Case Law[2022] ZACC 9South Africa
Municipal Employees Pension Fund and Another v Mongwaketse (CCT 34/21) [2022] ZACC 9; 2022 (11) BCLR 1404 (CC); 2022 (6) SA 1 (CC) (14 March 2022)
Constitutional Court of South Africa
14 March 2022
Headnotes
Summary: Pension Funds Act 24 of 1956 — definitions of “complainant” and “complaint” — purported admission to membership of ineligible member — whether such person is a “complainant” as envisaged in the Act
Judgment
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## Municipal Employees Pension Fund and Another v Mongwaketse (CCT 34/21) [2022] ZACC 9; 2022 (11) BCLR 1404 (CC); 2022 (6) SA 1 (CC) (14 March 2022)
Municipal Employees Pension Fund and Another v Mongwaketse (CCT 34/21) [2022] ZACC 9; 2022 (11) BCLR 1404 (CC); 2022 (6) SA 1 (CC) (14 March 2022)
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sino date 14 March 2022
CONSTITUTIONAL
COURT OF SOUTH AFRICA
Case CCT 34/21
In the matter between:
MUNICIPAL EMPLOYEES
PENSION FUND
First Applicant
AKANI RETIREMENT FUND
ADMINISTRATORS
(PTY)
LIMITED
Second Applicant
and
DINEO INNOLENTIA
MONGWAKETSE
Respondent
and
CENTRE FOR APPLIED
LEGAL STUDIES
Amicus Curiae
Neutral citation:
Municipal
Employees Pension Fund and Another v Mongwaketse
[2022] ZACC
9
Coram:
Madlanga
J, Majiedt J, Mhlantla J, Pillay AJ, Rogers AJ,
Theron J, Tlaletsi AJ and Tshiqi J
Judgments:
Rogers AJ (unanimous)
Heard on:
30 November 2021
Decided on:
14 March 2022
Summary:
Pension Funds Act 24 of 1956
— definitions of “complainant”
and “complaint” — purported admission to membership of
ineligible member — whether such
person is a “complainant” as
envisaged in the Act
Pension
Fund Adjudicator — jurisdiction to grant unjustified enrichment
relief — whether case for such relief made out
ORDER
On appeal from the
Supreme Court of Appeal (hearing an appeal from the High Court
of South Africa, Gauteng Local Division,
Johannesburg):
1.
Leave to appeal is granted.
2.
The appeal is dismissed.
JUDGMENT
ROGERS
AJ (Madlanga J, Majiedt J, Mhlantla J, Pillay AJ, Theron J,
Tlaletsi AJ and Tshiqi J concurring):
Introduction
[1]
The respondent, Ms Dineo
Innolentia
Mongwaketse, lodged a grievance with the Pension Fund Adjudicator
(Adjudicator) in terms of Chapter VA of the Pension Funds Act
[1]
(Act) against the first applicant, the Municipal Employees Pension
Fund (MEPF or the Fund), and against the second applicant, Akani
Retirement Fund Administrators (Pty) Limited, the MEPF’s
administrator. The grievance concerned Ms Mongwaketse’s
purported
membership of the MEPF. The Adjudicator found in
favour of Ms Mongwaketse, ordering the MEPF to repay to her all
contributions
made in respect of her purported membership. The
main legal issue for determination is whether Ms Mongwaketse’s
grievance
was a “complaint” and whether she was a “complainant”
as these terms are defined in section 1 of the Act.
[2]
If her grievance did not qualify as a “complaint” by a
“complainant”, the Adjudicator lacked jurisdiction to entertain
the grievance. If the Adjudicator had jurisdiction, further
questions arise as to whether Ms Mongwaketse was entitled
to the
relief which the Adjudicator awarded her. Since the second
applicant does not have any distinct interest in the proceedings,
I
shall refer only to the MEPF, an expression which covers both
applicants where the context so indicates.
Factual
background
[2]
In February 2012 Ms Mongwaketse began employment with the
Ngaka Modiri Molema District Municipality (Municipality) as its
chief audit executive. Her employment contract was for a
fixed term of five years. It provided that at the end of
the
five-year term she would be offered an opportunity to renew the
agreement before the position was advertised. The
Municipality’s
municipal manager and executive authority were
not to withhold this opportunity unreasonably. The renewal
opportunity
was subject to satisfactory work performance in the
initial term.
[3]
Ms Mongwaketse and the Municipality signed an application form
for her membership of the MEPF. In accordance with the
MEPF’s rules,
the form specified that the contributions
payable by her and the Municipality would be 7.5% and 22%
respectively of her monthly
pensionable emoluments. The form
did not state that she was a fixed-term employee and did not provide
for recording the new
member’s employment status.
[4]
Ms Mongwaketse’s remuneration package was inclusive of all
benefits. If she wanted to belong to a pension fund, she had to
make all contributions. She understood that she was entitled to
join the MEPF. The Municipality would deduct from
her
monthly remuneration and pay to the MEPF contributions equating to
7.5% and 22%, the whole of which would be contributions
made by
her. In November 2014, however, she received a benefit
statement indicating that upon withdrawal from the MEPF
her benefit
would be calculated only with reference to the 7.5%
contributions. She queried this. It was at this
time, she
says, that she learnt that the MEPF’s rules did not entitle
fixed term employees to be members.
[5]
It is unnecessary to trace Ms Mongwaketse’s endeavours
to resolve the problem and the conflicting information she received
from the MEPF. Ms Mongwaketse asked the Municipality to
stop deducting pension fund contributions from her remuneration.
In September 2015 the Municipality notified the MEPF that all
contributions in respect of Ms Mongwaketse’s purported
membership had been made by her alone and that her joining the MEPF
had been an error. The Municipality asked that she be withdrawn
from the MEPF and that all contributions be refunded to her with
interest. The last contributions in respect of her purported
membership were paid in September 2015.
[6]
The MEPF’s eventual stance, which it maintained in the
ensuing litigation, was that Ms Mongwaketse had become a member
of the
Fund. The MEPF refused to refund the contributions.
Ms Mongwaketse’s employment with the Municipality
terminated
at the end of January 2017 and was not renewed. In
February the Municipality submitted a termination of service form to
the
MEPF.
The
proceedings before the Adjudicator
[7]
In March 2017 Ms Mongwaketse lodged her grievance with
the Adjudicator. After tracing the history of the matter,
Ms Mongwaketse
concluded:
“According
to the rules of the pension fund I am excluded as member. Which
means to begin with I shouldn’t have been a member
. . . .
The
pension fund legal adviser . . . in our meeting dated 10
February 2016 has conceded to the fact that indeed I am excluded
therefore that means the contributions received by the fund were
solely from me, he will meet with trustees and take it from there.
Since our
meeting with the legal advisor it is now 11 months, I have not heard
a thing from the fund.
Recommendations
That the
Adjudicator instructs the Municipal Employees Pension
Fund Administrators to pay me my total contributions (i.e. 7.5%
+ 22% as all this was contributed and structured by me) × 1.5 plus
22% mora interest because I should have been paid by December 2015
the latest.”
[8]
Ms Mongwaketse quantified her claim, though not explicitly,
with reference to clause 37(1)(b) of the MEPF’s rules.
In terms of that clause, upon resignation, discharge or leaving the
local authority’s service, a member is entitled to the amount
of
her contributions plus interest at the rate determined by the MEPF’s
management committee, multiplied by 1.5. However,
the
contributions contemplated in clause 37(1)(b) are the
contributions made by the member, that is the 7.5%
contributions,
whereas Ms Mongwaketse sought to apply the
formula to the entirety of the contributions, that is 29.5%.
[9]
The Adjudicator invited the Municipality and the MEPF to
respond to the complaint. The Municipality’s response is not
in the
record, but it appears from the Adjudicator’s determination
that the Municipality informed the Adjudicator that the total of all
contributions made in respect of Ms Mongwaketse’s purported
membership was R856 489.94.
[10]
On 8 June 2017, and before responding to the grievance, the
MEPF paid Ms Mongwaketse R237 422.67, supposedly as her net
withdrawal benefit in terms of the rules, after deducting R133 606.51
for income tax. The gross amount of R371 129.18
was
calculated in terms of clause 37(1)(b) as applied only to the 7.5%
contributions.
[11]
On 10 October 2017 the MEPF responded to the grievance.
The MEPF told the Adjudicator that Ms Mongwaketse had joined the
MEPF in February 2012, qualifying for all the benefits for which
the rules provided, including ill-health and death benefits.
Ms Mongwaketse had resigned from the MEPF in September 2015
although the termination of service form was only received much
later. She had since been paid the resignation benefit to which
she was entitled in terms of clause 37(1)(b) of the rules.
[12]
On 10 November 2017 the Adjudicator issued her determination,
finding as follows. Ms Mongwaketse had not met the
criteria
for membership of the MEPF, had not become a member, and was
not bound by the Fund’s rules. Factually, all
contributions
in respect of her purported membership had been met out
of her salary. The MEPF should thus refund to her the total
amount
of all contributions, including those deemed to have been made
by the Municipality, because the MEPF had not been entitled to
receive
the contributions. The total amount of the
contributions was R856 489.94. However, to avoid undue
enrichment to
Ms Mongwaketse, the MEPF should deduct the amount
already paid to her.
[13]
The Adjudicator filed the determination with the High Court
of South Africa, Gauteng Local Division, Johannesburg
(High Court)
in terms of section 30M of the Act.
The effect of such filing, in terms of section 30O, was that the
determination
was deemed to be a civil judgment of the High Court,
and execution could be levied after the expiry of six weeks, provided
no
application in terms of section 30P was lodged during that
period.
The
High Court proceedings
[14]
According to the MEPF, it only became aware of the
determination on 31 January 2018 after receiving a letter of
demand from Ms Mongwaketse’s
attorneys. On 2 March 2018
the MEPF launched an application in the High Court. Part A
of the notice of motion
was for urgent interim relief, which was
resolved by agreement. Part B sought relief by way of
judicial review and by
way of appeal in terms of section 30P.
The review relief was advanced in terms of the Promotion of
Administrative Justice Act
[3]
(PAJA), alternatively on the principle of legality. Taking into
account the supplementary founding papers delivered after production
of the Adjudicator’s record, the grounds of review were these:
(a) Because Ms Mongwaketse
contended in her grievance that she had not become a member of the
MEPF, and because the Adjudicator agreed, the grievance was not a
“complaint” by a “complainant” but simply a dispute between
private parties outside of the rules. On this basis, the
Adjudicator had no jurisdiction to determine the grievance.
(b) The following findings by the
Adjudicator were irrational and the product of errors of law:
(i)
that Ms Mongwaketse had not become a member of the MEPF and that
the rules did not apply to her; (ii) that the MEPF should
refund all
contributions, seemingly on the basis of unjustified enrichment.
(c) The Adjudicator had failed to
disclose to the MEPF, and to afford it an opportunity to comment
on,
various emails sent by Ms Mongwaketse to the Adjudicator in the
period June to October 2017.
(d) The Adjudicator had failed to
put to the MEPF for its response the proposition that Ms Mongwaketse
had not become a member of the Fund and that she was entitled to
recover all contributions on the basis of unjustified enrichment,
in
circumstances where these propositions were not advanced by
Ms Mongwaketse but raised by the Adjudicator of her own accord.
This was a failure of natural justice.
(e) The Adjudicator decided that
Ms Mongwaketse’s employment contract did not require
her to
become a member of the MEPF and in fact precluded her from doing so,
yet the Adjudicator’s record showed that she did not
have the
employment contract before her.
[15]
In the section 30P appeal the MEPF contended that even if the
determination was not set aside on review, the following findings by
the Adjudicator were wrong on the merits:
(a) that Ms Mongwaketse’s
employment contract did not make it compulsory for her to join the
MEPF;
(b) that Ms Mongwaketse had not
become a member of the MEPF and that she had not become legally
obliged to pay contributions; and
(c) that the MEPF was obliged to
refund the 22% employer contributions, seemingly on the basis
of
unjustified enrichment.
[16]
In August 2018, simultaneously with filing her supplementary
answering affidavit in response to the MEPF’s supplementary
founding
papers, Ms Mongwaketse delivered a notice of
counter-application in which she sought the following orders:
(a) reviewing
and setting aside the MEPF’s acceptance of her
membership application, alternatively declaring that she never became
a member of
the MEPF and was not bound by its rules and (b) that the
MEPF refund all contributions with interest. The supplementary
answering
affidavit also served as the founding affidavit in the
counter application. It is clear from the affidavit that
the counter-application
was conditional upon the MEPF’s application
succeeding.
[4]
[17]
In its affidavit answering the counter-application, the MEPF
contended that Ms Mongwaketse had been entitled to become a
member
and that in any event the MEPF’s decision to admit her to
membership was not reviewable, because it did not involve the
exercise
of public power. The MEPF also pleaded that
Ms Mongwaketse had waived her right to claim that she was
excluded from membership,
alternatively that she was estopped from
denying her membership.
[18]
The MEPF opposed the refund claim on the basis that it had not
been enriched, that Ms Mongwaketse had not been impoverished,
and that any impoverishment she had suffered was because of her own
inexcusable error and the Municipality’s conduct. The
MEPF
also pleaded that her refund claim had prescribed, because by
November 2014 at the latest she had become aware of the facts
giving
rise to the alleged claim. The MEPF’s contention of
non-enrichment and non impoverishment was based on the
allegation
that the 22% contributions made by employers were applied
by the MEPF to meet expenses of the Fund, such as premiums for risk
benefits
(death, disability and funeral cover), shortfalls in
withdrawal benefits, and overheads. The MEPF had applied the
22% contributions
in respect of Ms Mongwaketse’s purported
membership in this way, and she had enjoyed the benefits procured by
such expenditure.
[19]
The High Court dismissed the MEPF’s application. On
the jurisdictional issue, the High Court held that
Ms Mongwaketse
was a complainant as contemplated in
paragraph (d) of the definition of “complainant” and that
her grievance was a “complaint”
as defined. The High Court
agreed with the Adjudicator that the MEPF’s rules did not
permit the Fund to admit Ms Mongwaketse
as a member. As to
the relief granted by the Adjudicator, section 30E(1)(a)
empowered the Adjudicator to make any order
which a court of law
could make. This included an order to repay contributions on
the basis that they had not been owing.
The MEPF’s defence of
non-enrichment was misconceived because the MEPF was never “on
risk” in relation to Ms Mongwaketse,
given that she was not in
truth a member. It followed that the
prima facie
inference of enrichment and impoverishment, which arises when a
payment has been made without cause, had not been disturbed.
As
to prescription, Ms Mongwaketse had lodged her complaint with
the Adjudicator within three years of becoming aware that she
was not
eligible for membership, and in terms of section 30H(3) the
Adjudicator’s receipt of the complaint interrupted the
running of
prescription. The High Court also rejected the MEPF’s
other grounds of attack.
[20]
The High Court dismissed Ms Mongwaketse’s
counter-application, given that it was conditional on the MEPF’s
application succeeding.
The MEPF was nevertheless ordered to
pay the costs of both applications, since the counter-application was
an “appropriate precaution,
one which was intrinsically tied up
with the application in convention”.
The
Supreme Court of Appeal proceedings
[21]
The High Court granted the MEPF leave to appeal to the
Supreme Court of Appeal. The majority in that Court
(Wallis
JA, with Molemela JA and Dlodlo JA concurring)
dismissed the appeal. The majority held that Ms Mongwaketse
qualified
as a “complainant” in terms of both
paragraphs (a) and (d) of the definition, and that her
grievance fitted the
statutory definition of a “complaint”.
She was not “a stranger to the Fund bringing a civil law claim
against it”,
because as a fact she had been accepted as a member of
the MEPF and the latter was seeking to enforce its rules against her.
[22]
The majority held that there were two legal routes to the
conclusion that Ms Mongwaketse never became a member of the
MEPF.
The first was by the simple application of the
ultra
vires
doctrine – a pension fund only has such powers as are
conferred on it by its rules. The second was to invoke the
principles
of contract law on common mistake – Ms Mongwaketse
had been unaware that the rules did not entitle her to become a
member,
while the MEPF had been unaware that she was on a fixed term
contract and thus ineligible for membership. Estoppel could
not
be invoked because it would create an unlawful situation, and there
was no relevant right which Ms Mongwaketse could have
waived.
[23]
On the face of it, so the majority considered, all the
elements for the
condictio indebiti
were satisfied.
The MEPF’s contention that Ms Mongwaketse had not been
impoverished was rejected, given that she never
acquired the right to
any benefits under the MEPF’s rules. The MEPF had been
enriched: to the extent that Ms Mongwaketse’s
22%
contributions had become part of the MEPF’s general funds and used
to pay expenses, the MEPF had used Ms Mongwaketse’s
money to
meet ordinary expenses that would otherwise have had to be met from
other contributions. The MEPF was enriched by
not having to use
its “legitimate funds” to meet these expenses. Like the
High Court, the majority rejected the prescription
defence on
the basis that the complaint had been lodged within three years from
Ms Mongwaketse becoming aware of the relevant
facts in
November 2014.
[24]
In the first dissenting judgment, Ponnan JA considered
that the Adjudicator had failed to appreciate the true complexity of
Ms Mongwaketse’s
monetary claim. He thought that any
claim she had arising from impoverishment could only be one under her
employment contract,
lying against the Municipality. In the
absence of a valid tripartite contract between employer, employee and
the pension fund,
the 22% “contributions” which the Municipality
paid to the MEPF could not be regarded as having been paid on behalf
of Ms Mongwaketse.
However, and assuming that her claim
was otherwise good, the Adjudicator lacked jurisdiction because her
grievance was not of a kind
contemplated in the definition of
“complaint” and because it was difficult to see how she could be
accommodated by either paragraph (a) or (d)
of the
definition of “complainant”.
[25]
In a second dissenting judgment, Weiner AJA considered that in
view of the MEPF’s contention that Ms Mongwaketse had indeed
become a member, she qualified as a “complainant”. However,
once the Adjudicator concluded that Ms Mongwaketse had
not
become a member, her powers ceased, because the grievance could no
longer be accommodated by the definition of “complaint”.
In this
Court
[26]
The MEPF now seeks leave to appeal the Supreme Court
of Appeal’s order. It persists with the contentions it
raised in
the High Court, including the contention that
Ms Mongwaketse became a member of the Fund and that in any event
waiver and
estoppel barred her from disputing her membership.
In the alternative, and if Ms Mongwaketse did not become a
member,
the Adjudicator did not have jurisdiction to entertain her
claim. The applicant contends in any event that the
requirements
for an unjustified enrichment claim were not satisfied
and that such a claim had prescribed.
[27]
Ms Mongwaketse did not appear and was not legally represented
at the hearings in the Supreme Court of Appeal or in
this Court.
In this Court she filed a notice to abide.
In the Supreme Court of Appeal, a member of the Bar appeared as an
amicus curiae
at the Court’s request. In
this Court, the Centre for Applied Legal Studies (CALS)
applied and was granted
leave to make written and oral submissions as
an amicus curiae. In its submissions, CALS argued that the
interpretation
of the Act should be undertaken with due regard
to the constitutional rights at stake, including the right to social
security
and appropriate social assistance (section 27(1)(c) of
the Bill of Rights) and the right to have legal disputes
decided
in a fair public hearing (section 34 of the
Bill of Rights). CALS pointed out that if the
Adjudicator could
not entertain complaints from persons wrongly
admitted to membership, their only recourse would be to the
High Court, which
they might not be able to afford or where they
would run the risk of an adverse costs order.
[28]
CALS accepted that Ms Mongwaketse did not fall within
paragraphs (a) to (c) of the definition of
“complainant”
but argued that she fell within paragraph (d),
giving the words of that paragraph their ordinary meaning. Her
grievance,
furthermore, contained assertions of the kind set out in
the definition of “complaint”. Although the proper
interpretation
of these definitions was the main focus of CALS’
submissions, CALS argued that restitution followed as a matter of
course from
a finding that Ms Mongwaketse never in law became a
member of the MEPF. A complaint, it contended, is not a
pleading,
and complaints are generally formulated by lay people.
Technical arguments should be eschewed.
Jurisdiction
[29]
The interpretation of the definitions of “complainant” and
“complaint” in section 1 of the Act raises questions
of
law. As will be apparent when I address the merits, these
questions of law are arguable. This is shown by the fact
that
there were two dissenting judgments in the Supreme Court of
Appeal and by the fact that in reaching its conclusion on these
questions of law, the High Court in this case refused to follow
the contrary decision in
Ramaphakela
, which on its facts was
on all fours with the present matter.
[5]
The proper interpretation of the definitions is a matter of general
public importance, since on this depends the Adjudicator’s
jurisdiction in all cases where a pension fund has purported to admit
to membership a person who did not qualify for membership in
terms of
the fund’s rules. On this basis alone,
this Court’s jurisdiction is engaged in terms of
section 167(3)(b)(ii),
and leave to appeal should be granted.
[30]
This Court’s constitutional jurisdiction in terms of
section 167(3)(b)(i) is also engaged, because the case concerns
the lawfulness
and validity of the decision of a functionary
exercising public power.
The
merits of the appeal
Did Ms Mongwaketse become a member of the MEPF?
[31]
In order to reach the questions of statutory interpretation,
we must first deal with the MEPF’s argument that Ms Mongwaketse
became a member of the MEPF. If that conclusion were sustained
either on a proper interpretation of the rules or through the
application of estoppel or waiver, Ms Mongwaketse would be bound
by the rules and she would already have received everything
to which
she was entitled in terms of clause 37(1)(b) of the rules.
[32]
Clause 24 of the MEPF’s rules deals with qualification
for membership. Any person who becomes an “employee” on or
after 1 January 1994 has an election to become a member of the MEPF
or of another specified fund, depending on the precise time frame
within which the person became an “employee”. The word
“member” is defined in clause 1 of the rules as “a person
who
is or becomes a member of the [MEPF] in terms of [clause] 24”.
Clause 1 defines “employee” as a person
employed by a local
authority, excluding certain classes of employees. One excluded
class is “a person who is employed part-time
or for a limited
period”.
[33]
The MEPF argued that although only persons falling within the
definition of “employee” have the right to elect to become
members
of the MEPF, the management committee has a discretion to
allow other persons to become members. Reliance was placed on
clause
15(1)(a) which provides that the committee may “decide
whether any person is qualified to be a member of the [MEPF]”.
This
argument cannot be sustained. A person can only become a
member as defined if he or she becomes a member in terms of
clause 24.
Clause 24 contains the qualifications
entitling a person to elect to become a member. There is no
other rule qualifying
a person to become a member.
Clause 15(1)(a) merely entitles the committee to decide whether
a person meets the qualifications
set out in clause 24.
[34]
Counsel submitted that since qualification in terms of
clause 24 was unlikely to be contentious, clause 15(1)(a) should
not be
so narrowly read. I disagree. Clause 24
contains no fewer than nine different sets of circumstances in which
a person
may elect to become a member of the MEPF
[6]
and it is quite conceivable that uncertainty could exist as to
whether an applicant is covered by the specified circumstances.
It would be contrary to sound pension fund administration to read
clause 15(1)(a) as conferring on the committee an uncircumscribed
power to admit unspecified classes of people to membership.
[35]
The next question is whether Ms Mongwaketse was in the
excluded class of persons employed “for a limited period”.
The
word “limited” in this context is used in contradistinction
to “indefinite”. The primary benefit which a pension fund
such as the MEPF aims to provide for its members is a retirement
benefit in the form of a pension or annuity. In the case of
the
MEPF, a retirement benefit becomes payable when the member attains
the age of 65 (the defined “pension age”), though in certain
defined circumstances a retirement benefit may become payable if the
person retires within ten years of reaching pension age.
[7]
An indefinite employee has the prospect of reaching his or her
pension age. A person employed for a limited period would
generally not have this prospect. In regard to ill-health
benefits and benefits following discharge owing to reorganisation,
a
distinction is drawn between members who have at least ten years’
pensionable service and those with shorter service.
Again, a
person employed for a limited period would generally have no prospect
of qualifying for the superior benefits payable to
members with at
least ten years’ service. In short, a pension fund such as
the MEPF is unlikely to be a suitable vehicle
for persons employed
for a limited period, and it is entirely understandable that they
would be excluded from membership.
[36]
Ms Mongwaketse was employed for a fixed term of five years.
This is a “limited period”. Her contract contained
the
renewal provision I summarised earlier. Did this take her
outside the category of persons employed “for a limited period”?
The Supreme Court of Appeal majority held that the renewal term
was aimed at circumventing section 54A(4)(a) of the Local
Government: Municipal Systems Act
[8]
(Systems Act) and could thus be disregarded, as it was
ineffective in terms of that Court’s judgment in
Mawonga
.
[9]
This basis for disposing of the renewal term was incorrect.
Mawonga
dealt with the employment contracts of municipal
managers. In terms of section 57(6)(a) such a contract
must be for a fixed
term not exceeding five years; and in terms of
section 57(6)(c) the contract must stipulate the terms of the
renewal of the
employment contract. In
Mawonga
, the
Supreme Court of Appeal interpreted section 57(6) to mean
that the total duration of the contract, including any renewal,
could
not exceed five years, whereafter the position had to be
advertised nationally in terms of section 54A(4)(a).
[10]
Whether that interpretation is correct does not arise in this case,
because Ms Mongwaketse was not employed as a municipal manager.
Although she was a manager directly accountable to the Municipality’s
municipal manager, the Systems Act does not set a limit
of five
years on such managers’ employment contracts.
[37]
I agree, however, with the High Court’s rejection of
the MEPF’s reliance on the renewal clause. The High Court
said that a renewal was not a given; and that even if a renewal took
place, there was no implication that the renewal clause would
be part
of the renewed contract. I express no opinion on the second leg
of this reasoning, but I agree with the first leg.
The simple
fact of the matter is that in February 2012, when Ms Mongwaketse
purported to become a member of the MEPF, she was
only employed for a
five-year term. Whether there would be a renewal depended not
only on her work performance but also on
whether she wanted to
continue working for the Municipality. That is something that
would only become known towards the end
of the five-year term.
If the contract was renewed for a fixed term, she would then be
employed afresh for a new “limited
period”.
[38]
Since Ms Mongwaketse was not eligible for membership of
the MEPF, the latter did not have the power to admit her as a member
and her purported membership was a nullity, as the Supreme Court of
Appeal correctly held, citing
Abrahamse
.
[11]
Counsel for the MEPF submitted that
Abrahamse
should not
be followed to the extent that it suggests that any deviation from a
pension fund’s rules leads to invalidity and
nullity.
Such an approach was said to be “not consonant with our
constitutional jurisprudence”, though the jurisprudence
in question
was not mentioned. I disagree with the submission. Of
course, whether a particular act is in fact beyond
the powers of a
pension fund calls for a characterisation of the act and a proper
interpretation of the rules, but this case presents
no difficulties
in that regard since qualification for membership is a fundamental
component of pension fund governance.
[39]
The application of the
ultra vires
doctrine to pension
funds is consistent with the constitutional principle of legality.
Section 13 of the Act decrees that
a pension fund’s rules
shall be binding inter alia on the pension fund.
Section 5(1)(a) states that the effect
of the registration of a
pension fund such as the MEPF is that it becomes a body corporate
capable of suing and being sued in its
corporate name and of doing
all such things “as may be necessary for or incidental to the
exercise of its powers or the performance
of its functions in terms
of its rules”. Self-evidently, the admission to membership of
a person who is by virtue of the
rules ineligible for membership is
not an act “necessary for or incidental to” the exercise by the
pension fund of its powers
or the performance of its functions in
terms of the rules.
[40]
It is well-established that reliance on estoppel is
impermissible where its effect would be to give indirect validity to
conduct by
a corporate body which is beyond the body’s power to
perform.
[12]
The principle applies here. And I agree with the Supreme Court
of Appeal that there was no relevant right that Ms Mongwaketse
could waive. The waiver argument was just estoppel by a
different name.
The interpretation of “complainant” and “complaint”
[41]
On the basis, then, that Ms Mongwaketse never became a
member of the MEPF, did the Adjudicator have jurisdiction to
entertain
her grievance? In terms of Chapter VA of the
Act, the Adjudicator’s function is to investigate and dispose of
“complaints”.
[13]
The following definitions of “complainant” and “complaint”
appear in section 1 of the Act:
“‘complainant’
means—
(a)
any person who is, or claims to be—
(i) a member or
former member, of a fund;
(ii) a beneficiary or
former beneficiary of a fund;
(iii) an employer who
participates
in a fund;
(iv) a spouse or a former spouse
of a member or former member, of a fund;
(b)
any group of persons referred to in
paragraph (a)(i), (ii), (iii) or (iv);
(c)
a board of a fund or member thereof; or
(d)
any person who has an interest in a complaint;
‘complaint’
means a complaint of a complainant relating to the administration of
the fund, the investment of its funds or the
interpretation and
application of its rules, and alleging—
(a) that a decision of the
fund or any person purportedly taken in terms of the rules was
in
excess of the powers of that fund or person, or an improper exercise
of its powers;
(b) that the complainant
has sustained or may sustain prejudice in consequence of the
maladministration
of the fund by the fund or any person, whether by
act or omission;
(c) that a dispute of fact
or law has arisen in relation to a fund between the fund or
any
person and the complainant; or
(d) that an employer who
participates in a fund has not fulfilled its duties in terms of
the
rules of the fund;
but shall
not include a complaint which does not relate to a specific
complainant.”
[42]
The correct approach to statutory interpretation was
summarised by this Court in
Cool Ideas
[14]
as follows:
“A fundamental tenet of statutory interpretation is that the words
in a statute must be given their ordinary grammatical meaning,
unless
to do so would result in an absurdity. There are three
important interrelated riders to this general principle, namely:
(a) that statutory
provisions should always be interpreted purposively;
(b) the relevant statutory
provision must be properly contextualised; and
(c) all statutes must be
construed consistently with the Constitution, that is, where
reasonably
possible, legislative provisions ought to be interpreted
to preserve their constitutional validity. This proviso to the
general
principle is closely related to the purposive approach
referred to in (a).”
[15]
[43]
Paragraphs (a) to (c) of the definition of “complainant”
do not present any difficulty. And I disagree with the view
expressed
in the majority judgment in the Supreme Court of Appeal
that Ms Mongwaketse could be accommodated in paragraph (a)(i)
of
the definition. The word “member” is defined in
section 1 of the Act as meaning any “member or former
member”
of the association by which such fund has been established
“but does not include any person who has received all the benefits
which
may be due to that person from the fund and whose membership
has thereafter been terminated in accordance with the rules of the
fund”.
A person cannot be a “former member” without
having once been a “member”. Ms Mongwaketse was never
in law a member
and did not claim in her grievance to have been one.
On the contrary, she alleged that she was precluded by the rules from
being a member.
[44]
In regard to paragraph (d) of the definition of
“complainant”, the MEPF’s submission is that this category
refers to a
person who has an interest in an existing complaint made
by a person in paragraph (a), (b) or (c) of the
definition.
The main arguments advanced in support of this
submission were the following:
(a) Unlike paragraphs (a) to (c),
the definition in paragraph (d) incorporates a cross-reference
to a “complaint”. A “complaint” is in turn defined as
meaning a complaint “of a complainant”. To avoid
irresoluble
circularity, the phrase “of a complainant” has to be
confined to a person falling within paragraphs (a) to (c)
of the “complainant” definition.
(b) Persons in
paragraphs (a) to (c) of the definition of
“complainant” would
self-evidently have an interest in the
complaint. Unless the meaning of paragraph (d) were
confined in the way proposed
by the MEPF, paragraphs (a) to (c)
would be superfluous. In other words, unless so confined,
paragraph (d)
on its own would cover every conceivable class of
complainant, including those particularised in paragraphs (a) to (c).
(c) Paragraphs (a) to (c) of the
definition of “complainant”, read with the requirement in
the
definition of “complaint” that the grievance must relate “to a
specific complainant”, reveal a legislative intent to
circumscribe
with precision the class of persons who may invoke the Adjudicator’s
jurisdiction. The scheme would be defeated
by giving
paragraph (d) unqualified scope.
(d) The interpretation adopted by
the majority in the Supreme Court of Appeal effectively gives
the
Adjudicator coextensive powers with civil courts to determine any
grievance between a person and a pension fund.
[45]
CALS, on the other hand, submits that paragraph (d) of
the definition of “complainant” adds an additional class of
persons
who may initiate a complaint, namely any person who has an
interest in a grievance of the substantive nature contained in the
definition
of “complaint”. In support of this submission,
CALS makes the following points:
(a) The expression “any person”
in paragraph (d) is wide and unqualified.
(b) Paragraph (d) requires only
an interest in a complaint, not an interest in an “existing”
complaint.
(c) Accordingly, the ordinary
meaning of paragraph (d)’s language supports the wide meaning
adopted by the High Court and Supreme Court of Appeal
majority.
(d) The wide meaning is also
preferable on a purposive interpretation and with due regard to
sections 27(1)(c) and 34 of the Bill of Rights.
(e) Section 30G addresses the
case of a person who has an interest in an existing complaint,
so it
is unnecessary to harness paragraph (d) to achieve the same
purpose. Section 30G provides that the parties
to a
complaint shall include, in addition to the “complainant” and the
fund or person against whom the “complaint” is directed,
“any
person who has applied to the Adjudicator to be made a party and who
has a sufficient interest in the matter to be made a
party to the
complaint”, as well as “any other person whom the Adjudicator
believes has a sufficient interest in the matter to
be made a party
to the complaint”.
(f)
The potential circularity brought about by the words “of a
complainant” in the “complaint”
definition can be avoided, as
the High Court held, by omitting these words when reading the
definition of “complaint” into
the wording of paragraph (d)
of the “complainant” definition.
[46]
Both lines of argument have their merits, but on balance I
have concluded that the wide interpretation of paragraph (d) of
the
“complainant” definition is to be preferred. It may be
true, as the MEPF argues, that the wide meaning of paragraph (d)
would render paragraphs (a) to (c) superfluous (unless
one supposes that paragraphs (a) to (c) only cover persons
of
the kind in question who do not actually have an interest in the
complaint, which would be absurd). But tautology in legislation
is not unknown; the legislature may use wide and overlapping language
to ensure that a field is comprehensively covered, and the
presumption against rendering words in a statute superfluous must not
be applied to create differences of meaning where such differences
were not intended by the lawgiver.
[16]
Paragraphs (a) to (c) would still serve the purpose of
identifying the obvious classes of persons who would
have an interest
in pursuing a “complaint”, making it unnecessary in these cases
to engage in a separate inquiry as to whether
the person indeed has
an “interest” in the complaint.
[47]
If the meaning of paragraph (d) were the one advanced by
the MEPF, the lawmaker could easily have made this clear by adding,
to the words “any person who has an interest in a complaint”, the
words “lodged by a person referred to in
paragraph (a), (b) or (c)”.
The inclusion
of the words “of a complainant” in the “complaint” definition
is too flimsy a basis to impose such a significant
limitation on the
wide wording of paragraph (d). After all, the words “of
a complainant” in the “complaint” definition
are themselves
unqualified – the lawmaker did not say “of a complainant referred
to in paragraphs (a), (b) or (c)
of the
definition of ‘complaint’”. On the face of it, the words
“of a complainant” refer to a complaint lodged by
any person
listed in the “complainant” definition.
[48]
The main purpose of the “complaint” definition is to
identify the substantive nature of the grievances covered by the
defined
term. The inclusion of the words “of a complainant”
in the “complaint” definition is strictly unnecessary, because
section 30A(1) in any event states that only a “complainant”
may lodge a “complaint” with the Adjudicator. If
one were
to read the full definition of “complaint” into the language of
section 30A(1), the subsection would empower a
“complainant”
to lodge “a complaint of a complainant”.
[49]
This indicates, in my view, that in context the words “of a
complainant” in the “complaint” definition merely acknowledge
what is to follow in Chapter VA, namely that a grievance of the
substantive nature identified in the definition of “complaint”
may be lodged only by a person contemplated in the “complainant”
definition. In other words, as a precondition for being
lodged,
the grievance must be of the substantive nature identified in the
“complaint” definition; and once it has been lodged
by a
“complainant”, it becomes a complaint “of a complainant”,
namely a complaint of the complainant who has lodged it.
In
determining whether a person has an interest in a “complaint” for
purposes of paragraph (d) of the “complainant”
definition,
it is the substantive component of the “complaint” definition
that is relevant, not the additional words “of a
complainant”
which, as I have said, simply recognise that only a defined
“complainant” may lodge with the Adjudicator a grievance
meeting
the substantive component of the “complaint” definition.
[50]
I also agree with CALS’ submission that section 30G
tells against the qualified interpretation advanced by the MEPF.
That section grants the widest powers to the Adjudicator to admit, in
complaint proceedings, a person having an interest in a complaint
lodged by someone else. Section 30G does not identify such
joined parties as additional “complainants”. On the
narrow
interpretation advanced by the MEPF, its counsel battled to give
practical examples where a person would need to become a
“complainant” in terms of paragraph (d) of the definition,
and he conceded that the absence of plausible cases covered by
paragraph (d) would militate against the MEPF’s case. In
reply, he suggested that paragraph (d) might cover the
case of
persons whose relationship with the pension fund, unlike the persons
in paragraphs (a) to (c), was indirect,
such as a
beneficiary in the estate of a deceased former member, or the partner
of a member.
[17]
However, where the member or former member in such situations has
already lodged a complaint, the indirect party could become
a party
to the complaint proceedings in terms of section 30G.
Where the member or former member has not lodged a complaint,
counsel’s example would not solve the problem created by his
client’s own argument, namely that paragraph (d) only covers
the case of a person who has an interest in an existing complaint.
These examples actually show why paragraph (d) should
be given a
wide meaning, since otherwise the executor of the deceased estate of
a member or former member who died before lodging
a complaint, or a
beneficiary in the estate of such a deceased member or former member,
would be unable to pursue a grievance with
the Adjudicator.
[51]
There is, however, one important additional consideration
which demands attention. If paragraph (d) of the
“complainant”
definition is given the wide meaning, the
“complainant” definition does no work in limiting the scope of
matters which the Adjudicator
may determine. Any limitation on
her jurisdiction would need to be located in the “complaint”
definition. If the
“complaint” definition is itself
practically unlimited, the Adjudicator would, as the MEPF argues,
become an alternative to the
civil courts in all disputes involving
pension funds. Contractual disputes might arise between a
pension fund and its service
providers, such as auditors, lawyers and
IT providers; or delictual disputes might arise where a member of the
public suffers injury
at premises, such as a shopping mall, owned by
the pension fund. It might be thought implausible that the
lawmaker intended
the Adjudicator to have such a wide jurisdiction.
[52]
The “complaint” definition requires, as a first component,
that the grievance should relate to “the administration of a fund”,
“the investment of its funds” or “the interpretation and
application of its rules”. As a second component, the
grievance
must make allegations of the kind described in one or more
of paragraphs (a) to (d) of the “complaint”
definition.
As to the first component, it is the phrase “the
administration of a fund” which potentially gives rise to
implausible width.
If administration were understood in its
widest sense, most disputes would then also comply with the second
component by virtue of
paragraph (c) of the definition, which
requires only an allegation that “a dispute of fact or law” has
arisen between the
complainant and the pension fund or other person.
[53]
In the present case, one could say that the first component
was satisfied because there was a dispute about the interpretation
and
application of the MEPF’s rules, namely whether in terms
of the rules Ms Mongwaketse was entitled to be a member.
However, the real dispute was whether she was entitled to the return
of all her contributions because she never in law became a member.
Even if the MEPF had accepted that Ms Mongwaketse never
qualified for membership, that dispute would have remained. On
the basis that Ms Mongwaketse was not a member, her grievance
did not concern the interpretation and application of the
MEPF’s rules.
It also did not relate to the investment
of the MEPF’s funds, except in the most indirect way. The
question is whether the
grievance concerned the “administration”
of the MEPF.
[54]
The two dissenting judges in the Supreme Court of Appeal
considered that the receipt and retention by a pension fund of monies
paid
in error by a person who did not qualify for membership did not
relate to the “administration” of the pension fund. That
takes too narrow a view of “administration”. We know from
paragraphs (a) and (b) of the “complaint”
definition, that a grievance complying with the first component of
the definition may nevertheless be a decision in excess of a pension
fund’s powers or an act of maladministration. A grievance
concerning the “administration” of a pension fund should thus
be
able to accommodate a grievance about
ultra vires
conduct or
concerning maladministration. In context, “administration”
does not have to be lawful administration.
[55]
Admitting people to membership and receiving contributions in
respect of their membership with a view to providing them with
retirement
benefits is the core activity of a pension fund.
Doing these things is at the heart of pension fund “administration”.
This type of administration can go awry and be done unlawfully or
badly, in which case one is dealing with a complaint relating to
the
fund’s administration and alleging either
ultra vires
conduct or maladministration. The admission of Ms Mongwaketse
to membership and the receipt of her contributions were
acts of
administration of the MEPF which were
ultra vires
. It is
their
de facto
character, not their legality, which brings
them within the scope of “administration”.
[56]
It is unnecessary, for purposes of this judgment, to decide
where the line is to be drawn in relation to “administration” of
a
fund for purposes of the “complaint” definition. That
expression would certainly be capable of limitation so as to exclude
the ordinary contractual and delictual disputes I mentioned earlier.
The refund determination – the review challenge
[57]
In terms of section 30E(1), the Adjudicator, having
correctly found that Ms Mongwaketse did not become a member of
the MEPF,
was entitled to make an order which a court of law could
make. In principle, a court of law could have ordered the MEPF
to
repay Ms Mongwaketse her purported contributions, provided
the requirements for a claim of unjustified enrichment were present.
The MEPF challenges the Adjudicator’s determination in this respect
both by way of review and by way of a section 30P appeal.
The review challenge is essentially one of irrationality based on the
material before the Adjudicator. Under the present heading,
I
shall deal with the review challenge, deferring for later
consideration the section 30P challenge, which is a merits
inquiry
based on the material before the High Court.
[58]
It is convenient, under this heading, to deal first with the
MEPF’s contention that the Adjudicator acted in a procedurally
unfair
way by finding, of her own accord, that Ms Mongwaketse
never became a member of the MEPF and that she was entitled to a
refund
on the basis of unjustified enrichment. The MEPF
complains that the Adjudicator did not put these propositions to the
MEPF
for comment before issuing her determination. This
criticism must be rejected. The terms of Ms Mongwaketse’s
complaint
as lodged with the Adjudicator were clear. I have
quoted above the concluding paragraphs of the complaint.
Earlier in
her complaint, she referred to and attached the
Municipality’s letter to the MEPF dated 25 September 2015 in
which the Municipality
stated that she should not have joined the
MEPF and asked for a refund of all contributions. She referred
to a meeting held
on 10 February 2016 where a representative of the
Municipality asked the MEPF’s representatives when they would be
repaying Ms Mongwaketse
her money, because her joining the MEPF
had been an error. According to her, the Municipality’s
representative referred to
page 5 of the rules (the page
containing the definition of “employee”). In response, so
Ms Mongwaketse stated
in her complaint, the MEPF’s legal
adviser said that she should never have become a member of the
pension fund and that all the
contributions were hers; the matter was
straightforward and he would take it to the trustees on that basis.
The MEPF subsequently
failed to revert, leading to the lodging of the
complaint.
[59]
The MEPF thus knew, at an early stage, that Ms Mongwaketse’s
case was that she was precluded by the rules from becoming a member,
that she should not have been admitted as a member, and that on this
basis she should get all her contributions back, including the
22%
contribution supposedly paid by the employer. In the
proceedings before the Adjudicator, the MEPF chose not to take issue
with Ms Mongwaketse’s factual account. It raised one
defence, and one defence only, in its letter of 10 October 2017,
namely that Ms Mongwaketse had indeed become a member, that her
only entitlement upon withdrawal from the Fund was in terms
of
clause 37(1)(b) of the rules (that is, her own
contributions), and that she had received the amount owing to her
under
that clause.
[60]
Once the Adjudicator correctly rejected that defence, the only
question was whether she could rationally, on the material before
her,
conclude that Ms Mongwaketse should be repaid her purported
contributions. In terms of the conventional requirements of
the
condictio indebiti
, Ms Mongwaketse could not recover the
money if the error in payment was a result of inexcusable slackness.
Although the
burden of proving an absence of inexcusable slackness
may have rested on her,
[18]
the MEPF did not contend before the Adjudicator that Ms Mongwaketse
had been inexcusably slack. Such a contention may
have been
difficult to sustain in view of the fact that (a) the Municipality
itself mistakenly thought that Ms Mongwaketse could
become a
member of the MEPF; and (b) the MEPF to this day contends that she
could indeed become a member. Ms Mongwaketse
as a
layperson cannot be criticised for not having become acquainted with
the rules before November 2014. She received
no clear
response from the MEPF as to its position, and she asked her employer
to stop deducting contributions.
[61]
That Ms Mongwaketse was impoverished by the undue payments is
obvious. If the payments had not been made, all the
contributions
made in respect of her purported membership – the
full 29.5% – would have been paid to her as part of her
remuneration.
I do not share the difficulty expressed by Ponnan
JA in treating Ms Mongwaketse rather than the Municipality as
the party which
was impoverished by the payment of contributions.
It is so that there was no valid tripartite contract in terms of
which the
Municipality would pay contributions to the MEPF for
Ms Mongwaketse’s lawful membership of the Fund.
Nevertheless, as
between the Municipality and Ms Mongwaketse, it
was always understood that everything that was being paid to the MEPF
as purported
contributions were deductions made with her authority
from her salary and paid to the MEPF for her benefit. The
Municipality
in law owed Ms Mongwaketse her full salary, and she
authorised the Municipality to pay part of it to the MEPF. If A
owes
money to B, and B instructs A to discharge the debt by paying
the money to C in discharge of a debt which B mistakenly believes she
owes to C, it is B (Ms Mongwaketse in our case) and not A
(the Municipality) who can pursue the
condictio indebiti
against C (the MEPF).
[19]
[62]
As to whether the MEPF was enriched, enrichment is presumed
when a person receives money
sine causa
(without cause), the
onus resting on the recipient to show that it was in fact not
enriched at all or only partially enriched.
[20]
The MEPF did not advance any such defence before the Adjudicator.
[63]
I thus conclude that the Adjudicator’s order against the
MEPF for repayment of all contributions withstands the attack made on
it
by way of judicial review.
The refund claim – the section 30P appeal
[64]
It has been common cause throughout this litigation that a
section 30P application, which for convenience I have styled an
“appeal”,
is a rehearing on the merits in which additional
evidence can be adduced. If the MEPF had not instituted review
proceedings,
and had simply challenged the Adjudicator’s
determination on the merits by way of section 30P, it would by
now have failed
on the merits in the two courts below. A
further appeal to this Court on the merits is aimed at reversing
factual findings
made by the courts below, in particular the finding
that the MEPF was enriched. The legal principles governing the
condictio indebiti
are not in issue. It is the
application of those principles to the facts of this case which is
the focus of the MEPF’s attempt
to pursue a third hearing on the
section 30P application. A contention that a lower court’s
factual findings were
wrong does not engage this Court’s
constitutional or general jurisdiction,
[21]
nor does a contention that a lower court misapplied an established
test to the facts of the case.
[22]
This conclusion is unaffected, in my view, by the circumstance that
the proposed appeal against the Supreme Court of Appeal’s
dismissal of the section 30P part of the case has been coupled
with an appeal on matters concerning the Adjudicator’s jurisdiction
and the validity of her determination.
[65]
I thus consider that we do not have jurisdiction to reassess
whether, based on the facts advanced in the section 30P
application
before the High Court, the Supreme Court of
Appeal erred in finding that Ms Mongwaketse was entitled to the
refund
ordered by the Adjudicator. If I had reached that
question, it is doubtful that the MEPF’s allegations in the
High Court
were sufficient to discharge the burden of proving
its non enrichment. As the Supreme Court of Appeal
majority pointed
out, the use of Ms Mongwaketse’s money to
meet some fraction of the MEPF’s general overheads enriched the
MEPF (and indirectly
the members for whose benefit the MEPF exists),
because, but for such use of Ms Mongwaketse’s money, that
fraction of the
expenditure would have had to be met from the lawful
contributions made to the MEPF. The MEPF did not allege that
its general
overheads were increased by having Ms Mongwaketse on
its books as a purported member (one person among many thousands).
As regards risk benefits, the MEPF did not quantify the premiums it
paid insurers for risk benefits in respect of Ms Mongwaketse’s
purported membership, nor did the MEPF state that the insurers would
not refund those premiums upon being told that in law they were
never
on risk in relation to Ms Mongwaketse. To the extent that
her contributions were used to fund what the MEPF regarded
as her
withdrawal benefit in terms of clause 37(1)(b) of the rules,
such non-enrichment is accommodated by the deductions which
the MEPF
can make when repaying Ms Mongwaketse the rest of her purported
contributions. And as I understand paragraph 60
of the
majority judgment in the Supreme Court of Appeal, the MEPF is
entitled to deduct not only the net amount it has already
paid
directly to Ms Mongwaketse, but also the tax component which it
paid to the South African Revenue Service.
Prescription
[66]
Both the High Court and the Supreme Court of Appeal considered
and rejected the MEPF’s prescription defence. It seems to me
that a discussion of prescription was unnecessary. The MEPF did
not raise prescription in the proceedings before the Adjudicator
nor
as a component of its review and section 30P applications.
It pleaded prescription only in answer to Ms Mongwaketse’s
counter-application. The counter application only
became relevant if the Adjudicator’s award was set aside pursuant
to the MEPF’s application in convention. Because the
application in convention failed, the counter-application fell away,
and with it the need to address prescription.
Natural justice and the correspondence of June to October 2017
[67]
The final topic I must address is the MEPF’s contention that
the Adjudicator’s determination is vitiated, because certain emails
written by Ms Mongwaketse to the Adjudicator in the period June
to October 2017 were not disclosed to the MEPF for comment.
This is said to have violated the principle of natural justice
requiring decision-makers to “hear the other side” (
audi
alteram partem
) before reaching a decision. In my opinion,
this was not an irregularity resulting in a failure of natural
justice.
[68]
Taking the communications in sequence, in her email of
21 June 2017 Ms Mongwaketse supplied the Adjudicator
with bank
statements to show the contributions she had made.
The Municipality had already provided the Adjudicator with details of
the
contributions paid, and quantum has never been in issue.
The Adjudicator’s determination was based on the figures supplied
by the Municipality.
[69]
On 3 August 2017, Ms Mongwaketse forwarded to the
Adjudicator a response she had sent to the MEPF on the same day in
reaction
to a letter from the MEPF dated 26 June 2017. In its
letter the MEPF had apparently explained the payment to her earlier
that
month as a benefit arising from her resignation in September
2015. In her reply to the MEPF, she said that the wording was
incorrect because she had not resigned in September 2015 – she
had remained employed until her fixed-term contract came to
an end.
She added, “I maintain that the fund still has a portion of
my 100 percent contribution”. Ms Mongwaketse
forwarded this reply to the Adjudicator without further comment.
The MEPF had Ms Mongwaketse’s email of 3 August
when it
submitted its response to the Adjudicator on 10 October 2017.
Furthermore, the email of 3 August said
nothing new. The
complaint lodged with the Adjudicator, and prior correspondence,
demonstrated that Ms Mongwaketse’s
essential grievance was
that she had paid all the contributions and wanted all of them back.
[70]
Ms Mongwaketse’s emails of 10 October 2017 were a series of
staccato comments on the MEPF’s response of that date, evidencing
her anger and frustration at the MEPF’s stance. Her comment
that the rules excluded her repeated what she had said in the
original complaint, as was her statement that she wanted all her
monies back. Other comments were either irrelevant to the
merits of the complaint or were a repeat of things she had already
said.
Conclusion
[71]
For these reasons, the appeal must be dismissed. Since
Ms Mongwaketse abided this Court’s decision, there will be no
order as to costs.
Order
[72]
The following order is made:
1. Leave to appeal is
granted.
2.
The appeal is dismissed.
For the
Applicants:
J P V McNally SC instructed by Webber Wentzel
For the
Respondent:
Schöltz Attorneys
For the Amicus
Curiae:
S Khumalo
SC, K Magan and L Mbatha
instructed by Centre for Applied Legal Studies
[1]
24 of 1956.
[2]
These definitions are quoted in full at [41] below.
[3]
3 of 2000.
[4]
Although the notice of counter-application was not framed
conditionally, Ms Mongwaketse submitted in paragraph 6.8
of
the accompanying affidavit that “real and substantive justice”
required the granting of the orders sought in the
counter-application
“but only if the Court concludes that the
Applicants are entitled to the relief which they seek”.
[5]
Municipal Employees Pension Fund v Ramaphakela
, unreported
judgment of the High Court of South Africa, Gauteng Local
Division, Johannesburg, Case No 2016/40359 (13
December 2018)
(
Ramaphakela
). In an earlier judgment in the same case
concerning interim relief,
Municipal Employees Pension Fund v
Ramaphakela
, unreported judgment of the High Court of South
Africa, South Gauteng Local Division, Johannesburg,
Case No 40359/2016
(22 August 2017), Unterhalter
AJ considered that the MEPF’s contention that the Adjudicator
lacked jurisdiction was
“at least
prima facie
arguable”.
[6]
See clauses 24(2)(a), 24(2)(b), 24(2)(c), 24(3), 24(8), 24(12),
24(17), 24(18) and 24(21) of the MEPF’s rules.
[7]
See clauses 32 and 33 of the MEPF’s rules.
[8]
32 of 2000. Section 54A was among various provisions inserted
into the Systems Act by the Local Government: Municipal Systems
Amendment Act 7 of 2011. Act 7 of 2011 was declared invalid by
this Court in
South African Municipal Workers’ Union v
Minister of Co-Operative Governance and Traditional Affairs
[2017] ZACC 7
;
2017 (5) BCLR 641
(CC) but the declaration was only
prospective and was suspended for 24 months. The suspension
came to an end on 8 March 2019
without any remedial steps having
been taken: see
Member of the Executive Council for Cooperative
Governance and Traditional Affairs, KwaZulu-Natal v Nkandla Local
Municipality
[2021] ZACC 46
at paras 18-9.
[9]
Mawonga v Walter Sisulu Local Municipality
[2020] ZASCA 125;
2021 (1) SA 377 (SCA).
[10]
Id at para 26.
[11]
Abrahamse v Connock’s Pension Fund
1963 (2) SA 76
(W) at
78D-E.
[12]
Strydom v
Die Land en Landbou
Bank van Suid-Afrika
1972 (1) SA 801
(A) at 815A-816B;
City of Tshwane Metropolitan Municipality v RPM Bricks
Proprietary Ltd
[2007] ZASCA 28
;
2008 (3) SA 1
(SCA) at para 13.
[13]
See sections 30D and 30E of the Act.
[14]
Cool Ideas 1186 CC v Hubbard
[2014] ZACC 16
;
2014 (4) SA 474
(CC);
2014 (8) BCLR 869
(CC) (
Cool Ideas
).
[15]
Id at para 28.
[16]
Sekretaris van Binnelandse Inkomste v Lourens
Erasmus (Eiendoms) Bpk
1966 (4) SA 434
(A) at 441F-442D;
Secretary for
Inland
Revenue v Somers Vine
1968 (2) SA 138
(A) at 156B-G; and
Commissioner for Inland Revenue v Shell Southern Africa Pension
Fund
1984 (1) SA 672
(A) at 678C-F.
[17]
It may be noted that the spouse or former spouse of a member or
former member is covered by paragraph (a)(iv) of the
“complainant”
definition.
[18]
Willis Faber Enthoven (Pty) Ltd v Receiver of Revenue
[1991] ZASCA 163
;
1992
(4) SA 202
(A) at 224H-225B.
[19]
See
Bowman, De Wet and Du Plessis N.N.O. v Fidelity Bank Ltd
[1996] ZASCA 141
;
1997 (2) SA 35
(SCA) at 42H 43D: “[T]he
person who is entitled to bring the action ‘is he who is
considered in law to have made the payment’”;
Kudu Granite
Operations (Pty) Ltd v Caterna Ltd
[2003] ZASCA 64
;
2003 (5) SA
193
(SCA) (
Kudu Granite
) at para 20. This is the
flip-side of the well-known principle that if A seeks to discharge a
purported but non-existent
debt to B by paying C on B’s
instructions, A’s
condictio indebiti
lies against B as the
person to whom the payment is deemed to have been made, and not
against C:
Minister van Justisie v Jaffer
[1994] ZASCA 102
;
1995 (1) SA 273
(A)
at 280D-H.
[20]
African Diamond Exporters (Pty) Ltd v Barclays Bank International
Ltd
1978 (3) SA 699
(A) at 713G H;
First National
Bank of Southern Africa Ltd v Perry N.O.
[2001] ZASCA 37
;
2001
(3) SA 960
(SCA) at para 31; and
Kudu Granite
above n 19
at para 21.
[21]
Mbatha v University of Zululand
[2013] ZACC 43
; (2014) 35 ILJ
349 (CC);
2014 (2) BCLR 123
(CC) at paras 197 and 216-7 and
S
v Boesak
[2000] ZACC 25
;
2001 (1) SA 912
(CC);
2001 (1) BCLR 36
(CC) at para 15.
[22]
See
General Council of the Bar of South Africa v Jiba
[2019]
ZACC 23
;
2019 (8) BCLR 919
(CC) at para 59 and
Booysen v Minister
of Safety and Security
[2018] ZACC 18
;
2018 (6) SA 1
(CC);
2018
(9) BCLR 1029
(CC) at para 59.
sino noindex
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