Case Law[2022] ZACC 34South Africa
United Democratic Movement and Another v Lebashe Investment Group (Pty) Ltd and Others (CCT 39/21) [2022] ZACC 34; 2022 (12) BCLR 1521 (CC); 2023 (1) SA 353 (CC) (22 September 2022)
Constitutional Court of South Africa
22 September 2022
Headnotes
Summary: Appealability of Interim Interdicts — Interests of Justice — Section 16(1)(a) of the Superior Courts Act 10 of 2013
Judgment
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## United Democratic Movement and Another v Lebashe Investment Group (Pty) Ltd and Others (CCT 39/21) [2022] ZACC 34; 2022 (12) BCLR 1521 (CC); 2023 (1) SA 353 (CC) (22 September 2022)
United Democratic Movement and Another v Lebashe Investment Group (Pty) Ltd and Others (CCT 39/21) [2022] ZACC 34; 2022 (12) BCLR 1521 (CC); 2023 (1) SA 353 (CC) (22 September 2022)
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sino date 22 September 2022
CONSTITUTIONAL
COURT OF SOUTH AFRICA
Case
CCT 39/21
In
the matter between:
UNITED
DEMOCRATIC
MOVEMENT
First Applicant
BANTUBONKE
HARRINGTON HOLOMISA
Second Applicant
and
LEBASHE
INVESTMENT GROUP (PTY) LIMITED
First Respondent
HARITH
GENERAL PARTNERS (PTY) LIMITED
Second Respondent
HARITH
FUND MANAGERS (PTY) LIMITED
Third Respondent
WARREN
GREGORY
WHEATLEY
Fourth Respondent
TSHEPO
DUAN
MAHLOELE
Fifth Respondent
PHILLIP
JABULANI
MOLEKETI
Sixth Respondent
Neutral
citation:
United
Democratic Movement and Another v Lebashe Investment Group (Pty) Ltd
and Others
[2022] ZACC 34
Coram:
Zondo ACJ, Madlanga J, Madondo AJ, Majiedt J,
Mhlantla J, Rogers AJ, Theron J, Tlaletsi AJ and Tshiqi J
Judgment:
Madondo AJ (unanimous)
Heard
on:
2 November 2021
Decided
on:
22 September 2022
Summary:
Appealability of Interim Interdicts —
Interests of Justice —
Section 16(1)(a)
of the
Superior
Courts Act 10 of 2013
ORDER
On
appeal from the Supreme Court of Appeal (hearing an appeal from the
High Court of South Africa, Gauteng Division, Pretoria):
1.
Leave to appeal is granted.
2.
The appeal against the order of the Supreme Court of Appeal striking
the appeal from the
roll is upheld.
3.
The order of the Supreme Court of Appeal is set aside and substituted
with the following:
“
The
appeal against the order of the High Court of South Africa,
Gauteng Division, Pretoria, is dismissed with costs of
two
counsel.”
4.
The applicants shall pay the costs of the respondents in this Court,
including costs
of two counsel.
JUDGMENT
MADONDO
AJ (Zondo ACJ, Madlanga J, Majiedt J, Mhlantla J, Rogers AJ,
Theron J, Tlaletsi AJ and Tshiqi J concurring):
Introduction
[1]
The
applicants seek leave from this Court to appeal against the order of
the Supreme Court of Appeal striking their appeal
off its roll
on the grounds that it was interim and therefore not appealable.
[1]
This occurred notwithstanding the fact that the High Court of
South Africa, Gauteng Division, Pretoria (High Court), had granted
the applicants leave to appeal to the Supreme Court of Appeal against
same. The striking off of the appeal had the effect of preventing
the
applicants from having their case determined.
[2]
This application has its origin in an
interim interdict granted by the High Court against the
applicants on 16 July 2018
pending a defamation action that
was to be instituted by the respondents against the applicants. The
applicants complain that such
order has since restrained and
prohibited them from exercising their right to freedom of expression
and from performing their duties
as political actors in terms of
the Constitution. If the application for leave is granted, on
appeal the applicants will seek
an order from this Court setting
aside the order of the Supreme Court of Appeal and replacing it with
an order that the appeal
is upheld with costs, thus setting aside the
High Court’s interim interdict and replacing it with an
order that the
application is dismissed with costs.
Parties
[3]
The
first applicant is the United Democratic Movement (UDM), a political
party duly registered in terms of the Electoral Act
[2]
and the fifth largest opposition party represented in the National
Assembly. The UDM is also represented in the Provincial Legislatures
and various municipalities. The UDM says that its primary role as an
opposition party is to strengthen democracy, highlight instances
of
maladministration and corruption within the public service and hold
the Executive accountable. The second applicant is Mr Bantubonke
Harrington Holomisa, a member of Parliament and President of the UDM.
[4]
The first respondent is Lebashe Investment
Group (Pty) Limited, a company incorporated as such and carrying on
business as an investment
holding company. The first respondent is
100% black owned and is a shareholder in several companies in the
financial sector. The
second respondent is Harith General Partners
(Pty) Limited, a registered company which conducts business as a fund
manager and
invests funds on behalf of its investors in
infrastructure projects in Africa. Its investors are pension funds,
private banks,
companies and development finance institutions. The
third respondent is Harith Fund Managers (Pty) Limited. The second
and third
respondents are, for the purposes of this judgment,
collectively referred to as the “respondent companies”.
The fourth
respondent is Mr Warren Wheatley, a director and
Chief Investment Officer of the first respondent. The fifth
respondent is
Mr Tshepo Daun Mahloele, a director and
Chief Executive Officer of the respondent companies, and
Chairman of
the first respondent. The sixth respondent is
Mr Phillip Jabulani Moleketi, a non executive
director of the
first respondent and the Chairman of the
respondent companies.
Background
[5]
On 31 May 2018 Mr Holomisa addressed a
letter to the President of the Republic of South Africa, Mr
Cyril Matamela Ramaphosa
(the President), titled “The Public
Investment Corporation, the Government Employee Pension Fund and
Suspected Corruption;
a Scandal Bigger than the Gupta-Family’s
State Capture”. On 26 June 2018, another letter
titled “Unmasking
Harith and Lebashe’s Alleged Fleecing
of the Public Investment Corporation” was addressed to the
President. The letter
was delivered and received by the President’s
office on the same date. Subsequently, Mr Holomisa caused a copy
of the
letter of 26 June 2018 that had been forwarded to
the President to be published on the official website of the UDM
and his
Twitter account.
[6]
The latter publication was in sensational
terms as follows:
“
BREAKING:
State capture of a different kind as the ultra rich elite allegedly
plunder [the Public Investment Corporation] through
companies Lebashe
& Harith. Read more on this nauseating tale on udm.org.za.”
Upon
such publication on the said platforms, members of the public read
the letter and commented on it.
[7]
On 30 June 2018 Mr Holomisa gave an
interview on the South African Broadcasting Corporation’s
(SABC) Morning Live, the
SABC’s biggest and longest running TV
breakfast show, and said that he would not back down and retract
statements he made
in his letter to the President regarding “dodgy
deals between the Public Investment Corporation [PIC] and two
investments
companies, Lebashe and Harith General Partners”.
The respondents state that on 1 July 2018 Mr Holomisa
published
a further defamatory statement on social media labelling
the fourth to sixth respondents as “trusted indunas” and
“hyenas”
of the President and the PIC. According to the
respondents, Mr Holomisa demonstrated that he wanted to have the
contents of
the letter published as widely as possible.
[8]
The
PIC is a state-owned investment vehicle and asset management company
established in terms of section 3 of the Public Investment
Act.
[3]
The PIC’s clients are mostly public sector entities that focus
on the provision of social security. These include the Government
Employees Pension Fund and Unemployment Insurance Fund. The PIC
is a national government business enterprise governed by the
Public
Finance Management Act
[4]
(PFMA).
[9]
The respondents construed Mr Holomisa’s
letter of 26 June 2018 as intended to mean that the respondents were
unlawfully and
intentionally engaged in a number of schemes which
entailed: fraudulent acts, conspiracies and subterfuges with the
result that
funds from the PIC were being misappropriated by them or
at their instance. And to also mean that innocent members of the
public,
whose moneys are invested with the PIC, were victims of
a series of thefts perpetrated by the respondents on “a grand
scale; so grand, in fact, it rivals and indeed exceeds the bounds of
the Gupta state capture scandal of recent times”.
They
also contended that the letter could only be reasonably understood to
bear this meaning.
[10]
The respondents contend that, from an
ordinary reading of the letter, it is obvious that much of its
content is per se defamatory
and injurious to them. They contend that
in addition, the manner in which the allegations were stated was
provocative, sensational,
scandalous and at odds with the stated
purpose of the letter, namely, to persuade the President to expand
the terms of reference
of the
Judicial
Commission of Inquiry into Allegations of State Capture, Corruption
and Fraud in the Public Sector including Organs of
State (the State
Capture Commission)
headed by (then)
Deputy Chief Justice Zondo. According to the respondents, Mr
Holomisa had no valid reason to make such explosive
and inherently
inflammatory allegations at that stage. Mr Holomisa used these
allegations to further his and the UDM’s
political interests at
the expense of the respondents’ good names and dignity.
[11]
The respondents also state that, as a
result of the offending letter, adverse publicity and its sequelae in
the media, certain investment
opportunities were lost, including
amongst others, Vele Asset Managers (Pty) Limited, which terminated
the funding arrangement
which was in place between it and the
first respondent. On 29 June 2018, Chetan Jeeva of
Investec Private Bank (Investec)
made an enquiry expressing concerns
about the allegations and wished to consult the second and fifth
respondents before taking
action. Investec also demonstrated fear due
to a developing and potentially lethal mistrust and suspicion in the
market. According
to the respondents, this came about as a
consequence of Mr Holomisa’s letter of 26 June 2018.
[12]
The respondents state that the industry in
which they function is extremely sensitive to one’s perception
of integrity and
trustworthiness. They state that companies are in
the habit of placing enormous sums of money in their hands to invest
wisely and
properly as far as they are able to do so and many
people’s lives and livelihoods depend on the respondents’
decisions.
[13]
The UDM states that it regards the lack of
transparency and accountability in the manner in which public funds
are utilised in South
Africa as one of the greatest threats to the
rule of law and the country’s democratic establishment itself.
As a result,
the UDM points out that it regards it as of great
importance that, where corruption is suspected, it must be exposed
publicly
and formal steps must be taken to investigate and eradicate
it.
[14]
The applicants contend that the letter they
addressed to the President was dealing with matters of public
interest. They point out
that public officials were accused of
abusing their positions at a public entity for private gain. The UDM
points out that in the
discharge of its duties as the opposition
party of holding public entities and institutions accountable, it
addressed a letter
to the President alerting him to the information
the applicants had gathered about what was happening at the PIC and
requested
the President to inquire into the matter. Subsequently,
Mr Holomisa tweeted about it.
[15]
The
applicants state that the fiduciary duties of accounting
authorities,
[5]
as set out in
section 50 of the PFMA, include the duty to:
(a)
exercise utmost care in order to ensure reasonable protection of the
assets and records of the entity;
(b)
act with fidelity, honesty, integrity and in the best interests of
the entity in managing its financial
affairs;
(c)
on request, disclose to the executive authority responsible for that
public entity or the legislature
to which the entity is accountable,
all material facts which may influence the decisions or actions of
the executive authority
[6]
or
the legislature; and
(d)
prevent any prejudice to the financial interests of the state.
[16]
The
applicants also contend that in terms of the Constitution,
[7]
members of the Cabinet and Deputy Ministers may not act in any
way that is inconsistent with their office or expose themselves
to
any situation involving the risk of a conflict of interests between
their official responsibilities and private interests. This
section
also provides that such members and Deputy Ministers may not use
their position or any information entrusted to them to
enrich
themselves, or improperly benefit any other person. According to the
applicants, when the funds were advanced to the first
and third
respondents, the sixth respondent was Deputy Minister of Finance and
now sits as a non executive director of the
first respondent and
chairperson of the third respondent. According to the applicants,
this constitutes a breach of section 96
of the Constitution. The
section does not only deal with a conflict of interests but also the
risk of a conflict of interests.
The applicants contend that the
sixth respondent, as former Deputy Minister of Finance, has placed
himself in a position where
the risk of conflict of interests has
arisen and they say that that is what they asked the President to
investigate.
Litigation
history
High
Court
[17]
Fearing that irreparable harm would be
caused to their dignity and reputation, the respondents approached
the High Court for an
interdict restraining the applicants from
making or repeating any defamatory allegations defaming or injuring
their dignity pending
the institution of an action for damages for
defamation and injuria. For this relief, the respondents relied on
the conduct of
the applicants in addressing the letter to the
President and publishing it on social media platforms. The
respondents argued that
the contents of the letter were untrue and
defamatory, and the continued publication thereof would cause them
further harm. The
respondents also stated that they had suffered
financial loss due to the applicants’ publication of the
letter. They further
argued that the longer the letter remained in
the public domain, the greater the harm to their dignity and
reputation. They submitted
that the applicants’ conduct
infringed their right to dignity and defamed their names. They
contended that the applicants’
conduct was not justified in any
way.
[18]
The applicants stated that the fourth
respondent is the founding principal and executive director of the
first respondent. He is
a director at Rain Fin and serves on the
boards of Petra Touch and Aluwani Capital Partners. The focal point,
according to the
applicants, is that a former employee of the PIC and
former chairperson of the PIC board now derives financial aid from
entities
they were involved with when the decisions to fund them were
taken.
[19]
The applicants further contended that the
flow of the funds and the respective roles of the personalities were
sufficient to create
the perception that the funds of the PIC
had been used in a manner that is in conflict with the PFMA and,
indeed, the Constitution.
The applicants requested that the
state of affairs at the PIC should be investigated by the State
Capture Commission. The applicants
submitted that they had provided
information that went beyond mere suspicion and furnished names of
the individuals, transactions
and indeed the names of the entities
that were involved in instances of suspected breaches of the law.
[20]
In his answering affidavit, Mr Holomisa
emphasised that, as a member of Parliament and leader of the
opposition party, he was under
a special duty to take steps to ensure
that instances of corruption were duly investigated. He said that he
discharged that duty
by referring a complaint relating to the
allegations of corruption and conflict of interests to the President.
He contended that
he could not be gagged from making these
allegations public in the discharge of his duties as a public
representative. He further
argued that members of the public are
entitled to the information on the ground that section 1 of the
Constitution encompasses
a duty, where public funds are involved, to
act transparently and to promote accountability. He said that they
are also entitled
to information by virtue of section 16 of the
Constitution, which provides that the right to freedom of expression
includes
freedom to receive or impart information or ideas.
[21]
Mr Holomisa further contended that an
interdict would infringe the rights of the public as protected by
section 16(1)(b) of the
Constitution as well as his political rights
as enshrined in section 19 of the Constitution. He argued that no
basis had been laid
for limiting these rights and that the
information was already in the public domain. The applicants
contended that the respondents
were not entitled to interdictory
relief as they had an alternative remedy to claim damages. The
parties agreed in the High Court
that it was in both their
interests that the matter should be disposed of without delay.
[22]
At
the conclusion of the motion proceedings, the High Court granted the
respondents an interim interdict pending the determination
of an
action for damages for defamation. The High Court ordered the
applicants to forthwith cease and desist from making or repeating
the
allegations against the respondents or from defaming or injuring the
respondents’ dignity, and to remove and delete the
letter from
the UDM’s website and from Mr Holomisa’s
Twitter account. The order was made on the grounds that
the
applicants had failed to show that the information contained in the
letter was true and in the public interest. The applicants
sought
leave to appeal against the interim interdict to the Supreme Court
of Appeal on the grounds that the contents of the
letter were not
defamatory, that the allegations were true and that the publication
thereof was in the public interest. They submitted
that the
High Court ought to have considered their constitutional
obligation to hold the Executive accountable in terms of
section 55
of the Constitution.
[8]
The
applicants argued that even though the interdict was interim in form,
it was final and definitive in effect as it directed
them to remove
the contents of the letter from their website and social media
accounts. The applicants, therefore, argued that
it was in the
interests of justice to grant them leave to appeal. The High Court
granted leave to appeal to the Supreme Court
of Appeal.
Supreme
Court of Appeal
[23]
When
the matter came before the Supreme Court of Appeal, in a three two
split the application was struck off the roll on the
grounds that the
interdict was interim in nature and therefore unappealable. It was
argued on behalf of the applicants that the
interdict was appealable
in that it was final and definitive in effect. Furthermore, the
applicants argued that the interests of
justice warranted an appeal
against the interdict. In determining the appealability of the
interim interdict, Sutherland AJA, with
Cachalia and Mbha JJA
concurring, (the majority of the Supreme Court of Appeal) held that
the applicants were not in fact precluded
from repeating the
allegations in Parliament, because section 58(1)(a) of the
Constitution secures their right to do so in
Parliament with
impunity. The majority found that the applicants did not make out a
case that the UDM is “a one issue organisation
and that it will wither if its opinions about the respondents’
alleged skulduggery are not constantly heard, while in the
meantime,
the two parties shuffle their way towards trial”.
[9]
This finding was in response to the counter argument that the
Constitution confers a right to engage in advocacy outside
Parliament.
[10]
[24]
The majority described the applicants’
persistence in appealing against the interim order as an attempt to
convince that Court
to decide issues which would lie within the
purview of the trial court when determining the final relief. The
majority went on
to hold that the applicants could not demonstrate
any irreparable harm to support their contentions. It also held that
the applicants’
allegations that the balance of convenience
favoured them because allegations of corruption ought to be
ventilated added no strength
to the argument. The majority concluded
that the interim order was valid and not appealable. In reaching that
conclusion, the majority
held that the interests of justice did not
require the appeal to be entertained.
[25]
The
minority judgment of the Supreme Court of Appeal by Molemela JA,
with Makgoka JA concurring (the minority) came to
a different
conclusion, namely, that while interim orders are ordinarily not
appealable, in this instance the interests of justice
rendered the
interim interdict appealable. Furthermore, they found that the
High Court had already exercised its discretion
to determine
that it was in the interests of justice to grant leave despite the
interim nature of the interdict, and that “it
was not open to
this court to second guess the reasons advanced by the
[High Court] simply because it held a different
view on the
matter”.
[11]
The
minority held that the majority should have held the interim
interdict appealable and heard the appeal in the interests of
justice.
Before
this Court
Applicants’
submissions
[26]
The applicants submit that the High Court
carefully took into account the interests of justice in reaching the
conclusion that the
interim order was appealable and that leave to
appeal should be granted. They argue that the order directing that
the letter be
taken down from the UDM’s website and social
media accounts was final and definitive in effect. They contend that
it is the
minority judgment of the Supreme Court of Appeal which
correctly summarises this Court’s test for the appealability of
interim
orders, namely that an interim order may be appealed if the
interests of justice so dictate. Relying on the minority judgment,
the applicants submit that it was not open to the majority of the
Supreme Court of Appeal to second guess the decision of the
High Court in granting the applicants leave to appeal simply
because it held a different view on the matter. Furthermore,
it was
not shown that the High Court had not exercised its discretion
judicially. The applicants contend that the Supreme Court
of Appeal’s
power to interfere with the High Court’s order granting
leave to appeal should be used sparingly and
only in the clearest
cases of an error or misdirection. According to the applicants, the
majority did not meet that test at all.
The applicants submit that it
is in the interests of justice for this Court to hear and determine
these issues.
[27]
On the majority of the Supreme Court of
Appeal’s findings that Mr Holomisa can repeat the
allegations in question with
impunity in Parliament, the applicants
contend that, if it is permissible to repeat the allegations in
Parliament despite the High Court’s
order, there is no
need for an interdict. The applicants further submit that a temporary
silence in public discourse causes irreparable
harm to the applicants
as political actors and is at odds with this Court’s
jurisprudence on free speech. Finally, the applicants
submit that
this appeal raises arguable points of law relating to interim
interdicts pending defamation actions and the appealability
of
interim orders generally, which need to be considered by this Court.
They also submit that the merits of the appeal relate to
matters
which are in the public domain and pertain particularly to the abuse
of public office for personal gain.
Respondents’
submissions
[28]
The respondents submit that this matter
does not raise any arguable point of law of general public importance
which ought to be
considered by this Court. They further submit that
this matter does not raise a constitutional issue and, therefore,
this Court
has no jurisdiction to entertain it. The respondents
contend that, in any event, even if this Court’s
jurisdiction is
engaged, the application has no prospects of success
and that the minority judgment, upon which the applicants place
considerable
reliance, is wrong.
[29]
The
respondents submit that the correct test for determining the
appealability of an interim order is set out in
Zweni
.
[12]
They argue that the order made by the High Court does not
satisfy any part of the
Zweni
test
insofar as it is not final in effect and not susceptible of
alteration by the court of first instance, not definitive of the
rights of the parties, and does not have the effect of disposing of
at least a substantial portion of the relief claimed in the
main
proceedings. For that reason, the respondents submit that the
majority of the Supreme Court of Appeal was correct in concluding
that the interim order was not appealable.
[30]
Finally, the respondents also raise
concerns about the possibility of this matter amounting to a direct
appeal in the event of this
Court concluding that the majority of the
Supreme Court of Appeal erred in striking the appeal off the
roll. In this regard,
the respondents argue that the majority limited
their enquiry to the appealability of the interim order and did not
consider the
merits. They, therefore, submit that it is not in the
interests of justice for this Court to entertain this matter as a
direct
appeal as there are no exceptional circumstances.
Jurisdiction
and leave to appeal
[31]
Section 167(3)(b) of the Constitution
provides that:
“
The
Constitutional Court—
. . .
(b)
may decide—
(i)
constitutional matters; and
(ii)
any other matter, if the Constitutional Court grants leave to appeal
on the grounds that the
matter raises an arguable point of law of
general public importance which ought to be considered by that
Court.”
[32]
In
terms of section 167(7) of the Constitution, a constitutional matter
includes any issue which involves the interpretation, protection
or
enforcement of the Constitution. In this matter, it is alleged
that the impugned interim interdict constitutes a limitation
of the
applicants’ right to freedom of expression and the exercise of
their political rights as protected by the Constitution.
[13]
Section 16 of the Constitution grants freedom to receive and impart
information or ideas and, as a consequence, on that ground
alone, the
matter engages the jurisdiction of this Court. The applicants contend
that the interim order unjustifiably infringes
their right in terms
of section 16 of the Constitution. They also submit that
they were entitled to publish the statements
that they published by
reason of section 16.
[33]
With
regard to the question whether this Court may entertain an appeal
against a decision of the Supreme Court of Appeal, the powers
of this
Court do not originate from any discretionary power, but are derived
from the Constitution. The touchstone, in this regard,
is whether it
is in the interests of justice for a prospective appellant to be
granted leave to appeal.
[14]
[34]
Whether
this Court should grant leave turns on what the interests of justice
require. Whether it is in the interests of justice
to hear and
determine the matter involves a careful balancing and weighing up
of all relevant factors.
[15]
However, there is no concrete and succinct definition of the phrase
“interests of justice” and what it really entails.
[35]
What
is in the interests of justice will depend on a careful evaluation of
all the relevant factors in a particular case.
[16]
Herein there are two different hurdles as to whether this Court
should grant leave: (a) whether the Supreme Court of Appeal’s
order is appealable; and (b) whether, if the order is appealable,
this Court should entertain the merits of the appeal despite
the fact
that the Supreme Court of Appeal did not determine the merits of the
appeal.
[36]
It
would not be in the interests of justice that the issues in this
matter are determined in a piecemeal fashion.
[17]
Moreover, the issues in this matter are of such a nature that the
decision sought will have a practical effect if the application
for
leave to appeal is granted.
[37]
This matter raises issues that are of a
constitutional nature and arguable points of law of general public
importance such as whether
the Supreme Court of Appeal was correct to
hold that the interim interdict was not appealable to it. The public
interest will be
best served by their prompt resolution. Such
resolution will help to correct the wrong decision before it has
further consequences,
on one hand, and to avoid delay and
inconvenience resulting from the failure of this Court to hear the
appeal, on the other hand.
The evidence is sufficient to enable this
Court to deal with and dispose of the matter without referring it
back to the Supreme
Court of Appeal for reconsideration. It goes
without saying that the interests of justice require this Court to
entertain the matter
as remitting it to the Supreme Court of Appeal
for reconsideration will give rise to considerable inconvenience,
prejudice and
impede the attainment and administration of justice.
Issues
[38]
The issues which arise in the present
matter, and incidental to the grant of the interim order, are—
(a)
whether the Supreme Court of Appeal has the power to interfere with
the decision of the High Court to
grant leave to appeal;
(b)
whether the interim order is appealable; and
(c)
whether the High Court should have granted the impugned interim
order.
Analysis
Powers of the Supreme
Court of Appeal to interfere with the decision of the High Court
to grant leave to appeal
[39]
In
terms of section 168(3) of the Constitution, the Supreme Court of
Appeal has jurisdiction to hear and decide appeals on any matter
arising from the High Court. When a matter comes before the
Supreme Court of Appeal, it has jurisdiction to determine whether
the
lower court’s ruling in the proposed appeal is a “decision”
within the meaning of
section 16(1)(a)
of the
Superior Courts
Act.
[18
] The Supreme Court of
Appeal is not bound by the lower court’s assessment and is
entitled to reach its own conclusion on the
question.
[19]
The word “decision” is given a meaning equivalent to the
meaning given to the words “judgment or order”.
[20]
The word “judgment” is used to refer to the decision of a
court as well as its reasoning.
[21]
[40]
In answering the question whether an order
is a decision, the Supreme Court of Appeal does not exercise a
discretion but rather
makes a finding of law according to the test
determining appealability. The majority of the Supreme Court of
Appeal concluded that
the interim interdict is not a decision as
contemplated in
section 16(1)(a)
of the
Superior Courts Act and
accordingly struck the matter off its roll. As a consequence, the
applicants’ appeal in the present matter lies against a
finding
of law, not of discretion. When the Supreme Court of Appeal struck
the matter from the roll it was not exercising an appellate
power but
simply striking the matter from the roll as a matter which was not
within its jurisdiction to entertain. The Supreme
Court of Appeal was
not only entitled but obliged to determine whether the matter was an
appeal against a “decision”
and thus an appeal within its
jurisdiction. The High Court’s granting of leave to appeal
did not bind the Supreme Court
of Appeal on that issue. I can
thus turn to the next issue, which is whether the Supreme Court of
Appeal was correct in concluding
that the appeal against the interim
interdict was not appealable.
Appealability
of an interim order
[41]
In
deciding whether an order is appealable, not only the form of the
order must be considered but also, and predominantly, its effect.
[22]
Thus, an order which appears in form to be purely interlocutory will
be appealable if its effect is such that it is final and definitive
of any issue or portion thereof in the main action. By the same
token, an order which might appear, according to its form, to be
finally definitive in the above sense may, nevertheless, be purely
interlocutory in effect.
[23]
Whether an order is purely interlocutory in effect depends on the
relevant circumstances and factors of a particular case. In
Zweni
,
it was held that for an interdictory order or relief to be appealable
it must: (a) be final in effect and not susceptible to alteration
by
the court of first instance; (b) be definitive of the rights of
the parties, in other words, it must grant definite and
distinct
relief; and (c) have the effect of disposing of at least a
substantial portion of the relief claimed in the main
proceedings.
[24]
[42]
An interim order may be appealable even if
it does not possess all three attributes but has final effect or is
such as to dispose
of any issue or portion of the issue in the main
action or suit, or if the order irreparably anticipates or precludes
some of the
relief which would or might be given at the hearing, or
if the appeal would lead to a just and reasonable prompt resolution
of
the real issues between the parties. In
Von Abo
,
this Court said:
“
It
is fair to say there is no checklist of requirements. Several
considerations need to be weighed up, including whether the relief
granted was final in its effect, definitive of the right of the
parties, disposed of a substantial portion of the relief claimed,
aspects of convenience, the time at which the issue is considered,
delay, expedience, prejudice, the avoidance of piecemeal appeals
and
the attainment of justice.”
[25]
[43]
Whether
an interim order has final effect or disposes of a substantial
portion of the relief sought in a pending review is merely
one
consideration.
[26]
Under the common law principle as laid down in
Zweni
,
if none of the requirements set out therein were met, it was the end
of the matter. But now the test of appealability is the interests
of
justice, and no longer the common law test as set out in
Zweni
.
[27]
[44]
In the present matter, the majority of the
Supreme Court of Appeal struck the appeal off the roll on the grounds
that the interim
order in question was simply an interlocutory order
which was not appealable. This means that, according to the majority,
the removal
and deletion of the contents of the letter complained of
from the internet, all social media posts as well as from the UDM’s
website and Mr Holomisa’s social media account were not
final and definitive in effect. The takedown order was simply
an
interdict against continuing to publish the defamatory material on
the platforms pending the determination of the defamation
action. By
allowing the defamatory material to remain accessible on these
platforms, the applicants are in fact continuing to publish
it.
However, it has always been open to the applicants to approach the
High Court for the discharge of the impugned interim
order on
the grounds of changed circumstances, discovery of further evidence
and that the impugned interdict has endured longer
than it was
anticipated. It therefore follows that the impugned interim order is
capable of being reconsidered by the High Court
which issued it. If
the plaintiffs failed in the defamation action, the present
applicants would be at liberty to place the material
again on the
social media platforms.
[45]
What
is to be considered and is decisive in deciding whether a judgment is
appealable, even if the
Zweni
requirements are not fully met, is the interests of justice of a
particular case and whether or not an order lacking one or more
of
the factors set out in
Zweni
constitutes a “decision” for the purposes of
section
16(1)(a)
of the
Superior Courts Act.
[28
]
Over and above the common law test, it is well established that an
interim order may be appealed against if the interests of justice
so
dictate.
[29]
It is thus in the interests of justice that the impugned interim
interdict is appealable on the allegation that the interdictory
relief in question resulted in the infringement of the right to
freedom of expression.
[46]
The
majority of the Supreme Court of Appeal erred in holding that the
interests of justice did not render the impugned interim interdict
a
“decision” within the meaning of
section 16(1)(a)
of
the
Superior Courts Act. An
interdict restricting free speech
constitutes a grave intrusion on a constitutional right. Since there
was a likelihood that
the life of the impugned interim interdict,
granted pending the outcome of the defamation trial, might be
extended even longer
than it had already existed, it was sufficiently
invasive and far-reaching that it was in the interests of justice for
the grant
of the impugned interim order to be treated as a
“decision”. The Supreme Court of Appeal in
Health
Professions Council of South Africa
[30]
held that, where a litigant may suffer prejudice or even injustice if
an order or judgment is left to stand, leave to appeal against
orders
or judgments made during the course of the proceedings should be
granted. In determining whether the impugned interim interdict
was
appealable, the Supreme Court of Appeal was not exercising a
discretionary power; it was making a value judgment. Accordingly,
this Court is entitled to make its own assessment and conclude that
the impugned interim interdict was a “decision”
and thus
within the Supreme Court of Appeal’s jurisdiction.
Justification
for the granting of an interim interdictory relief
[47]
An
interdict is an order made by a court prohibiting or compelling the
doing of a particular act for the purpose of protecting a
legally
enforceable right, which is threatened by continuing or anticipated
harm. As indicated above, an interdict may be temporary
or final.
Temporary interdicts are referred to as interim or interlocutory
interdicts or interdicts
pendente
lite
.
[31]
An interim interdict pending an action is an extraordinary remedy
within the discretion of the court. For an order to be said to
be
interim, it must be susceptible to alteration and capable of being
reconsidered at the pending trial on the same facts by the
court of
first instance. According to the respondents, the impugned interim
interdict is a carefully crafted, narrow ban, designed
to prevent the
applicants from repeating the defamatory statements contained in the
letter addressed to the President and from
causing ongoing harm until
the matter is determined at the trial. The requisites for the right
to claim an interim interdict are:
(a) a prima facie right even
if it is open to some doubt; (b) injury actually committed or
reasonably apprehended; (c) the
balance of convenience; and (d) the
absence of similar protection by any other remedy.
[32]
[48]
In
granting an interdict, the court must exercise its discretion
judicially upon a consideration of all the facts and circumstances.
An interdict is “not a remedy for the past invasion of rights:
it is concerned with the present and future”.
[33]
The past invasion should be addressed by an action for damages. An
interdict is appropriate only when future injury is feared.
[34]
[49]
In democratic societies, the law of
defamation lies at the intersection of freedom of speech and the
protection of reputation or
a good name. The law does not allow the
unjustified savaging of an individual’s reputation. The right
of freedom of expression
must sometimes yield to the individual’s
right not to be defamed. In striving to achieve an equitable balance
between the
right to speak your mind and the obligation not to harm
or injure someone else’s name or reputation, the law has
devised
defences such as fair comment, and truth and in the
public interest.
Common
law defamation
[50]
The
law of defamation is based on the
actio
injuriarum
,
a flexible remedy, which affords the right to claim damages to a
person whose personality right has been impaired by the unlawful
act
of another. One of the personality rights is the right to reputation
(
fama)
and the other is
dignitas
,
and both are protected by the law of defamation.
[35]
[51]
The
most commonly raised defences for defamation to rebut the presumption
of unlawfulness are that the publication was true and
in the public
interest or that it constituted fair comment.
[36]
The two defences have crystallised in our case law. The common law of
delict requires a plaintiff in a defamation action for damages
to
show that a defamatory statement has been published. If this is
established, it is presumed that the publication was with intent
to
injure with knowledge of wrongfulness, and that it was unlawful. In
the present case, since publication of defamatory statements
is
admitted by the applicants, there is a presumption that the
publication was unlawful, for which the applicants would then bear
the onus to show that the publication of the statements constituted
fair comment or that the statements were true and in the public
interest.
[52]
A
factual foundation for a defence of fair comment or truth and in the
public interest must be laid in evidence.
[37]
The mere say so of a deponent who alleges a defence of
justification should not be accepted at face value; the facts on
which
it is based must be analysed to determine its weight and
whether or not it is established that the statement was true and in
the
public interest.
[38]
Was
the impugned statement defamatory?
[53]
Whether
a statement is defamatory is subjected to a two stage inquiry.
The first is to determine the meaning of the publication
as a matter
of interpretation and the second is whether that meaning is
defamatory.
[39]
In applying
this test it is accepted that the reasonable reader would understand
the statement in its context and that he or she
would have regard not
only to what is expressly stated but also what is implied.
[40]
In the present matter, it is not in dispute that the reasonable
reader would have understood the letters as being defamatory of
the
respondents. In the present case, the ordinary meaning of the
statement Mr Holomisa made was that the respondents are thieves,
fraudsters, corrupt and dishonest. It goes without saying that such a
statement is defamatory of the respondents. The applicants’
defence was that the statements were the truth and in the public
interest, but they failed to prove it.
[54]
In addition, it was contended on behalf of
the respondents that the manner in which the allegations were stated
was provocative,
sensational and scandalous. The passage complained
of here is the allegation by the applicants in the letter that the
respondents
are—
“
double
and triple dipping into the public funds, are hyenas intent upon
fleecing the PIC. The companies are fronts for a selected
group of
super rich people to syphon money from [the] PIC and this dwarfs the
state capture by the Gupta family.”
It
is correct that the tone in which the statements were written or the
way in which they were presented provided an unnecessary
sting as
they were drafted in an outlandish and exaggerated manner.
Wrongfulness
[55]
In the present case, the High Court had to
determine whether there was prima facie evidence to sustain an
action for defamation
and consider whether the applicants’
conduct in publishing a defamatory statement was wrongful and whether
there was an intention
to defame the respondents. The applicants
contended that their conduct was lawful in that they were acting in
terms of section
16 of the Constitution, which entitled them to
receive and impart the information, and that they were acting in the
exercise of
their political rights, as contained in section 19 of the
Constitution, and within the ambit of their political activities.
They
also submitted that they had a duty and responsibility as
political actors to ferret and root out corruption in the Executive
and
public institutions. Further, they contended that their intention
was not to defame the respondents, but to bring the information
to
the notice of the President and request him to investigate and verify
it. The applicants further argued that it was in the public
interest
that such information should also be disseminated to the public.
[56]
In a defamation action, once it is shown
that the statement complained of is defamatory of the plaintiff, the
wrongfulness of the
defendant’s conduct is presumed. This
places a burden of proof on the defendant to prove that his or her
conduct was not
wrongful. In the present matter, there were
allegations of impropriety, corruption and conflicts of interests
against the respondents.
The sixth respondent, a former Deputy
Minister of Finance, was accused of using his position to improperly
enrich himself and the
other politically connected respondents. The
applicants state that they have a constitutional duty to ensure that
corruption in
state institutions or entities is exposed, hence they
solicited the President to investigate and verify the allegations.
The applicants
state that, on those grounds, their conduct was not
wrongful.
Truth
and in the public interest
[57]
For the applicants’ allegations
relating to corruption and conflict of interests to be accepted, it
must be supported by proof
of truth and in the public interest. The
applicants have not disclosed facts that would sustain a defence of
truth and in the public
interest.
[58]
It
is well settled that what is required of a respondent is that “a
sustainable foundation be laid by way of evidence that
a defence such
as truth and in the public interest or fair comment is available to
be pursued by the respondent”.
[41]
The applicants advanced comprehensive details of the people involved
in the alleged scheme and about funding and related transactions
and
shareholding. But, those allegations in themselves do not come close
to establishing the truth of the defamatory material –
corruption; double dipping, fraud, theft and conflict of interests.
The applicants then argued that the flow of the funds and the
respective roles of the personalities are sufficient to create the
perception that the funds had been used in a manner that was
in
conflict with the PFMA and the Constitution. They went on to state
that the respondent companies were the recipients of funding
from the
PIC. However, the mere fact that the respondents had received funding
from the PIC itself could not provide proof that
such funding had
corruptly been received, regard being had to the fact that the
respondents were not the only companies that had
received funding
from the PIC. Furthermore, the circumstances under which such funding
was received by the respondent companies
were not disclosed. That the
sixth respondent had at some stage, by virtue of his position as the
Deputy Minister of Finance, been
the chairperson of the PIC as well
as that he is the non-executive director of the first respondent and
the chairperson of the
second and third respondents, could not in
itself justify the conclusion that he had conflict of interests.
These incidents were
not sufficient to justify a perception that the
funds of the PIC had been used in a manner that was in conflict with
the PFMA and
the Constitution.
[59]
The applicants’ description of
various relationships between the sixth respondent, the PIC and
the other respondents
only gives rise to a perception of possible
conflict of interests. But, there are allegations of corruption,
fraud, theft and dishonesty
which such relationship does not cover.
The applicants cannot therefore be said to have laid an adequate
factual foundation for
the defence of truth and in the public
interest. I am of the view that the burden of proof placed on
the applicants does not
pitch the level of proof for the defence of
truth and in the public interest so high as to unduly stifle freedom
of expression
and the public interest. There must be evidence and
truth to a defamatory statement one makes about another. By arguing
that they
were merely relaying allegations of corruption, not based
on their knowledge, coupled with the fact that they requested the
President
to inquire into the allegations, the applicants admitted
that they themselves did not know the truth of the allegations in
question.
They did not provide any shred of evidence of actual
misconduct, corruption and self dealing.
[60]
According to the applicants, they were
acting on the allegations of impropriety, corruption and conflict of
interests in the State
or public entity. They argue that the public
interest requires that members of the public should be informed or
know about allegations
of the theft of public funds, fraud and
looting of a public entity. The applicants contend that they have a
constitutional duty
to ensure that corruption in state institutions
is exposed. They contend that in keeping with the Constitution,
the UDM’s
role is to ensure that democracy is strengthened
and that the rule of law is observed and to insist upon
accountability and transparency
and to expose corruption and
maladministration in the State, the public service, state
institutions and parastatals. They also
contend that Mr Holomisa, as
a public representative, has a special duty to take steps to ensure
that corruption is exposed and
eradicated.
[61]
In the execution of their constitutional
duty to expose and ferret out corruption, the applicants were, in my
view, required to
act within the ambit of the law. The applicants
allegedly received defamatory information from the whistle-blowers,
and then they
went and published it under a mistaken belief that it
was for the benefit of the public to do so, without having
ascertained the
correctness and truthfulness of the information they
had received. They did not even make a feeble attempt to ascertain
the truth
of the allegations before publishing the defamatory
material, notwithstanding the fact that they had asked the President
to inquire
into the allegations. The applicants claimed to have been
acting in good faith when they published the defamatory material, but
the utterances and embellishments, namely “in bed with”,
“the iceberg of corruption”, “there seems
to be a
concerted effort to hide”, “double and triple dipping
into the public funds”, “hyenas intent upon
fleecing the
PIC”, and “the companies are fronts for a selected group
of super rich people to syphon money from the
PIC”, betray them
and demonstrate that the converse was true instead. Such utterances
and embellishments, in my view, could
not have emanated from the
alleged whistle blowers or any other persons other than the
applicants themselves. In doing so,
the applicants put their
imprimatur on the allegations and ceased to be mere conduits but
owners of the information. The inevitable
conclusion is that, when
publishing the defamatory material, the applicants were reckless in
failing to ascertain whether the publication
of the defamatory
information in question would injure the dignity and reputation of
the respondents. The applicants had at that
time already requested
the President to investigate and verify the allegations, and the
President was working on their request.
[62]
The applicants did not, at the time when
they published the defamatory statements, have a lawful basis for so
doing. The applicants
admittedly stated that the allegations were not
yet investigated and confirmed and they, therefore, had no valid
reason to believe
in the truth of such allegations. The applicants
were not entitled to wantonly defame the respondents under the
pretext that they
were executing a constitutional duty. In the same
breath, in my opinion, it was not for the public benefit to publish
the unverified
defamatory information. When a public figure plainly
defames members of the public while admitting that he or she does not
know
the truth of what he or she says, his or her right to freedom of
expression may justifiably be limited. In the premises, the
applicants
failed to discharge the onus which rested on them to lay a
basis for the defence that the allegations were true and in the
public
interest. The publication of the letter on the internet,
social media and conventional media sites was, in the circumstances
of the present case, unwarranted.
[63]
The applicants’ conveying of the
information about the alleged corruption and conflict of interests to
the President for investigation
was, in my view, appropriate and
lawful. However, their publication of the defamatory statement
elsewhere before the verification
and confirmation of the alleged
corruption and conflict of interests rendered the applicants` conduct
wrongful.
Balance
of convenience
[64]
The
right to freedom of expression embraces the right to receive
expressions transmitted by others.
[42]
Section 16(1) of the Constitution provides:
“
Everyone
has the right to freedom of expression, which includes—
(a)
freedom of the press and other media;
(b)
freedom to receive or impart information or ideas;
(c)
freedom of artistic creativity; and
(d)
academic freedom and freedom of scientific research.”
[65]
The
Bill of Rights which entrenches among others the right to freedom of
expression is the cornerstone of our democracy. The right
to freedom
of expression is important in facilitating the search for truth by
individuals and society generally. The Constitution
recognises that
individuals in our society need to be able to hear, form and express
opinions freely on a wide range of matters.
[43]
This Court, in
Laugh It Off
,
[44]
held that freedom of expression is a vital incident of dignity, equal
worth and freedom, and serves a collection of constitutional
ends in
an open and democratic society based on the values of equality,
freedom and human dignity,
[45]
and advances the public’s right to receive information.
[46]
[66]
The
applicants’ right to freedom of speech and to impart
information, and the public’s right to receive such information
conflicts directly with the respondents’ right to dignity and
reputation. When freedom of expression does conflict with other
rights, a court must carefully balance the conflicting rights or
interests of the parties proportionally,
[47]
with the view to ensuring protection of the rights of both parties.
A court must give due weight to both the right to freedom
of
expression and the protection of the right to dignity and reputation.
This requires a balancing exercise between the competing
rights or
interests of the parties.
[67]
Even
under the common law, in deciding whether to grant an interim
interdict, when a prima facie right and reasonable apprehension
of
irreparable harm have been established, the court will take into
account the balance of convenience between the parties.
[48]
A court weighs up the likely prejudice to the applicant if the
temporary interdict is refused and the refusal is later shown to
be
wrong in the sense that the applicant’s disputed conclusions
are ultimately upheld, against the likely prejudice to the
respondent
if the temporary interdict is granted and the grant of the interdict
is later shown to have been wrong, in the sense
that the applicant’s
disputed contentions are ultimately dismissed.
[49]
[68]
Irreparable
harm or loss may be defined as the loss of property, including
incorporeal property and money in circumstances where
its recovery is
impossible or improbable. The loss need not necessarily be financial.
It will occur when a person entitled to a
particular thing is forced
to take merely its value or is obliged to expend money which he or
she cannot possibly recover. A court
must decide whether there is any
basis to entertain a reasonable apprehension of injury by the
applicant.
[50]
[69]
An
anticipated threat to the respondents constitutes an injury
reasonably apprehended. If the infringement is one that prima facie
appears to have “occurred once and for all, and is finished and
done with” then the claimant should allege facts justifying
a
reasonable apprehension that the harm is likely to be repeated.
[51]
According to the applicants, the publication had occurred and
finished and was not likely to be repeated.
[70]
The High Court found that the impugned
letter was defamatory of the respondents and that, as a result, they
suffered irreparable
harm. The respondents submitted that they did
not to have any other adequate remedy to prevent the ongoing
financial and reputational
harm and loss to them caused by the
applicants’ persisting defamatory statement pending the
determination of the defamation
action. The respondents argued that
the mere fact that the letter continued to appear on the UDM’s
website and Mr Holomisa’s
social media account, and
remained accessible through links for anyone to read at any time,
meant that, even if the applicants
were not to repeat their
utterances, further harm was, nevertheless, a very real prospect for
as long as access to the letter remained
possible. For as long as any
member of the public, investment partners and prospective clients had
access to the letter, the defamation
would be inflicted on the
respondents afresh. They needed an order to prevent the further and
continuing harm.
[71]
The respondents also contended that the
harm they were facing was irreparable, as they would unlikely be able
to ascertain with
any degree of certainty how many clients they would
lose as a result of the ongoing defamation. If the interim relief was
not granted,
it would be extremely difficult, if not practically
impossible, to pursue a claim for damages which would adequately
remedy the
wrongs committed. The respondents went on to contend that
their industry is extremely sensitive to the perception of one’s
integrity and trustworthiness. Companies place enormous sums of money
in the respondents’ hands for them to invest wisely
and
properly as far as they are able to do so and that many people’s
lives and livelihoods depend on the respondents’
decisions.
According to the respondents, the effect of the order is to regulate
the applicants’ conduct in a circumscribed,
specific and
limited manner for a certain period pending the finalisation of the
defamatory claim.
Other
alternative satisfactory remedy
[72]
On the evidence of the respondents, there
was no other alternative satisfactory remedy to prevent the ongoing
financial and reputational
harm and loss caused to them by the
applicants’ persistent conduct pending the determination of the
action for damages. The
applicants contend that an award of damages
for defamation action would provide an alternative satisfactory
remedy in this regard.
Such contention, in my view, does not hold any
water since by the time the defamation trial is finalised, great harm
would have
already occurred. The respondents, therefore, succeeded in
establishing a prima facie right, injury actually committed and
reasonably
apprehended, and the lack of adequate alternative remedy.
Accordingly, the interim interdict was the only appropriate remedy
that
could be granted to protect the respondents’ rights and
reputations pending the final determination of the action for
damages.
The present respondents were thus correctly granted an
interim interdict.
[73]
Ordinarily, this conclusion would mean that
we should remit the matter back to the Supreme Court of Appeal to
enable that Court
to determine the appeal on the merits. However, it
seems to me that, in the circumstances of this case we should not
follow that
route but we should determine the appeal ourselves. This
is because this Court does entertain direct access appeals from the
High
Court in appropriate cases. The matter has dragged on for a long
time and, if we remit it to the Supreme Court of Appeal, it is
likely
to end up back with us again in any event. We have already heard full
argument and we should avoid having to hear the matter
for the second
time. The route I propose to follow will avoid a duplication of
costs. In my view this Court is justified in determining
the appeal
in the same way it would have done if it was a direct appeal.
Costs
[74]
While the applicants have attained some
success in this Court in having the Supreme Court of Appeal’s
order striking
the matter from the roll reversed, the respondents
have succeeded in respect of the main relief, the interim interdict.
The respondents’
success is substantial when compared to that
of the applicants. For that reason, the respondents are consequently
entitled to their
costs in this Court, as well as in the
Supreme Court of Appeal. The matter does not justify the use of
three counsel. Costs
of two counsel is justified.
Order
[75]
The following order is made:
1.
Leave to appeal is granted.
2.
The appeal against the order of the Supreme Court of Appeal striking
the appeal from the
roll is upheld.
3.
The order of the Supreme Court of Appeal is set aside and substituted
with the following:
“
The
appeal against the order of the High Court of South Africa,
Gauteng Division, Pretoria, is dismissed with costs of
two
counsel.”
4.
The applicants shall pay the costs of the respondents in this Court,
including costs
of two counsel.
For
the Applicants:
D Mpofu SC, T Ngcukaitobi SC, and J Mitchell
instructed by
Mabuza Attorneys
For
the Respondents:
D I Berger SC, B M Slon and T B Makgalemele
instructed by Nicqui Galaktiou Incorporated
[1]
United
Democratic Movement v Lebashe Investment Group (Pty) Ltd
[2021] ZASCA 4
(Supreme Court of Appeal judgment).
[2]
73
of 1998.
[3]
23
of 2004.
[4]
1
of 1999.
[5]
Section
1 of the PFMA defines an accounting authority as any person or body
mentioned in section 49 of the Act. Section 49 in
relevant part
provides:
“
(1)
Every public entity must have an authority which must be accountable
for the purposes
of this Act.
(2)
If the public entity—
(a)
has a board or other controlling body, that board or controlling
body is the accounting
authority for that entity; or
(b)
does not have a controlling body, the chief executive officer or the
other person
in charge of the public entity is the accounting
authority for that public entity unless specific legislation
applicable to that
public entity designates another person as the
accounting authority.
(3)
The relevant treasury, in exceptional circumstances, may approve or
instruct that
another functionary of a public entity must be the
accounting authority for that public entity.”
[6]
See
section 1 of the PFMA.
[7]
Section
96(2)(b):
“
Members
of the Cabinet and Deputy Ministers may not—
.
. .
(b)
act in any way that is inconsistent with their office, or expose
themselves to any
situation involving the risk of a conflict between
their official responsibilities and private interests.”
[8]
Section 55(2) provides:
“
The
National Assembly must provide for mechanisms—
(a)
to ensure that all executive organs of state in the national sphere
of government
are accountable to it; and
(b)
to maintain oversight of—
(i)
the exercise of national executive authority, including the
implementation
of legislation; and
(ii)
any organ of state.”
[9]
Supreme
Court of Appeal judgment above n 1 at para 23.
[10]
See section 19(1) of the Constitution which provides that:
“
Every
citizen is free to make political choices, which includes the right—
(a)
to form a political party;
(b)
to participate in the activities of, or recruit
members for, a political party; and
(c)
to campaign for a political party or cause.”
[11]
Supreme
Court of Appeal judgment above n 1 at para 32.
[12]
Zweni
v Minister of Law and Order
of
the Republic of South Africa
[1992] ZASCA 197
;
1993 (1) SA 523
(A) at 532I-533A.
[13]
See sections 16 and 19 of the Constitution, respectively.
[14]
City
of Tshwane Metropolitan Municipality v Afriforum
[2016]
ZACC 19
;
2016 (6) SA 279
(CC);
2016 (9) BCLR 1133
(CC) at para 40;
National
Treasury v Opposition to Urban Tolling Alliance
[2012]
ZACC 18
;
2012 (6) SA 223
(CC);
2012 (11) BCLR 1148
(CC) (
OUTA
)
at paras 23-5;
MEC
for Health, Kwazulu Natal v Premier, Kwazulu Natal: In re
Minister of Health v Treatment Action Campaign
[2002] ZACC 14
;
2002 (5) SA 717
(CC);
2002 (10) BCLR 1028
(CC) at
para 6; and
Cape
Metropolitan Council v Minister of Provincial Affairs and
Constitutional Development
[1999] ZACC 12
;
2000 (1) SA 727
(CC);
1999 (12) BCLR 1353
(CC)
at para 12.
[15]
International
Trade Administration Commission v SCAW South Africa (Pty) Ltd
[2010]
ZACC 6
;
2012 (4) SA 618
(CC);
2010 (5) BCLR 457
(CC) (
SCAW
)
at para 55. See also
OUTA
id at para 25.
[16]
SCAW
id.
[17]
Government
of the Republic of South Africa v Von Abo
[2011] ZASCA 65
;
2011 (5) SA 262
(SCA) at para 17.
[18]
See
section 16(1)(a)
of the
Superior Courts Act 10 of 2013
.
[19]
In
Minister
of Safety and Security v Hamilton
[2001] ZASCA 27
;
2001 (3) SA 50
(SCA), the respondent had instituted
an action for damages in the High Court against the appellants. The
appellants excepted
to the respondent’s particulars of claim
as amended. The Court dismissed the exceptions on the ground that it
was inappropriate
to decide the issues raised by way of exception
without hearing all the evidence in the matter. The Court
concluded that
it would be inappropriate for it to determine whether
the legal duty on which the respondent relied existed or not.
However,
the High Court granted leave to appeal against the
dismissal of the exceptions. When the appeal was called, the Court
raised
the question whether the order was appealable. The Supreme
Court of Appeal held that the decision of the High Court that the
matter had to go to trial precluded it from deciding the issue that
the second defendant wished to bring on appeal; namely the
merits of
the exception’s challenge to the legal foundation of the
claim. The High Court’s ruling deferred the very
determination
the excipients sought to obtain, with the result that there is no
“judgment or order to appeal against”.
[20]
In
Neotel
(Pty) Ltd v Telkom SA Soc Ltd and Others
[2017] ZASCA 47
at paras 12–3, where the Court held that—
“
[t]he
appellant correctly conceded in argument that there was no
difference in the meaning that was assigned to the phrase ‘judgment
or order’ in [section] 20 of the Supreme Court Act and a
‘decision’ in [section] 16(1)(a) of the
Superior Courts
Act. This
has been held to be so.
If
a decision did not constitute a ‘judgment or order’ the
decision was not appealable under the Supreme Court Act.
Since there
is no conceptual difference between such a judgment or order and the
‘decision’ contemplated in [section]
16(1)(a) of the
Superior Courts Act, the
same would hold true under the
Superior
Courts Act. The
‘judgment or order’ was held to refer to
a substantive judgment or order in terms of which the court granted
or refused
the relief sought. The same meaning has to be given to
the ‘decision’ contemplated in [section] 16(1)(a)
of
the
Superior Courts Act.” (Footnotes
omitted.)
See
S v Van Wyk
[2014] ZASCA 152
;
2015 (1) SACR 584
(SCA) at 591
footnote 6;
Firstrand Bank Limited t/a First National Bank v
Makaleng
[2016] ZASCA 169
paras 10-15.
[21]
Administrator,
Cape v Ntshwaqela
1990 (1) SA 705
(A) at 714J 715A.
[22]
SCAW
above
n 15 at para 53; and
Metlika
Trading Ltd v Commissioner for the South African Revenue Service
[2004]
ZASCA 97
(
Metlika
)
at para 23.
[23]
South
Cape Corporation (Pty) Ltd v Engineering Management Services (Pty)
Ltd
1977 (3) SA 534
(A) at 535G 536A; and
Metlika
id.
[24]
Zweni
above n 12 at 532I-533A. See also
Khumalo
v Holomisa
[2002]
ZACC 12
;
2002 (5) SA 401
;
2002 (8) BCLR 771
(
Khumalo
)
at para 6.
[25]
Von
Abo
above n 17.
[26]
OUTA
above n 14 at para 25.
[27]
SCAW
above
n 15 at para 52. See also
Philani
Ma-Afrika v Mailula
[2009] ZASCA 115
;
2010 (2) SA 573
(SCA) at para 20; and
S
v Western Areas
[2005] ZASCA 31
;
2005 (5) SA 214
(SCA) at paras 25-8.
[28]
Western
Areas
id
at paras 26-8; and
Khumalo
above n 24.
[29]
Philani
Ma-Africa
above n 27.
[30]
Health
Professions Council of South Africa v Emergency Medical Supplies and
Training CC t/a EMS
[2010] ZASCA 65
;
2010 (6) SA 469
(SCA) at para 25.
[31]
Herbstein
and Van
Winsen
The
Civil Practice of the High Courts
and the
Supreme Court of Appeal of South Africa
5
ed (
Juta
& Co Ltd
,
Cape
Town 2009
)
at 1063.
[32]
See
OUTA
above n 14 at para 41, citing with approval
Setlogelo
v Setlogelo
1914 AD 221
at 227; and
Webster
v Mitchell
1948 (1) SA 1186
(W) at 1187.
[33]
Tau
v Mashaba
[2020]
ZASCA 26
;
2020 (5) SA 135
(SCA) at para 26.
[34]
Philip
Morris Inc v Marlboro Shirt Co SA Ltd
1991 (2) SA 720
(A) at 735A-B. See also
National
Council of Societies for the Prevention of Cruelty to Animals v
Openshaw
[2008] ZASCA 78
;
2008 (5) SA 339
(SCA) (
NCSPCA
)
at para 20
.
[35]
Khumalo
above
n 24 at paras 17 and 27-8.
[36]
National
Media Ltd v Bogoshi
[1998] ZASCA 94
;
1998 (4) SA 1196
(SCA) at 1208I;
Argus
Printing and Publishing Company Ltd v Esselen’s Estate
[1993] ZASCA 205
;
1994 (2) SA 1
(A) at 25C-D; and
Khumalo
id at para 26.
[37]
Herbal
Zone (Pty) Ltd v Infitech Technologies (Pty)
Limited
[2017] ZASCA 8
at paras 38-9.
[38]
Id.
[39]
Le
Roux v Dey
(
Freedom
of Expression Institute and Restorative Justice Centre as Amici
Curiae
)
[2011] ZACC 4
;
2011 (3) SA 274
(CC);
2011 (6) BCLR 577
(CC) at para
38.
[40]
Id
at para 89.
[41]
Herbal
Zone
above n 37 at para 38.
[42]
Case
v Minister of Safety and Security
[1996] ZACC 7
;
1996 (3) SA 165
(CC);
1996 (5) BCLR 608
(CC) at para
30.
[43]
South
African
National
Defence Union v Minister of Defence
[1999] ZACC 17
;
1999 (4) SA 469
(CC);
1999 (6) BCLR 615
(CC) at para
7.
[44]
Laugh
It Off Promotions CC v SAB International
(
Finance
)
BV
t/a Sabmark International
(
Freedom
of Expression Institute as Amicus Curiae
)
[2005] ZACC 7; 2006 (1) SA 144 (CC); 2005 (8) BCLR 743 (CC).
[45]
Id
at para 45.
[46]
South
African Broadcasting Corp Ltd v National Director of Public
Prosecutions
[2006] ZACC 15
;
2007 (1) SA 523
(CC);
2007 (2) BCLR 167
(CC) at para
120.
[47]
Id
at para 133.
[48]
Harnischfeger
Corporation v Appleton
1993
(4) SA 479
(W) at 491B-D.
[49]
Inkatha
Freedom Party v African National Congress
1994 (3) SA 578 (EN).
[50]
NCSPCA
above n 34
at
para 21; and
Minister
of Law and Order v Nordien
[1987] ZASCA 24
;
1987 (2) SA 894
(A) at 896H-I.
[51]
Performing
Right Society Ltd v Berman
1966 (2) SA 355
(R) at 357F.
sino noindex
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