-Law on Spatial
Planning and Land Use Management
2016 is declared to be inconsistent
with the Constitution and invalid”.
DODSON AJ
(Kollapen J
concurring):
Introduction
[99]
I have had the pleasure of reading the judgment of my
Colleague, Chaskalson AJ (first judgment). I gratefully
adopt his
setting out of the background to the application, the
litigation history, the arguments of the parties in this Court, the
issues
raised and the abbreviations used. I agree that
condonation should be granted for the late filing of the hard copy of
the
record, that the matters raised in the application are
constitutional matters falling within the jurisdiction of this Court
and
that it is in the interests of justice that leave to appeal be
granted.
[100]
I differ, however, from his
finding that the impugned transfer embargoes are constitutionally
invalid because they fall outside
the legislative competence of the
respective municipalities and within the legislative competence of
Parliament – this because
“there is no constitutional or
legislative source for the power of the municipalities to make
by laws imposing transfer
embargoes as enforcement mechanisms
for their town planning schemes”.
[94]
[101]
Because I have come to a different conclusion in relation to
the legislative competence issue, there is no neat, single answer to
the multi pronged challenge that was brought by the respondents
(collectively, Glencore). I shall therefore deal with
the
issues raised in the following order:
(a)
conflict with section 118 of the Systems Act;
(b)
arbitrary deprivation of property;
(c)
intrusion upon national sphere’s legislative
authority;
(d)
that SPLUMA precludes the transfer embargo;
(e)
administrative justice review;
(f)
mandatory orders;
(g)
relief against the Registrar of Deeds, Mpumalanga;
(h)
conclusion; and
(i)
relief and costs.
Conflict
with section 118 of the Systems Act
[102]
Based on section 156(3) of the Constitution, Glencore
asserts that the transfer embargos contained in sections 76 and
86 of the Govan Mbeki By Law (GM By Law) and
Emalahleni By Law (EM By Law) respectively, are
invalid
because they conflict with national legislation in the form
of section 118(1) of the Systems Act.
[103]
Section 156 of the Constitution, headed “Powers and
functions of municipalities”, provides in relevant part as
follows:
“
(1)
A municipality has executive authority in respect of, and has the
right to administer—
(a)
the local government matters listed in Part B of Schedule 4 and Part
B of Schedule
5; and
(b)
any other matter assigned to it by national or provincial
legislation.
(2)
A municipality may make and administer by laws for the effective
administration
of the matters which it has the right to administer.
(3)
Subject to section 151(4), a by law that conflicts with
national or provincial
legislation is invalid. If there is a
conflict between a by law and national or provincial legislation
that is inoperative
because of a conflict referred to in section 149,
the by law must be regarded as valid for as long as that
legislation
is inoperative.”
[104]
Section 156(3) refers to section 151(4), which
reads:
“
(4)
The national or a provincial government may not compromise or impede
a municipality’s ability
or right to exercise its powers or
perform its functions.”
[105]
Glencore’s challenge is
based on the first sentence of section 156(3). We are not
here dealing with the situation
contemplated in the second sentence
of section 156(3), namely where national legislation is
inoperative because there is a
conflict referred to in section 149
of the Constitution.
[95]
[106]
The national legislation with which the transfer embargoes in
the by laws are said to be in conflict is section 118(1)
of
the Systems Act. It is headed “Restraint on transfer
of property” and contains its own transfer embargo,
which reads
as follows:
“
(1)
A registrar of deeds may not register the transfer of property except
on production to that registrar
of deeds of a prescribed certificate—
(a)
issued by the municipality or municipalities in which that property
is situated;
and
(b)
which certifies that all amounts that became due in connection with
that property for municipal
service fees, surcharges on fees,
property rates and other municipal taxes, levies and duties during
the two years preceding the
date of application for the certificate
have been fully paid.”
[107]
The certificate referred to in the subsection is
generally referred to as a “rates clearance certificate”,
although
it requires payment of indebtedness also in respect of
municipal service fees and other amounts payable to municipalities.
The certificate is not required in respect of debts outstanding for
more than two years.
[108]
Glencore’s complaint is that the significantly broader
restraint provided for in the transfer embargoes in sections 76
and 86 of the respective by laws renders the rates clearance
certificate in section 118(1) of the Systems Act redundant
and abolishes the entitlement to register transfer after securing
it. This is primarily because the by laws do not have
the
two year cap that limits the restraint in section 118(1).
The impugned provisions therefore include any unprescribed
debts, no
matter how far back in time they were incurred. And they
embargo transfer not only for non payment of a debt
but also
because of other forms of non compliance.
[109]
The Govan Mbeki and Emalahleni municipalities (Municipalities)
contend that the transfer embargoes in the by laws have a
different
purpose from, and can comfortably co exist with, the
transfer embargo in section 118(1). The purpose of the transfer
embargoes in the by laws is a planning and building regulatory
purpose, not a financial purpose.
[110]
In
Telkom
,
[96]
the majority of this Court laid down
the following test for establishing whether there is an invalidating
conflict:
“
For
section 156(3) to be activated, there must be real conflict
between the challenged by law and national legislation.
And
for a conflict to arise, the two pieces of legislation must be
incapable of operating alongside each other. In
other words,
they must be mutually exclusive. If they are reasonably capable
of co existing, conflict as envisaged in
section 156(3)
would not have arisen.”
[97]
[111]
For a proper analysis of the
transfer embargoes some disaggregation is necessary. We must
distinguish between those components
of the by laws that require
certification of the absence of financial indebtedness
(sections 76(2)(a) and (b) of the
GM By Law and
86(2)(a) and (b) of the EM By Law) and those that require
certification solely of municipal planning
[98]
compliance (section 76(2)(c) to
(f) of the GM By Law and sections 86(2)(c) to (e) of
the EM By Law).
[112]
Starting with sections 76(2)(a) and 86(2)(a) of the
respective by laws, these impose the following requirements:
“
(2)
The Municipality may not issue a certificate to transfer a land unit
in terms of
any
law, or in terms of this By law, unless the owner furnishes the
Municipality with—
(a)
a certificate of a conveyancer confirming that funds due by the
transferor in respect
of land, have been paid”
In
the case of the GM By-Law and, in the case of the EM By-Law:
“
(2)
The Municipality must not issue a certificate to transfer a land unit
in terms of any law, or
in terms of this By law, unless the
owner furnishes the Municipality with—
(a)
a certificate of a conveyancer confirming that funds due by the
transferor in respect
of land, have been paid”
[113]
The only difference in the wording of these provisions in the
respective by-laws is that the GM By-Law uses the word “may”
and the EM By-Law uses the word “must”. In this
context there is no difference in the meaning of the words.
Each creates an identical, peremptory prohibition. I will
therefore in the balance of the judgment treat the opening paragraph
of subsection (2) as being identical in the respective by-laws.
[114]
Paragraph (a), which is identically worded in each of the
respective by-laws, is remarkable in the following respects:
(a)
First, it superimposes itself upon other laws.
It prohibits the
issuing of a certificate to transfer a land unit “in terms of
any law” unless the certificate in paragraph (a)
is
furnished. “Any law” would include section 118(1)
of the Systems Act and any other national or provincial
legislation that might impose a certificate requirement.
Applied with reference to section 118(1), the provision prevents
a certificate from being issued under section 118(1),
notwithstanding that the transferor qualifies for a rates clearance
certificate under it because the last two years’ indebtedness
have been settled.
(b)
Second, unlike section 118(1), it
contains no limit as to the age of the debt that must be settled.
Indebtedness in respect
of a charge constituting a municipal tax,
such as municipal rates, would only prescribe after 30 years in
terms of section 11(a)(iii)
of the Prescription Act.
[99]
As soon as the indebtedness of the
transferor exceeds two years’ worth, this will operate to
prevent the rates clearance certificate
from being issued under
section 118(1).
(c)
Third, and again unlike
section 118(1), it is not limited to indebtedness in respect of
the land unit that is to be transferred.
It includes any
indebtedness of the transferor in respect of “land”.
That could include indebtedness in respect
of other properties.
Naturally, if this is constitutionally problematic, one must consider
whether a reading down of the
word “land” is possible to
limit it to the land unit to be transferred. The difficulty
with this is that in the
opening paragraph of subsection (2)
there is a precise reference to “a land unit” which is to
be transferred.
In paragraph (a), there is no attempt to
link the word “land” back to the earlier reference to “a
land unit”.
The paragraph seems also to have been
deliberately broadly worded. I will nevertheless assume in
favour of the Municipalities
that a reading down is possible so as to
limit “land” to “the land unit” that is to be
transferred.
[100]
(d)
Fourth, it is not limited to “funds due” in
respect of
debts relevant to municipal planning. Any funds due are
included. This would include those covered by section 118(1).
In the circumstances, the provision does not have a distinctive
purpose as argued by the Municipalities.
[115]
Practically speaking, the
result is that the two year limit in section 118(1) becomes
meaningless. For as long as
all of the transferor’s
indebtedness exceeding the last two years’ worth is not paid,
the rates clearance certificate
cannot be issued in terms of
section 118(1). It is so that paragraph (a) of
subsection (2) of the respective
by laws has the mitigating
feature that it is confined to the indebtedness of the owner.
In this respect, it differs
from, and is less stringent than,
section 118(1), which also includes within its reach unpaid
municipal debts of a possessor
of the property, lawful or
otherwise.
[101]
But this mitigating feature is
insufficient to avoid the conflict between the two provisions.
[116]
The GM and EM By Laws’ provisions are
therefore not reasonably capable of co existing with
section 118(1)
of the Systems Act. Section 76(2)(a)
of the GM By Law and section 86(2)(a) of the EM By Law
are invalid in terms of section 156(3) of the Constitution by
reason of their conflict with national legislation.
[117]
Section 76(2)(b) and section 86(2)(b) of the GM and
EM By Laws respectively are on a different footing.
Each reads as follows:
“
(2)
The Municipality may not issue a certificate to transfer a land unit
in terms of any law, or in
terms of this By law, unless the
owner furnishes the Municipality with—
. . .
(b)
proof of payment of any contravention penalty or proof of compliance
with a directive
contemplated in Chapter 9.”
[102]
[118]
The following observations may be made in this regard:
(a)
There is no attempt to regulate the same indebtedness
as that covered
by section 118(1). The only debt covered here is “any
contravention penalty” imposed under
chapter 9 of each of
the by laws.
(b)
Chapter 9 of each of the
respective by laws deals with “compliance and
enforcement”. It includes provisions
for the issuing and
enforcement of a compliance notice against any person guilty of an
offence under the chapter. The listed
offences are forms of
conduct that are in breach of either the by laws or a land use
scheme made in terms of them. They
include, for example,
“utilis[ing] land in a manner other than prescribed by the land
use scheme of the [m]unicipality”.
[103]
(c)
Prosecution for the offences is
provided for along with potential sentences of a fine or imprisonment
for up to 20 years.
[104]
(d)
However, provision is also made for
the municipality to insist on corrective action through the issuing
of a compliance notice setting
out details of the breaches and the
steps required to remedy them.
[105]
This would seemingly avoid a criminal
prosecution if the corrective action is taken.
(e)
If part of the corrective action requires securing
authorisation from
the municipality for any particular activity or “development
parameter” the municipality may impose
a contravention
penalty. This may include any costs incurred by the
municipality. This contravention penalty is what
is referred to
in paragraph (b) in sections 76(2) and 86(2) of the
respective by laws. It is distinct from
and does not
include the fines that may be imposed pursuant to a criminal
prosecution for a contravention of the by laws.
(f)
Paragraph (b) is thus tailored to achieve precisely
the purpose
of the by laws.
(g)
There is no conflict between paragraph (b) and section 118(1),
save insofar as the words in the introductory part of subsection (2),
“in terms of any law, or”, would preclude
the issue of a
rates clearance certificate under section 118(1) until any
compliance notice had been complied with and “any
contravention
penalty” paid. That conflict is resolved not by striking
down paragraph (b), but rather by striking
down the words “in
terms of any law, or” in the opening paragraph of
subsection (2). That would allow
a clearance certificate
to be issued in terms of section 118(1) while corrective action
is taken in terms of the compliance
notice.
(h)
Paragraph (b) seeks to achieve an entirely different
purpose
from section 118(1) and is reasonably capable of co-existing
with it. There is no conflict. Section 156(3)
therefore provides no basis for striking it down.
[119]
The same reasoning applies to paragraphs (c) to (f) of
section 76(2) of the GM By Law and paragraphs (c)
to (e) of section 86(2) of the EM By Law.
Paragraphs (c) to (f) of the GM By Law read as
follows:
“
(2)
The Municipality may not issue a certificate to transfer a land unit
in terms of any law, or in
terms of this By law, unless the
owner furnishes the Municipality with—
. . .
(c)
proof that the land use and buildings constructed on the land unit
comply with the
requirements of the land use scheme;
(d)
proof that all common property including private roads and private
places originating
from the subdivision, has been transferred;
(e)
proof that the conditions of approval that must be complied with
before the transfer
of erven have been complied with; and
(f)
proof that all engineering services have been installed or
arrangements have been
made to the satisfaction of the Municipality.”
[120]
Paragraphs (c) to (e) of section 86(2) of the
EM By Law are identical to paragraphs (c) to (e) of
section 76(2)
of the GM By Law, save that the words
“to the owners’ association as contemplated in Schedule
5” appear
at the end of paragraph (d) of section 86(2)
of the EM By Law.
[121]
Once the words “in terms of any law, or” in the
opening paragraph of subsection (2) of the GM and
EM By Laws
are struck down, those paragraphs do not
overlap with section 118(1) in any way. They are all
reasonably capable
of operating alongside section 118(1).
There are no financial or debt recovery provisions in these
paragraphs.
I am accordingly satisfied that they are not
invalid on the basis of any conflict with national legislation as
contemplated in
section 156(3) of the Constitution.
[122]
It is so that by prohibiting a person from applying to the
Registrar of Deeds to register the transfer of a land unit, the
transfer
embargoes under the by laws notionally kick in before
the transfer embargo under section 118 can operate, because the
latter’s prohibition is directed at the Registrar of Deeds.
However, in effect, they operate simultaneously to prevent
the
Registrar from registering the transfer. Because they have
different purposes, that is a legitimate area of overlap and
is not
unmanageable. In particular, these paragraphs will not operate
to prevent a municipality from issuing a rates clearance
certificate
in terms of section 118(1), if there is a striking down of the
words “in terms of any law, or” in
subsection (2).
[123]
There is the potential problem
that the rates clearance certificate may expire in terms of
section 118(1A)
[106]
because 60 days have passed while a
compliance issue is being resolved. This may mean that a
transferor will have to sequence
applications for the respective
certificates accordingly. This does not attain the level of a
conflict in terms of section 156(3).
In
Maccsand
,
[107]
dealing with similar concerns to those
raised by Glencore in this matter, this Court said the following:
“
Another
criticism levelled against the finding of the Supreme Court of Appeal
by Maccsand and the Minister for Mineral Resources
was that, by
endorsing a duplication of functions, the court enabled the local
sphere to veto decisions of the national sphere
on a matter that
falls within the exclusive competence of the national sphere. At
face value this argument is attractive,
but it lacks substance. The
Constitution allocates powers to three spheres of government in
accordance with the functional
vision of what is appropriate to each
sphere. But because these powers are not contained in
hermetically sealed compartments,
sometimes the exercise of powers by
two spheres may result in an overlap. When this happens,
neither sphere is intruding
into the functional area of another.
Each sphere would be exercising power within its own
competence. It is in this
context that the Constitution obliges
these spheres of government to cooperate with one another in mutual
trust and good faith,
and to co ordinate actions taken with one
another.”
[108]
[124]
There is accordingly no substance in the challenge to the
remaining paragraphs in subsection (2) of section 76 and 86
of the GM and EM By Laws respectively, on the basis of
section 156(3) of the Constitution.
Arbitrary
deprivation of property
Introduction
[125]
Glencore challenges the transfer embargoes on the basis that
they give rise to an arbitrary deprivation of property in breach of
section 25(1) of the Constitution. Section 25(1)
provides that “[n]o one may be deprived of property except
in
terms of law of general application and no law may permit arbitrary
deprivation of property”.
[126]
The concept of a transfer
embargo is not a novel one in our legal system. This Court
explored their history in its judgment
in
Jordaan
.
[109]
It points out that “[t]he need
for statutory intervention to assist municipalities to collect debts
became evident so far
back as 1848”.
[110]
The earliest example that is cited is
section 275 of the Divisional Councils Act.
[111]
This Court traces the use of the term
“embargo” in this context back to the 1909 judgment of
Curlewis J in
Cohen’s
Trustees
.
[112]
[127]
Transfer embargoes have come to
be used to achieve a range of municipal, safety and other socially
desirable purposes. As
the first judgment points out,
section 14(1) of the City of Cape Town Water By law
requires a transferor to produce a
certificate from a plumber
confirming that the water installation at the property conforms to
the requirements of the water by laws.
[113]
Regulation 7(5) of the Electrical
Installation Regulations, 2009
[114]
promulgated in terms of the
Occupational Health and Safety Act
[115]
similarly prohibits a change of
ownership unless there is an electrical compliance certificate.
Section 53 of SPLUMA
imposes a transfer embargo on “[t]he
registration of any property resulting from a land development
application . . . unless
the municipality certifies that all the
requirements and conditions for the approval have been complied
with”.
[128]
Other municipalities have also
adopted transfer embargoes directly linked with municipal planning
obligations. Section 137(1)
read with section 54 of
the City of Cape Town Municipal Planning By law, 2015 imposes a
transfer embargo in respect of
the transfer of land units arising
from an approved subdivision without a certificate confirming that
the conditions imposed upon
approval have been complied with.
Section 137(2) imposes a transfer embargo on land subject to a
compliance notice or
a contravention levy, which is very similar to
that provided for in paragraph (b) of subsection (2) of the
GM and
EM By Laws. Many other municipalities
have similar provisions in their by laws.
[116]
[129]
Sections 74 of the
GM By Law and 84 of the EM By Law themselves
impose transfer embargoes on first transfers
of land units following
a land development application. These are not challenged by
Glencore. The first judgment considers
these to be validly
imposed by reason of the similar transfer embargo in section 53
of SPLUMA.
[117]
[130]
Against that background, I proceed to assess whether there is
a breach of section 25(1) of the Constitution arising from the
impugned transfer embargoes.
Deprivation
[131]
For there to be a deprivation
of property under section 25(1), there must be a substantial
interference with the property right
in question.
[118]
There is no need to dwell on this.
Mkontwana
[119]
establishes that a transfer embargo
such as that under consideration gives rise to a deprivation of
property as contemplated in
section 25(1). This is so
because it restrains the right to freely alienate property, an
important incident of ownership.
[120]
Arbitrariness
[132]
The focus of debate in this
matter is whether the deprivation that the embargo gives rise to is
arbitrary. The accepted test
for arbitrariness was that laid
down in
FNB
as
follows:
[121]
“
[D]eprivation
of property is ‘arbitrary’ as meant by section 25
when the ‘law’ referred to in section 25(1)
does not
provide sufficient reason for the particular deprivation in question
or is procedurally unfair. Sufficient reason
is to be
established as follows:
(a)
It is to be determined by evaluating the relationship between means
employed, namely
the deprivation in question, and ends sought to be
achieved, namely the purpose of the law in question.
(b)
A complexity of relationships has to be considered.
(c)
In evaluating the deprivation in question, regard must be had to the
relationship
between the purpose for the deprivation and the person
whose property is affected.
(d)
In addition, regard must be had to the relationship between the
purpose of the deprivation
and the nature of the property as well as
the extent of the deprivation in respect of such property.
(e)
Generally speaking, where the property in question is ownership of
land or a corporeal
moveable, a more compelling purpose will have to
be established in order for the depriving law to constitute
sufficient reason
for the deprivation than in the case when the
property is something different and the property right something less
extensive.
This judgment is not concerned at all with
incorporeal property.
(f)
Generally speaking, when the deprivation in question embraces all the
incidents of
ownership, the purpose for the deprivation will have to
be more compelling than when the deprivation embraces only some
incidents
of ownership and those incidents only partially.
(g)
Depending on such interplay between variable means and ends, the
nature of the property
in question and the extent of its deprivation,
there may be circumstances when sufficient reason is established by,
in effect,
no more than a mere rational relationship between means
and ends; in others this might only be established by a
proportionality
evaluation closer to that required by section 36(1)
of the Constitution.
(h)
Whether there is sufficient reason to warrant the deprivation is a
matter to be decided
on all the relevant facts of each particular
case, always bearing in mind that the enquiry is concerned with
‘arbitrary’
in relation to the deprivation of property
under section 25.”
[133]
The test requires identification of, and an examination of the
relationship between, means and ends, where the means are constituted
by the deprivation under scrutiny. That is achieved by asking
the following questions:
(a)
What are the means and the ends in question?
(b)
What is the nature of the relationship between the purpose
of the
deprivation and the
person
affected?
(c)
What is the nature of the relationship between the
purpose of the
deprivation and the
property
affected, taking into account the
nature
of the property and the
extent
of the
deprivation?
(d)
Weighing the answers to the foregoing questions on the basis
of the
guidance provided in the
FNB
test, is there sufficient reason
for the deprivation, in the sense that the ends do indeed justify the
means, or is the deprivation
arbitrary?
(e)
Although not part of the challenge here, is the deprivation
procedurally fair?
[134]
In making these assessments,
one must also bear in mind that modern, constitutional conceptions of
property ownership have forgone
absolutism in favour of an
acknowledgement that property use must consider not only the
interests of the owner, but also those
of broader society.
[122]
The
means and the ends
[135]
What are the means in
question? The means are the embargo on transfer. As
Cameron J observes in
Jordaan,
the embargo places the
transferor in a “squeeze”.
[123]
Pressure is applied on her to comply
with the particular duty owed to the municipality. Absent
compliance, the transfer she
desires (and may well have committed
herself to bringing about in a deed of sale) cannot happen.
[136]
What are the ends? It is not necessary to consider
paragraph (a) of sections 76(2) and 86(2) of the respective
by laws
because it is invalid by reason of its conflict with
section 118(1) of the Systems Act.
[137]
Paragraph (b)’s end is to have the transferor carry
out the corrective action that a compliance notice demanded and
settle
the contravention penalty imposed. This will bring the
transferor and the property into compliance with the by law and,
where applicable, the land use scheme.
[138]
Paragraph (c)’s end is to enforce the land use
scheme. It is non financial. It calls for proof of
compliance
with the land use scheme, even if the transferor has not
been subject to a compliance notice.
[139]
Paragraphs (d) to (f) of the GM By Law and (d)
to (e) of the EM By Law aim to ensure that all of the
requirements
and conditions imposed when a land development
application was approved, have been complied with.
The relationship between the purpose
and the person affected
[140]
What observations are to be made about the relationship
between the purpose of the deprivation and the person whose property
is
affected?
[141]
Paragraph (b) does not expressly identify the person
subject to the unpaid penalty or the extant compliance notice.
The
non compliance sought to be corrected and the penalty sought
to be recovered under paragraph (b) could thus, on the face
of
it, be that of the current or a previous owner or a person currently
or previously in possession of the premises. Where
the conduct
giving rise to the compliance notice or penalty is not that of the
current owner, the relationship between the purpose
of the embargo
and the person affected becomes more remote.
[142]
An interpretation of
paragraph (b) that imposed a transfer embargo on the current
owner in respect of a penalty or compliance
notice imposed on a
previous owner or occupier would offend the value system underlying
the Bill of Rights. In particular,
it would offend the value of
procedural fairness because the penalty or compliance notice will
have been issued without the current
owner having been afforded an
opportunity to be heard. An interpretation of paragraph (b)
that favours constitutional
validity and compliance with the value
system underlying the Bill of Rights must be preferred.
[124]
The transfer embargo could therefore
not be applied against the current owner in respect of a penalty or
compliance notice imposed
on a previous owner or person occupying
under them or during their tenure.
[143]
As regards a penalty or
compliance notice imposed on an occupier during the tenure of the
current owner, as pointed out by this
Court in
Mkontwana
,
[125]
an owner who places another in
possession of the property, or does not respond to an unlawful taking
of possession, retains the
capacity and the responsibility to ensure
that the occupier meets her obligations and uses the property
lawfully and reasonably.
Remedies, including eviction, are
available against the occupier. The by laws themselves
recognise the agency of the
owner in relation to an occupier by
criminalising inaction by the owner in the face of breach of the land
use scheme by an occupier,
[126]
and by requiring that any compliance
notice be served on, and demand compliance with the by law or
land use scheme by, both
of the occupier and the owner.
[127]
This also ensures that procedural
fairness will apply to an owner in respect of a breach of the by law
or land use scheme by
an occupier. A rational and reasonable
connection is thus retained between the restriction and the person
affected when the
transfer embargo is enforced against the current
owner, notwithstanding that the initial offending conduct was that of
the occupier.
[144]
On a reading of paragraph (b) as applying only to
contravention penalties imposed on and directives issued to current
owners
and persons occupying under their watch, there is no
irrationality or unreasonableness in the purpose/person relationship.
[145]
Paragraph (c) requires “proof that the land use and
buildings constructed on the land unit comply with the requirements
of the land use scheme”. In the context of the
purpose/person relationship, Glencore raises the problem of
non compliance
arising from the conduct or omission of a
preceding owner.
[146]
Here, two scenarios must be considered. The first is
where the By Law was not in force when the preceding owner owned
the property and such owner transferred the land unit in a condition
that was non compliant with the land use scheme.
Such
owner would not have needed a compliance certificate because the
By Law was not yet in force. The second is where
the
By Law was in force before transfer to the current owner, but
the preceding owner’s non compliance with the
land use
scheme was overlooked and a certificate was wrongly issued, allowing
transfer to the current owner to take place in contravention
of the
land use scheme.
[147]
As regards the first scenario,
the introduction of new legislation must always carry with it the
possibility of imposition of new
obligations that impact differently
or even negatively on persons that were previously unregulated or
regulated differently.
In this scenario, despite the possible
negative impact, it cannot without more be said that arbitrariness
characterises the relationship
between the purpose of the measure and
the current owner. New laws have to start somewhere.
[128]
[148]
In addition, the current owner
retains the benefit of the presumption that the law does not intend
unjust, inequitable or unreasonable
results,
[129]
along with the protections in the Bill
of Rights. Each situation would have to be considered with
reference to the particular
facts and the particular provisions of
the By Law and the land use scheme in issue.
[149]
As regards the second scenario,
it is inappropriate to assess the potential arbitrariness (and hence
possible constitutional invalidity)
of a by law on the basis of
anticipated non compliance by either the previous owner or the
municipality.
[130]
Moreover, where the municipality was
at fault in allowing a transfer to be registered unlawfully, it is
not inconceivable that the
current owner may have a legal defence or
remedy against the subsequent imposition of a compliance notice or
penalty. For
example, and without deciding the point, it may be
that “the . . . buildings constructed on the land unit”,
as referred
to in paragraph (c), must be restrictively
interpreted to refer only to buildings constructed by the current
owner, not the
previous owner. Again, the matter will have to
be considered on the particular facts at the time.
[150]
I am accordingly satisfied that in the second scenario too,
there is no relational difficulty between the purpose of the transfer
embargo and its impact on the current owner.
[151]
Next I assess the
purpose/person relationship with reference to paragraphs (d) to
(f) of the GM By Law and (d) to
(e) of EM By Law.
[131]
Paragraph (d) requires proof that
all common property originating from a subdivision, including private
roads and private places,
has been transferred. Paragraph (e)
requires proof that conditions of approval of a land development
application have
been complied with. Paragraph (f), which
only appears in the GM By Law, requires proof that all
engineering
services have been installed or arrangements made to the
satisfaction of the municipality for their installation.
[152]
On the face of it, these
paragraphs link the transfer embargo and the issuing of the
requisite certificate to proof of fulfilment
of duties that are
imposed on an owner who is the
developer
in a land development
application.
[132]
This may point to a need to read these
paragraphs down so as to apply only to owners that are the
developers of the land unit
in question. The difficulties with
such a reading down, however, are threefold:
(a)
The first is that these obligations
imposed upon a developer, and linked to the first transfer of a land
unit pursuant to the development,
are already enforced by the
transfer embargoes in section 74, read with section 75 of the
GM By Law and section 84,
read with section 85 of the
EM By Law.
[133]
This is so even though the wording of
the provisions, and the mechanics of the certification, are not
identical in sections 74
and 76 respectively and in sections 84
and 86 respectively. There is a presumption against superfluity
in a statute.
[134]
(b)
The second is that the word “owner”
in the opening paragraph of subsection (2) cannot mean
“owner”
generally in relation to paragraphs (a) to
(c) and “owner developer” in relation to
paragraphs (d) to
(f).
[135]
(c)
The third is the conjunction “and”
between paragraphs (d) and (e). This points to the
requirements in paragraphs (a)
to (f)
[136]
as being cumulative. The
conjunction “and” cannot be read as cumulative for
owner developers and partially
disjunctive for other owners.
[153]
A reading down of
paragraphs (d) to (f) does not therefore seem possible. By
contrast, the third judgment holds that
a reading down is possible.
I do not agree that any meaning can be given to paragraphs (d)
to (f) that is not already
catered for by sections 74 and 75.
Even if read down to apply only to owner developers,
paragraphs (d) to
(f) are entirely superfluous.
[137]
Although presented to the Registrar of
Deeds by the owner or her agent, the “certificate to transfer a
land unit” contemplated
in sections 76(2) and 86(2) of the
respective by laws is in effect a certificate that embodies a
communication from the
Municipality to the Registrar of Deeds that
transfer may take place. In that sense, it does not differ
materially from the
section 74 certificate that is a direct
communication from the municipality to the Registrar of Deeds.
Each certificate
communicates to the Registrar of Deeds that she may
lift the transfer embargo.
[154]
The threefold obstacles to the reading down remain. The
reading down achieved in this judgment in relation to paragraph (b)
so as to confine its impact to penalties and compliance notices
directed at owners and occupiers, is achieved via the incorporation
by reference of chapter 9 in that paragraph. The scheme of
chapter 9 would limit the penalties and compliance notices
to
those imposed on the owner or occupier. This interpretation of
paragraph (b) does not give the word “owner”
in
section 76(2) a bifurcated meaning, as the third judgment in
effect does. The reading down brought about by the third
judgment in truth requires the reading in at the beginning of each of
paragraphs (d) to (f) of the words “in the case
of an
owner who is transferring a land unit for the first time after
approval of a land development application,” or of a
proviso at
the end of section 76(2) as follows:
“
Provided
that paragraphs (d) to (f) apply only to an owner who is
transferring a land unit for the first time after approval
of a land
development application.”
[155]
That in my view demonstrates
that the interpretation in the third judgment is “unduly
strained”. As pointed out
in
Hyundai
,
a legislative body “is under a duty to pass legislation that is
reasonably clear and precise, enabling citizens and officials
to
understand what is expected of them”.
[138]
The by laws in this aspect do not
achieve that. If the Municipalities intended the qualification
or the proviso, they
ought to have included it. Neither
municipality asked for a constitutional remedy in the form of a
reading-in.
[156]
Absent a reading down, the effect of paragraphs (d) to
(f) of the GM By Law and (d) to (e) of the EM By Law
is to cast obligations of the developer on subsequent owners of land
units in the scheme. They are purchasers of a land unit
or
units in the scheme who were not responsible for its development and
who bore no responsibility for complying with the conditions
of
approval of the development. This is a serious relational
mismatch between the purpose of the deprivation and the person
whose
property is affected. That introduces arbitrariness into the
relationship.
[157]
This arbitrariness is compounded by the fact that it is surely
the municipality that must assume the primary role in ensuring that
the developer complies with the conditions that the municipality
itself has imposed, not the purchaser of a unit in the development.
If an instance of non compliance by the developer was
subsequently to emerge, it would be grossly unreasonable for the
owner
of a unit to be delayed in effecting transfer while the
municipality seeks to achieve compliance by the developer, an
endeavour
that may well generate a lengthy legal dispute.
The relationship between the purpose
and the property affected
[158]
The nature of the property here
is full ownership of immovable property. Applying the
FNB
test,
[139]
this will require a heightened level
of justification for the deprivation.
[159]
The extent of the deprivation
of ownership here is partial, not all embracing as in
FNB
.
What is forfeited pending satisfaction of the conditions enabling the
issue of the required certificate, is the right to
transfer the
property in order to complete the process of alienation. In
Mkontwana
this
was described as “a single but important incident of
ownership”.
[140]
As appears from that judgment, the
extent of the deprivation is dependent on the extent of the delay in
transfer brought about by
the embargo.
[160]
In
Mkontwana
,
it was recognised that it would not be arbitrary to delay transfer
until the owner of the property in question had settled all
of her
debt.
[141]
In that matter, the potential for
arbitrariness was introduced by the fact that section 118(1)
makes the transferor responsible
also for the debts of the occupier
(lawful and unlawful). This was ultimately found to be
adequately ameliorated by the two year
limit on the age of the
debt.
[161]
In relation to paragraph (b), transfer is only delayed
for as long as it takes to correct the non compliance and pay
the
contravention penalties in respect of the land unit in question.
A potential complication may arise where the contravention
or penalty
is that of the occupier rather than the owner. However, as
pointed out earlier with reference to
Mkontwana
, an owner has
the responsibility to ensure the lawful use of their property even
when it is occupied by another. In a worst case
scenario,
an owner may be forced at their own expense to remediate the
occupier’s non compliance, or pay their penalty,
to ensure
that transfer can proceed. They would have a right of recovery
against the occupier. The deprivation is thus
a temporary one.
[162]
Paragraph (c) expressly
limits application of the transfer embargo to the land unit sought to
be transferred. In requiring
proof of compliance with the land
use scheme, it serves as a reminder of the close connection between
the purpose of the deprivation
and the property. Here the
purpose/property relationship is even closer in my view than that in
respect of municipal debt
under section 118(1).
[142]
Land use schemes seek to ensure the
orderly, safe and developmentally optimal use of all land.
[143]
The embargo is thus precisely focused
on its purpose and the property to which it applies.
[163]
Taking all of this into account, the purpose of the
deprivation in paragraph (c) aligns with the property to which
it applies
and the deprivation represents a temporary and reasonable
incursion into the owner’s property rights.
[164]
Paragraphs (d) to (f) of the GM By Law and
paragraphs (d) to (e) of the EM By Law are a different
kettle of fish. The purpose of the deprivation under these
paragraphs, compliance with the development approval conditions,
is
one related to the land development as a whole, including, expressly,
common property and roads in the development. All
of this has
relatively little to do with the particular land unit in respect of
which transfer is subsequently sought. There
is also a temporal
disjunct insofar as it relates to the property as it was in the
course of development, not the land unit that
emanated from the
development upon its completion, which is now sought to be
transferred. Again, these disjuncts introduce
arbitrariness.
Sufficient
reason or arbitrary deprivation?
[165]
I accept that the nature and
extent of the deprivation in this case is such as to require more
than a “mere rational relationship
between means and
ends”.
[144]
Justification of the deprivation lies
closer to the proportionality end of the spectrum. Weighing the
overall relationship
between means and ends I come to the following
conclusions:
(a)
There is sufficient reason for paragraph (b) of the two
by laws. There the transfer embargo supports ends which
are manifestly socially justifiable and in both the public and
private interest, namely compliance with a land use scheme in respect
of the very property sought to be transferred. Glencore
says
that the embargo changes the GM and EM By Laws’
soft enforcement scheme in Chapter 9 into a hard
one. It
contemplates using a sledgehammer to crack a nut. I disagree.
Chapter 9 includes in its armoury
criminal prosecution and
imprisonment for up to 20 years. The transfer embargo is soft
in comparison. It ties in neatly
with the soft approach of a
compliance notice and administrative penalty in place of prosecution.
(b)
There is sufficient reason for paragraph (c) of the two
by laws. Again, the transfer embargo here supports ends
which are manifestly socially justifiable. Glencore says
that
the embargo represents outsourcing by the municipality of its
enforcement obligations. That is not so. The enforcement
mechanisms co exist in a mutually supporting way. None
would give rise to disproportion sufficient to constitute
arbitrariness.
This is so even taking into account Glencore’s
concerns regarding non compliance by a previous owner. But
that
would not be in the ordinary course. And it is not enough
to render the provision arbitrary.
(c)
There is insufficient reason for paragraphs (d) to (f)
of the
GM By Law and paragraphs (d) to (e) of the EM By Law.
Assessing them through the lens of
the relational analysis required
by
FNB
demonstrates that they are entirely disproportional.
The deprivation is potentially severe and is seriously misdirected,
visiting
the sins of the developer upon an innocent subsequent
owner. It is not justifiable to expect a purchaser of a land
unit in
a development to employ the full range of professionals to
assess whether the developer has complied with the approval
conditions;
even less so a later seller or purchaser of the unit.
Justification
[166]
Paragraphs (d) to (f) of the GM By Law and
paragraphs (d) to (e) of the EM By Law thus give rise
to
an arbitrary deprivation of property, thereby limiting the
fundamental right not to be subject to a law that permits arbitrary
deprivation of property. Can this be justified in terms of
section 36 of the Constitution?
[167]
Emalahleni made a faint attempt to argue that Glencore’s
challenge should fall at this last hurdle. It did so solely
on
the basis that the purpose of the impugned provision is important,
the purpose being to administer adequately spatial planning
and land
use in order to meet its constitutional obligations. This is a
reference to section 36(1)(b) of the Constitution.
[168]
A party seeking to defend an
otherwise unconstitutional limitation of a right in the Bill of
Rights bears an onus to justify the
offending law with reference to
all
of
the factors listed in section 36(1) of the Constitution.
[145]
The fact that paragraphs (b) and
(c) of the by laws survive scrutiny under section 25(1) of
the Constitution
[146]
means that there remain in place
adequate provisions to achieve the spatial planning and orderly land
use purposes of sections 76
and 86 of the GM and
EM By Laws. Debt control is catered for by
section 118 of the Systems Act.
And the provisions
required to ensure that developers comply with their obligations are
to be found in sections 74 and 75
of the GM By Law,
sections 84 and 85 of the EM By Law and section 53
of SPLUMA.
[169]
I am accordingly satisfied that the limitation insofar as it
pertains to paragraphs (d) to (f) of section 76 of the
GM By Law,
and paragraphs (d) to (e) of section 86
of the EM By Law, cannot be justified in an open and
democratic society
based on human dignity, equality and freedom.
Conclusion
on arbitrariness
[170]
Paragraphs (d) to (f) of section 76 of the
GM By Law, and paragraphs (d) to (e) of section 86
of the
EM By Law, are constitutionally invalid on the
ground that they give rise to an arbitrary deprivation of property as
contemplated in section 25(1) of the Constitution.
[171]
Paragraphs (b) and (c) of sections 76 and 86 of the
GM and EM By Laws survive the challenges based on
section 25(1)
and 156(3) of the Constitution. It therefore
becomes necessary to consider whether they survive the challenge
based on legislative
competence.
Legislative
competence
[172]
Section 43 of the Constitution deals with the
“legislative authority of the Republic”. It reads:
“
43.
In the Republic, the legislative authority—
(a)
of the national sphere of government is vested in Parliament, as set
out in section 44;
(b)
of the provincial sphere of government is vested in the provincial
legislatures, as
set out in section 104; and
(c)
of the local sphere of government is vested in the Municipal
Councils, as set out
in section 156.”
[173]
Here we are concerned with the allocation of legislative
authority as between the national and local spheres of government.
However, to get a sense of the scheme underlying the allocation and
to be able to compare it with the scheme underlying the interim
Constitution, it is appropriate to include in the analysis the
provisions dealing with the provincial sphere of government.
Parliament
[174]
Section 44(1) to (4) of the Constitution provides, in
relevant part, as follows:
“
44(1)
The national legislative authority as vested in Parliament—
(a)
confers on the National Assembly the power—
.
. .
(ii)
to pass legislation with regard to any matter, including a matter
within a functional
area listed in Schedule 4, but excluding, subject
to subsection (2), a matter within a functional area listed in
Schedule
5; and
(iii)
to assign any of its legislative powers, except the power to amend
the Constitution, to
any legislative body in another sphere of
government; and
(b)
confers on the National Council of Provinces the power—
.
. .
(ii)
to pass, in accordance with section 76, legislation with regard
to any matter
within a functional area listed in Schedule 4 and any
other matter required by the Constitution to be passed in accordance
with
section 76; and
(iii)
to consider, in accordance with section 75, any other
legislation passed by the National
Assembly.
(2)
Parliament may intervene, by passing legislation in accordance with
section 76(1),
with regard to a matter falling within a
functional area listed in Schedule 5, when it is necessary—
(a)
to maintain national security;
(b)
to maintain economic unity;
(c)
to maintain essential national standards;
(d)
to establish minimum standards required for the rendering of
services; or
(e)
to prevent unreasonable action taken by a province which is
prejudicial to the interests
of another province or to the country as
a whole.
(3)
Legislation with regard to a matter that is reasonably necessary for,
or incidental
to, the effective exercise of a power concerning any
matter listed in Schedule 4 is, for all purposes, legislation with
regard
to a matter listed in Schedule 4.
(4)
When exercising its legislative authority, Parliament is bound only
by the Constitution,
and must act in accordance with, and within the
limits of, the Constitution.”
Provinces
[175]
Section 104 of the Constitution provides in relevant part
as follows:
“
104(1) The
legislative authority of a province is vested in its provincial
legislature, and confers on the provincial legislature
the power—
.
. .
(b)
to pass legislation for its province with regard to—
(i)
any matter within a functional area listed in Schedule 4;
(ii)
any matter within a functional area listed in Schedule 5;
(iii)
any matter outside those functional areas, and that is expressly
assigned to the province
by national legislation; and
(iv)
any matter for which a provision of the Constitution envisages the
enactment of provincial
legislation; and
(c)
to assign any of its legislative powers to a Municipal Council in
that province.
.
. .
(4)
Provincial legislation with regard to a matter that is reasonably
necessary for, or
incidental to, the effective exercise of a power
concerning any matter listed in Schedule 4, is for all purposes
legislation
with regard to a matter listed in Schedule 4.”
Municipalities
[176]
Section 151 of the Constitution provides:
“
(1)
The local sphere of government consists of municipalities, which must
be established for the whole
of the territory of the Republic.
(2)
The executive and legislative authority of a municipality is vested
in its Municipal
Council.
(3)
A municipality has the right to govern, on its own initiative, the
local government
affairs of its community, subject to national and
provincial legislation, as provided for in the Constitution.
(4)
The national or a provincial government may not compromise or impede
a municipality’s
ability or right to exercise its powers or
perform its functions.”
[177]
Section 154(1) of the Constitution reads:
“
The
national
government
and provincial governments, by legislative and other measures, must
support and strengthen the capacity of municipalities
to manage their
own affairs, to exercise their powers and to perform their
functions.”
[178]
Section 156 of the Constitution reads as follows:
“
(1)
A municipality has executive authority in respect of, and has the
right to administer—
(a)
the local government matters listed in Part B of Schedule 4 and Part
B of Schedule
5; and
(b)
any other matter assigned to it by national or provincial
legislation.
(2)
A municipality may make and administer by laws for the effective
administration
of the matters which it has the right to administer.
(3)
Subject to section 151(4), a by law that conflicts with
national or provincial
legislation is invalid. If there is a
conflict between a by law and national or provincial legislation
that is inoperative
because of a conflict referred to in section 149,
the by law must be regarded as valid for as long as that
legislation
is inoperative.
(4)
The national government and provincial governments must assign to a
municipality,
by agreement and subject to any conditions, the
administration of a matter listed in Part A of Schedule 4 or Part A
of Schedule
5 which necessarily relates to local government, if—
(a)
that matter would most effectively be administered locally; and
(b)
the municipality has the capacity to administer it.
(5)
A municipality has the right to exercise any power concerning a
matter reasonably
necessary for, or incidental to, the effective
performance of its functions.”
Schedules
4 and 5
of the Constitution
[179]
Schedule 4 itemises the particular areas of legislative
competence that are shared by the national legislature and the
provincial
legislatures. Schedule 5 itemises the particular
areas of legislative competence that are exclusive to the provincial
sphere
of government. Each of Schedules 4 and 5 is further
divided between Part A and Part B, as follows:
“
Schedule
4
Functional Areas of Concurrent
National and Provincial Legislative Competence
Part A
[The various functional areas are then
listed. I include only those that may be relevant to the
discussion below.]
. . .
Industrial promotion
. . .
Regional planning and development
Road traffic regulation
. . .
Trade
Part B
The following local government matters
to the extent set out in section 155(6)(a) and (7):
.
. .
Building regulations
. . .
Municipal planning
Schedule 5
Functional Areas of Exclusive
Provincial Legislative Competence
Part A
[The various functional areas are then
listed. I include only those that may be relevant to the
discussion below.]
. . .
Liquor licenses
. . .
Provincial planning
. . .
Provincial roads and traffic
Part
B
The following local government matters
to the extent set out for provinces in section 155(6)(a) and
(7):
[The various functional areas are then
listed. I include those that may be relevant to the discussion
below.]
. . .
Municipal roads
. . .
Traffic and parking”
[180]
Part B in each of Schedules 4 and 5 thus operates to define
areas of municipal legislative competence through the combined
operation
of section 156(1)(a) and (2), which are quoted above.
The instruments through which municipalities exercise their
legislative
authority are by laws.
The
OUTA judgment
[181]
In the recent decision in
OUTA
,
[147]
this Court had occasion to deal with
the constitutional system for the allocation of legislative power
between the three spheres
of government. The case involved a
challenge to the constitutional validity of legislation passed by
Parliament in the exercise
of its national legislative power to
create a new system of administrative adjudication of road traffic
offences (the AARTO Act).
[148]
The High Court had concluded that the
AARTO Act “unlawfully intrude[s] upon the exclusive executive
and legislative competence
of the local and provincial
governments.”
[149]
Primarily on this basis, the High
Court declared the AARTO Act to be constitutionally invalid. It
reached this conclusion
on the basis that the AARTO Act encroached
upon the exclusive provincial legislative competence of “Provincial
roads and
traffic” in Part A of Schedule 5 to the Constitution
and the exclusive provincial and municipal legislative competences of
“Municipal roads” and “Traffic and parking”
in Part B of Schedule 5 to the Constitution.
[182]
In a unanimous judgment, this
Court declined to confirm the High Court’s order of
constitutional invalidity. The Court
identified the relevant
principles and the approach to be adopted in determining the sphere
of government under whose legislative
authority particular
legislation falls. It did so through a chronological
examination of four judgments of this Court on
the subject.
[150]
A number of observations may be made
on the basis of
OUTA
that are relevant to the determination
of this matter.
[183]
The first observation is this.
The first judgment seeks to draw a distinction between the scheme for
legislative competence
under the interim Constitution and the final
Constitution respectively. It holds that for this reason
judgments under the
interim Constitution “may not reflect the
correct approach to similar questions under the [final] Constitution
today”.
[151]
[184]
The four judgments analysed in
OUTA
span both
constitutional eras. It is important to see if this Court
identified any form of change in principle or in approach
as between
the two constitutions in its decision in
OUTA
.
[185]
Two of the judgments,
Amakhosi
and
DVB Behuising
,
were decided under the interim Constitution, whilst two of the
judgments were decided under the final Constitution, namely
Liquor
Bill
and
Gauteng Development Tribunal
. In the
earliest judgment considered,
Amakhosi
, Chaskalson P described
the approach to characterising legislation for purposes of the
legislative competence inquiry as follows:
“
If
the purpose of the legislation is clearly within Schedule 6, it is
irrelevant whether the Court approves or disapproves of its
purpose.
But purpose is not irrelevant to the Schedule 6 enquiry. It may
be relevant to show that although the legislation
purports to deal
with a matter within Schedule 6, its true purpose and effect is to
achieve a different goal which falls outside
the functional areas
listed in Schedule 6. In such a case a Court would hold that
the province has exceeded its legislative
competence. It is
necessary, therefore, to consider whether the substance of the
legislation, which depends not only on its
form but also on its
purpose and effect, is within the legislative competence of the
KwaZulu Natal provincial legislature.”
[152]
[186]
That dictum was followed in
DVB
Behuising
and
Liquor
Bill
,
[153]
notwithstanding that the former was
decided under the interim Constitution and the latter was decided
under the final Constitution.
Gauteng
Development Tribunal
did
not refer to
Amakhosi
.
However, one can detect the influence of the principles and the
approach laid down in
Amakhosi
when the Court in
Gauteng
Development Tribunal
said
that “[i]n the context of the Schedules 4 and 5 functional
areas, this Court has held that the purposive interpretation
must be
conducted in a manner that will allow the spheres of government to
exercise their powers ‘fully and effectively’”.
[154]
[187]
Moreover, the approach in
Amakhosi
was
retained in
OUTA
where this Court summarised the effect
of the four judgments that it analysed as follows:
[155]
“
It
is clear from the jurisprudence of this Court as reflected in the
cases discussed above that, in order to determine whether a
piece of
legislation falls within a particular functional area in either
Schedule 4 or Schedule 5 of the Constitution, a court
is required to
determine the subject matter of that legislation and then see
within which sphere of government’s functional
area it falls.
Determining the subject matter of legislation entails
considering its substance, purpose and effects.
It entails
determining what the legislation is about or determining its
character.”
[188]
This approach, which is laid down under the final
Constitution, is entirely consistent with that adopted under the
interim Constitution
in
Amakhosi
and
DVB Behuising
.
Accordingly, there is no difference in the principles to be applied,
or in the approach to be adopted, in determining whether
legislation
falls within or outside a listed area of functional competence, as
between the interim Constitution and the final Constitution.
Cases dealing with the distribution of legislative authority between
the national and provincial spheres of government under the
interim
Constitution remain good authority.
[189]
The only relevant difference for present purposes between the
interim Constitution and the final Constitution is that the area
of legislative competence for municipalities in the interim
Constitution was determined differently from the final Constitution.
Section 175 of the interim Constitution provided for “[t]he
powers and functions of local government” as follows:
“
(1)
The powers, functions and structures of local government shall be
determined by law of a competent
authority.
(2)
A local government shall be assigned such powers and functions as may
be necessary
to provide services for the maintenance and promotion of
the well being of all persons within its area of jurisdiction.
(3)
A local government shall, to the extent determined in any applicable
law, make provision
for access by all persons residing within its
area of jurisdiction to water, sanitation, transportation facilities,
electricity,
primary health services, education, housing and security
within a safe and healthy environment, provided that such services
and
amenities can be rendered in a sustainable manner and are
financially and physically practicable.
(4)
A local government shall have the power to make by laws not
inconsistent with
this Constitution or an Act of Parliament or an
applicable provincial law.
(5)
A local government shall have such executive powers as to allow it to
function effectively.”
[190]
Broadly speaking, for municipalities the system operated on
the basis of statutory assignment of legislative and executive
power.
There was no schedule in the interim Constitution
itemising the competences of municipalities, as is to be found in
Part B
of each of Schedules 4 and 5 to the final Constitution.
[191]
Importantly, however, the provincial competences were set out
in a schedule to the interim Constitution in a manner very similar
to
that in the final Constitution. Thus section 126 dealing
with “[l]egislative competence of provinces”,
provided in
relevant part as follows:
“
(1)
A provincial legislature shall be competent, subject to
subsections (3) and (4), to make
laws for the province with
regard to all matters which fall within the functional areas
specified in Schedule 6.
(2)
The legislative competence referred to in subsection (1), shall
include the competence
to make laws which are reasonably necessary
for or incidental to the effective exercise of such legislative
competence.”
[192]
Schedule 6 to the interim Constitution then itemised the
specific “legislative competences of provinces” in a
manner
very similar to that adopted in Schedules 4 and 5 to
the final Constitution, with many of the items in the former being
identical to those in the latter.
[193]
Accordingly, it is entirely appropriate to apply the
principles and approach adopted by this Court in delineating
legislative competence
in the interim Constitution as between the
provincial and national spheres of government, to the schedule based
system operating
under the final Constitution in respect of both the
provincial and local spheres of government.
[194]
The second observation is
this. Referencing
Gauteng
Development Tribunal
, the
first judgment identifies what it perceives to be “a scheme of
exclusivity running through the [final] Constitution”.
[156]
It does so on the basis of the
following dictum in
Gauteng
Development Tribunal
:
“
The
constitutional scheme propels one ineluctably to the conclusion that,
barring functional areas of concurrent competence, each
sphere of
government is allocated separate and distinct powers which it alone
is entitled to exercise.”
[157]
[195]
However, this Court in
Gauteng
Development Tribunal
went
on in the next sentence to characterise the constitutional scheme as
one based on “the principle of
relative
and limited
autonomy of the
spheres of government” (emphasis added).
[158]
This follows on the observation in the
preceding paragraph in
Gauteng
Development Tribunal
that
“[i]t is, however, true that the functional areas allocated to
the various spheres of government are
not
contained in hermetically sealed compartments
”
(emphasis added), yet “remain
distinct from one another”.
[159]
Gauteng Development Tribunal
therefore does not provide
a basis for a scheme of exclusivity, but rather one of relative and
limited autonomy.
[196]
In
OUTA
, the High Court had adopted what it termed a
“bottom up” approach, which was akin to a scheme of
exclusivity,
at least insofar as Schedule 5 competences were
concerned. This Court held as follows in this regard:
“
[T]he . . . ‘bottom up’
approach . . . in essence, requires a court confronted with such a
matter to determine
the functional areas that fall within the
exclusive legislative competence of provinces, ie Schedule 5. Once
those have been
determined, then whatever remains is said to fall
under concurrent national and provincial legislative competence under
Schedule
4. The [High Court] based this approach on the
following passage of this Court’s judgment in
Liquor
Bill
:
‘
It follows that, in order to
give effect to the constitutional scheme, which allows for
exclusivity subject to the intervention
justifiable under
section 44(2), and possibly to incidental intrusion only under
section 44(3), the Schedule 4 functional
competences should be
interpreted as being distinct from, and as excluding, Schedule 5
competences.
That the
division could never have been contemplated as being absolute is a
point to which I return in due course.
’
. . .
However,
Liquor
Bill
is no authority
for this ‘bottom up’ approach. The above
passage must be understood in the context of the
entire judgment. In
particular, it must be understood in the light of the overall
reasoning of the Court. In
Liquor
Bill
this Court
determined the scope of the functional area listed under Schedule 4
(via a process of interpretation of the wording
of the functional
area), without ‘carving out’ — as the High Court
would have us do — areas of exclusive
provincial competence and
assigning the remaining areas to the national sphere of government.”
(Emphasis in the original.)
[160]
[197]
The Court in
OUTA
went on to draw attention to the
following part of the judgment in
Liquor Bill
:
“
Since,
however, no national legislative scheme can ever be entirely
water tight in respecting the excluded provincial competences,
and since the possibility of overlaps is inevitable, it will on
occasion be necessary to determine the main substance of legislation
and hence to ascertain in what field of competence its substance
falls; and, this having been done, what it incidentally accomplishes.
This entails that a Court determining compliance by a
legislative scheme with the competences enumerated in Schedules 4
and 5 must at some stage determine the character of the
legislation.”
[161]
[198]
Based on these dicta, one must
accept that there will be penumbral areas of overlap in the
competences of the national, provincial
and local spheres of
government. This outcome arises both as a result of the
application of the substance, purpose and effect
test to the
legislation in question and the inclusion in a municipality’s
powers of a “matter reasonably necessary
for, or incidental to,
the effective performance of its functions”.
[162]
The foregoing considerations, in my
view, do not allow for the application of a scheme of exclusivity.
[199]
The third observation emanating from
OUTA
and the
decisions that it analysed is that it is possible for legislation to
have more than one substance, purpose and effect.
As this Court
said in
Liquor Bill
:
“
It
seems apparent that the substance of a particular piece of
legislation may not be capable of a single characterisation only and
that a single statute may have more than one substantial character.
Different parts of the legislation may thus require different
assessment in regard to a disputed question of legislative
competence.”
[163]
[200]
The legislation in question in
Liquor Bill
,
and the outcome of the case, illustrate what this Court had in mind
in acknowledging the possibility of more than one substantial
character. There the President referred to this Court, in terms
of section 79(4)(b) read with section 84(2)(c)
of the
Constitution, the constitutionality of the Liquor Bill.
[164]
Parliament sought, through the Liquor
Bill, comprehensively to regulate the manufacture, distribution and
sale of liquor on a national
basis.
[201]
The Western Cape Provincial
Government challenged the validity of the Liquor Bill on the
basis that it encroached upon the
exclusive provincial legislative
competence of “liquor licences” in Part A of Schedule 5.
This item, it argued,
encompassed “all legislative means and
ends appurtenant to the liquor trade at all levels of production,
manufacture and
sale.”
[165]
The Minister of Trade and Industry
argued that the Liquor Bill fell under “industrial promotion”
and “trade”,
items of concurrent national and provincial
competence in Part A of Schedule 4. To the extent that it
encroached upon the
liquor licensing competence, this was purely
incidental and therefore permissible.
[202]
This Court held that the true substance of the Liquor Bill was
directed at three objectives, namely—
“
(a)
the prohibition on cross holdings between the three tiers
involved in the liquor trade, namely producers, distributors
and
retailers; (b) the establishment of uniform conditions . . . for the
national registration of liquor manufacturers and distributors;
and .
. . (c) the prescription of detailed mechanisms to provincial
legislatures for the establishment of retail licensing
mechanisms.”
[166]
[203]
The components of the Liquor
Bill giving effect to objective (a) permissibly fell under “trade”
and “industrial
promotion”.
[167]
The components of the Liquor Bill
giving effect to objective (b) seemingly fell under “trade”,
but were in any event
justified as a measure to maintain economic
unity in terms of section 44(2)(b).
[168]
But the attempt to regulate
intra provincial retail licensing mechanisms was an unlawful
intrusion into the exclusive area
of provincial legislative
competence, “liquor licences”, in Part A of Schedule
5.
[204]
From this it follows that where legislation is characterised
as having more than one substance or identity, each would have to
constitute
a significant component of the legislation aimed at
achieving a distinctive and identifiable objective or purpose.
A corollary
of this is that, in assessing whether legislation is
compliant with the constitutional scheme for distribution of
legislative authority,
it may be inappropriate to parse the statute,
testing it section by section. Rather, the substance,
purpose and
effect of that component of the legislation directed at a
particular objective must be considered holistically.
[205]
The fourth observation arising from
OUTA
is this.
In its analysis of the principles relating to the allocation of
legislative power between the three spheres of government,
it does
not treat local government as being subject to a different set of
principles from those applicable to the national and
provincial
spheres. In this regard
OUTA
does not suggest that in
the exercise of its legislative authority under the Constitution the
local sphere occupies an inferior
or subordinate position to the
national and provincial spheres; nor does it suggest that the local
sphere’s legislative power
is inferior or subordinate or
incidental only to its executive power; nor does it suggest that in
relation to its allocated sphere
of legislative authority, the local
sphere is subject to a hermetic seal. Yet the first judgment
seeks to characterise the
legislative authority of the local sphere
of government as being inferior to that of the national and
provincial spheres in all
of these respects.
[206]
To the contrary, in this
Court’s analysis in
OUTA
of the legislative
authority of the three spheres of government, the local sphere is
treated, within its legislative allocation,
as an equal
partner.
[169]
This it was bound to do by its earlier
decision in
Robertson
,
[170]
which insists that—
“
The
Constitution has moved
away
from a hierarchical division of governmental power
and
has ushered in a new vision of government in which the sphere of
local government is interdependent, ‘inviolable and possesses
the constitutional latitude within which to define and express its
unique character’
[171]
subject to constraints permissible
under our Constitution. A municipality under the Constitution
is not a mere creature of
statute, otherwise moribund, save if imbued
with power by provincial or national legislation. A
municipality enjoys ‘
original’
and constitutionally entrenched powers, functions, rights and duties
that may be qualified or constrained
by law and only to the extent the Constitution permits. Now,
the conduct of a municipality
is not always invalid only for the
reason that no legislation authorises it. Its power may derive
from the Constitution or
from legislation of a competent authority
or
from its own laws.
”
(Emphasis
added.)
[207]
The first judgment asserts the
local sphere’s inferior legislative status primarily on the
basis of its interpretation of
section 156(2) of the
Constitution, suggesting that it confers legislative power in less
expansive terms than the equivalent
conferral of powers on the
national and provincial legislatures in sections 44(1)(a)(ii)
and 104(1)(b) respectively of the
Constitution.
[172]
The first judgment suggests further
that the conferral of the legislative power “for the effective
administration of the matters
which [a municipality] has the right to
administer” points to a legislative power inferior still to a
municipality’s
executive power, so much so that the power in
section 156(2) confers only limited legislative power that is
incidental to
its predominantly executive functions.
[173]
This in turn means that
section 156(5), which confers upon a municipality “the
right to exercise any power concerning
a matter reasonably necessary
for, or incidental to, the effective performance of its functions,”
does not apply to legislative
powers.
[174]
Section 156(3) is also referred
to in support, insofar as it renders a by law that conflicts
with national or provincial
legislation invalid.
[175]
[208]
Consequent upon this reasoning,
the first judgment says that this Court’s case law on the
characterisation of national and
provincial legislation under the
interim and final Constitutions, and of municipal executive authority
under the final Constitution,
does not apply to questions of
municipal legislative authority.
[176]
[209]
Implicit in all of this is that a municipality’s
legislative power is hermetically sealed within its functional areas
of express
executive authority. Consequent upon this reasoning,
DVB Behuising
, amongst other decisions of this Court, is
considered by the first judgment not to be an appropriate “reference
point”
in deciding this matter.
[210]
I have the following difficulties with this conception of a
municipality’s legislative power—
(a)
It is in conflict with the authority of this Court in, amongst
others,
Robertson
and
OUTA
and the four judgments of
this Court discussed in
OUTA
. As I have pointed out
above, these judgments treat the local sphere of government, once
functioning within its functional
lane, as an equal partner.
OUTA
applies the four judgments of this Court on
characterisation of legislation in exactly the same way to the
national, provincial
and local
spheres’ legislative
authority. It does so under the heading “[t]he question
of exclusive legislative competence”.
If the local sphere
was to be treated differently, in the manner suggested in the first
judgment, this Court would have said as
much in this part of
OUTA
.
(b)
The fact that legislative power is
conferred in section 156(2) for the “effective
administration” of the matters
in respect of which it has
executive authority does not reflect a legislative purpose of
narrowing municipal legislative power.
Nor does it reflect that
it is secondary to its executive power. The mechanism and
wording of section 156(2) is designed
to reflect the unique
nature of municipal councils, which exercise both executive and
legislative authority.
[177]
That is why it differs from the
conferral of legislative authority on Parliament and provincial
legislatures. The conferral
of legislative power on Parliament
is of necessity broad because it is residual and includes all
functional areas not specifically
provided for in Schedules 4 and 5.
However, an examination of the conferral of legislative authority on
provincial legislatures
in terms of section 104(1)(b) is as
circumscribed as its conferral on municipalities in section 156(1)
and (2).
(c)
Section 44(1)(a)(iii) provides for the assignment by the
National Assembly of legislative powers to “any legislative
body in another sphere of government”. That includes
a
municipal council. Section 104(1)(c) provides for the
assignment by a provincial legislature of any of its legislative
powers to a municipal council in that province. In exercising
such legislative powers, a municipality would inherit as wide
a
legislative power as the national or a provincial legislature.
It would be incongruous if a municipality’s primary
legislative
power in section 156(2) were then to be construed narrowly and
interpreted on the basis of a different test.
(d)
Chapter 7 of the Constitution
also includes provisions designed to protect the autonomy, including
legislative autonomy, of
municipalities. Section 151(4)
lays down that “[t]he national or a provincial government may
not compromise or
impede a municipality’s ability or right to
exercise its powers or perform its functions”.
Section 156(3),
relied on in the first judgment as narrowing
local legislative authority,
[178]
is expressly qualified by reference to
section 151(4).
(e)
The interpretation of section 156(5)
as excluding the exercise by a municipality of reasonably necessary
and incidental legislative
powers is against the authority of this
Court in
Mazibuko
.
[179]
It relied on this provision in holding
that a water services by law conferring the power to install
prepaid water meters was
reasonably incidental to the effective
performance of its functions.
[180]
[211]
The fifth observation arising
from
OUTA
is
that there will be an unconstitutional exercise of the legislative
competence of another sphere of government where there is
an actual
intrusion into, or an encroachment upon, its exclusive sphere of
competence. Something must be usurped or subtracted
from the
legislative authority of the impacted sphere of government.
Thus, in upholding the validity of national legislation
aimed at
establishing a national framework to improve road safety and
encourage safe driving, this Court in
OUTA
observed that the law in question did
not “interfere in any way with the competence of a municipality
to make by laws
relating to municipal roads or to traffic and
parking” and left “the finer details to the provincial
and municipal
spheres of government”.
[181]
It was for this reason, amongst
others, that this Court was, in both
OUTA
and
Liquor Bill
,
at pains to assess whether national legislation impacted
intra provincially or inter provincially in determining
whether
national legislation had stayed within its lane.
[182]
[212]
That there must be actual encroachment to found a complaint of
intrusion is apparent also from section 41(1)(f) of the
Constitution,
which requires that “[a]ll spheres of government
and all organs of state within each sphere must . . . exercise their
powers
and perform their functions in a manner that does not encroach
on the geographical, functional or institutional integrity of
government
in another sphere.”
[213]
Against the backdrop of those five observations, it is
appropriate to consider the substance, purpose and effect of the
by laws
under scrutiny in this matter, including whether each is
capable of more than one characterisation.
How are the GM and EM By Laws
to be characterised?
[214]
The two by laws under consideration are in the greater
part identically arranged and worded. Their titles are the
“Govan
Mbeki Spatial Planning and Land Use Management By law”
and the “Emalahleni Municipal By Law on Spatial Planning
and Land Use Management”. Neither has a preamble, a long
title or a dedicated section setting out its objects.
[215]
Chapter 1 of each by law provides for definitions,
the application of the by law and for conflict of laws.
Section 2(1) of the respective by laws renders each
applicable to all land within the municipality’s area of
jurisdiction
and section 2(2) records that each by law
“binds every owner and their successor in title and
every user
of land, including the state”.
[216]
Chapter 2 of each by law
is entitled “Municipal Spatial Development Framework”.
Section 4 of that
chapter obliges the municipality to draft
a municipal spatial development framework in accordance with
sections 20 and
21 of SPLUMA, read with sections 23 to 25
of the Systems Act.
[183]
[217]
Chapter 3 of each by law
deals with land use schemes. Section 15 in each by law
records the applicability
of sections 24 to 28 of SPLUMA to any
land use scheme adopted by a municipality.
[184]
Further, Chapter 3 of each by law
supplements the provisions of SPLUMA in relation to the content of
the land use scheme,
[185]
the manner in which it is prepared and
brought into force,
[186]
reviewed and amended,
[187]
including public participation
requirements.
[188]
[218]
Chapter 4 of each by law
is entitled “Institutional Structure for Land Use Management
Decisions”. Included
in this chapter is provision for the
designation of a land development officer
[189]
and the establishment, administration
and functioning of a municipal planning tribunal.
[190]
[219]
Chapter 5 of each by law
is entitled “development management”. Here the
wording is not in all respects
identical, but the subject matter is.
Chapter 5 of each by law regulates the different kinds of
land development
applications, including applications for the
establishment of a township, applications to amend the land use
scheme,
[191]
applications to remove or amend
restrictive conditions of title limiting the use of land,
applications to subdivide and consolidate
land parcels, applications
for closure of public places and applications in terms of the land
use scheme.
[192]
[220]
Part K of Chapter 5 of
both the GM and EM By Laws is titled “General
Matters”. This part includes
the transfer embargoes in
section 74 of the GM By Law and section 84 of the
EM By Law, which are
not subject to challenge, and the
impugned section 76 in the GM By Law and section 86
in the EM By Law.
There is also provision in Part K
of both by laws for the vesting of ownership of public places in
the municipality in terms
of an approved subdivision plan,
[193]
compliance with conditions in land
development applications requiring transfer of land to the
municipality, an owners’ association
[194]
or a non profit company,
[195]
and applications under Chapter 5
which affect national or provincial interests.
[196]
[221]
Chapter 6 of each of the by laws deals with
application procedures, Chapter 7 with engineering services and
development
charges, Chapter 8 with appeal procedures (including
the establishment, functioning, management and procedures of
municipal
appeal tribunals), Chapter 9 with compliance and
enforcement, Chapter 10 with transitional provisions, and
Chapter 11
with general provisions.
[222]
In
Gauteng Development Tribunal
, this Court held as
follows regarding the meaning of “municipal planning” in
Schedule 4, Part B to the Constitution:
“
Returning
to the meaning of ‘municipal planning’, the term is not
defined in the Constitution. But ‘planning’
in the
context of municipal affairs is a term which has assumed a
particular, well established meaning which includes the
zoning
of land and the establishment of townships. In that context,
the term is commonly used to define the control and regulation
of the
use of land. There is nothing in the Constitution indicating
that the word carries a meaning other than its common
meaning which
includes the control and regulation of the use of land. It must
be assumed, in my view, that when the Constitution
drafters chose to
use ‘planning’ in the municipal context, they were aware
of its common meaning. Therefore,
I agree with the
Supreme Court of Appeal that in relation to municipal
matters the Constitution employs ‘planning’
in its
commonly understood sense.”
[197]
[223]
From this extract one may discern that “municipal
planning” means the control and regulation of the use of land,
including
matters pertaining to the zoning of land and the
establishment of townships.
[224]
Taking into account the content of the GM and EM By Laws
as set out above in some detail, their substance, purpose
and effect
is overwhelmingly the regulation of the use of land, with a strong
focus on township development, the related process
of subdivision of
land and the zoning of land, which regulates how identified areas of
land within a municipality may or may not
be used. On the
authority of
Gauteng Development Tribunal
, those squarely
constitute municipal planning.
[225]
The contention advanced by
Glencore and accepted in the first judgment is that the transfer
embargo in each of sections 76
and 86 of the GM and
EM By Laws respectively is constitutionally invalid because
it falls within the functional
area of deeds registration, which is
an area of national legislative competence.
[198]
[226]
For that contention to hold, it must be that there is a
sufficiently distinctive and significant component of the GM and
EM By Laws
that allows for separate characterisation as
regulating the registration of transfer of immovable property.
That must be
its substance, purpose and effect. And to be
considered offensive to the constitutional scheme for distribution of
legislative
authority, that distinctive component of the GM and
EM By Laws must encroach upon and subtract from the
national
competence of deeds registration.
[227]
This cannot, in my view, be said of the transfer embargo
provisions in question. They do not form any part of a
distinctive
component of the by laws that stands outside its
municipal planning objective, and which has the substance, purpose
and effect
of regulating deeds registration. There is no
discernible purpose within the by laws to assume control over
any component
of the regulation of the transfer of immovable
property.
[228]
This is so even if the focus is kept on sections 76 and
86 of the GM and EM By Laws respectively, which
represent
very small components of both by laws, insufficient to
constitute distinctive components with unique substance, purpose and
effect. For ease of reference, I quote the extant part of
section 76 of the GM By Law, taking into account
the
findings of invalidity made earlier in the judgment:
“
(1)
A person may not apply to the Registrar of Deeds to register the
transfer of a land unit, unless
the Municipality has issued a
certificate in terms of this section.
(2)
The Municipality may not issue a certificate to transfer a land unit
in terms of any
law, or in terms of this By law, unless the
owner furnishes the Municipality with¾
.
. .
(b)
proof of payment of any contravention penalty or proof of compliance
with a directive
contemplated in Chapter 9;
(c)
proof that the land use and buildings constructed on the land unit
comply with the
requirements of the land use scheme”.
[229]
The EM By Law in its
extant part is identical.
[199]
[230]
Subsection (1) is directed at regulating the conduct of
an owner of land, or that of her agent, not the conduct of the
Registrar
of Deeds, at least directly. The owner is prohibited
from applying to transfer land without the required certificate.
Subsection (1) also regulates the conduct of the municipality.
The municipality is impliedly authorised to issue a certificate
if
the conditions laid down in subsection (2) are satisfied.
[231]
Subsection (2) is also directed at regulating the conduct
of the owner of land who wishes to transfer ownership of it, and that
of the municipality, which may only issue a certificate in terms of
that provision if the owner provides the proof required in
paragraphs (b) and (c).
[232]
Each of paragraphs (b) and (c) of subsection (2) is
specifically directed at regulating the use of land in accordance
with the GM and EM By Laws and the relevant land use
scheme, a function that, on the authority of
Gauteng Development
Tribunal
forms part of municipal planning. Paragraph (b)
enhances the effectiveness of the by laws’ compliance and
enforcement provisions, as set out in Chapter 9. These
provisions, in turn, are designed to ensure compliance with the
regulation of land use provided for in the by laws and the land
use scheme. Paragraph (c) is aimed at ensuring
that the
use of land and the construction of buildings on land are compliant
with the land use scheme.
[233]
Neither the promulgation nor
the implementation of sections 76 and 86 of the GM and
EM By Laws respectively
encroaches upon or subtracts from
the national competence of legislating for the registration of
transfer of immovable property.
Nothing whatsoever is taken
from or added to, or contradicted in, the Deeds Registries Act.
[200]
There is no usurpation by the
municipalities of the functions of the Registrar of Deeds under
national legislation. Seamless
implementation of the transfer
embargo is possible under the Deeds Registries Act, within the normal
functioning of the deeds registry.
No statutory powers are
wrested from the Deeds Registries or their Registrars. In this
regard, section 3(1)(b) of the
Deeds Registries Act provides in
relevant part as follows:
“
3.
Duties of registrar
(1)
The registrar shall, subject to the provisions of this
Act—
. . .
(b)
examine all deeds or other documents submitted to him for execution
or registration,
and after examination reject any such deed or other
document the execution or registration of which is not permitted by
this Act
or by any other law, or to the execution or registration of
which any other valid objection exists.”
[234]
“
Law” is defined in
the Interpretation Act
[201]
as including, amongst others, “any
. . . other enactment having the force of law.”
[202]
That would include a by law.
Section 3(1)(b) of the Deeds Registries Act thus allows the
Registrar of Deeds in the
ordinary course of her functions to prevent
transfer being passed in the absence of the certificate required by
sections 76
and 86 of the GM and EM By Laws
respectively. This would have the consequence of allowing a
transfer embargo
in a by law to operate effectively without any
intrusion upon the Registrar of Deeds’ statutory function at
national
level. It would no more interfere with her
jurisdiction or that of the national sphere of government than a
testator who
in her will imposes a limitation, for example, on which
of her immovable properties may be realised by the executor and which
must
be retained for purposes of generating an income. If there
is such a limitation, then the Registrar of Deeds is bound by
section 3(1)(b) to reject the deed of transfer.
[203]
One would not in that
circumstance speak of the testator having usurped the legislative
authority of Parliament.
The significance or otherwise of DVB
Behuising
[235]
Glencore argues that
DVB Behuising
is authority for the
invalidity of sections 76 and 86 of the GM and
EM By Laws respectively on the basis
that they constitute
the impermissible regulation of the registration of deeds by the
local sphere of government, when it is a
competence of the national
sphere of government.
[236]
DVB Behuising
was
a case dealing with the effects of an assignment of old order
legislation under section 235 of the interim Constitution.
The legislation in question was Proclamation 293 of 1962 (the
Proclamation),
[204]
which was an instrument of apartheid
urban planning that provided for the establishment and
disestablishment of townships in what
its apartheid authors described
as “Bantu areas”. The North West Local Government
Laws Amendment Act
[205]
(NW Amending Act) purported to repeal
chapters 1, 2, 3 and 9 of the Proclamation. However, the North
West Province did not
have legislative competence to repeal old order
legislation unless the administration of that legislation had validly
been
assigned to it.
[206]
So this Court had to decide whether
the parts of the Proclamation targeted for repeal in the NW Amending
Act had validly been assigned
to the North West.
[207]
[237]
Acting under section 235(8)
of the interim Constitution, on 17 June 1994 the President had
assigned the administration of the
whole of the Proclamation to the
North West “excluding those provisions of the said laws
which fall outside the functional
areas specified in Schedule 6 to
the Constitution
[208]
or which relate to . . . matters
referred to in paragraphs (a) to (e) of section 126(3) of the
[interim] Constitution”.
[209]
Section 235 was a transitional
provision of the interim Constitution which sought to regulate the
exercise of executive authority
under laws which had been enacted
prior to the commencement of the interim Constitution but which
remained in force under section 229
of that Constitution to
prevent a legal vacuum on the first day of democracy.
[210]
[238]
The transition of executive
authority under section 235 of the interim Constitution
drew on section 126 and Schedule 6
to the interim
Constitution, which defined the limits of the concurrent legislative
competence of the provinces, and regulated
conflicts between national
and provincial laws under the interim Constitution. The broad scheme
of section 235 was that executive
authority would be assigned to
the provinces if that executive authority arose out of laws on
matters falling within the provincial
legislative competence
(Schedule 6 matters), but not if the laws in question dealt with
matters falling within the national
legislative override categories
of section 126(3)(a) to (e) of the interim Constitution.
[211]
[239]
The question for this Court in
DVB Behuising
was
therefore how to categorise the Proclamation (and its component
parts) for the purposes of Schedule 6 to the
interim Constitution
and section 126(3)(a) to (e), so as to
decide whether the administration of all parts of the Proclamation
could validly have
been assigned to the North West. In
answering this question, the majority of this Court concluded that,
for the most part,
Chapters 1, 2 and 3 of the Proclamation dealt
with regional planning and development, urban and rural development
and local
government, all of which were Schedule 6 matters.
Certain provisions of Chapters 2 and 3, and the whole of
Chapter 9
of the Proclamation, however, stood on a slightly
different footing. The relevant provisions of Chapters 2
and 3 concerned
the granting of a limited form of “ownership”
rights in land in townships established under the Proclamation and
Chapter 9
provided a system for the registration of those
“ownership” rights. As this Court pointed out,
[212]
on their face these provisions
concerned land tenure and registration which were not Schedule 6
matters. This Court concluded,
however, that because the
provisions were essential to the scheme of the Proclamation as a
whole, they should be treated as Schedule 6
matters.
[213]
Ngcobo J stated:
“
I
am satisfied that the ‘tenure’ and deeds registration
provisions of the proclamation were inextricably linked to the
other
provisions of the proclamation and were foundational to the planning,
regulation and control of the settlements. These
provisions
were an integral part of the legislative scheme of the proclamation
and accordingly fell within Schedule 6.”
[214]
[240]
Although not relevant for
present purposes,
DVB
Behuising
went on to
conclude that the deeds registration provisions of Chapter 9 of
the Proclamation were nevertheless invalidly assigned
to the North
West because they dealt with “the registration of deeds of
grant, a matter that is required to be regulated
by uniform norms and
standards, and thus a matter referred to in paragraph (b) of
section 126(3) of the interim Constitution”.
[215]
[241]
It is important to bear in mind
that in
DVB Behuising
the High Court had declared the
purported repeal of Chapters 1, 2, 3 and 9 of the Proclamation by the
NW Amending Act to be constitutionally
invalid on the grounds that
their “predominating features” were “land, land
tenure or ownership, the registration
of deeds and the establishment
and abolition of townships”, which it considered to be “matters
which are not provincial
but national competences”.
[216]
The High Court reached this conclusion
on the basis that “[p]rovincial legislatures have ‘a
clearly defined and very
limited legislative authority’ and
have to operate ‘within the strict parameters’ of that
authority’”.
[217]
[242]
On this basis the High Court considered that –
“
[t]he
assignment of the administration of the proclamation by the President
to the North West did not include the provisions contained
in
Chapters 1, 2, 3 and 9 thereof, because the assignment expressly
excluded any provisions of the regulations falling outside
the
functional areas specified in Schedule 6 to the interim
Constitution.”
[218]
[243]
The
DVB Behuising
majority judgment of Ngcobo J
deals with this reasoning of the High Court as follows:
“
I
would point out immediately that I respectfully disagree with the
view expressed by Mogoeng J to the effect that the functional
areas of provincial legislative competence set out in the Schedules
should be ‘given a strict interpretation’. In
the
interpretation of those Schedules there is no presumption in favour
of either the national legislature or the provincial legislatures.
The functional areas must be purposively interpreted in a
manner which will enable the national Parliament and the provincial
legislatures to exercise their respective legislative powers fully
and effectively.”
[219]
[244]
The majority judgment went on to set out the test for
determining whether the legislation falls within a schedule
containing a list
of legislative competences as follows:
“
[36]
The inquiry into whether the proclamation dealt with a matter listed
in Schedule 6 involves the determination
of the subject matter
or the substance of the legislation, its essence, or true purpose and
effect, that is, what the proclamation
is about. In determining
the subject matter of the proclamation it is necessary to have
regard to its purpose and effect.
The inquiry should focus
beyond the direct legal effect of the proclamation and be directed at
the purpose for which the
proclamation was enacted. In this
inquiry the preamble to the proclamation and its legislative history
are relevant considerations,
as they serve to illuminate its
subject matter. They place the proclamation in context,
provide an explanation for its
provisions and articulate the policy
behind them.
.
. .
[38]
The purpose and effect of the legislation may equally be relevant to
show that although the legislation,
in some of its provisions,
purports to deal with a matter which falls outside the functional
areas listed in Schedule 6, its true
purpose and effect is to achieve
a different goal which falls within the functional areas listed in
Schedule 6. In such event,
a court would have to hold that the
province has acted within its competence and then consider whether
those provisions which fall
outside of the provincial competence are
reasonably necessary for, or incidental to give effect to, the object
of the legislation.
[39]
The determination of the subject matter of the proclamation,
therefore, requires an understanding
of its legislative scheme.
Ordinarily, legislation is the embodiment of a single
legislative scheme. A law may, however,
have more than one
subject matter.”
[245]
The majority judgment proceeded to apply this approach and, on
that basis, held as follows:
“
[51]
On a view of the proclamation as a whole, I am satisfied that its
legislative scheme was in substance within
the functional areas of
regional planning and development, urban and rural development and
local government. These are functional
areas listed in Schedule
6. It now remains to consider whether the impugned provisions
of the proclamation dealt with a matter
listed in Schedule 6.”
[246]
The majority then considered the content of each of the
impugned chapters in some detail and summarised those aspects
relevant to
the enquiry as follows:
“
[54]
Chapter 3 dealt with trade and prescribed conditions under which
trade in the township might be carried
out. In addition, it
made provision for the allocation of trading sites, and the granting
of deeds of grant in respect of
the trading sites. Chapter 9
made provision for the registration of deeds of grant. It
established special deeds
registries in the offices of the Chief
Bantu Affairs Commissioners and set out the duties of the officers in
charge of these deeds
registries.”
[247]
Through detailed provisions,
Chapter 9 of the proclamation established a substantial deeds
registration system of its own that
operated separately from and in
parallel with the national deeds registration system operating under
the Deeds Registries Act.
[220]
Despite this, the majority in
DVB
Behuising
held as follows:
“
[55]
The provisions of Chapter 2 and Chapter 3 that related to
the granting of a limited form of ‘ownership’
rights in
land in the township and those that related to the registration of
those rights in Chapter 9 dealt, on their face,
with a form of
land tenure, a matter not listed in Schedule 6. However, as
appears from what follows, they were essential
to the scheme of the
proclamation.
[56]
The purpose of establishing a township was to create and sell sites
to Africans. In
Broadacres
Investments Ltd v Hart
[221]
it
was also said:
‘
To
establish a township necessarily involves creating sites and selling
them to the public or allowing that to be done.’
At
932E F, it was further noted:
‘
The
establishment of a township necessarily involves both the creation of
the township on paper, the lay out of the land and
the
acquisition of sites by purchasers. In my view the provisions
contained in section 36(2) of the Ordinance [27 of
1949] to
expedite the process of changing a private township into an approved
private township and the protection of purchasers
who buy sites
before such approval is given, are incidental to the establishment of
a township and they are reasonable both in
the interests of the
Province and of prospective owners.’
[57]
The proclamation made provision for the creation of sites and their
acquisition by purchasers.
It created a special form of
‘tenure’ for those who acquired sites in the township in
the form of deeds of grant.
This title was available only to
purchasers of sites in the townships. In addition, the
proclamation established special
deeds registries in the offices of
Chief Bantu Affairs Commissioners to register these special forms of
tenure and created special
procedures for the registration of the
deeds of grant. These special provisions applied only to deeds
of grant issued in
respect of sites in the township. They were
well integrated into the scheme of the proclamation and they were
important for
the efficacy of the proclamation.
[58] I am satisfied that the ‘tenure’
and deeds registration provisions of the proclamation were
inextricably linked
to the other provisions of the proclamation
and were foundational to the planning, regulation and control of the
settlements.
These provisions were an integral part of the
legislative scheme of the proclamation and accordingly fell within
Schedule
6.”
[248]
In my view, the following conclusions flow ineluctably from
the above paragraphs of the majority’s judgment in
DVB
Behuising
:
(a)
Just as in
DVB Behuising
the province’s list of specific
competences was not to be interpreted narrowly or strictly, but
rather purposively, allowing
each sphere to exercise its legislative
authority fully and effectively, so too should the municipalities’
legislative competences
in Part B of Schedule 4 be understood in
this matter.
(b)
Given the similarity between the interim Constitution’s
constitutional scheme for allocation of legislative authority between
the provincial and national spheres, and the scheme in the
final
Constitution for both provinces and municipalities,
DVB Behuising
remains good authority for the approach to the legislative competence
of municipalities under the final Constitution.
(c)
The approach of the High Court in
DVB
Behuising
on both the
interpretation and application of principles for the allocation of
legislative power between spheres of government aligns
with that
contended for by Glencore. Whilst that approach enjoyed some
obiter
(in
passing) support in the
DVB
Behuising
minority judgment
of Goldstone J, O’Regan J and Sachs J,
[222]
it was squarely rejected by the
majority of this Court.
(d)
DVB Behuising
certainly cannot, on a full consideration of the
paragraphs quoted, be cited as authority for the proposition that the
transfer
embargoes in this matter fall under the national legislative
competence of deeds registration. The provisions dealing with
forms of land tenure and deeds registration in
DVB Behuising
were far more wide ranging and potentially intrusive than the
transfer embargoes in the present matter. Yet the majority
in
DVB Behuising
considered that because the land tenure and
deeds registration provisions were “well integrated into the
scheme of the proclamation”
and important for its efficacy,
they were to be treated as falling within Schedule 6. If
that is so, then even more
so do the substantially less impactful
transfer embargoes in this matter fall within the scheme of the
GM and EM By Laws
and therefore within the legislative
competence of the municipalities.
(e)
The transfer embargoes are well integrated into the legislative
scheme of the by laws and will render them effective.
Their effect is that each transferor and transferee of immovable
property becomes a participant in the enforcement of the by laws
and in the implementation and enforcement of the legal regime
governing the use of land in compliance with land use schemes made in
terms of the by laws. Why should our Constitution
not be
interpreted so as to allow municipalities to draw citizens into
enforcing the rule of law at local level within the confines
of their
own properties?
(f)
That the transfer embargoes are
important to the efficacy of the by laws is apparent from the
fact that they are widely used
in by laws around the country and
have been used in by laws and other legislation over a long
period of time.
[223]
(g)
The effect of striking down the
transfer embargoes in this case on the basis set out in the first
judgment would be that every one
of these transfer embargoes found in
a by law would become susceptible to striking down on the basis
that municipalities around
the country had no authority to impose
them. This would be most unfortunate, because town and
municipal planning is an instrument
for the creation of orderly
societies based on the rule of law. Such planning promotes
development, the realisation of socio economic
rights and the
improvement of the social conditions of all residents of South
Africa. This much is recognised in section 23(1)
of the
Systems Act.
[224]
(h)
The first judgment criticises the Municipalities on the basis
that
there are other enforcement mechanisms available to enforce the
GM and EM By Laws, such as the appointment
of
inspectors. It seeks to demonstrate that the five inspectors
Govan Mbeki claims to require are affordable. Emalahleni
is
criticised for failing to put up evidence in this regard. But
if transfer embargoes are efficacious, why not have both?
[249]
Accordingly,
DVB Behuising
is good authority that there
is no impermissible intrusion on the legislative authority of the
national sphere of government by
the transfer embargoes contemplated
in paragraphs (b) and (c) of the respective by laws.
Properly characterised,
they are integral to the regulation and
exercise by the municipalities of their municipal planning function
in Part B of Schedule
4 and do not stray outside of it.
Reasonably
necessary or incidental
[250]
There are three sources of municipal legislative authority
contemplated in section 156 of the Constitution. The first
is section 156(2) read with section 156(1)(a), which is
that linked to the local government matters listed in Part B
of
Schedule 4 and Part B of Schedule 5. It is that source
which has formed the subject matter of discussion of legislative
competence thus far in this judgment. Establishing it as a
valid source requires characterising any impugned legislation
and
testing whether it falls within those local government matters.
[251]
The second source is section 156(2) read with
section 156(1)(b), which includes matters assigned to a
municipality by
national or provincial legislation. We are not
concerned here with such an assignment.
[252]
The third source is
section 156(5), which affords a municipality “the right to
exercise any power concerning a matter
reasonably necessary for, or
incidental to, the effective performance of its functions”.
I have already indicated why
I differ from the first judgment in
holding that this affords an independent source of municipal
legislative
power. Additionally, the word
“any” preceding the word “power” points to
the inclusion of legislative
power, not just executive power.
In
Mazibuko
,
this Court interpreted the word “reasonable” as
qualifying both the words “necessary” and
“incidental”.
[225]
[253]
This third source of power is a
conditional one. It must be reasonably necessary for, or
reasonably incidental to, the effective
performance of the
municipality’s functions. Provided that this condition is
satisfied, the section 156(5) legislative
power is not limited
to the functional areas in Part B of Schedule 4 or Part B of
Schedule 5. The reasonably necessary
or incidental power
may in itself be one which falls outside those functional areas.
This is confirmed in the judgments of
this Court referred to earlier,
which recognise that the three spheres’ areas of legislative
competence are not hermetically
sealed and may overlap.
[226]
[254]
The Supreme Court of Appeal
viewed the matter somewhat differently. It considered that the
powers in section 156(5) were
those that were “indispensable
for the effective administration” of the primary power and that
they “may not
be used to increase the functional areas of local
government’s powers, but rather to enhance the efficacy of
administrating
an existing functional area”.
[227]
This is not entirely correct.
“Indispensable” does not align with “reasonably
necessary” and “reasonably
incidental”. They
are broader concepts. And if a municipality can demonstrate
that a power is reasonably necessary
or reasonably incidental for the
effective performance of its functions, a municipality may exercise
it even though it may result
in a limited expansion of its powers and
a consequential intrusion into those of another sphere.
[255]
Applying this analysis to the present matter, even if it were
to be concluded that the transfer embargo contemplated by
paragraphs (b)
and (c) of the respective by laws fell
outside of the legislative authority conferred by section 156(2),
read with section 156(1)(a)
and Part B of Schedule 4 in respect
of municipal planning, and to a limited extent engaged the national
function of deeds registration,
they would at the very least be
reasonably incidental to the exercise by the Municipalities of their
municipal planning power.
Conclusion
on legislative competence
[256]
I accordingly conclude that the legislative competence
challenge to section 76(2)(b) and (c) of the GM By Law
and
86(2)(b) and (c) of the EM By Law has not been
established. I should add that even if the analysis were
applied
to the full provisions, without taking into account the other
successful challenges to the remaining paragraphs (a) and (d)
to
(f) of section 76(2) of the GM By Law and
paragraphs (d) to (e) of section 86(2) of the EM By Law,
the outcome on legislative competence would, in my view, be the same.
SPLUMA
[257]
Glencore founds a separate
challenge to the impugned provisions on SPLUMA. It points out
that, as section 2(1)(a) of
SPLUMA records, it was enacted in
terms of section 155(7) of the Constitution, which affords
national and provincial governments
the legislative and executive
authority to see to the effective performance by municipalities of
their functions in respect of
matters listed in Schedules 4 and
5.
[228]
This section, Glencore argues, makes
substantial inroads into municipal legislative competence.
[258]
Glencore argues that SPLUMA provides no authority for the
imposition of transfer embargoes by municipalities in their by laws.
Absent that, it argues that because SPLUMA has legislated
comprehensively for municipal planning, there is no such power.
[259]
The short answer to these arguments is that I have already
found that the transfer embargoes in section 76(2)(b) and (c) of
the GM By Law and 86(2)(b) and (c) of the EM By Law
fall directly within the legislative competence of the
municipalities
under section 156(1)(a) and 156(2), read with Schedule 4 and, if
not under those provisions, under section 156(5)
of the
Constitution.
[260]
SPLUMA cannot usurp the
Municipalities’ original constitutional legislative competence
in respect of municipal planning.
[229]
Nor does it seek do so. If
regard is had to the fact that SPLUMA has its genesis in the setting
aside of earlier legislation
because of national and provincial
overreach into municipalities’ original legislative
authority,
[230]
it would be surprising if it did.
[261]
If regard is had to its long title, its preamble and
section 3, SPLUMA’s objects are, amongst others, to
provide for
uniformity and effectiveness in spatial planning and land
use management, to lay down development principles and norms and
standards,
and to provide for cooperation between national,
provincial and local spheres of government. It seeks to achieve
a measure
of consistency in how municipalities exercise their
planning powers, rather than trying to narrow those powers.
[262]
Accordingly, even if SPLUMA
does not itself authorise municipalities to introduce transfer
embargoes,
[231]
it provides no basis for overturning
them if they are made in terms of powers given to them by the
Constitution. There is
accordingly no merit in the challenge
based on SPLUMA.
Administrative
justice review
[263]
Glencore sought the judicial
review of the administrative decisions reflected in the requirements
set out in the application forms
and standard affidavits that a
transferor must complete to apply for the certificates contemplated
in sections 76 and 86 of
the GM and EM By Laws
respectively that will allow transfer to proceed. This it
sought by way of alternative
relief in the event of its
constitutional review failing. Glencore’s constitutional
review has failed in part, so the
judicial review must be
considered. The judicial review is sought in terms of the
Promotion of Administrative Justice Act
[232]
(PAJA), alternatively, under the
principle of legality.
[264]
Govan Mbeki asserts that the
judicial review is brought outside the 180 day period provided
for in section 7(1) of PAJA.
Glencore responds on the
basis that its challenge is a collateral one and therefore not
time bound. It cites
Merafong
City
[233]
in support. In my view it was
not strictly necessary to characterise the relief as a distinct
review under PAJA or as a collateral
challenge. The relief
flows from the assertions made in support of the constitutional
review and warrants consideration in
terms of section 172(1)(a)
and (b) of the Constitution. I would in any event be willing to
grant the required extension
of time in terms of section 9(1)(b)
of PAJA as it is in the interests of justice to do so.
[265]
I first deal with each of the complaints in relation to Govan
Mbeki. Glencore complains that the application form for the
section 76 certificate requires the applicant to provide a Land
Use Right Certificate (LURC). This certifies the zoning
of the
property in question. Glencore says this is unnecessary because
the municipality is the repository of this information
and can get it
itself. This is perhaps bureaucratic silliness, but it raises
no issue of lawfulness or any recognised review
ground.
Glencore is not entitled to relief in this respect.
[266]
Glencore objects to the
requirement that an occupancy certificate issued in terms of
section 14(1) of the National Building
Regulations and Building
Standards Act
[234]
(NBRBSA) be furnished with the
application. The GM By Law provides no legal
foundation for this request. In
terms of section 76(2)(c),
certification is required to show that “buildings constructed
on the land unit comply with
the requirements of the land use
scheme”, not with the requirements of the NBRBSA.
Glencore is entitled to this relief
in this respect.
[267]
Glencore complains that the standard affidavit that must
accompany the application requires the transferor to confirm that all
development
charges due on the property have been paid. This is
a requirement that is imposed on the developer. It should not
be
demanded of a subsequent transferor to confirm this.
Glencore is entitled to relief for this.
[268]
Glencore objects to the requirement in the standard affidavit
of confirmation of the payment of any contravention penalties.
This requirement is linked to section 76(2)(b) of the GM By Law,
which has not been found to be constitutionally
invalid.
Glencore is not entitled to relief in this respect.
[269]
With no small measure of hyperbole, Glencore characterises as
a “monstrosity” the requirement that the transferor say
on oath that she is familiar with section 26 of SPLUMA and the
GM By Law, and confirms compliant use of the land
and
buildings on the property. Glencore says that it is arbitrary
to require the transferor to familiarise herself with the
legislation
and to be a “policeman in [her] own case”. I
disagree. A layperson can do their best to get
to grips with
the legislation in question or employ a professional person.
Glencore is not entitled to any relief in this
respect.
[270]
Emalahleni has an application form and annexures for a
section 86 certificate, including a standard affidavit, that are
different
from those of Govan Mbeki. For similar reasons to
those given in relation to Govan Mbeki, Glencore is entitled to
relief
in respect of the following requirements which have no legal
basis:
(a)
Completion of Form A, being the form from a conveyancer confirming
that the funds due in terms of section 86(2)(a) of the EM By Law
have been paid. The reason for this is that
section 86(2)(a)
has been set aside as invalid.
(b)
Completion of Form B, insofar as it
requires the Chief Building Inspector’s confirmation of
approved building plans and payment
of “building
compliance/contravention fines”. The reason for this is
that this requirement points to requiring
compliance with the NBRBSA,
for which there is no basis in the EM By Law.
[235]
(c)
Completion of Form C, being the affidavit from the transferor
confirming compliance with the requirements of section 86(2)(d)
and (e) of the EM By Law. The reason for this
is that
these subsections have been set aside.
[271]
Glencore is not entitled to relief in respect of Form B
insofar as it requires the Chief Building Inspector’s
confirmation
of “zoning certificate issued” and payment
of “land use compliance/contravention fines” –
these are
justified by section 86(2)(b) and (c) of the
EM By Law, which were held to be valid.
[272]
Relief was also sought by Glencore pertaining to the
application fees required to accompany applications for certificates
in terms
of sections 76 and 86 of the respective by laws,
but this relief was not adequately foreshadowed in either the notice
of motion or the founding affidavit. The amounts are not
excessive. Glencore is not entitled to relief in this respect.
Mandatory
relief
[273]
This relief was only sought in the event that “the
constitutional attack fails and the administrative law attack
succeeds
but fails in respect of sub paragraph (a)”.
Neither of these conditions were satisfied. The constitutional
attack was successful in part and the administrative law attack
relating to subparagraph (a) succeeded. This need not
be
considered.
Relief
against the Registrar of Deeds, Mpumalanga
[274]
Glencore sought relief against the Registrar of Deeds,
Mpumalanga to preclude him from requiring a certificate in terms of
sections 76(2)
and 86(2) of the respective by laws as a
prerequisite for registration of transfer of immovable property.
In view of
the fact that I would find these provisions to be valid in
part, Glencore is not entitled to this relief.
A
response to further aspects of the first judgment
[275]
The first judgment suggests that, should the by laws in
this case be found to fall within municipalities’ legislative
competence, transfer embargoes could be used to enforce compliance
with by laws that regulate outside of municipal planning.
For example, a municipality might use a transfer embargo to enforce
public nuisance by laws, or those restricting the sale
of food
or liquor; or to force the installation of “smart” water
and electricity meters.
[276]
Such transfer embargoes are not before us. Were by laws
to be passed of this nature, they would each need to be tested
for
validity on their own merits,
both
with reference to
legislative competence
and
compliance with the Bill of
Rights. These particular examples may survive scrutiny from a
legislative competence perspective,
for the same reasons as those
given in this judgment in relation to paragraphs (b) and (c)
of sections 76(2) and 86(2)
of the respective by laws.
There is nothing incongruous about that. The “smart”
meter example bears
some resemblance to long established
transfer embargoes linked to electrical wiring compliance discussed
earlier.
[277]
If they were legislatively competent, they would still need to
be assessed on the basis of the
FNB
test to see whether they
gave rise to an arbitrary deprivation of property under
section 25(1). There would have to be
a rational
connection between means and ends.
[278]
In a similar vein, it is suggested that on the approach in
this judgment, municipalities might stray into other areas of
provincial
and national competence by imposing embargoes of different
kinds to achieve compliance with a planning by law. The
planning
by law might require a certificate of compliant land
use to be produced as a precondition, not for transfer of a property,
but for a property owner to be able to apply for an identity
document, a passport, or a cell phone SIM card, or as a precondition
to export goods manufactured on the property.
[279]
These are not reasonable comparators. They contemplate
municipal regulation of other spheres’ competences, which is
very different from the transfer embargo provisions under
consideration in this case. Their inclusion in a planning
by law
would render it difficult to retain its essential
character as such. Unlike the transfer embargoes, they would
involve a
subtraction by a municipality from the legislative
authority of other spheres of government. They would not, in my
view,
fall within any of the three sources of municipal legislative
power. They may well conflict with national legislation, giving
rise to invalidity under section 156(3). Embargoing a
person from applying for a passport, SIM card or exporting goods
is
neither reasonably necessary for, nor reasonably incidental to,
municipal planning.
[280]
And again, they would all be
unlikely to survive scrutiny under the
FNB
test. There is an
irrational disjunct between means, being the passport, SIM card or
export embargo, and ends, being compliance
by the applicant or
exporter with land use legislation. There is insufficient
reason for the particular embargoes posited.
This is not so
with a transfer embargo aimed at ensuring that the very property
subject to it is land use compliant.
Other rights in the
Bill of Rights would most likely be breached by such provisions.
[236]
[281]
The foregoing analysis examines the postulated examples from
the perspective of
both
the main grounds of challenge in this
case, legislative competence and arbitrary deprivation of property in
breach of section 25(1)
of the Constitution. That is
appropriate for a proper and full assessment of whether the examples
proffered in the first
judgment operate to justify its overturning of
all of the legislation challenged in this case. There is no
conflation of
the two grounds as the first judgment suggests.
[282]
Reflection on the desirability of appropriate transfer
embargoes is not irrelevant to the legislative competence inquiry.
The presumption that legislation does not contemplate an unreasonable
result applies to the analysis of the provisions for allocation
of
legislative authority in the Constitution. An interpretation
that excludes appropriate transfer embargoes is potentially
unreasonable.
Conclusion
[283]
To summarise, I agree with the first judgment that
paragraphs (a), (d), (e) and (f) of section 76(2) of the
GM By Law
and paragraphs (a), (d) and (e) of
section 86(2) of the EM By Law are constitutionally
invalid, but on the
basis of the challenges founded on sections 25(1)
and 156(3) of the Constitution, not on the basis of the legislative
competence
challenge. Contrary to what is held in the first
judgment, I conclude that section 76(2)(b) and (c) of the
GM By Law
and section 86(2)(b) and (c) of
the EM By Law survive all of the constitutional challenges,
save in relation
to the words “in terms of any law, or”
in subsection (2) of each of the by-laws. Glencore would,
however, have
been entitled to further relief that would have
required the Municipalities to realign their application
documentation with the
outcome in this judgment, were it to have
commanded a majority. To the extent that my reasoning is at
odds with that in the
judgment of the Supreme Court of Appeal I
believe that it was incorrectly decided.
Relief
and costs
[284]
I agree with the Supreme Court of Appeal that the High Court’s
suspension of the order of invalidity was not appropriate, but
not
with its reasons for arriving at this conclusion. The surviving
provisions, read together with section 118 of the
Systems Act,
are more than sufficient to protect the Municipalities’ and the
public’s interests, as articulated
in their respective
by laws. For this reason, suspension is inappropriate.
[285]
I agree with Glencore that, where it has demonstrated
invalidity of the by laws, the qualification that was added by
the High
Court so as to confine its order of invalidity to the
offending documents in the application forms was wrong. This
represented
an incorrect application of section 172(1)(a) of the
Constitution, which requires all unconstitutional law and conduct to
be declared invalid. The outcome was also neither just nor
equitable as required by section 172(1)(b). This was
confirmed when Emalahleni took up the attitude that because it did
not require the documents mentioned in the notional severance
to be
provided, section 86 of the EM By Law survived the
orders of the High Court and the Supreme Court of Appeal
intact.
[286]
Insofar as costs are concerned,
if the order I propose were to have commanded a majority, Glencore
would have remained substantially
successful in the High Court,
particularly once their success in the cross appeals is taken
into account. Glencore would
have been entitled to its costs in
the High Court. The Municipalities would have been
substantially (but not entirely) successful
in their applications for
leave to appeal and their appeals in both the Supreme Court of Appeal
and this Court. They would
not have been entitled to any costs,
however, because Glencore is protected by
Biowatch
.
[237]
Glencore would have been successful in
its applications for leave to cross appeal and in the
cross appeals in the Supreme
Court of Appeal and in this Court.
It would have been entitled to its costs in that regard.
[287]
Had this judgment commanded a majority, I would have made the
following order in CCT 189/22:
1.
Leave to appeal is granted.
2.
Leave to cross appeal is granted.
3.
The appeal is upheld in part.
4.
The cross appeal is upheld.
5.
The applicant must pay the respondents’ costs in the
application for leave to cross appeal
and the cross appeal
in the Constitutional Court, including the costs of two counsel.
6.
Each party must bear its own costs in the application for leave to
appeal and the appeal in the
Constitutional Court.
7.
The order of the Supreme Court of Appeal is set aside and replaced
with the following order:
“
(a) The
appeal succeeds in part.
(b) The
cross appeal succeeds.
(c) Each
party must bear its own costs in the application for leave to appeal
and the appeal in the
Supreme Court of Appeal.
(d) The
applicant must pay the respondents’ costs of the application
for leave to cross appeal
and the cross appeal in the
Supreme Court of Appeal.
(e) The
order of the High Court is set aside and replaced with the following
order:
‘
(i)
Paragraphs (a), (d), (e) and (f) of, and the words “in
terms of any law, or”
in section 76(2) of the Govan Mbeki
Spatial Planning and Land Use Management By law 2016 (GM By Law)
are declared
to be constitutionally invalid and are set aside;
(ii) For
purposes of issuing a certificate in terms of section 76 of the
GM By Law,
the applicant may not require the production of
any document or information relevant to a paragraph declared to be
constitutionally
invalid in this order, or not relevant to
paragraph (b) or (c), including—
(aa) an occupancy
certificate issued in terms of section 14(1) of the National
Building Regulations and Building
Standards Act 107 of 1993;
(bb) confirmation
that all development charges due on the property have been paid.
(iii) The
application is dismissed in respect of the balance of the relief
sought.
(iv) The
respondent must pay the applicants’ costs, including the costs
of two counsel.’”
[288]
Had this judgment commended a majority, I would have made the
following order in CCT 191/22:
1.
Leave to appeal is granted.
2.
Leave to cross appeal is granted.
3.
The appeal is upheld in part.
4.
The cross appeal is upheld.
5.
The applicant must pay the respondents’ costs in the
application for leave to
cross appeal and the cross appeal
in the Constitutional Court, including the costs of two counsel.
6.
Each party must bear its own costs in the application for leave to
appeal and the appeal
in the Constitutional Court.
7.
The order of the Supreme Court of Appeal is set aside and replaced
with the following order:
“
(a) The
appeal succeeds in part.
(b) The cross appeal
succeeds.
(c) Each
party must bear its own costs in the application for leave to appeal
and the appeal in the
Supreme Court of Appeal.
(d) The
applicant must pay the respondents’ costs of the application
for leave to cross appeal
and the cross appeal in the
Supreme Court of Appeal.
(e) The
order of the High Court is set aside and replaced with the following
order:
‘
(i)
Paragraphs (a), (d), and (e) of, and the words “in terms
of any law, or” in section 86(2)
of the Emalahleni
Municipal By law on Spatial Planning and Land Use Management
2016 (EM By Law) are declared to
be constitutionally
invalid and are set aside;
(ii) For
purposes of issuing a certificate in terms of section 86 of the
EM By Law,
the applicant may not require the production of
any document or information relevant to a paragraph declared to
be constitutionally
invalid in this order, or not relevant to
paragraph (b) or (c), including—
(aa) Form A, being
the form from a conveyancer confirming that the funds due in terms of
section 86(2)(a)
of the EM By Law have been paid;
(bb) Form B insofar
as it requires the Chief Building Inspector’s confirmation of
approved building plans
and payment of “building
compliance/contravention fines”;
(cc) Form C, being
the affidavit from the transferor confirming compliance with the
requirements of section 86(2)(d)
and (e) of the EM By Law.
(iii) The
application is dismissed in respect of the balance of the relief
sought.
(iv)
The respondent is ordered to pay the applicants’ costs,
including the costs of two counsel.’”
ROGERS J
[289]
I have had the pleasure of reading the judgments of my
Colleagues Chaskalson AJ (first judgment) and Dodson AJ
(second
judgment). Save in one respect, I agree with the
analysis and conclusions in the second judgment. My
disagreement relates
to the interpretation of paragraphs (d) to (f)
of section 76(2) of the GM By-Law and paragraphs (d) and
(e) of section 86(2)
of the EM By-Law. In my view,
those paragraphs should be interpreted as applying only to the
developer on whom the relevant
obligations rest. On that
interpretation, as I think my Colleague Dodson AJ would agree,
they survive the challenge
based on an arbitrary deprivation of
property.
[290]
For ease of reference, I quote the relevant part of section 76
of the GM By-Law:
“
76
Certification by Municipality
(1)
A person may not apply to the Registrar of Deeds to register the
transfer of a land
unit, unless the Municipality has issued a
certificate in terms of this section.
(2)
The Municipality may not issue a certificate to transfer a land unit
in terms of any
law, or in terms of this By-law, unless the owner
furnishes the Municipality with—
. . .
(d)
proof that all common property including private roads and private
places originating
from the subdivision, has been transferred; and
(e)
proof that the conditions of approval that must be complied with
before the transfer
of erven have been complied with;
(f)
proof that all engineering services have been installed or
arrangements have been
made to the satisfaction of the Municipality.”
[291]
The second judgment interprets paragraphs (d) to (f) of
section 76(2) as including an owner who bought from the developer a
land
unit arising from the subdivision or the establishment of a
township. The second judgment says that this is a grossly
unreasonable
result. I agree. It would be monstrous for
the By-Law to stipulate that an individual who has bought a land unit
from
the developer must, before being able to sell it, furnish proof
to the Municipality that all common property originating from the
subdivision has been transferred and that all conditions of approval
for the subdivision or township have been complied with and
that all
engineering services have been installed or arrangements made to the
satisfaction of the Municipality for their installation.
The
obligation to do those things does not rest on the individual buyers
but on the developer. All such buyers would be precluded
from
transferring their units unless they brought about the performance of
the obligations that rested on the developer.
[292]
The second judgment holds that this grossly unreasonable
result cannot be avoided by a restrictive interpretation. That
is
so, the second judgment reasons, because the narrow interpretation
would result in superfluity and would require the word “owner”
in the introductory part of section 76(2) to have different meanings
in relation to different paragraphs of the subsection.
Even if
that were so, it would not in my view justify giving the paragraphs
the meaning attributed to them in the second judgment,
a meaning that
inevitably results in those paragraphs being unconstitutional.
[293]
The superfluity is said to arise when section 76(2)(d) to (f)
is compared with section 74(2). The latter provision
provides
as follows:
“
No
Erf/Erven and/or units in a land development area, may be alienated
or transferred into the name of a purchaser nor shall a Certificate
of Registered Title be registered in the name of the owner, prior to
the Municipality certifying to the Registrar of Deeds that:
(a)
all engineering services have been designed and constructed to the
satisfaction of
the Municipality, including guarantees for services
having been provided to the satisfaction of the Municipality as may
be required;
and
(b)
all engineering services and development charges have been paid or an
agreement has
been entered into to pay the development charges in
monthly instalments; and
(c)
engineering services have been or will be protected to the
satisfaction of the Municipality
by means of servitudes; and
(d)
all conditions of the approval of the land development application
have been complied
with or that arrangements have been made to the
satisfaction of the Municipality for the compliance thereof within 3
months of
having certified to the Registrar in terms of this section
that registration may take place; and
(e)
that the Municipality is in a position to consider a final building
plans; and
(f)
that all the properties have either been transferred or shall be
transferred simultaneously
with the first transfer or registration of
a newly created property or sectional title scheme.”
[294]
In terms of section 39(2)
of the Constitution a court must always, when interpreting
legislation, promote the spirit, purport
and objects of the Bill of
Rights. That is particularly so where, of two reasonably
available interpretations, one will result
in constitutional
invalidity.
[238]
This is reinforced by other aids in
interpretation: upholding rather than nullifying a provision,
[239]
preferring an interpretation that
avoids harshness and injustice
[240]
and the avoidance of absurdity.
[241]
And for what it is worth, section 3(2)
of the GM By-Law explicitly states that “[w]
hen
considering an apparent conflict between this By-law and another law,
a court must prefer any reasonable interpretation that
avoids a
conflict over any alternative interpretation that results in a
conflict”.
[295]
As against this, the
presumption against superfluity is not absolute and the weight that
it carries must depend on the circumstances.
Tautology is not
uncommon in legislation, and the presumption against superfluity must
not be applied to create differences of
meaning where they were not
intended by the lawgiver.
[242]
This cautionary note applies with
added force to municipal by-laws which do not go through the rigours
of the lawmaking process
applicable to Acts of Parliament.
[296]
A careful analysis of sections 74 and 76 reveals that
there is no superfluity:
(a)
Paragraphs (d), (e) and (f) of
section 76(2) require the owner to furnish the Municipality with
proof of certain things.
Although section 76 contemplates
the issuing of a certificate by the Municipality to the Registrar of
Deeds, the section does
not say what the Municipality must certify.
On the face of it, the Municipality must simply certify that the
owner has provided
the Municipality with the certificate and proofs
listed in section 76(2).
[243]
The emphasis of section 76(2) is
on certification and proofs from the owner to the Municipality.
The Municipality must
merely certify to the Registrar of Deeds that
it has received from the owner the specified certification and
proofs.
(b)
Section 74(2), on the other hand, requires the Municipality
itself to certify to the Registrar that there has been compliance
with matters listed in that subsection. The emphasis of
section 74(2) is thus on certification by the Municipality, not
by the owner.
(c)
The matters that the Municipality must
certify to the Registrar of Deeds in terms of paragraphs (a), (b),
(c) and (e) of section 74(2)
have no counterpart in the matters
that the owner must certify to the Municipality in terms of
section 76(2).
[244]
(d)
Section 74(2), by contrast, does not require the Municipality
to
certify to the Registrar of Deeds the matter on which the owner must
provide proof to the Municipality in terms of paragraph
(d) of
section 76(2).
(e)
To the extent that the subject-matter of paragraphs (d) and
(f) of
section 74(2) overlaps with the subject-matter of paragraphs (e)
and (f) of section 76(2), the important difference
remains that
the former paragraphs require a certification by the Municipality to
the Registrar of Deeds whereas the latter require
the provision of
proofs by the owner to the Municipality. The provision of
proofs by the owner in terms of section 76(2)(e)
and (f) might
be part of the evidence on which the Municipality relies when issuing
a certificate to the Registrar of Deeds in
terms of section 74(2)(d)
and (f).
[297]
I do not understand the second judgment to say that paragraphs
(d) to (f) of section 76(2) are inapplicable to an owner which
is the developer, only that those paragraphs are not confined to an
owner which is the developer. It is perfectly clear that
paragraphs (d) to (f) of section 76(2) primarily contemplate the
developer, even if they could notionally include a subsequent
owner
as well. Put differently, a developer seeking to transfer land
units to buyers could not claim that it is exempt from
furnishing the
proofs required by paragraphs (d) to (f) of section 76(2). So
if there were an overlap of these paragraphs
with some parts of
section 74(2), which is the premise of the second judgment’s
reasoning, then there would –
even on the second judgment’s
interpretation – be superfluity. But in truth, for the
reasons I have given, there
is no superfluity.
[298]
By their very nature, the obligations contemplated by
paragraphs (d) to (f) of section 76(2) are obligations resting
on the
developer, not on the individual buyers of resultant land
units. Section 76(2)(e) specifically deals with something
that has to be certified before any land units may be transferred to
buyers. The lawmaker did not have in mind something that
an
individual buyer would have to certify before being able to on-sell
his or her land unit to a later buyer. The whole scheme
of the
system of proofs and certification, insofar as they bear on matters
relating to land use applications, is that everything
the developer
is obliged to do should be done before land units are transferred to
individual buyers. Unless there were a
serious breakdown in the
system, the situation should never exist of buyers owning land units
in a development where the developer
did not comply with all relevant
obligations before transferring the land units to the buyers.
There is no reason to suppose
that the lawmaker was intending to
regulate such a scenario.
[299]
Furthermore, and even supposing such a situation could have
arisen, there would be no need for section 76(2)(d) to (f) to
target
the buyers. The system of certification is designed to
ensure that the owner with the obligations complies with the
obligations
before being permitted to give transfer. The
certificate requirement prevents the owner from reaping the benefits
of sales
without first complying with its obligations.
Paragraphs (d) to (f) of section 76(2) would not perform that
function
if they were applied to subsequent buyers, because the
embargo on further transfers would not be an inducement to the
developer
to comply with its obligations. The developer,
furthermore, would still be bound to comply with its obligations
under the
development approval. The Municipality could compel
such compliance by the developer even though the latter no longer
owned
the land.
[300]
Development obligations are imposed on the developer, nobody
else. There is no reason at all to suppose that the lawmaker
intended to use transfer embargoes as a means of forcing subsequent
buyers to do things which the developer was meant to have done.
Section 47(7) of the GM By-Law states that no conditions may be
imposed which affect a third party or which are reliant on a third
party for fulfilment. The second judgment’s
interpretation allows the conditions by which the developer alone is
bound
to affect third parties, namely the individuals who buy land
units in the resultant development. The lawmaker could not have
intended such a result.
[301]
My interpretation does not lead to inconsistency in the use of
the word “owner” in the introductory part of
section 76(2).
The “owner”, that is the person
seeking to transfer property, must comply with those paragraphs of
section 76(2)
that apply to such owner. For example, the
second judgment concludes, correctly in my view, that an owner who is
seeking
permission to transfer land need only comply with
paragraph (b) to the extent that the contravention penalty or
directive
was issued to that owner or to a person occupying the land
under such owner. If the penalty or directive was issued to the
current owner’s predecessor, the current owner does not have to
prove that the penalty was paid or the directive complied
with.
It is the same with paragraphs (d) to (f) of section 76(2): if
the obligations and conditions in question were
binding on the
current owner’s predecessor rather than on the current owner,
the current owner does not have to furnish the
proofs in question.
[302]
When all is said and done, one
must ask oneself the question: did the framers of the By-Law intend
to impose the obligations in
paragraphs (d) to (f) on later owners or
only on the developer on which the conditions and obligations in
question were binding?
If we are sure, as I am, that the
framers of the By-Law could not have intended so unreasonable and
absurd a result, one is entitled
to avoid it by a process of
interpretation, even though it does violence to the wording of the
provision. This is in line
with what Schutz JA said
in
Poswa
:
[245]
one “uses absurdity as a means
of divining what the legislature could not have intended and
therefore did not intend, thus
arriving at what it did actually
intend”.
[303]
On the assumption, therefore,
that in present case the words in their ordinary meaning are not
reasonably capable of giving effect
to the known intention of the
lawmaker (a proposition with which I disagree), a court would be
entitled to reject that interpretation,
however much it may involve
straining language. Interpretation is about arriving at
meaning, and the true meaning may be
apparent despite contradictory
language. As Wallis JA said in
Endumeni
:
[246]
“
[W]here
the context makes it plain that adhering to the meaning suggested by
apparently plain language would lead to glaring absurdity,
the court
will ascribe a meaning to the language that avoids the absurdity.
This is said to involve a departure from the
plain meaning of the
words used. More accurately it is either a restriction or
extension of the language used by the adoption
of a narrow or broad
meaning of the words, the selection of a less immediately apparent
meaning or sometimes the correction of
an apparent error in the
language in order to avoid the identified absurdity.”
[304]
For these reasons, paragraphs (d) to (f) of section 76(2) of
the GM By-Law and paragraphs (d) and (e) of section 86(2) of the
EM By-Law
apply only to the owner on which the obligation to do
the things in question rests, in other words, the applicant which
obtained
the land development approval and on which the conditions
and obligations in question were binding. This being so, these
provisions do not fall foul of section 25 of the Bill of Rights.
[305]
In paragraph 7(e) of the orders proposed in the second
judgment, I would thus confine the declaration of invalidity to
paragraph
(a) of section 76(2) of the GM By Law and
paragraph (a) of section 86(2) of the EM By-Law. I agree
that the
present respondents, the applicants in the High Court, are
entitled to
Biowatch
protection in all three courts. In
my opinion, however, the extent of the relief to which they are
entitled, as against that
which they claimed, is so attenuated that
they should not be awarded any costs to reflect their limited
success. So I would
order the parties to pay their own costs in
all three courts.
For the Applicant
in CCT 189/22:
AJ Vorster and DD
Swart instructed by Cronje De Waal Skhosana Incorporated
For the Applicant
in CCT 192/22:
O Ben-Zeev and S
Luvuno instructed by Ka-Mbonane Cooper
For the
Respondents:
SJ Du Plessis SC,
K Hopkins and SO Ogunronbi instructed by Norton Rose
Fulbright South Africa Incorporated
[1]
The
Govan Mbeki Spatial Planning and Land Use Management By-Law was
promulgated in Provincial Notice 10 of 2016 in
Mpumalanga
Provincial Gazette Extraordinary
2650,
17 February 2016 (Govan Mbeki By Law). The
Emalahleni Municipal By-Law on Spatial Planning and Land
Use
Management was promulgated in Provincial Notice 4 of 2016
Mpumalanga
Provincial Gazette Extraordinary
2653,
24 February 2016 (Emalahleni By Law).
[2]
16 of 2013.
[3]
See the definition of “the Act” in section 1 of
both of the by-laws (above n 1).
[4]
See for example above n 1 Emalahleni By-Law, Chapter 2:
section 4(1) and section 5(1); Chapter 3: section 15;
Chapter 4, Part C: section 33; Chapter 4,
Part D: section 45(2) and (3); and Chapter 4, Part E,
section 49. See also above n 1 Govan Mbeki By-Law,
Chapter 1: section 3(1) and (3); Chapter 2:
section 4(1), section 5(1), section 14(1); Chapter 3:
sections 15-6, section 17(1); Chapter 4:
section 31;
Chapter 5, Part C: section 57(3); Chapter 5,
Part K: section 77(1)-(3); and Chapter 11,
section 175.
[5]
32 of 2000.
[6]
Mkontwana
v Nelson Mandela
Metropolitan Municipality
[2004]
ZACC 9
;
2005 (1) SA 530
(CC);
2005 (2) BCLR 150
(CC) (
Mkontwana
).
[7]
Section 11(a)(iii)
of the
Prescription Act 68 of 1969
.
[8]
The position of the Mpumalanga Deeds Registration Office is
consistent with
section 3(1)(b)
of the
Deeds Registries
Act 47 of 1937
which states that:
“
(1)
The registrar shall . . .
(b)
examine all deeds or other documents submitted to him for execution
or registration, and after examination reject any such deed or other
document the execution or registration of which is not permitted
by
this Act or by any other law, or to the execution or registration of
which any other valid objection exists: Provided that
such deed or
document need not be examined in its entirety before being
rejected.”
[9]
The property owners also challenged the constitutional validity of
section 82 of the Steve Tshwete Local Municipality Spatial
Planning and Land Use Management By-Laws, Local Authority Notice 2
of 2016
Provincial Gazette
2633, 15 January 2016,
the provisions of which are also framed in terms practically
identical to those of section 76 of the
Govan Mbeki
By-Law. When this constitutional challenge succeeded in the
High Court, the Steve Tshwete Municipality
did not
appeal the High Court decision. The present appeal is,
therefore, confined to the Govan Mbeki and Emalahleni by-laws.
[10]
Glencore
Operations South Africa (Pty) Ltd v Steve Tshwete Local Municipality
[2021] ZAMPMHC 39
(High Court judgment) a
t
paras 41-51.
[11]
Aquila
Steel SA (Pty) Ltd v South African Steel Company (Pty) Ltd
[2014] ZAGPPHC 218
(
Aquila
Steel
)
at paras 59-62. In para 56 of the High Court
judgment, the Court quoted these paragraphs from the
Aquila Steel
judgment
of the Gauteng High Court, but incorrectly attributed them to the
judgment of this Court in
Aquila
Steel SA (Pty) Ltd v South African Steel Company (Pty) Ltd
[2019] ZACC 5; 2019 (3)
SA 621 (CC); 2019 (4) BCLR 429.
[12]
High Court judgment above n 10 at paras 54-60.
[13]
Id at paras 73-6.
[14]
Western
Cape Provincial Government: In re DVB Behuising (Pty) Ltd v
Northwest Provincial Government
[2000]
ZACC 2
;
2000 (4) BCLR 347
;
2001 (1) SA 500
(CC) (
DVB Behuising
).
[15]
At para 55 of the majority judgment in
DVB
Behuising
(id)
the following was stated:
“
The
provisions of chapter 2 and chapter 3 that related to the
granting of a limited form of ‘ownership’
rights in land
in the township and those that related to the registration of those
rights in chapter 9 dealt, on their face,
with a form of land
tenure, a matter not listed in Schedule 6.”
The
High Court judgment did not rely on this passage.
Instead, at para 67, the High Court judgment cited a passage
which it attributed to paras 34 and 35 of
DVB Behuising.
In fact, the first paragraph of this passage appears at para 104
of the judgment in
DVB Behuising
of Goldstone J, Sachs J
and O’Regan J which dissented in part with the majority
judgment. The second
paragraph in the passage cited by the
High Court does not appear anywhere in the
DVB Behuising
judgment.
[16]
High Court judgment above n 10
at
paras 69-70.
[17]
Id
at
paras 70-2.
[18]
Id at para 76.
[19]
Id
at para 83.
[20]
Govan
Mbeki Local Municipality v Glencore Operations South Africa (Pty)
Ltd
[2022]
ZASCA 93
;
2022 (6) SA 106
(
Supreme Court
of Appeal judgment) at para 6.
[21]
Id
at paras 14-9.
[22]
Id
at paras 23-32.
[23]
Id
at para 40.
[24]
Id at para 35.
[25]
Id at para 37.
[26]
Id at para 40.
[27]
Id at para 41.
[28]
Id at para 42.
[29]
This
aspect of the cross-appeal was not addressed in the notice of
cross-appeal, but we were informed from the bar that the property
owners had addressed the issue in oral argument before the
Supreme Court of Appeal and had handed up a draft order
that removed the relevant qualifications in the High Court
order.
[30]
DVB
Behuising
above
n 14 at para 17.
[31]
Mazibuko
v City of Johannesburg
[2009]
ZACC 28
;
2010 (3) BCLR 239
(CC);
2010 (4) SA 1
(CC) (
Mazibuko
)
at para 111;
Ex
parte President of the Republic of South Africa: In re
Constitutionality of the Liquor Bill
[1999]
ZACC 15
;
2000 (1) SA 732
(CC);
2000 (1) BCLR 1
(CC) (
Liquor
Bill
);
and
Ex
parte Chairperson of the Constitutional Assembly: In re
Certification of the Constitution of the Republic of South Africa,
1996
[1996]
ZACC 26
;
1996 (4) SA 744
(CC);
1996 (10) BCLR 1253
(CC)
(
Certification
)
at para 244.
[32]
M’Culloch
v State of Maryland
17
US
(4 Wheat) 316
(1819) (
M’Culloch
v State of Maryland
)
and
General
Motors of Canada Ltd v City National Leasing
1989
CanLII 133
(SCC);
[1989] 1 SCR 641
, 58 DLR (4th) 255 (
General
Motors of Canada
).
[33]
Telkom
SA SOC Ltd v Cape Town City
[2020]
ZACC 15
;
2020 (10) BCLR 1283
(CC);
2021 (1) SA 1
(CC) (
Telkom
).
[34]
Id
at
para 34.
[35]
Maccsand
(Pty) Ltd v City of Cape Town
[2012]
ZACC 7
;
2012 (4) SA 181
(CC);
2012 (7) BCLR 690
(CC) at para 47
(
Maccsand
).
[36]
Ferreira
v Levin N.O.
;
Vryenhoek
v Powell N.O.
[1995]
ZACC 13
;
1996 (1) SA 984
(CC);
1996 (1) BCLR 1
(CC) at paras 163-6.
[37]
The transformation of local government since the advent of democracy
and the context for this transformation is discussed in
Fedsure
Life Assurance Ltd v Greater Johannesburg Transitional Metropolitan
Council
[1998]
ZACC 17
;
1998 (12) BCLR 1458
(CC);
1999 (1) SA 374
(CC) (
Fedsure
)
at paras 2-4;
African
National Congress v Minister of Local Government and Housing,
KwaZulu-Natal
[1998]
ZACC 2
;
1998 (3) SA 1
(CC);
1998 (4) BCLR 399
(CC) at paras 4-12;
Executive
Council, Western Cape Legislature v President of the Republic of
South Africa
[1995]
ZACC 8
;
1995 (4) SA 877
(CC);
1995 (10) BCLR 1289
(CC) (
Executive
Council, Western Cape Legislature
)
at paras 182-6; and
Rates
Action Group v City of Cape Town
2004
(5) SA 545
(C) at paras 101-3.
[38]
Fedsure
id at paras 54-8.
[39]
City of
Cape Town v Robertson
[2004]
ZACC 21
;
2005 (2) SA 323
(CC);
2005 (3) BCLR 199
(CC) (
Robertson
).
[40]
Id at para 60.
[41]
Section 156(1)(b) of the Constitution recognises that a
municipality will also have executive authority over “any
other matter assigned to it by national or provincial legislation”
but this is not original executive authority.
[42]
Section 44(1)(a)(ii) confers on the National Assembly the power “to
pass legislation with regard to any matter, including
a matter
within a functional area listed in Schedule 4, but excluding,
subject to subsection (2), a matter within a functional
area listed
in Schedule 5”.
Section 104(1)(b)
vests a provincial legislature with the power—
“
to
pass legislation for its province with regard to—
(i)
any matter within a functional area listed in Schedule 4;
(ii)
any matter within a functional area listed in Schedule 5.”
[43]
Sections 156(2) and 156(3) of the Constitution.
[44]
See the authorities cited at n 37 above.
[45]
This is reflected in sections 152 and 153 of the Constitution
which set out the objects and developmental duties of municipalities
and state the following:
“
152
Objects of local government
(1)
The objects of local government are—
(a)
to provide democratic and accountable government for local
communities;
(b)
to ensure the provision of services to communities in a sustainable
manner;
(c)
to promote social and economic development;
(d)
to promote a safe and healthy environment; and
(e)
to encourage the involvement of communities and community
organisations
in the matters of local government.
(2)
A municipality must strive, within its financial and administrative
capacity, to achieve the objects set out in subsection (1).
153
Developmental duties of municipalities
A municipality must—
(a)
structure and manage its administration and budgeting and planning
processes
to give priority to the basic needs of the community, and
to promote the social and economic development of the community; and
(b)
participate in national and provincial development programmes.”
See
also
Minister of Local Government, Environmental Affairs and
Development Planning, Western Cape v Habitat Council
[2014] ZACC
9
;
2014 (4) SA 437
(CC);
2014 (5) BCLR 591
(CC) (
Habitat Council
)
at para 14 where this Court described municipalities as “the
frontiers of service delivery”.
[46]
Section 151(2) of the Constitution. See
Democratic
Alliance v Masondo N.O.
[2002]
ZACC 28
;
2003 (2) SA 413
(CC);
2003 (2) BCLR 128
(CC) (
Masondo
)
at para 21.
[47]
Section 156(5) of the Constitution. The section states:
“
A
municipality has the right to exercise any power concerning a matter
reasonably necessary for, or incidental to, the effective
performance of its functions.”
[48]
Mazibuko
above
n 31.
[49]
Id at para 111.
[50]
Id at paras 108 and 111.
[51]
City of
Johannesburg
Metropolitan Municipality v Gauteng Development Tribunal
[2010] ZACC 11
;
2010
(6) SA 182
(CC);
2010 (9) BCLR 859
(CC) (
Gauteng
Development Tribunal
).
[52]
Id at para 56. See also
Merafong
City Local Municipality v AngloGold Ashanti Ltd
[2016] ZACC 35
;
2017 (2)
SA 211
(CC); 2017 (2) BCLR (CC) (
AngloGold
Ashanti Ltd
).
[53]
See for example
Organisation
Undoing Tax Abuse v Minister of Transport
[2023]
ZACC 24
;
2023 (10) BCLR 1189
(CC);
2024 (1) SA 21
(CC) (
OUTA
)
at para 82(g);
Tronox
KZN Sands (Pty) Ltd v
KwaZulu-Natal
Planning and Development Appeal Tribunal
[2016]
ZACC 2
;
2016 (3) SA 160
(CC);
2016 (4) BCLR 469
(CC) (
Tronox
)
at para 20; and
Gauteng
Development Tribunal
above
n 51 at para 55.
[54]
See for example
Ex
parte Chairperson of the Constitutional Assembly: In re
Certification of the Amended Text of the Constitution of the
Republic
of South Africa, 1996
[1996]
ZACC 24
;
1997 (1) BCLR 1
(CC);
1997 (2) SA 97
(CC) at paras 149-151
and
Ex
parte Speaker of the National Assembly: In re Dispute Concerning the
Constitutionality of Certain Provisions of the National
Education
Policy Bill 83 of 1995
[1996]
ZACC 3
;
1996 (3) SA 289
(CC);
1996 (4) BCLR 518
(CC). The shift
to a constitutional regime of exclusive powers was a product of the
Constitutional Principles in Schedule 4
to the interim
Constitution. Constitutional Principle XIX
prescribed that the final Constitution would have to
provide for
exclusive and concurrent powers at national and provincial levels of
government. So, while the interim Constitution
itself operated
on a principle of concurrent powers, not exclusive powers, it
prescribed that the final Constitution would operate
differently.
[55]
The relevant provisions of the Constitution state the following:
“
99
Assignment of functions
A Cabinet member may
assign any power or function that is to be exercised or performed in
terms of an Act of Parliament to a member
of a provincial Executive
Council or to a Municipal Council. An assignment—
(a)
must be in terms of an agreement between the relevant Cabinet member
and the Executive Council member or Municipal Council;
(b)
must be consistent with the Act of Parliament in terms of which the
relevant power or function is exercised or performed; and
(c)
takes effect upon proclamation by the President.”
“
126
Assignment of functions
A member of the
Executive Council of a province may assign any power or function
that is to be exercised or performed in terms
of an Act of
Parliament or a provincial Act, to a Municipal Council. An
assignment—
(a)
must be in terms of an agreement between the relevant Executive
Council
member and the Municipal Council;
(b)
must be consistent with the Act in terms of which the relevant power
or function is exercised or performed; and
(c)
takes effect upon proclamation by the Premier.”
“
156
Powers and functions of municipalities
(1)
A municipality has executive authority in respect of, and has the
right
to administer—
. . .
(b)
any other matter assigned to it by national or provincial
legislation.
. . .
(4)
The national government and provincial governments must assign to a
municipality, by agreement and subject to any conditions, the
administration of a matter listed in Part A of Schedule 4
or Part A of Schedule 5 which necessarily relates to local
government, if—
(a)
that matter would most effectively be administered locally; and
(b)
the municipality has the capacity to administer it.”
“
238
Agency and delegation
An executive organ of
state in any sphere of government may—
(a)
delegate any power or function that is to be exercised or performed
in terms of legislation to any other executive organ of state,
provided the delegation is consistent with the legislation in terms
of which the power is exercised or the function is performed; or
(b)
exercise any power or perform any function for any other executive
organ
of state on an agency or delegation basis.”
[56]
The relevant provisions of the Constitution state the following:
“
44
National legislative authority
(1)
The national legislative authority as vested in Parliament—
(a)
confers on the National Assembly the power—
. . .
(iii)
to assign any of its legislative powers, except the power to amend
the Constitution,
to any legislative body in another sphere of
government.”
“
104
Legislative authority of provinces
(1)
The legislative authority of a province is vested in its provincial
legislature, and confers on the provincial legislature the power—
. . .
(c)
to assign any of its legislative powers to a Municipal Council in
that
province.”
[57]
See sections 156(1)(b) and 44(1)(a)(iii) of the Constitution.
[58]
Abahlali
BaseMjondolo Movement SA v Premier of the Province of Kwa-Zulu Natal
[2009] ZACC 31; 2010 (2)
BCLR 99 (CC).
[59]
See for example
Ex
parte Speaker of the KwaZulu Natal Provincial Legislature:
In re KwaZulu-Natal
Amakhosi and Iziphakanyiswa Amendment Bill of 1995, Ex parte Speaker
of the KwaZulu Natal Provincial
Legislature: In re Payment
of Salaries, Allowances and Other Privileges to the Ingonyama Bill
of 1995
[1996] ZACC 15
;
1996 (4)
SA 653
(CC);
1996 (7) BCLR 903
(CC) (
Amakhosi
).
[60]
See for example
OUTA
above
n 53
and
Liquor
Bill
above
n 31.
[61]
Gauteng
Development Tribunal
above
n 51 and
OUTA
above
n 53
.
[62]
Supreme Court
of Appeal judgment above n 20 at para 40.
[63]
Section 162 of the Govan Mbeki By-Law and section 174 of
the Emalahleni By-Law.
[64]
Sections 163 and 164 of the Govan Mbeki By-Law and sections 175
and 176 of the Emalahleni By-Law.
[65]
Section 163(2)(a) of the Govan Mbeki By-Law and
section 175(2)(a) of the Emalahleni By-Law.
[66]
Sections 169 and 171 of the Govan Mbeki By-Law and sections 181
and 183 of the Emalahleni By-Law.
[67]
Section 170(1) of the Govan Mbeki By-Law makes clear that, for
the purposes of ascertaining compliance with the by-laws,
an
authorised employee of the municipality may exercise any of the
powers conferred by section 32 of SPLUMA. The
corresponding provisions of the Emalahleni By-Law is section 182(1).
[68]
Section 32 states in relevant part:
“
(3)
A municipality—
(a)
may designate a municipal official or appoint any other person as an
inspector to investigate any non-compliance with its land use
scheme; and
(b)
must issue each inspector with a written designation or appointment
in the prescribed form, stating that the person has been appointed
in terms of this Act.
.
. .
(5)
An inspector contemplated in subsection (3) may, subject to
subsection (8)—
(a)
enter any land at any reasonable time without previous notice for
the
purpose of ascertaining an issue required to ensure compliance
with this Act;
(b)
question any person who is or was on or in such land, either alone
or
in the presence of any other person, on any matter to which this
Act relates;
(c)
require from any person who has control over or custody of a book,
record
or other document on or in such land, to produce to the
inspector forthwith, or at such time and place as may be determined
by
the inspector, such book, record or other document;
(d)
examine any such book, record or other document or make a copy
thereof
or an extract therefrom;
(e)
require from such a person an explanation of any entry in such book,
record or other document;
(f)
inspect any article, substance, plant or machinery which is or was
on the land, or any work performed on the land or any condition
prevalent on the land, or remove for examination or analysis
any
article, substance, plant or machinery or a part or sample thereof;
(g)
seize any book, record or other document or any article, substance,
plant or machinery or a part or sample thereof which in his or her
opinion may serve as evidence at the trial of any person charged
with an offence under this Act or the common law: Provided that the
user of the article, substance, plant or machinery concerned,
as the
case may be, may make copies of such book, record or document before
such seizure; and
(h)
direct any person to appear before him or her at such time and place
as may be determined by the inspector and question such person
either alone or in the presence of any other person on any matter
to
which this Act relates.
(6)
When an investigator enters any land in terms of subsection (5),
a person who controls or manages the land must at all times provide
such facilities as are reasonably required by the inspector
to
enable him or her to perform his or her functions effectively and
safely under this Act.
.
. .
(9)
An inspector may, where necessary, be accompanied by a police
official
or any other person reasonably required to assist him or
her in conducting the inspection.
(10)
An inspector may issue a compliance notice in the prescribed form to
the person
who controls or manages the land or the owner or person
in control of a private dwelling if a provision of this Act has not
been
complied with.
(11)
A compliance notice remains in force until the relevant provision of
the Act has
been complied with and the inspector has issued a
compliance certificate in respect of that notice.”
[69]
Section 166(b) of the Govan Mbeki By-Law and
section 178(b) of the Emalahleni By-Law.
[70]
Section 161
of
the
Govan Mbeki By-Law and section 173 of the Emalahleni By-Law.
[71]
Section
163(1) of
the
Govan Mbeki By-Law and section 175(1) of the Emalahleni By-Law.
[72]
See
above n 68.
[73]
Section
214 titled “Equitable shares and allocations of revenue”
states:
“
(1)
An Act of Parliament must provide for—
(a)
the equitable division of revenue raised nationally among the
national,
provincial and local spheres of government;
. . .
(c)
any other allocations to provinces, local government or
municipalities
from the national government’s share of that
revenue, and any conditions on which those allocations may be made.
(2)
The Act referred to in subsection (1) . . . must take into account—
. . .
(d)
the need to ensure that the provinces and municipalities are able to
provide basic services and perform the functions allocated to them;
(e)
the fiscal capacity and efficiency of the provinces and
municipalities;
(f)
developmental and other needs of provinces, local government and
municipalities;
. . .
(h)
obligations of the provinces and municipalities in terms of national
legislation.”
[74]
Section 151(4)
states:
“
The
national or a provincial government may not compromise or impede a
municipality’s ability or right to exercise its powers
or
perform its functions.”
[75]
Quoted
in [57] above.
[76]
“Municipal planning” is expressly included in Part B
of Schedule 4 and is thus a local government matter.
Deeds registration appears in none of the schedules in the
Constitution and, as pointed out in
DVB
Behuising
above
n 14 at para 55, is a residual functional area of national
government competence.
[77]
In fact, section 14(1) of the City of Cape Town Water By-Law,
2010 (
Western
Cape Provincial Gazette
6847,
18 February 2011) purports to require a seller wishing to transfer
ownership of their property first to produce a certificate
from a
plumber confirming that the water installation at the property
conforms to the requirements of the by-law.
[78]
Certification
above n 31 at para 438.
[79]
Mazibuko
above
at n 31 at para 111.
[80]
M’Culloch
v State of Maryland
above
n 32.
[81]
General
Motors of Canada
above
n 32.
[82]
For example, the creation of civil claims or criminal offences
implicate the criminal and civil justice systems which are
functional
areas of national government competence, even if most of
the officials working in those systems fall within the judicial
branch
of government, or the constitutionally independent National
Prosecuting Authority, rather than the Departments of State
controlled
by the National Executive.
[83]
See for example
Part 4
of the
Housing Act 107 of 1997
,
which assigns to municipalities extensive executive powers over
housing matters even though housing is not a functional area
of
municipal competence but rather a Part A Schedule 4 area
of concurrent national and provincial competence.
Read with
Part 4
of the
Housing Act, section
156(2) of the
Constitution then gives municipalities the power to make by-laws for
the effective administration of the matters
assigned to them in
terms of
Part 4
of the
Housing Act.
[84
]
Para (e) of subsection (2) of the impugned by-laws bears
some resemblance to the embargo contained in
section 53
of
SPLUMA which states:
“
The
registration of any property resulting from a land development
application may not be performed unless the municipality certifies
that all the requirements and conditions for the approval have been
complied with.”
However,
section 2(e)
of the impugned by-laws goes significantly beyond
section 53
of SPLUMA. As pointed out by counsel for the
property owners,
section 53
imposes only an original
registration embargo which requires a local government certificate
as a precondition for first registration
of the developed or
sub-divided property upon the original development of a township
register or subdivision of a property.
Para (e) of
subsection (2) imposes a transfer embargo that burdens the
property in perpetuity whenever there is an
attempt to transfer it.
That para (e) embargoes subsequent transfer as opposed to
original registration is clear not
only from the wording of the
by-law, which refers to “transfer” not “registration”,
but also because
the original registration embargo is already
addressed both by
section 53
of SPLUMA and by the unimpugned
provisions of
section 74(2)(d)
of the Govan Mbeki By-Law and
section 84(2)(d)
of the Emalahleni By-Law.
[85]
At [210(b)] of the second judgment.
[86]
At [78].
[87]
At [212] of the second judgment.
[88]
At [233] of the second judgment.
[89]
At [234] of the second judgment
.
Fedsure
above
n 37 at paras 54-8.
[90]
See [46] above.
OUTA
above n 53 at para 21.
[91]
At
[248(f) to (h)].
[92]
See for example
Habitat
Council
above
n 45;
Minister
of Local Government, Western Cape v Lagoonbay Lifestyle Estate (Pty)
Ltd
[2013]
ZACC 39
;
2014 (1) SA 521
(CC);
2014 (2) BCLR 182
(CC);
Maccsand
above n 35; and
Gauteng
Development Tribunal
above
n 51.
[93]
Biowatch
Trust v Registrar Genetic Resources
[2009]
ZACC 14
;
2009 (6) SA 232
(CC);
2009 (10) BCLR 1014
(CC) (
Biowatch
).
[94]
First
judgment at [93].
[95]
Section 149
,
which is headed “Status of legislation that does not prevail”,
says:
“
A
decision by a court that legislation prevails over other legislation
does not invalidate that other legislation, but that other
legislation becomes inoperative for as long as the conflict
remains.”
[96]
Telkom
above n 33.
[97]
Id
at para 34.
[98]
The
Municipalities contend that the embargoes are also aimed at building
regulation. It is in my view unnecessary to decide
this
because, for reasons that will become apparent, the impugned
provisions that are found to be valid in this judgment fall
squarely
within the competence of municipal planning.
[99]
68
of 1969.
Jordaan
v City of Tshwane Metropolitan Municipality
[2017]
ZACC 31
;
2017 (6) SA 287
(CC);
2017 (11) BCLR 1370
(CC) (
Jordaan
)
at para 25.
City
Treasurer and Rates Collector, Newcastle Town Council v Shaikjee
1983
(1) SA 506
(N) is authority for municipal rates being a form of
“tax” in terms of
section 11(a)(iii)
of the
Prescription Act.
[100
]
Tronox
above n 53 at para 39.
[101]
Mkontwana
above n 6 at paras
49-60.
[102]
As indicated in paragraphs [112] to [113] above, the GM By-Law uses
the word “may” in subjection (2) while the EM
By-Law
uses the word “must”, but the words bear an identical
meaning in this context. I will therefore in each
instance
where subsection (2) of the respective by-laws is quoted, refer only
to the subsection (2) as it is worded in the GM By-Law.
[103]
Section 162
of the GM By Law and
section 174
of the EM By Law.
[104]
Id.
[105]
Sections 161
9
of the GM By Law and
sections 174
80
of the
EM By Law.
[106]
Section
118(1A) of the Systems Act provides as follows:
“
A
prescribed certificate issued by a municipality in terms of
subsection (1) is valid for a period of 60 days from the date it
has
been issued.”
[107]
Maccsand
above n 35.
[108]
Id
at para 47.
[109]
J
ordaan
above n 99
at paras 16 24.
[110]
Id
at para 19.
[111]
40 of 1889 (Cape). See
Jordaan
above
n 99 at fn 36.
[112]
Id at fn 37.
Cohen’s
Trustees v Johannesburg Municipality
1909
TH 134
(subsequently overturned in
Johannesburg
Municipality v Cohen’s Trustees
1909
TS 811).
[113]
First
judgment at
[74].
[114]
Electrical Installation Regulations, GN R242
GG
31975, 6 March 2009.
[115]
85
of 1993.
[116]
See
for example sections 47 and 55 of the Midvaal Local
Municipality Spatial Planning and Land Use Management By law;
sections 54 and 62 of the Mogale City Local Municipality
Spatial Planning and Land Use Management By law, 2018; and
sections 47 and 55 of the Emfuleni Local Municipality Spatial
Planning and Land Use Management By law, 2018.
[117]
It
is quoted at [5] above.
[118]
Jordaan
above n 99 at
para 59 and the authorities quoted at footnote 106.
[119]
Mkontwana
above n 6
at paras 32 3.
[120]
Id
at para 33.
[121]
First
National Bank of SA Ltd t/a Wesbank v Commissioner, South African
Revenue Service; First National Bank of SA Ltd t/a Wesbank
v
Minister of Finance
[2002]
ZACC 5
;
2002 (4) SA 768
(CC);
2002 (7) BCLR 702
(CC) (
FNB
)
at para 100.
[122]
Jordaan
above n 99
at para 51 and the authorities at fn 94.
[123]
Jordaan
above n 99
at para 16.
[124]
Investigating
Directorate: Serious Economic Offences v Hyundai Motor Distributors
(Pty) Ltd In re: Hyundai Motor Distributors
(Pty) Ltd v Smit NO
[2000]
ZACC 12
;
2000 (10) BCLR 1079
(CC);
2001 (1) SA 545
(CC) at
paras 21-3 (
Hyundai
).
[125]
Mkontwana
above n 6
at paras 47 8 and 59.
[126]
See
sections 162(2) of the GM By Law and 174(2) of the
EM By Law.
[127]
See
sections 163(2) of the GM By Law and 175(2) of the
EM By Law. Each provides as follows:
“
(2)
A compliance notice must direct the occupier and owner to cease the
unlawful land
use or construction activity or both, forthwith or
within the time period determined by the Municipality and may
include an instruction
to—
(a)
demolish unauthorised building work and
rehabilitate the land or restore the building, as the case may be to
its original form
within 30 days or such other time period
determined by the Municipal Manager; or
(b)
submit an application in terms of this By Law
within 30 days of the service of the compliance notice and pay the
contravention
penalty.”
[128]
On
the reality that new legislation might validly introduce anomalies
and hardships, see
Ngcobo
v Salimba CC; Ngcobo v Van Rensburg
[1999]
ZASCA 22
;
1999 (2) SA 1057
(SCA) at para 11.
[129]
Du
Plessis “Statute Law and Interpretation” in
LAWSA
2 ed
(2011) vol 25(1) at para 334 and
S
v Mhlungu
[1995]
ZACC 4
;
1995 (3) SA 867
(CC);
1995 (7) BCLR 793
(CC) (
Mhlungu
)
at para 36.
[130]
Van
Rooyen v the State (General Council of the Bar of South Africa
Intervening)
[2002]
ZACC 8
;
2002 (5) SA 246
(CC);
2002 (8) BCLR 810
(CC) at para 37.
[131]
These
paragraphs of the GM and EM By Laws are set out in
[119] above.
[132]
The
first judgment interprets these paragraphs in the same way.
See [11] above.
[133]
Paragraph
(d), requiring proof of transfer of all common property, is provided
for as against a developer by section 74(2)(f)
read with
section 75 of the GM By Law and section 84(2)(f)
read with section 85 of the EM By Law.
Although
paragraph (d) refers more narrowly to a subdivision, a subdivision
is a form of land development application as contemplated
in the
relevant parts of sections 74 and 84 of the respective
by laws. See in this regard the definition of “land
development” in section 1 of SPLUMA. The opening
paragraph of section 1 of each of the by laws, correctly
read, adopts definitions from SPLUMA into the By Law. I
say correctly read because this paragraph can be read as the
by law
imposing its definitions on the statute, but that would be in
conflict with sections 151(3) and 156(3) of the
Constitution.
Paragraph (e), requiring
proof of compliance with the conditions of approval of the
development application, is covered by section 74(2)(d).
Paragraph (f), requiring proof that all engineering services have
been installed or the making of satisfactory arrangements for
their
installation, is covered by section 74(2)(a).
[134]
Case
v Minister of Safety and Security; Curtis v Minister of Safety and
Security
[1996]
ZACC 7
;
1996 (3) SA 617
(CC);
1996 (5) BCLR 608
(CC) at para 57
and the authorities referred to at fn 94,
and
Florence
v Government of the Republic of South Africa
[2014]
ZACC 22
;
2014 (6) SA 456
(CC);
2014 (10) BCLR 1137
(CC) at para 84
(judgment of Van der Westhuizen J).
[135]
Woodlands
Dairy (Pty) Ltd v Competition Commission
[2010]
ZASCA 104
;
2010 (6) SA 108
(SCA) at para 18.
[136]
In
the GM By Law, the conjunction “and” also
comes between paragraphs (d) and (e), even though the final
component of the proof required is in paragraph (f). This
appears to be a typographic error in the process of adopting
a
standard form by law, to which an additional form of proof
was then added.
[137]
See
n 133 above.
[138]
Hyundai
above n 124
at para 24.
[139]
FNB
above
n 121 at para 100(e).
[140]
Mkontwana
above n
6
at
para 45.
[141]
Id
at para 46.
[142]
I
say this because municipal debt mainly comes from the consumption by
the owner or occupier of municipal services delivered to
the
property, and from rates, which are aimed at raising revenue mainly
for municipal amenities in the surrounding area, rather
than the
property itself.
[143]
See
section 25(1) of SPLUMA.
[144]
FNB
above n 121
at para 100(g).
[145]
Moise v
Greater Germiston Transitional Local Council: Minister of Justice
and Constitutional Development Intervening (Women's
Legal Centre as
Amicus Curiae)
[2001]
ZACC 21
;
2001 (4) SA 491
(CC);
2001 (8) BCLR 765
(CC) at paras 18 9.
[146]
This
is subject to the further challenges discussed below.
[147]
OUTA
above
n 53.
[148]
Administrative
Adjudication of Road Traffic Offences Act 46 of 1998
.
[149]
OUTA
above n 53
at para 7.
[150]
Amakhosi
above n 59;
DVB
Behuising
above n 14;
Liquor
Bill
above
n 31; and
Gauteng
Development Tribunal
above
n 51.
[151]
First
judgment at [55].
[152]
Amakhosi
above n 59
at para 19.
[153]
DVB
Behuising
above n 14
at para 37 and
Liquor
Bill
above n 31
at para 62.
[154]
Gauteng
Development Tribunal
above n 51
at para 49.
[155]
OUTA
above n 53
at para 87.
[156]
First
judgment at [55].
[157]
Gauteng
Development Tribunal
above n 51
at para 56.
[158]
Id.
[159]
Id
at para 55.
[160]
Id
at paras 9-10.
[161]
OUTA
above n 53 at
para 10, quoting
Liquor
Bill
above n 31
at para 62 (the last sentence of the extract from
Liquor
Bill
does
not appear in
OUTA
.
See also
OUTA
above n 53 at paras 69
and 82(g).
[162]
Section
156(5)
of the Constitution.
[163]
Liquor
Bill
above n 31
at para 62.
[164]
B131B
– 98.
[165]
Liquor
Bill
above n 31
at para 57.
[166]
Id
at para 69.
[167]
Id at para 70.
[168]
Id at paras 71 5.
[169]
OUTA
above n 53
at paras 21 7 and 82(g). See also section 43 of the
Constitution, quoted at [172], which
draws no hierarchical
distinction between the national, provincial and local spheres of
government in the distribution of legislative
authority.
[170]
Robertson
above n 39.
[171]
Here
citing Pimstone “Local Government” in Chaskalson et al
Constitutional
Law of South Africa
(1996)
(Revision Service 5, 1999) at 5A 26 to 5A 27.
[172]
First
judgment at [50].
[173]
Id.
[174]
Id
at [52].
[175]
Id
at [50].
[176]
Id
at [61] to [62].
[177]
Section 151(2)
of the Constitution.
[178]
First judgment at [50].
[179]
Mazibuko
above n 31.
[180]
Id
at para 111.
[181]
OUTA
above n 53
at paras 114 6.
[182]
Id
at paras 65 6;
Liquor Bill
above n 31
at paras 51 3.
[183]
Section 20 of SPLUMA independently imposes an obligation on
every municipality to prepare a spatial development framework.
Section 21 details its content. section 23 of the
Systems Act requires a municipality to undertake
development oriented
municipal planning aimed at achieving
identified constitutional objectives, including the progressive
realisation of socio economic
rights. section 24 of
the Systems Act requires that municipal planning give effect to
the principles of co operative
government contained in
section 41 of the Constitution. section 25 of the
Systems Act requires that each
municipality adopt an integrated
development plan and lays down the requirements for it. These
include that the plan “is
compatible with national and
provincial development plans”.
[184]
In terms of section 24(1) of SPLUMA, each municipality must
adopt a land use scheme for its entire area of jurisdiction.
The scheme must in terms of section 24(2)(a) “include
appropriate categories of land use zoning and regulations for
the
entire municipal area, including areas not previously subject to a
land use scheme”. sections 25 to 28 deal
respectively with the purpose and content of a land use scheme, its
legal effect, the review and monitoring of a land use scheme
and the
amendment of a land use scheme by rezoning.
[185]
Section 28 of both the GM and EM By Laws.
[186]
Section 18 of both the GM and EM By Laws.
[187]
Section 19 of both the GM and EM By Laws.
[188]
Section 21 of both the GM and EM By Laws.
[189]
Section 33 of the GM By Law and section 32 of
the EM By Law.
[190]
Sections 34 48 of the GM By Law and
sections 33 51 of the EM By Law.
[191]
In the EM By Law this is described as applications for
rezoning.
[192]
In the EM By Law this is described as applications for
departures from the land use scheme.
[193]
Section 73 of the GM By Law and section 83 of
the EM By Law.
[194]
Transfer
to an owners’ association is provided for only in the EM
By-Law, not the GM By-Law.
[195]
Section 75 of the GM By Law and section 85 of
the EM By Law.
Transfer
to a non-profit company is provided for only in the GM By-Law, not
the EM By-Law.
[196]
Section 77 of the GM By Law and section 87 of
the EM By Law.
[197]
Gauteng
Development Tribunal
above n 51
at para 57.
[198]
First
judgment at [76], [85] and [93].
[199]
See
section 86(1) (2)(c) of the EM By Law.
This is subject to the use of the words “may”
and “must”
in the respective By-Laws discussed at [112] to [113] and n 102
above.
[200]
47
of 1937.
[201]
33
of 1957.
[202]
Id
at section 1.
[203]
Estate
Gouws v Registrar of Deeds
1947
(4) SA 403
(T), especially at 408 9.
[204]
Proc R293 GG 373 of 16 November 1962.
[205]
7 of 1998.
[206]
Section 239 of the Constitution defines “provincial
legislation” to include “legislation that was in force
when the Constitution took effect and that is administered by a
provincial government”.
[207]
DVB
Behuising
above
n 14 at para 20.
[208]
Schedule 6 listed “legislative competences of provincial
government”, which included: amongst others, “local
government”, “regional planning and development”,
and “urban and rural development”.
[209]
Proc R110 GG 15813 of 17 June 1994. Section 126(3) reads—
“
(3)
A law passed by a provincial legislature in terms of this
Constitution shall prevail
over an Act of Parliament which deals
with a matter referred to in subsection (1) or (2) except in so
far as
–
(a)
the Act of Parliament deals with a matter that cannot be regulated
effectively
by provincial legislation;
(b)
the Act of Parliament deals with a matter that, to be performed
effectively,
requires to be regulated or co ordinated by
uniform norms or standards that apply generally throughout the
Republic;
(c)
the Act of Parliament is necessary to set minimum standards across
the
nation for the rendering of public services;
(d)
the Act of Parliament is necessary for the maintenance of economic
unity,
the protection of the environment, the promotion of
interprovincial commerce, the protection of the common market in
respect
of the mobility of goods, services, capital or labour, or
the maintenance of national security; or
(e)
the provincial law materially prejudices the economic, health or
security
interests of another province or the country as a whole, or
impedes the implementation of national economic policies.”
[210]
The context of section 235 was described in the judgment of
Chaskalson P in
Executive
Council, Western Cape Legislature
above n 37
at paras 7 9. In relevant part section 235,
which is headed “Transitional arrangements:
Executive
authorities”, stated the following:
“
(1)
A person who immediately before the commencement of this
Constitution was—
(a)
the State President or a Minister or Deputy Minister of the Republic
within the meaning of the previous Constitution;
(b)
the Administrator or a member of the Executive Council of a
province;
or
(c)
the President, Chief Minister or other chief executive or a
Minister,
Deputy Minister or other political functionary in a
government under any other constitution or constitutional
arrangement which
was in force in an area which forms part of the
national territory,
shall
continue in office until the President has been elected in terms of
section 77(1)(a) and has assumed office: Provided
that a person
referred to in paragraph (a), (b) or (c) shall for the purposes of
section 42(1)(e) and while continuing in
office, be deemed not
to hold an office of profit under the Republic.
.
. .
(5)
Upon the assumption of office by the President in terms of this
Constitution—
(a)
the executive authority of the Republic as contemplated in
section 75
shall vest in the President acting in accordance
with this Constitution; and
(b)
the executive authority of a province as contemplated in section 144
shall, subject to subsections (8) and (9), vest in the Premier of
that province acting in accordance with this Constitution, or
while
the Premier of a province has not yet assumed office, in the
President acting in accordance with section 75 until
the
Premier assumes office.
(6)
The power to exercise executive authority in terms of laws which,
immediately
prior to the commencement of this Constitution, were in
force in any area which forms part of the national territory and
which
in terms of section 229 continue in force after such
commencement, shall be allocated as follows:
(a)
All laws with regard to matters which—
(i)
do not fall within the functional areas specified in Schedule 6;
or
(ii)
do fall within such functional areas but are matters referred to in
paragraphs (a) to (e) of section 126(3) . . . shall be
administered by a competent authority within the jurisdiction of the
national government . . .
(b)
All laws with regard to matters which fall within the functional
areas
specified in Schedule 6 and which are not matters
referred to in paragraphs (a) to (e) of section 126(3) shall—
(i)
if any such law was immediately before the commencement of this
Constitution administered by or under the authority of a functionary
referred to in subsection (1)(a) or (b), be administered
by a
competent authority within the jurisdiction of the national
government until the administration of any such law is with
regard
to any particular province assigned under subsection (8) to a
competent authority within the jurisdiction of the
government of
such province; or
(ii)
if any such law was immediately before the said commencement
administered
by or under the authority of a functionary referred to
in subsection (1)(c), subject to subsections (8) and (9) be
administered
by a competent authority within the jurisdiction of the
government of the province in which that law applies, to the extent
that
it so applies . . ..
(c)
In this subsection and subsection (8) ‘competent
authority’
shall mean—
(i)
in relation to a law of which the administration is allocated to
the
national government, an authority designated by the President; and
(ii)
in relation to a law of which the administration is allocated to the
government of a province, an authority designated by the Premier of
the province.
.
. .
(8)(a)
The President may, and shall if so requested by the Premier of a
province, and provided the province
has the administrative capacity
to exercise and perform the powers and functions in question, by
proclamation in the Gazette
assign, within the framework of
section 126, the administration of a law referred to in
subsection (6)(b) to a competent
authority within the
jurisdiction of the government of a province, either generally or to
the extent specified in the proclamation.
(b)
When the President so assigns the administration of a law, or at any
time thereafter, and to the extent that he or she considers it
necessary for the efficient carrying out of the assignment, he
or
she may—
(i)
amend or adapt such law in order to regulate its application or
interpretation;
(ii)
where the assignment does not relate to the whole of such law,
repeal
and re enact, whether with or without an amendment or
adaptation contemplated in subparagraph (i), those of its provisions
to which the assignment relates or to the extent that the assignment
relates to them; and
(iii)
regulate any other matter necessary, in his or her opinion, as a
result of the
assignment, including matters relating to the transfer
or secondment of persons (subject to Sections 236 and 237) and
relating
to the transfer of assets, liabilities, rights and
obligations, including funds, to or from the national or a
provincial government
or any department of state, administration,
force or other institution.
.
. .
(d)
Any reference in a law to the authority administering such law,
shall
upon the assignment of such law in terms of paragraph (a) be
deemed to be a reference
mutatis mutandis
[(with the
necessary changes having been made)] to the appropriate authority of
the province concerned.”
[211]
See
DVB
Behuising
above
n 14 at paras 33 4.
[212]
Id at para 55.
[213]
Id at paras 55 8.
[214]
Id at para 58.
[215]
Id at para 72.
[216]
DVB
Behuising
above n 14
at paras 5 and 16(d).
[217]
DVB
Behuising
above n 14
at para 16(a), quoting the High Court’s judgment.
See also para 16(b), which is to
similar effect.
[218]
Id
at para 16(e).
[219]
Id
at para 17.
[220]
Regulations
1 to 13 of Chapter 9 of the Regulations for the Administration and
Control of Townships in Bantu Areas Proc R293 GG
140 of 16 November
1962.
The
chapter heading is “Registration of Deeds”. The
section headings include “Establishment of Deeds
Registries in Offices of Chief Bantu Affairs Commissioners”,
“Registrar of Deeds to be Advised of Establishment of
Townships”, “Duties of Officers in Charge of Deeds
Registry”, “Powers of Officer in Charge of Deeds
Registry”, “Inspection of Records and Supply of
Information”, “How Ownership Units shall be
Transferred”,
“Registration of Bonds”,
“Substitution of Debtor in Respect of a Bond”, “Taxes
and Fees to
be Paid before a Transfer of Land”, “Rectification
of Title by Endorsement” and “Copies of Deeds”.
[221]
Broadacres
Investments Ltd v Hart
1979
(2) SA 922
(A) at 931H.
[222]
DVB
Behuising
above n 14
at paras 102 3.
[223]
See the discussion at [126] to [128] above.
[224]
The section is headed “Municipal planning to be
developmentally oriented”
,
and
provides
as follows:
“
(1)
A municipality must undertake developmentally oriented planning
so as to ensure
that it—
(a)
strives to achieve the objects of local government set out in
section 152
of the Constitution;
(b)
gives effect to its developmental duties as required by section 153
of the Constitution; and
(c)
together with other organs of state contribute to the progressive
realisation
of the fundamental rights contained in sections 24, 25,
26, 27 and 29 of the Constitution.”
[225]
Mazibuko
above n 31 at
para 111.
See
also
Liquor
Bill
above n 31
at para 81.
[226]
Maccsand
above n 35
at para 47 and
Gauteng
Development Tribunal
above n 51
at para 55, as well as the authorities cited by the first
judgment at n 53.
[227]
Supreme
Court of Appeal judgment above n 20 at paras 18 9.
[228]
Section 155(7) reads as follows:
“
(7)
The national government, subject to section 44, and the
provincial governments
have the legislative and executive authority
to see to the effective performance by municipalities of their
functions in respect
of matters listed in Schedules 4 and 5, by
regulating the exercise by municipalities of their executive
authority referred to
in section 156(1).”
[229]
See
Minister
of Local Government, Western Cape v Lagoonbay Lifestyle Estate (Pty)
Ltd
[2013]
ZACC 39
;
2014 (1) SA 521
(CC);
2014 (2) BCLR 182
(CC) at para 46.
[230]
The history was referred to by the majority in
Chairperson
of the Municipal Appeals Tribunal, City of Tshwane v Brooklyn and
Eastern Areas Citizens Association
[2019]
ZASCA 34
;
[2019] 2 All SA 644
(SCA); 2012 JDR 0670 (SCA) at para 36
as follows:
“
SPLUMA
was the second legislative attempt to create a uniform town planning
regime for South Africa. The first attempt was
the
Development
Facilitation Act 67 of 1995
, but Chapters V and VI thereof were
found by the Constitutional Court to be invalid because they
infringed the autonomy
of municipalities to regulate the land use
and municipal planning within their areas of jurisdiction. These
defects were
remedied by SPLUMA.”
See also
Ex Parte
Whitfield and Similar Matters
2017 (5) SA 161
(ECP) at
paras 12 7.
[231]
The
argument that SPLUMA does not contemplate transfer embargoes is in
any event difficult to sustain. It contains its own
transfer
embargo in
section 53
to ensure compliance by a developer with
the conditions imposed upon approval of a land development
application, before the first
transfer of land units emanating from
the development may take place.
Section 32(1)
, which
deals with land use schemes, provides in broad terms that “[a]
municipality may pass by laws aimed at enforcing
its land use
scheme”. There is nothing in
section 32
to suggest
that this power in
section 32(1)
is confined to the specific
enforcement mechanisms provided for in
section 32(2)
to (12).
Section 5(1)(c)
, which includes in municipal planning “the
control
and
regulation
of
the use of land” (emphasis added), and
section 6(1)(a)
which applies the general principles in
section 7
to, amongst
others, “the preparation, adoption and implementation of any .
. . by law concerning spatial planning
and the development and
use of land”, appear to recognise that municipalities exercise
broad, original legislative authority.
[232]
3
of 2000.
[233]
AngloGold
Ashanti Ltd
above
n 52 at paras 39 44 and 69.
[234]
103
of 1977.
[235]
Emalahleni
disputed this, saying that the building plans were required only to
assess compliance with the land use scheme.
But Form B
suggests otherwise. It demands approved building plans and it
calls for information in relation to payment or
non payment of
“building compliance/contravention fines”, with the
Chief Building Inspector as the official
signing off on this part of
the form.
[236]
For example, freedom
of
movement in
section 21
, freedom of trade in
section 22
,
and, given that a cell phone gives access to social media,
freedom of expression in
section 16.
[237]
Biowatch
above
n 93.
[238]
Hyundai
above n 124 at paras
21-4; and
Cool
Ideas 1186 CC v Hubbard
[2014]
ZACC 16
;
2014 (4) SA 474
(CC);
2014 (8) BCLR 869
(CC) at para 28.
[239]
In the pre-constitutional era of parliamentary sovereignty, this
principle mainly found application in the interpretation of
contracts: see, for example,
Nach
Investments (Pty) Ltd v
Yaldai
Investments (Pty) Ltd
1987
(2) SA 820
(A) at 832F-H
.
[240]
More v
Minister of Cooperation and Development
1986
(1) SA 102
(A) at 116E-F;
and
Suid-Afrikaanse
Geneeskundige en Tandheelkundige Raad
v
Strauss
[1991] ZASCA 39
;
1991
(3) SA 203
(A) at 214H-J.
[241]
S v
Dlamini; S v Dladla; S v Joubert; S v Schietekat
[1999] ZACC 8
;
1999 (4)
SA 623
(CC);
1999 (7) BCLR 771
(CC) at para 47;
Shiva
Uranium (Pty) Ltd (In Business Rescue) v Tayob
[2021] ZACC 40
;
2022 (2)
BCLR 197
(CC);
2022 (3) SA 432
(CC) at para 38 and fn 15; and
Summit
Industrial Corporation v Claimants against the Fund Comprising the
Proceeds of the Sale of the MV Trade Transporter
1987(2)
SA 583 (A) at 596G-I. In
Poswa
v Member of the Executive Council for Economic Affairs, Environment
and Tourism, Eastern Cape
2001
(3) SA 582
(SCA) Schutz JA, after referring to
Bhyat
v Commissioner for Immigration
1931
AD 125
at 129, said this (at para 11):
“
The
effect of this formulation is that the court does not impose its
notion of what is absurd on the legislature’s judgment
as to
what is fitting, but uses absurdity as a means of divining what the
legislature could not have intended and therefore did
not intend,
thus arriving at what it did actually intend.”
[242]
In this Court, see
Municipal
Employees Pension Fund v Mongwaketse
[2022]
ZACC 9
;
2022 (11) BCLR 1404
(CC);
2022 (6) SA 1
(CC) at para 46.
See also
Secretary
for Inland Revenue v Somers Vines
1968 (2)
SA 138 (A) at 156B-D;
Casey
N.O. v Minister of Defence
1973(1)
SA 630 (A) at 639B-C;
Commissioner
for Inland Revenue v Shell Southern Africa Pension Fund
1984 (1) SA 672
(A) at
678E-F; and
Bastian
Financial Services (Pty) Ltd v General Hendrik Schoeman Primary
Schoo
l
[2008] ZASCA 70
;
[2008] 4 All SA 117
(SCA);
2008 (5) SA 1
(SCA) at
para 26.
[243]
Contrary to paragraph 54 of the second judgment,
section 76(2)(d)
-(f) does not provide for the giving of a
“certificate” by the owner to the Registrar. It
provides for the owner
to furnish “proof” of the matters
listed in paragraphs (d) to (f) to the Municipality. In terms
of
section 76
, it is the Municipality that then issues a
“certificate” to the Registrar. The certificate
which the Municipality
furnishes to the Registrar in terms of
section 76
, insofar as it relates to paragraphs (d)-(f),
is a certificate that the owner has furnished to the Municipality
the proofs
listed in those paragraphs. In terms of
section 76
,
in contrast with
section 74(2)
, the Municipality does not
itself certify the matters which are the subject of the proofs; it
merely certifies that it has received
proofs from the owner.
The “proofs” may be files of documents and/or
photographs, and such proof may turn out
not to be fully accurate.
[244]
Section 74(2)(a)
and
section 76(2)(f)
may be thought to
have some overlap though it is not explicit. The former
requires the Municipality to certify to the Registrar
that all
engineering services have been “designed and constructed”
to the satisfaction of the Municipality.
Section 76(2)(f)
requires the owner to furnish proof to the Municipality that all
engineering services have been “installed” or that
arrangements (presumably, arrangements for the installation) have
been made to the satisfaction of the Municipality. I
cannot
say whether the “construction” of engineering services
is the same thing as their “installation”.
To the
extent that there is an overlap, there is then also a contradiction,
since
section 74(2)(a)
requires that all the engineering
services should already have been constructed, whereas
section 76(2)(f)
contemplates that some might not yet have been
installed but that arrangements have been made to the satisfaction
of the Municipality
for their future installation.
[245]
Above n 241.
[246]
Natal
Joint Municipal Pension Fund v Endumeni Municipality
[2012] ZASCA 13
;
[2012]
2 All SA 262
(SCA);
2012 (4) SA 593
(SCA) at para 25.
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