Case Law[2023] ZACC 8South Africa
Ledla Structural Development (Pty) Ltd and Others v Special Investigating Unit (CCT 319/21) [2023] ZACC 8; 2023 (6) BCLR 709 (CC); 2023 (2) SACR 1 (CC) (10 March 2023)
Constitutional Court of South Africa
10 March 2023
Headnotes
Summary: Special Tribunal established in terms of section 2 of the Special Investigating Units and Special Tribunals Act — Special Tribunal is not a court but has the jurisdiction to adjudicate legality reviews
Judgment
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## Ledla Structural Development (Pty) Ltd and Others v Special Investigating Unit (CCT 319/21) [2023] ZACC 8; 2023 (6) BCLR 709 (CC); 2023 (2) SACR 1 (CC) (10 March 2023)
Ledla Structural Development (Pty) Ltd and Others v Special Investigating Unit (CCT 319/21) [2023] ZACC 8; 2023 (6) BCLR 709 (CC); 2023 (2) SACR 1 (CC) (10 March 2023)
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sino date 10 March 2023
CONSTITUTIONAL
COURT OF SOUTH AFRICA
Case CCT 319/21
In
the matter between:
LEDLA
STRUCTURAL DEVELOPMENT
(PTY)
LIMITED
First
Applicant
RHULANI
LEHONG
Second
Applicant
KGODISHO
NORMAN
LEHONG
Third
Applicant
and
SPECIAL
INVESTIGATING
UNIT
Respondent
Neutral
citation:
Ledla Structural Development
(Pty) Ltd and Others v Special Investigating Unit
[2023] ZACC 8
Coram:
Kollapen J,
Madlanga J, Majiedt J, Mathopo J,
Mhlantla J, Mlambo AJ, Theron J and Tshiqi J
Judgments:
Mhlantla J (unanimous)
Heard
on:
24 May 2022
Decided
on:
10 March 2023
Summary:
Special Tribunal established in terms of section 2 of the Special
Investigating Units and Special Tribunals Act — Special
Tribunal is not a court but has the jurisdiction to adjudicate
legality reviews
ORDER
On
appeal from the Special Tribunal held at the High Court of South
Africa, Gauteng Division, Pretoria:
1.
Leave to appeal is granted.
2.
The appeal is dismissed with costs, including the costs of two
counsel.
JUDGMENT
MHLANTLA J
(Kollapen J, Madlanga J, Majiedt J, Mathopo J, Mlambo AJ,
Theron J and Tshiqi J concurring):
Introduction
[1]
This
is an application for leave to appeal against a judgment and order of
the Special Tribunal held at the High Court of South
Africa,
Gauteng Division, Pretoria. The Special Tribunal is established
in terms of section 2 of the Special Investigating
Units and Special
Tribunals Act
[1]
(SIU Act).
The Special Tribunal reviewed and set aside an unlawful contract. It
issued an interdict and a forfeiture
order in respect of monies held
in terms of a preservation order. The central question in this
matter is whether the Special
Tribunal is a court and has review
powers as well as the powers to grant preservation and forfeiture
orders.
Parties
[2]
The
first applicant is Ledla Structural Development (Pty) Ltd (Ledla).
The second and third applicants are Ms Rhulani Lehong
and Mr
Kgodisho Norman Lehong, respectively. They are the directors
and co-chief operations officers of Ledla. The
respondent is
the Special Investigating Unit (SIU), an organ of state established
in terms of section 2(1)(a)(i) of the SIU Act.
Background
[3]
The
following background is largely taken from the judgment of the
Special Tribunal. In December 2019, the world was introduced
to
COVID-19.
[2]
The first
confirmed case of COVID-19 in South Africa was reported on 5 March
2020.
[3]
The unanticipated
emergence of COVID-19 prompted the South African government to
take active measures to prevent the
further spread of the coronavirus
and, as far as possible, mitigate its effects.
[4]
One such measure was the procurement of personal protective equipment
(PPE), a task that was to be performed by the various
provincial departments of health.
[4]
On
27 March 2020, the Chief Operations Officer of the Gauteng Department
of Health (Department) presented a report that revealed
a PPE
shortage of R1.7 billion for the entire Department. The
report was informed by a decision of the Department that
was taken to
assess and project the impending PPE shortage, as well as the
quantities required to ensure that frontline health
workers would be
protected. As a result of this report, a decision was taken to
procure PPE stock. Ms Mantsu Kabelo
Lehloenya, the Chief
Financial Officer of the Department, was appointed as the chairperson
of the Bid Adjudication Committee
and was placed in charge of
the procurement process for the Department.
[5]
For
reasons of exigency, the Department authorised a deviation from
compliance with the normal tender processes. It is worth
noting
that this deviation was adopted by the Department, notwithstanding
Note No 8 of 2019/2020 that was issued in terms of section 76
of
the Public Finance Management Act
[5]
(PFMA) on 19 March 2020 by the National Department of
Treasury. Note 8 was issued to, among other things, support
effective and efficient service delivery, as well as to curb possible
abuses of supply chain management systems during the period
of
managing COVID-19. Clause 2.3 of Note 8 emphasises
that in procuring COVID-19 items, state institutions were
required to
comply with the PFMA and the applicable emergency provisions of the
Treasury Regulations.
[6]
Regulation 16A6.4 of the Treasury Regulations provided
that if it was impractical to invite competitive bids, the accounting
officer may procure the required goods and services by other means,
provided that the reasons for deviation from inviting competitive
bids were recorded and approved by the accounting officer.
Although the Department did not advertise the tender or call for
bids, as it would in the ordinary course, it received bids from
various individuals and businesses.
[6]
The
Department received two bids to supply masks, disposable bags and
sanitisers from Royal Bhaca (Pty) Ltd (Royal Bhaca), whose
sole
director was Mr Thandisizwe Diko – a close family
friend to Dr Bandile Masuku, the then Member of the Executive
Council
for Health in Gauteng. Mr Diko secured two contracts
(PPE contracts) with the Department to the value of
R125 million.
When the relationship between Mr Diko and Dr
Masuku became public knowledge, Royal Bhaca was substituted with
Ledla.
[7]
On
25 March 2020, Ms Thandy Pino was appointed as Chief Director of
Supply Chain and Asset Management in the Department.
Five
days after her appointment, Ms Pino signed commitment letters
for PPE contracts valued at R125 million. It
is common
cause that Ms Pino did not have the necessary authority to sign off
on procurement contracts that exceeded the value
of R30 000.
Ms Pino advised the SIU that Ms Lehloenya had instructed her to
sign the letters of commitment.
[8]
On
13 April 2020, Ms Lehloenya received a quotation from Ledla for
several PPE items amounting to R139 million. According
to
the SIU’s investigation, the quotation was created by Mr Diko
and modified by Ms Lehloenya. On 20 April 2020,
the
quotation was accepted by Ms Lehloenya and the amended commitment
letter was sent directly to Mr Diko. On 30 April 2020,
Ms
Lehloenya sent two emails to Mr Diko. One of them
cancelled the two contracts with Royal Bhaca and the other was
an
acceptance of the quotation on behalf of the Department. The
second email also contained the amended letter of commitment
attached
to an email dated 20 April 2020. Thereafter, Ms Lehloenya
resigned from the Department on 1 May 2020.
[9]
On
3 August 2020, the Department deposited an amount of R38 758 155
into Ledla’s bank account. Between 3 and
5 August
2020, Ledla transferred a large portion of this amount into various
bank accounts. K Manufacturing and
Supply (Pty) Ltd
(K Manufacturing) received an amount of R16.5 million.
Mr Sangoni, who was neither a director
nor an employee of
Ledla, but a relative of Mr Diko’s wife, instructed
K Manufacturing to transfer R8.5 million
to his company,
Zakheni Strategic Solutions (Pty) Ltd. From the
remaining money, K Manufacturing distributed
various amounts to
five companies and three individuals.
[7]
Mediwaste Packaging (Pty) Ltd (Mediwaste), received R3 470 000
from Ledla. On the next day, Mediwaste
transferred various
amounts into the bank accounts of nine other business entities and
three individuals.
[8]
Another company, Atturo Tyres (Pty) Ltd, received
R1 426 000 from Ledla and it also distributed it to
various
business entities and individuals.
[9]
[10]
Mr
Jonathan Maake, the managing director of Mediwaste, filed an
affidavit before the Special Tribunal in which he alleged that,
on
3 April 2020, he was approached by Mr Lehong and Ms Lehong, as
representatives of Royal Bhaca, seeking to place orders
for the
supply of disposable bags and health care boxes. Mediwaste
charged 75 cents for each disposable bag. The
total for a
million disposable bags came to R750 000. Royal Bhaca
charged the Department R7 per bag, totalling R7 million
for the
million disposable bags. Royal Bhaca, therefore, made a
profit of R6 250 000 on the disposable bag
transaction.
[11]
According to Mr Maake, while Mr Diko was attending at
Mediwaste to facilitate a certain payment, Mr Diko proposed that
Mediwaste
and Royal Bhaca enter into a partnership. This
partnership, in terms of the proposal, was to be capitalised by
securing
a loan for the amount of R30 million from the
Industrial Development Corporation. Upon securing the
loan, this
amount would be shared between the two entities,
whereafter Mediwaste would file for bankruptcy.
[12]
Several
complaints were made regarding allegations of corruption in the
procurement of PPE. The Head of Department referred
the
allegations to the Office of the Premier. A preliminary
investigation was conducted by the Office of the Premier. The
investigation revealed violations of procurement prescripts and
impropriety in the processing of payments. The media widely
reported on the award of two contracts to Royal Bhaca and
suggested that the awards may have been as a result of Mr Diko’s
proximity to political power. As a result, the President of the
Republic of South Africa issued a proclamation in terms
of the
SIU Act, authorising the SIU to investigate acts of
maladministration, corruption and breaches of procurement procedures
relating to COVID-19 and for remedial steps to be taken.
[13]
The
SIU conducted investigations and concluded that Ms Lehloenya was
central to the conclusion of the unlawful contract and
authorisation
of the payment of R38 758 155 to Ledla. This was
based on email correspondence between Ms Lehloenya
and Mr Diko,
as well as evidence from other parties. The SIU’s
findings prompted it to approach the Special Tribunal
for urgent
relief relating to the contract awarded to Ledla.
Litigation
history
Special
Tribunal
Urgent
application
[14]
In
August 2020, the SIU launched an ex parte urgent application against
Ledla and various other business entities and individuals
for relief
in three parts: (a) cancellation of the contract between the
Department and Ledla; (b) a preservation order against
various banks
which held the amount of R38 758 155 paid to Ledla; and (c)
an interdict prohibiting the Government Employees
Pension Fund and
the Government Pensions Administration Agency from releasing
monies held in pension and retirement benefits
due to Ms Lehloenya.
The interim order was granted and a rule nisi was issued.
Return
date
[15]
On
the return day of the rule nisi
,
the SIU applied for the contract concluded by Ledla and the
Department to be reviewed and set aside for being unlawful. It
also applied for the amount of R38 758 155 which was
subject to a preservation order, to be forfeited to the state.
The respondents opposed the relief sought on several grounds. These
included that: (a) the Special Tribunal is not a court
and does not
have review powers to grant the orders sought; (b) the SIU lacked
locus standi; (c) the funds had mixed with other
monies in the bank
and thus became the property of the bank (
commixtio
);
and (d) they sought a proper interpretation of rule 26 of the
Rules for the Conduct of Proceedings in the Special Tribunals
(Special Tribunal Rules).
[10]
[16]
The
Special Tribunal had to determine whether: (a) the contract entered
into between Ledla and the Department should be reviewed
and set
aside; (b) the amount of R38 758 155 should be declared as
the proceeds of unlawful activity and forfeited to
the state; and (c)
the interdict should be extended.
[17]
On
the first issue, the Special Tribunal considered the Instruction
Notes issued by the National and Provincial Treasury for PPE
procurement and found that, on the evidence, it appeared that Royal
Bhaca submitted a quotation for the supply of bio hazard
health
care boxes and bags valued at R47 million and the Department
awarded it the contract for that amount. The
next day,
Royal Bhaca submitted a quotation for the supply of masks and
hand sanitisers valued at about R78 million and
the Department
also awarded it the contract for that amount. Both quotations
were accepted through commitment letters that
were signed by Ms
Pino. She alleged that it was Ms Lehloenya who had
instructed her to sign the commitment letters and
who personally
invited the suppliers to submit bids. Ms Lehloenya
disputed these allegations.
[18]
The
Special Tribunal held that there was a link between Royal Bhaca and
Ledla – in essence Ledla became a substitute
for
Royal Bhaca in the amended contract signed by Ms Lehloenya on 20
April 2020. Mr Diko, Mr Lehong and Ms Lehong were
acting
in concert with officials from the Department to supply PPE at
inflated prices. The prices quoted were in excess of
the
maximum prices set by Treasury, none of the senior officials
negotiated these prices and a cost comparison was never undertaken.
In conclusion, the Special Tribunal held that one or more senior
officials at the Department acted in concert with Mr Diko
and,
therefore, the contracts awarded to Royal Bhaca and Ledla were
unlawful and fell to be set aside.
[19]
On
the second issue, the Special Tribunal held that Mr Diko had been
implicated by documentary evidence. Ms Lehloenya sent
two
emails to Mr Diko just before she resigned: one that cancelled the
contract with Royal Bhaca and another that contained the
amended
letter of commitment to Ledla. The significance of this,
according to the Special Tribunal, is that it was strange
that
an “amended” letter of commitment would be sent to Ledla,
when no previous commitment had been made. Further,
the
Special Tribunal questioned why the email was sent to Mr Diko,
who had nothing to do with Ledla.
[11]
The Special Tribunal held that the unlawful contract was the basis
for the payment of R38 758 155. Therefore,
it was
irrelevant that Ms Lehloenya had resigned by the time the payment was
made.
[12]
The Special
Tribunal extended the interdict pending the finalisation of the
action proceedings under case number GP/11/2020
in the
Special Tribunal.
[20]
Regarding
the question whether the Special Tribunal is a court, it was held
that the Special Tribunal, although
sui
generis
(of
its own kind), performs the functions of a civil court.
[13]
A decision by the Special Tribunal is appealable to the Full Court of
the High Court and, therefore, fits the description
of a court
as contemplated in section 166(e) of the Constitution.
The Special Tribunal held that, although the SIU
was wrong to
rely on the Special Tribunal Rules to found a cause of
action, there is a cause of action under the SIU Act.
[14]
It further held that the review and setting aside of improper or
unlawful conduct by employees of any state institution arising
out of
an investigation in section 2(2) of the Act is competent relief that
may be sought within the meaning of civil proceedings
in the SIU
Regulations.
[15]
It held
that the SIU has the necessary locus standi to institute proceedings
in the Special Tribunal.
[16]
The Special Tribunal also dismissed the defence that, since the
funds had been deposited in the various bank accounts,
the funds had
mixed with other monies in the bank and thus became the property of
the bank.
[17]
[21]
The
Special Tribunal considered the evidence against each of the cited
respondents to determine whether forfeiture was appropriate,
given
this Court’s decisions in
Botha
[18]
and
Mohamed,
[19]
and the right not to be arbitrarily deprived of property. The
Special Tribunal said that rules 24 and 26 of the Special
Tribunal Rules mirror the provisions of the Prevention of
Organised Crimes Act
[20]
(POCA) in respect of preservation and forfeiture. Relying on
the decisions of this Court relating to POCA, the Special Tribunal
said its approach to forfeiture would be to ascertain whether the
Special Tribunal was persuaded that: (a) each respondent to whom
the
money was transferred acquired the rights to the money legally; (b)
the acquisition was for value; and (c) the respondents
neither knew
nor had any reasonable grounds to suspect that the money was the
proceeds of unlawful activity.
[21]
The Special Tribunal found that the three applicants that are before
this Court had failed that test. The Special Tribunal
also
declared the contract to be unlawful and set it aside. It
extended the interim interdict pending the finalisation of
the action
proceedings. It confirmed the preservation order against Ledla,
K Manufacturing, Ms Lehong and Mr Lehong
and declared the
money forfeited to the state.
[22]
Aggrieved
by the decision of the Special Tribunal, the applicants applied for
leave to appeal. That application was dismissed.
Supreme
Court of Appeal
[23]
The
applicants petitioned the Supreme Court of Appeal. That Court
refused leave to appeal.
In
this Court
Applicants’
submissions
Jurisdiction and leave
to appeal
[24]
The
applicants submit that this Court’s jurisdiction is engaged as
this matter requires this Court to determine: (a) the “proper
interpretation and application of instruments intended to give effect
to section 217 of the Constitution”; (b) the proper
interpretation and application of the right to a fair trial; (c) the
interpretation and application of section 217 of the
Constitution; (d) the scope of the Special Tribunal’s
public powers to adjudicate judicial reviews, which – according
to the applicants – is a matter that falls within the exclusive
preserve of the High Court; and (e) the powers of the
Special Tribunal
to effect a deprivation of private property.
[25]
With
regard to leave to appeal, the applicants submit that the application
enjoys reasonable prospects of success, as the relief
sought by the
SIU should have been dismissed. The applicants further submit
that it would be in the interests of justice
for this Court to hear
this matter, as its adjudication will aid in providing certainty on
the scope of the Special Tribunal’s
powers and functions.
Merits
[26]
The
applicants submit that the Special Tribunal is not a court and,
consequently, the review proceedings and the forfeiture orders
it
granted were a nullity, as they were premised on an incorrect
assumption that the Special Tribunal is a court of law.
The
applicants draw a distinction between the powers and functions of
tribunals and courts, and submit that tribunals have limited
powers
and functions which are conferred on them. The applicants argue
that the Special Tribunal is set up by the President
of the Republic
of South Africa and the Legislature could not have contemplated
conferring unfettered discretion on the President
to create a court.
[27]
The
applicants submit that the Special Tribunal does not have the powers
to “adjudicate judicial reviews of administrative
action or any
exercise of public power for the contravention of section 217 of the
Constitution” under any judicial review
scheme. They
submit that a breach of section 217 can only elicit a judicial review
under two avenues – the
principle of legality
(section 1(c)) or through the Promotion of Administrative Justice
Act
[22]
(PAJA). On
legality review, the applicants contend that the remedial action that
may be taken by a court is in terms of section 172
of
the Constitution, which entitles a court to make a just and
equitable order, inclusive of a declaration of constitutional
invalidity. The applicants submit that tribunals are not
authorised to exercise section 172 powers, as these are reserved
for
the courts. Under PAJA review, the applicants state that
section 6(1) of PAJA empowers a “court or a
tribunal”
to conduct a “judicial review of an administrative action”.
The applicants elucidate that PAJA
defines a court as “a High
Court or another court of similar status” and the “Magistrates’
Court”,
exclusive of a body akin to the Special Tribunal.
Therefore, a tribunal is excluded from the definition.
The applicants
submit that the Special Tribunal acted beyond its
powers when it engaged in a judicial review and, thus, its decisions
are
a nullity. The applicants also reject the submission that
the Special Tribunal’s review powers are sourced from
the
Regulations of the Special Investigating Units and Special
Tribunals
[23]
(SIU Regulations).
[28]
The
applicants submit that the Special Tribunal was not empowered by the
SIU Regulations or the Special Tribunal Rules to grant
a
preservation order. According to the applicants, the SIU
Regulations do not permit civil forfeiture, unless the preservation
order, under which the property is subject, is “legally
competent”. The applicants submit that legal competence
is not conferred by the SIU Regulations but must be
pre existing – the forfeiture powers must be
conferred
by an extrinsic empowering instrument. In the absence
of that instrument, a forfeiture of assets is incompetent and not
authorised.
Additionally, the applicants submit that an order
relating to the forfeiture of assets is a deprivation of property,
which implicates
section 25(1) of the Constitution.
[24]
The section 25(1) right may only be limited in terms of a law of
general application. The applicants submit that the
Special Tribunal Rules do not constitute a law of general
application and cannot be interpreted as such.
[29]
The
applicants make several submissions to the effect that the
Special Tribunal erred in its factual findings. The
applicants
submit that the finding by the Special Tribunal that
the awarding of the contract to the first applicant was tainted with
corruption and fraud related to an issue that was not before it for
adjudication. They refute the finding that Ledla was unlawfully
substituted for Royal Bhaca. They further disavow the
finding that the quoted prices were in excess of the maximum prices
regulated in terms of Treasury Notes 5 and 8 as well as the finding
that Ms Lehloenya had acted alone and beyond her powers
in the
procurement process.
[30]
The
applicants seek an order setting aside the order of the
Special Tribunal and an order “discharging the rule nisi
and dismissing the application with costs including costs of two
counsel”. The applicants further seek costs of the
special application for leave to appeal to the Supreme Court of
Appeal, inclusive of costs consequent upon the employment of three
counsel.
Respondent’s
submissions
Jurisdiction and leave
to appeal
[31]
The
respondent submits that it would not be in the interests of justice
for this Court to grant leave to appeal. In support
of its
submissions, the respondent contends that the applicants have no
material defence, as the award of the tender to Ledla was
“manifestly
unlawful and calculated to conceal the interests of Mr Diko”.
[32]
The
respondent also submits that the applicants have raised mostly novel
issues and arguments in their written submissions. These
include the challenge to the status or jurisdiction of the Special
Tribunal. The respondent argues that these issues were
not
raised by the applicants in the proceedings before the
Special Tribunal or in the application filed in the Supreme
Court
of Appeal or this Court. The respondent submits that the
challenge to the Special Tribunal’s status and jurisdiction
is
a far-reaching issue of public importance, which could affect a range
of respondents who have been and/or will be subject to
review
proceedings. Thus, by adjudicating this matter, this Court will
be acting as a court of first and last instance, without
the benefit
of the respondent’s adequately prepared submissions and in the
absence of the Minister of Justice, who ought
to have been a party to
the proceedings. The respondent further submits that the
applicants, in their application for leave
to appeal in this Court,
expressly accepted the status of the Special Tribunal as a court and
that it was entitled to grant an
order reviewing and setting aside
the award of a tender.
Merits
[33]
The
respondent submits that the Special Tribunal’s power to conduct
reviews and to grant forfeiture orders is not determined
by its
status as a court, “but by the proper interpretation of the
powers vested in it by the SIU Act and the Regulations”.
The respondent further contends that nothing in the Constitution
“precludes an independent and impartial Tribunal”
from
exercising review powers, setting aside tender awards and/or making
forfeiture orders. Further, the respondent submits
that the
Special Tribunal is a court. According to the respondent,
the Special Tribunal may be described as “any
other court”
in terms of section 166(e) of the Constitution and/or qualifies as a
court “established in terms of an
Act of Parliament” –
the Special Tribunal was established pursuant to the SIU Act.
The respondent also contends
that it meets the requirements of
independence outlined in section 165(2) of the Constitution.
The respondent submits that
when determining whether the Special
Tribunal is a court, its functions and features must be taken into
account. The respondent
contends that the Special Tribunal
functions on the same basis as a civil court, bearing in mind its
composition, the public
participation in its proceedings and the
effect of its decisions.
[34]
On
its composition, the respondent submits that the Special Tribunal is
composed of judges and magistrates who are already clothed
with
judicial authority. On its functioning, the respondent submits
that the Special Tribunal is independent and impartial;
[25]
specifically tasked with adjudicating civil proceedings and making
orders similar to a court;
[26]
empowered to issue warrants for persons who fail to honour a
subpoena; and makes decisions that are executed and appealed on the
same basis as a single judge of the High Court.
[27]
[35]
The
respondent submits that the Special Tribunal is empowered to
adjudicate civil proceedings in terms of section 8(2) of the SIU
Act. It contends that the impugned review proceedings were
civil proceedings in terms of section 8(2), thus the
Special Tribunal
has the necessary jurisdiction. The
respondent further submits that section 8(2) of the SIU Act
accords with section
34 of the Constitution and PAJA.
[36]
Additionally,
the respondent argues that the contention that the Special Tribunal
does not have the jurisdiction to adjudicate
reviews subverts the
scheme of the SIU Act, which was intended to investigate
“serious malpractices or maladministration
in connection with
the administration of state institutions”. The respondent
submits that review proceedings are “quintessential
civil
proceedings designed to remedy malpractices and maladministration in
connection with the administration of state institutions”.
[37]
The
respondent contends that the Special Tribunal has the requisite
authority to grant forfeiture orders. In this regard,
the
respondent submits that the applicants erroneously relied on the
Special Tribunal Rules that were promulgated in 2020,
whereas
the rules relied upon to seek the preservation order when the
proceedings were launched were promulgated in 2019.
The
respondent avers that rule 24 of the 2019 Rules was capable
of supporting the preservation and forfeiture orders
that were
granted by the Special Tribunal. It further submits that there
is no merit in the applicants’ contention
that the Special
Tribunal Rules are not a law of general application, as they were
published and apply to “all persons who
found themselves
subject to proceedings before the Special Tribunal”.
[38]
Lastly,
the respondent argues that there is no merit in the allegation that
the Special Tribunal made incorrect factual findings.
The
respondent contends that it presented substantial evidence about the
material issues in the case, some of which were unchallenged.
The respondent further submits that the Special Tribunal’s
findings were premised on uncontroverted evidence. The
respondent argues that the applicants’ version is contrived,
and the evidence presented demonstrates that the first applicant
was
“unlawfully and irregularly awarded” the contract.
Thus, the respondent seeks that the application for leave
to appeal
be dismissed, or if leave is granted, the appeal be dismissed with
costs, including the costs of two counsel.
Issues
[39]
The
preliminary issue that must be determined is whether the jurisdiction
of this Court is engaged and, if so, whether leave to
appeal should
be granted. The main issues that must be determined relate to
the status of the Special Tribunal. In
particular: whether the
Special Tribunal is a court of law; whether the Special Tribunal has
powers to adjudicate reviews and,
if so, whether it may issue
forfeiture orders; and whether it is open to this Court to determine
the correctness of the Special
Tribunal’s factual findings
concerning the applicants’ conduct.
Jurisdiction
and leave to appeal
[40]
This
matter is primarily centred on the determination of the scope and
content of the Special Tribunal’s status, powers and
functions.
This exercise also involves, to some extent, the interpretation
of section 8 of the SIU Act. These are constitutional
issues as
they concern an enquiry into the exercise of public power.
Consequently, this Court’s jurisdiction is engaged.
Further, the inquiry into the status, powers and functions of
the Special Tribunal raises an arguable point of law of general
public importance, as envisaged in section 167(3)(b)(ii) of the
Constitution. This Court is also called upon to provide
clarity
on the competence of the Special Tribunal to adjudicate reviews and
make forfeiture orders.
[41]
These
are questions that have greater implications, not just for the
litigants before this Court, but also for other parties who
may find
themselves before the Special Tribunal in similar cases.
Therefore, it is in the interests of justice that
leave to appeal
should be granted.
Merits
Is
the Special Tribunal a court?
[42]
Before
determining this issue, it is imperative to address the respondent’s
contentions that the questions surrounding the
Special Tribunal’s
status and powers were raised for the first time in this Court and
that the applicants made a concession
on the status of the Special
Tribunal.
[43]
On
the first contention – whether the questions
surrounding the Special Tribunal’s status and powers
were
raised for the first time in this Court – the record
before us reveals the following: in an affidavit filed
at the Special
Tribunal and deposed to by the second applicant, the SIU’s
authority to institute the review proceedings and
to seek a
forfeiture of assets, as well as the Special Tribunal’s
jurisdiction over these matters, are challenged. The
applicants
alleged that the appropriate remedy for confiscation and forfeiture
could only be in terms of the POCA or the Prevention
and
Combating of Corrupt Activities Act,
[28]
which may only be brought by the National Prosecuting Authority. The
applicants expressly argued that the SIU does not have
legal standing
to prosecute a claim against the other respondents and that the
Special Tribunal does not have jurisdiction
over the envisaged
claim.
[44]
The
question whether the Special Tribunal is a court and whether it has
jurisdiction to adjudicate reviews was also directly addressed
by the
Special Tribunal in its judgment, in which it made a finding
that its status fits the description of a court.
[45]
On
the second contention – whether the applicants made any
concession on the status of the Special Tribunal – due regard
must be had to the applicants’ conduct. The applicants
have been consistent in their arguments and their challenge
of the
Special Tribunal’s status and powers. Their conduct
is not consistent at all with the alleged concession.
Furthermore,
a concession on the status and jurisdiction of the Special Tribunal
amounts to a legal concession and it
is well-established that legal
concessions that have been erroneously made are not binding. In
Matatiele
,
this Court held that “[i]t is trite that this Court is not
bound by a legal concession if it considers the concession to
be
wrong in law”.
[29]
In
Dengetenge
,
this Court held that “a concession made by counsel on a point
of law may be withdrawn if the withdrawal does not cause any
prejudice to the other party”.
[30]
[46]
From
this, it is evident that these issues were squarely pleaded by the
applicants and considered by the Special Tribunal. They
were
not raised for the first time before this Court in the applicants’
written submissions. It is further evident
that the alleged
legal concessions are not binding and are in any event also not
dispositive of the live issues before us.
Thus, the
respondent’s contentions in this regard do not gain traction.
[47]
Now
that the preliminary issues have been dispensed with, I will
determine the question whether the Special Tribunal is a court.
[48]
The
starting point is section 166 of the Constitution, which provides:
“
The courts are—
(a)
the Constitutional Court;
(b)
the Supreme Court of Appeal;
(c)
the High Court of South Africa, and any high court of appeal that may
be established
by an Act of Parliament to hear appeals from any court
of a status similar to the High Court of South Africa;
(d)
the Magistrates’ Courts; and
(e)
any other court established or recognised in terms of an Act of
Parliament, including
any court of a status similar to either the
High Court of South Africa or the Magistrates’ Courts.”
[49]
A
plain reading of section 166(e) reveals that it applies to a court
established or recognised in terms of an Act of Parliament.
It
also includes a court of similar status to the High Court or the
Magistrates’ Courts. It does not apply to
a tribunal.
[50]
The
Special Tribunal is established and constituted on an ad hoc basis.
In terms of section 2(1) of the SIU Act, the
President as Head
of the Executive has been given a discretion to issue a proclamation
establishing a Special Tribunal. Section 2(2)
also makes
clear that only the President is empowered to refer matters to the
SIU or to establish a Special Investigating
Unit in order to
investigate a matter. These features are not those of a court
of law. The Special Tribunal’s
jurisdiction is also
restricted to civil proceedings that arise from the investigations
and referral by the SIU, in terms of section 2(2)
of the
SIU Act.
[51]
It
is so that the presiding officer of the Special Tribunal is a judge
or retired judge. However, the other members of the
Tribunal
are not always judges. In terms of section 7(3),
[31]
the additional members may be appointed from the ranks of judges or
acting judges, magistrates and advocates or attorneys. Section
7(5) empowers the President to determine the period of appointment of
the members of the Special Tribunal. This means
that the
members have no security of tenure, something enjoyed by judges.
[52]
In
the result, these factors ineluctably point to only one conclusion;
that the Special Tribunal is not a court.
Does
the Special Tribunal have the power to adjudicate reviews?
[53]
Having
determined that the Special Tribunal is not a court, the next
question is whether the Special Tribunal has review powers.
Section
6(1) of PAJA states: “any person may institute proceedings in a
court or a tribunal for the judicial review
of an administrative
action”. Section 1 of PAJA defines a tribunal as
“any independent and impartial tribunal
established by national
legislation for the purpose of judicially reviewing an administrative
action in terms of this Act”.
On a plain reading of
section 6(1) of PAJA, the Legislature refers to a court or
tribunal. The word “or”
must be read to imply that
the tribunal is different from a court. The definition of a
tribunal must mean that the Special Tribunal
has no power to
adjudicate a review of administrative action under PAJA. This
is simply because it has not been “established
by national
legislation for the purpose of judicially reviewing an administrative
action in terms of [PAJA]”.
[54]
The
question then becomes: can a tribunal, more specifically the
Special Tribunal, conduct a legality review?
[55]
Recently,
in
Group
Five
,
[32]
this Court had occasion to consider questions similar to the ones
currently before this Court, specifically, whether the
Competition Tribunal
has review powers in matters arising out of
the interpretation and application of chapters 2, 3 and 5 of the
Competition Act.
[33]
In
Group
Five
,
the Competition Commission (Commission) referred a complaint
against Group Five Construction Limited (Group Five), one
of the
construction companies alleged to have been involved in collusive
conduct concerning the construction of stadia for the
2010 Soccer
World Cup, to the Competition Tribunal for possible collusive
and anti-competitive conduct in contravention
of section 4(1)(b)(i)
and (ii) of the Competition Act.
[34]
In response, Group Five raised the defence that the Commission
had previously granted it immunity from prosecution through
its
Corporate Leniency Policy and that the Commission’s
referral was effectively oppressive, vexatious and mala fide.
[35]
[56]
Thereafter,
Group Five launched a review application in the High Court against
the Commission’s decision to refer the complaint
to the
Competition Tribunal.
[36]
In response, the Commission sought an order to declare that the
review proceedings constituted an irregular step and, on
that basis,
to set them aside. The Commission’s case was that the
High Court lacked jurisdiction to hear the matter
as it pertained to
the interpretation and application of Chapters 2, 3 and 5 of the
Competition Act, matters over which the
Competition Tribunal has
exclusive jurisdiction in terms of section 62 of the
Competition Act.
[37]
[57]
The
High Court held that the matter pertained to the lawfulness and
validity of the referral, an issue that falls within the purview
of
section 62(2)(a) of the Competition Act.
[38]
The High Court further held that the Competition Tribunal only has
the powers afforded to it in the Competition Act, and
these do not
include the power to conduct PAJA or legality reviews.
[39]
[58]
On
appeal, the Supreme Court of Appeal held that the matter concerned
the lawfulness and validity of the initiation and referral
of the
Commission’s complaint, an issue that is a jurisdictional
question and thus a constitutional matter.
[40]
The Supreme Court of Appeal concluded that the High Court’s
jurisdiction was not ousted.
[41]
Following the decision of the Supreme Court of Appeal, the Commission
filed an application for leave to appeal in this Court.
[59]
In
this Court, Majiedt J, writing for the majority, held that the
Competition Tribunal and Competition Appeal Court have exclusive
jurisdiction over matters that fall within the scope of section 62(1)
of the Competition Act.
[42]
However, this does not extend to matters referred to in section
62(2), over which the Competition Appeal Court
and the High
Court have concurrent jurisdiction.
[43]
The majority held that section 62(2), read together with section
62(3)(b), confers upon the Competition Appeal Court
and the
High Court the jurisdictional power to decide “whether an
action taken or proposed to be taken by the Competition
Commission or
the Competition Tribunal is within their respective
jurisdictions in terms of this Act”,
[44]
as well as any constitutional matter. According to the
majority, this is the power to decide legality or vires
challenges.
[45]
[60]
The
majority further held that it is trite that both PAJA and legality
review applications are constitutional matters and that,
by virtue of
section 169(1)(a)(ii) of the Constitution, the High Court had
inherent jurisdiction to adjudicate them –
a power which is
shared by the Competition Appeal Court owing to it having “a
status similar to that of the High Court”
and by virtue of it
being empowered by section 62(2) of the Competition Act.
[46]
The majority explicitly concluded that these powers –
that is the power to conduct PAJA and legality reviews –
do not
extend to the Competition Tribunal.
[61]
The
majority elucidated that the Competition Act does not confer on the
Competition Tribunal the jurisdiction to deal with
any of the
matters in section 62(2).
[47]
Thus, effectively, the Competition Tribunal does not enjoy any
plenary review jurisdiction.
[48]
The judgment further stipulated that the Competition Tribunal does
not enjoy any review powers under PAJA in that section
6(1) of PAJA
confines review powers to a court or a tribunal and section 1 of PAJA
defines “tribunal” as “any
independent and
impartial tribunal established by national legislation for the
purpose of judicially reviewing an administrative
action in terms of
[PAJA]”.
[49]
The
PAJA definition of a tribunal therefore does not include a statutory
body like the Competition Tribunal.
[50]
Ultimately, it was held that the Competition Tribunal does not have
the jurisdiction to adjudicate PAJA or legality reviews.
[51]
Majiedt J stated:
“
[T]he central
issues here are not competition law issues, but legality or
vires
issues. They fall squarely within the carve out in section
62(2)(a) – a question whether actions are
ultra
vires
the Commission. In this determination one must have regard to
the provisions of the Act, but that does not change the nature
of the
review, which remains one of
vires
.
And once the issue is one of
vires
,
this is a matter over which the Competition Appeal Court has
concurrent jurisdiction with the High Court, to the exclusion
of the
Tribunal.”
[52]
[62]
As
I see it, the Special Tribunal is in the same position as the
Competition Tribunal – both are creatures of statute.
As
this Court said in
Group Five
,
“[the Competition Tribunal] is a creature of statute, limited
in the exercise of its powers to those afforded to it within
the four
corners of the Act. Absent any express powers in the Act
to do so, the Competition Tribunal has no authority
in law to review
the lawful exercise of public power.”
[53]
[63]
Therefore,
it is clear from the
Group Five
decision that we must consider
the legislation establishing the Special Tribunal to determine
whether it is empowered to make findings
in respect of a legality
review.
[64]
In
this regard we must consider the provisions of the SIU Act. The
relevant section in the case of the Special Tribunal is
section 8(2)
of the SIU Act which provides:
“
A Special Tribunal
shall have jurisdiction to adjudicate upon any civil proceedings
brought before it by a Special Investigating
Unit in its own name or
on behalf of a State institution or any interested party as defined
by the regulations, emanating from
the investigation by such Special
Investigating Unit.”
[65]
This,
to me, is the first distinguishing feature of this case from
Group
Five
as
there is no provision in the SIU Act which limits the powers of the
Special Tribunal like section 62 of the Competition
Act. The
Special Tribunal’s power of legality reviews emanates from its
broad remedial powers in section 8 of the SIU Act.
The wide
language employed in that section (“
any
civil proceedings”) points to the power of legality review not
being excluded from its power to adjudicate civil proceedings.
[54]
[66]
Secondly,
the preamble of the SIU Act and section 4 make it abundantly clear
that the Act has as its objective, amongst others,
the establishment
of structures, including the Special Tribunal, to address the rampant
corruption in all forms of malfeasance
in our country. The
preamble of the SIU Act outlines its purpose as to—
“
provide for the
establishment of Special Investigating Units for the purpose of
investigating serious malpractices or maladministration
in connection
with the administration of State institutions, State assets and
public money as well as any conduct which may seriously
harm the
interests of the public and of instituting and conducting civil
proceedings in any court of law or a Special Tribunal
in its own name
or on behalf of State institutions; to provide for the revenue and
expenditure of Special Investigating Units;
to provide for the
establishment of Special Tribunals so as to adjudicate upon civil
matters emanating from investigations by Special
Investigating Units;
and to provide for matters incidental thereto.”
[67]
The
functions of the SIU are set out in section 4(1)(c) of the SIU Act as
follows:
“
to institute and
conduct civil proceedings in a Special Tribunal or any court of law
for—
(i)
any relief to which the State institution concerned is entitled,
including the
recovery of any damages or losses and the prevention of
potential damages or losses which may be suffered by such a State
institution;
(ii)
any relief relevant to any investigation; or
(iii)
any relief relevant to the interests of a Special Investigating
Unit.”
[68]
From
the preamble and section 4 of the SIU Act, it is clear that the
legislative intention was to cast a wide net over the scope
of the
proceedings the Special Tribunal is empowered to adjudicate
upon. Therefore, a legality review is not excluded
from the
ambit of the jurisdiction of the Special Tribunal as there is no
carve-out of the powers of the Special Tribunal
to adjudicate
over civil proceedings.
[69]
In
this regard, it is diametrically different to the
Competition Tribunal to which the carve-out in section 62(2)
of
the Competition Act applies, as this Court has held in
Group Five
. Accordingly, the Special Tribunal
has the jurisdiction to adjudicate reviews brought by the SIU and to
grant an order
setting aside an unlawful procurement contract.
[70]
In
the result, I conclude that the Special Tribunal is not a court.
However, it has the power to adjudicate legality reviews.
Does
the Special Tribunal have the power to issue forfeiture orders?
[71]
The
applicants have challenged the Special Tribunal’s powers to
issue preservation and forfeiture orders. They have
asked this
Court to interpret rule 26 of the Special Tribunal Rules as well
as regulation 5(c) of the SIU Regulations.
Although the
applicants seek an interpretation in form, their argument in this
respect is effectively a constitutional challenge
against rule 26
of the Special Tribunal Rules and regulation 5(c) of the SIU
Regulations.
This
Court has expressly refused to engage in an interpretative exercise
where the effect thereof was to challenge the constitutionality
of
the provision. In
EFF
,
[55]
it stated:
“
The applicants
contend that a proper interpretation of the Trespass Act in
conjunction with PIE ought to yield a meaning that effectively
renders it impermissible for one to face criminal charges and a
possible conviction flowing from an alleged violation of section
1(1)
of the Trespass Act where PIE applies or offers protection. It
is also argued that PIE has implicitly repealed the Trespass
Act.
Since PIE owes its breath
to section 26(3) of the Constitution, it is not unreasonable or
inappropriate to read a reference to PIE
as a pointer to the
inescapability of the role of section 26(3) as the cardinal
reference point in addressing this issue.
The way the issue was
raised renders it unavoidable that the constitutionality of section
1(1) of the Trespass Act be
effectively pronounced upon, even if
it might not be expressly referred to as such. Truth be told,
this is another way of
seeking to have us declare this section
unconstitutional. This we will not do.
This approach, foisted
upon us by the applicants, is very difficult if not impossible to
manage to its intended end. They
ought to have launched a
frontal challenge to the constitutionality of section 1(1). Nothing
stopped them from doing so.
But, they chose not to. Instead,
they opted for this intractable interpretive route. They would
therefore have
to fall by their free choice.”
[56]
[72]
What
was said in
EFF
equally applies in this matter. The
applicants should have launched a frontal attack on the impugned rule
and regulation
and should have joined the Minister of Justice to
those proceedings, as opposed to raising an interpretative argument,
which in
substance is a constitutionality challenge. On this
premise, this Court cannot entertain this issue.
Did
the Special Tribunal err in its factual findings?
[73]
The
applicants have enjoined this Court to make a determination on
whether the Special Tribunal erred in its factual findings
concerning their conduct as it related to the impugned procurement
process. It is now trite that this Court will decline
to
entertain an appeal against the factual findings of a court where the
dispute of fact is not connected to “a separate
constitutional
issue”.
[57]
[74]
Having
assessed the parties’ submissions on this aspect, it is plain
that the factual disputes arising out of this matter
are considerably
divorced from the primary constitutional issue on account of the fact
that it is entirely possible to make a determination
on the status,
powers and functions of the Special Tribunal without first resolving
the factual disputes. Consequently, there
is no basis for this
Court to consider the factual findings of the Special Tribunal.
Conclusion
[75]
In
the result, the Special Tribunal is not a court. However, it
has jurisdiction to adjudicate legality reviews in terms of
the SIU
Act. It follows that the appeal must fail.
Order
[76]
The
following order is made:
1.
Leave to appeal is granted.
2.
The appeal is dismissed with costs, including the costs of two
counsel.
For
the Applicants:
T
Ngcukaitobi SC, M E Manala and M D Sekwakweng
instructed
by MNM and Associates Incorporated
For
the Respondent:
M
Chaskalson SC and G Ngcangisa
instructed
by State Attorney, Pretoria
[1]
74 of 1996.
[2]
The World Health Organisation (WHO) declared COVID-19 a pandemic on
11 March 2020. See Cucinotta and Vanelli “WHO
Declares
COVID-19 a Pandemic” (2020) 9
Acta
Biomed
at 157. See also Nyamutata “Do Civil Liberties Really
Matter During Pandemics? Approaches to Coronavirus Disease
(COVID-19)” (2020) 9
International
Human Rights Law Review
62 at 70; Allam
Surveying
the Covid-19 Pandemic and its Implications
(2020)
Elsevier
Inc
at
1-2; and Huang et al “Clinical Features of Patients Infected
with 2019 Novel Coronavirus in Wuhan, China” (2020)
395
The
Lancet
at 497.
[3]
Herman “Coronavirus: SA’s First Positive Case of
Covid-19 Confirmed”
News24
(5 March 2020), available
at
https:/www.news24.com/SouthAfrica/News/breaking-sas-first-positive-case-of-covid-19-confrmed-20200305
.
[4]
Sobikwa and Phooko “An Assessment of the Constitutionality of
the COVID-19 Regulations Against the Requirement to Facilitate
Public Participation in the Law-Making and/or Administrative Process
in South Africa” (2021) 25
Law,
Democracy and Development
309 at 311, 326-7.
[5]
1 of 1999.
[6]
Treasury Regulations, GN R225
GG
27388,
15 March 2005.
[7]
The five companies were: Hallmann Worldwide Logistics (Pty) Ltd;
Double Click BTC (Pty) Ltd; Skyline Contractors (Pty) Ltd; Home
Vision Projects (Pty) Ltd; and XC Logic (Pty) Ltd. The three
individuals were Mpho Mafenyane, Yuchang Xiao and Ronen Barashi.
[8]
The nine businesses were: Xingyu Plastic Recycling (Pty) Ltd; Mortz
Marketing Enterprise CC; Injemo Engineering and Plastic Products
(Pty) Ltd; Buhle Waste (Pty) Ltd; Api Property Group (Pty) Ltd;
Sasol South Africa Limited; Mutasa Tool and Die Engineering (Pty)
Ltd; Empiru (Pty) Ltd; and Boxlee (Pty) Ltd.
[9]
Atturo
distributed the funds to the following entities and individuals:
Jamac Technological CC; Manikensis Investments 6 (Pty)
Ltd; Angelic
Juliana Groenewald; Michael Gerad Rofail; and Patrick John Kalil.
[10]
Rule 26(1) of the Special Tribunal Rules regulates forfeiture orders
and states:
“
At
the conclusion of the proceedings and on final determination of the
dispute, depending on the outcomes on the unlawful activities
of the
respondent or the defendant, as the case may be, the Tribunal shall
make a final order for forfeiture to the State of
the property held
under a restraint order or property preservation order where a
respondent has been found to have partaken in
unlawful activities.”
[11]
Ledla
Structural Development (Pty) Ltd v Special Investigating Unit
,
unreported judgment of the Special Tribunal, Gauteng Case No GP
07/2020 at para 39 (
Special
Tribunal judgment).
[12]
Id.
[13]
Id
at para 46.
[14]
Id
at para 48.
[15]
Id
at para 50.
[16]
Id
at para 52.
[17]
Id at para 59.
[18]
In
National
Director of Public Prosecutions v Botha N.O
.
[2020]
ZACC 6
;
2020
(1) SACR 599
(CC)
;
2020 (6) BCLR 693
(CC)
at
paras 108-9, this Court held:
“
If
the person opposing forfeiture persuades the High Court that
forfeiture should not be granted, it should not grant the order.
Where that person establishes that she has legally acquired
interest for consideration in the proceeds of unlawful activities,
the Court may exclude such interest in the operation of the
forfeiture order.
It
is evident from the scheme emerging from sections 48-52 of
[Prevention of Organised Crimes Act] that proceeds of unlawful
activities may be forfeited to the state unless a party opposing
forfeiture has legally acquired them for consideration.
If the
acquisition occurred after January 1999, she must also show that she
did not know or had no reasonable grounds to suspect
that the
property in which she acquired interest was the proceeds of unlawful
activities.”
[19]
National
Director of Public Prosecutions
v
Mohamed
N.O
.
[2003]
ZACC 4
;
2003 (4) SA 1
(CC);
2003
(5) BCLR 476
(CC) at paras 18-9, this Court held:
“
Prior
to the forfeiture stage of the proceedings there is an opportunity
for affected parties to have preservation orders set
aside or
varied. So, section 47(3) provides that a High Court shall
rescind a preservation order made in respect of immovable
property
‘if it deems it necessary in the interests of justice’
to do so. Section 47(1) provides, in respect
of movable
property, that a High Court may vary or rescind the preservation
order, but in much more limited circumstances than
in the case of
immovable property.
At
the forfeiture stage of the proceedings an owner can claim that he
or she acquired an interest in the property in question
legally and
for value, and that he or she neither knew nor had reasonable
grounds to suspect that the property constituted the
proceeds of
crime or had been an instrumentality in an offence (‘the
innocent owner’ defence).”
[20]
121 of 1998. Rule 24 of the Special Tribunal Rules regulates
preservation orders. It provides:
“
(1)
Any interested person or party including the SIU may by way of an ex
parte
application apply to the Tribunal for an order prohibiting any
person, subject to such conditions and exceptions as may be
specified
in the order, from dealing in any manner with any
property.
(2)
The application must demonstrate that the property concerned:
(a)
is or has been [an] instrumentality of an offence referred to in
schedule 1 of [Prevention and Combating of Corrupt Activities Act];
or
(b)
constitutes the proceeds of unlawful activities emanating from the
findings of an investigation conducted by SIU, pursuant to a
proclamation made by the President relevant to that investigation,
in terms of section 2(1) of the Act.
(3)
The Tribunal at the time of granting a preservation order may at
the
same time make
an
order authorising the seizure of the property concerned by a police
official, and any other ancillary orders that the Tribunal
considers
appropriate for the proper, fair and effective execution of the
preservation order.
(4)
Property seized under this Rule shall be dealt with in accordance
with the directions of the Tribunal.
(5)
Where the Tribunal orders preservation of a property, the SIU shall,
as soon as is
practicable
after granting the order––
(a)
give notice of the order to all persons known to the SIU to have
an
interest in property which is subject to the order; and
(b)
publish a notice of the order in the Gazette.
(6)
A notice under this sub-rule 5 shall be served in the manner
provided
for in these Rules.
(7)
Any person who has an interest in the property which is subject
to
the preservation order may enter an appearance to apply for an order
excluding his or her interest in the property concerned
from the
operation thereof.
(8)
An appearance under this Rule shall be delivered to the SIU and
in
the case of––
(a)
a person upon whom a notice has been served under sub-rule 5,
14 days after such service; or
(b)
any other person, 14 days after the date upon which a notice under
subsection (1)(b) was published in the Gazette.
(9)
An appearance under sub-rule 5 shall contain full particulars of
the
chosen address for the delivery of documents concerning further
proceedings and shall be accompanied by an affidavit stating––
(a)
full particulars of the identity of the person entering the
appearance;
(b)
the nature and extent of his or her interest in the property
concerned;
and
(c)
the basis of the defence upon which he or she intends to rely in
opposing a
forfeiture
order or applying for the exclusion of his or her interests from the
operation thereof.”
[21]
Special
Tribunal judgment at para 72.
[22]
3 of 2000.
[23]
Regulations:
Special Investigating Units and Special Tribunals GN R360
GG
25024,
14 March 2003.
[24]
Section 25(1) of the Constitution provides:
“
No
one may be deprived of property except in terms of law of general
application, and no law may permit arbitrary deprivation
of
property.”
[25]
See section 8(1) of the SIU Act.
[26]
See section 8(2) of the SIU Act.
[27]
See sections 8(7) and 9(7) of the SIU Act.
[28]
12 of 2004.
[29]
Matatiele
Municipality v President of the Republic of South Africa
[2006]
ZACC 2
;
2006 (5) SA 47
(CC);
2006 (5) BCLR 622
(CC) at para 67.
[30]
Dengetenge
Holdings (Pty) Ltd v Southern Sphere Mining and Development Company
Ltd
[2013]
ZACC 48
;
2014 (5) SA 138
(CC);
2014 (3) BCLR 265
(CC) at para 55.
[31]
Section 7(3) of the SIU Act reads:
“
Additional
members of the Tribunal may be appointed by the President from the
ranks of
(a)
judges or acting judges; and
(b)
magistrates and advocates or attorneys of the Supreme Court of South
Africa who have been involved in the administration of justice for a
period of at least seven years.”
[32]
Competition
Commission of South Africa v Group Five Construction Ltd
[2022] ZACC 36; 2023 (1) BCLR 1 (CC).
[33]
89 of 1998.
[34]
Group
Five
above
n 32 at para 4. Id.
[35]
Id at para 5.
[36]
Id at para 6.
[37]
Id at para 7. See also section 62 which provides:
“
(1)
The Competition Tribunal and Competition Appeal Court share
exclusive jurisdiction
in respect of the following matters:
(a)
Interpretation and application of Chapters 2, 3 and 5, other than—
(i)
a question or matter referred to in subsection (2); or
(ii)
a review of a certificate issued by the Minister of Finance in
terms
of section 18(2); and
(b)
the functions referred to in sections 21(1), 27(1) and 37, other
than a question or matter referred to in subsection (2).
(2)
In addition to any other jurisdiction granted in this Act to the
Competition
Appeal
Court, the Court has jurisdiction over—
(a)
the question whether an action taken or proposed to be taken by
the
Competition Commission or the Competition Tribunal is within their
respective jurisdictions in terms of this Act;
(b)
any constitutional matter arising in terms of this Act; and
(c)
the question whether a matter falls within the exclusive
jurisdiction
granted
under subsection (1).
(3)
The jurisdiction of the Competition Appeal Court—
(a)
is final over a matter within its exclusive jurisdiction in terms
of
subsection (1); and
(b)
is neither exclusive nor final in respect of a matter within its
jurisdiction in terms of subsection (2).
(4)
An appeal from a decision of the Competition Appeal Court in respect
of a matter within its jurisdiction in terms of subsection (2) lies
to the Constitutional Court, subject to section 63 and its
respective rules.
(5)
For greater certainty, the Competition Tribunal and the Competition
Appeal Court have no jurisdiction over the assessment of the amount,
and awarding, of damages arising out of a prohibited practice.”
[38]
Group
Five
above
n 32 at para 10.
[39]
Id.
[40]
Id at paras 11-7.
[41]
Id at para 18.
[42]
Id at para 125.
[43]
Id.
[44]
Id at para 132.
[45]
Id at para 125.
[46]
Id at para 132.
[47]
Id at para 127.
[48]
Id at paras 118 and 127.
[49]
Id at para 131.
[50]
Id.
[51]
Id at para 125, it was held that—
“
[T]he
Competition Appeal Court’s non-exclusive jurisdiction may
extend beyond a strict
ultra vires
challenge. This
legislative design is sensible because it is a court that must enjoy
supervisory jurisdiction over whether
the Tribunal has acted within
its powers. The Tribunal cannot itself decide that matter.
In its wisdom, Parliament
decided that questions of that kind may be
decided by the Competition Appeal Court and/or the High Court.
The Tribunal
cannot be characterised as a court, because its actions
are subject to review. The specialist nature of the Tribunal
and
the Competition Appeal Court is important for the purposes of
substantive analysis and decision making, but that is not engaged
in
the same way when the question is one of the lawful exercise of
power. That is true generally in reviews concerning
ultra
vires
issues. For example, superior courts, like the High
Court, the Supreme Court of Appeal and this Court do not require
special
expertise to decide questions of
vires
in diverse
fields like telecommunications, information technology and fishing,
to mention a few.”
[52]
Id at para 147.
[53]
Id at para 144.
[54]
My
emphasis.
[55]
Economic
Freedom Fighters v Minister of Justice and Correctional Services
[2020]
ZACC 25; 2021 (2) SA 1 (CC); 2021 (2) BCLR 118 (CC).
[56]
Id at paras 73-5.
[57]
Rail
Commuters Action Group v Transnet Limited t/a Metrorail
[2004] ZACC 20
;
2005 (2) SA 359
(CC);
2005 (4) BCLR 301
(CC) at para
52.
sino noindex
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