Case Law[2026] ZASCA 4South Africa
National Director of Public Prosecutions v Gcaba (488/2024) [2026] ZASCA 4 (14 January 2026)
Supreme Court of Appeal of South Africa
14 January 2026
Headnotes
Summary: Prevention of Organised Crime Act 121 of 1998 (POCA) – application in terms of s 48 for forfeiture of property held under a preservation order obtained under s 38 – whether ‘pending’ in s 40(a) requires that the application for forfeiture of property to be issued and served within 90 days of publication of preservation order.
Judgment
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## National Director of Public Prosecutions v Gcaba (488/2024) [2026] ZASCA 4 (14 January 2026)
National Director of Public Prosecutions v Gcaba (488/2024) [2026] ZASCA 4 (14 January 2026)
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sino date 14 January 2026
SAFLII Note:
Certain
personal/private details of parties or witnesses have been
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FLYNOTES:
POCA
and SIU – Forfeiture –
Service
–
Service
of a preservation order or forfeiture application should occur as
soon as practicable – Service within 90 days
is not required
to keep preservation order in force – High Court erred in
concluding that preservation order had lapsed
due to late service
– Forfeiture application was pending when issued within
90-day period – Evidence established
that monies constituted
proceeds of crime – Appeal upheld –
Prevention of
Organised Crime Act 121 of 1998
,
s 40(a).
THE
SUPREME COURT OF APPEAL OF SOUTH AFRICA
JUDGMENT
Reportable
Case
No: 488/2024
In
the matter between:
THE
NATIONAL DIRECTOR OF PUBLIC
PROSECUTIONS
APPELLANT
and
SITHEMBISO
ADOLPHUS GCABA
RESPONDENT
Neutral
citation:
The
National Director of
Public Prosecutions v Gcaba
(488/2024)
[2026] ZASCA 04
(14
January 2026)
Coram:
MAKGOKA and COPPIN JJA and DAWOOD, PHATSHOANE and HENNEY AJJA
Heard:
26 May 2025
Delivered:
This judgment was handed down electronically by circulation to
the parties’ representatives by email, publication on the
Supreme
Court of Appeal website and released to SAFLII. The date and
time for hand-down of the judgment is deemed to be 14 January 2026
at
11h00.
Summary:
Prevention of Organised Crime Act 121 of 1998 (POCA)
– application in terms of s 48 for forfeiture of property held
under
a preservation order obtained under s 38 – whether
‘pending’ in s 40
(a)
requires that the application
for forfeiture of property to be issued and served within 90 days of
publication of preservation
order.
ORDER
On
appeal from:
KwaZulu-Natal Division
of the High Court, Durban (Kruger J, sitting as court of first
instance):
1
The appeal is upheld.
2
The order of the high court dated 27 October 2023, dismissing the
application for a forfeiture order,
is set aside and replaced with
the following:
‘
1.
An order is granted in terms of s 50(1) of the Prevention of
Organised Crime Act 121 of 1998 (POCA) declaring
forfeit to the State
R46 120 (the property) held under the reference: SAP13/886/2021
via Durban Central CAS 257/03/2021 at
the Durban Central Police
Station.
2.
After the forfeiture order referred to in paragraph 1 takes effect,
the Station Commander, Durban Central
Police Station, is directed to
forthwith deposit the property into the banking account described
below:
2.1 Name of
Account: Criminal Asset Recovery Account
2.2 Name of
Bank: The Reserve Bank of South Africa
2.3 Account
number: 8[...]
2.4 Deposit
reference number: 1[...]
3.
In terms of s 50(5) of POCA, the State Attorney, Durban is directed
to forthwith publish a notice of
this Order in the
Government
Gazette
.
4.
The Applicant is directed to deliver a copy of this order by hand, or
through
email
to:
4.1
The Station Commander, Durban Central Police Station, SAPS
and
4.2
The SAP13 Exhibit Clerk, Durban Central Police Station.
5.
The Applicant is directed to forthwith serve a copy of this judgment
on the Respondent, Sithembiso Adolphus
Gcaba, within 20 days of this
order.
6.
Any person whose interest in the property concerned is affected by
the forfeiture order, may within 20
days after they have acquired
knowledge of such order, in terms of the relevant provisions of POCA,
apply for the order to be varied
or rescinded by the high court.
7.
Any person affected by the forfeiture order, who was entitled to
receive notice of the forfeiture application
under s 48(2) of POCA
but who did not receive such notice, may within 45 days after the
publication of the notice of the forfeiture
order in the
Government
Gazette
, apply to the high court for an order under s 54 of POCA,
to exclude his, her or its interest in the property, or to be part of
the operation of the order in respect of the property
8.
In terms of s 50(6) of POCA, this forfeiture order shall not take
effect before the period allowed for
an application under s 54 of
POCA, or an appeal under s 55 of POCA has expired, or before such
application or appeal is disposed
of.’
JUDGMENT
Henney
AJA (Coppin JA and Phatshoane AJA concurring)
:
Introduction
[1]
This is an appeal by the National Director of
Public Prosecutions (the NDPP) against an order of the KwaZulu-Natal
Division of the
High Court, Durban (the high court), in which its
application in terms of s 48 of the Prevention of Organised Crime
Act, 121 of
1998 (POCA), for the forfeiture of property (the
application), was dismissed. The application, as well as this appeal
were not
opposed by the respondent, Mr Sithembiso Adolphus Gcaba (Mr
Gcaba). The appeal is with the leave of the high court.
[2]
Mr Gcaba was arrested for allegedly being in
unlawful possession of R46 120 (the property). This amount was
held by the State
under a preservation order obtained by the NDPP and
granted
ex parte
by
the high court in terms of s 38 of POCA on 28 September 2022. In
terms of s 40
(a)
of
POCA: ‘[a] preservation of property order shall expire 90 days
after the date on which notice of the making of the order
is
published in the
Gazette
unless – (
a
)
there is an application for a forfeiture order
pending
before the High Court in respect of the property,
subject to the preservation of property order.’ (My emphasis).
By the time
the 90 days expired in this matter the application was
only issued but had not been served. The question that arises is
whether
the application was ‘pending’ before the high
court as contemplated in that section before expiry of the 90 days.
At
the heart of this case is, therefore, the meaning of the word
‘pending’ in s 40(
a
)
of POCA.
[3]
Given the debate and the difference in
interpretation of the word ‘pending’ in this judgment and
the second judgment
as will become obvious later, the provisions of
POCA that deal with the preservation and forfeiture procedures are
not models of
clarity. This judgment seeks to assign a meaning to the
word ‘pending’ in s 40, it does not seek to resolve
anomalies
that may arise from that provision.
Factual
background
[4]
On the evening of 6 March 2021 members of the South African Police
Services observed Mr Gcaba
engaged in suspicious and unlawful
activity at a petrol service station’s automatic teller machine
(ATM). He had a total
number of 69 orange Social Security Agency
(SASSA) cards in his possession and carried a black bag, which
contained additional
SASSA cards and R 7 640 cash.
[5]
Mr Gcaba gave an unsatisfactory explanation to the police regarding
the cards and money. He was
arrested. A further R39 800 was found in
his car. The total amount of cash recovered was thus R46 120. It
was established
that these cards had been dispatched from
Bloemfontein to various SASSA offices in KwaZulu-Natal and that an
amount of R118 000
was withdrawn from ATMs in the eThekwini region
over a five-hour period with 62 of the cards that were found in the
possession
of Mr Gcaba.
[6]
Following the seizure of the property the NDPP applied for a
preservation order, which the high
court granted on 28 September
2022. The high court in terms of s 39(1) of POCA ordered the NDPP to
publish a notice of the preservation
order in the
Government
Gazette
(the
Gazette
); serve its copy together with the
preservation application on Mr Gcaba through the office of the
sheriff of the high court; serve
a copy of the order on any other
person who becomes known to the NDPP as having an interest in the
property; and that any person
who has an interest in the property and
who intends to oppose the granting of a forfeiture order, must enter
an appearance to oppose
and give notice of such an intention in terms
of s 39(3) of POCA.
[7]
The preservation order was published in the
Gazette
on 14 October 2022. On 11
January 2023, while the preservation order was still in force, the
NDPP, for the first time, launched
the present application for the
granting of a forfeiture order in terms of s 48 of POCA which was set
down for hearing on 20 April
2023. The application was removed from
the roll and reinstated on several occasions between the period of 20
April 2023 and 14
August 2023, by which date the service of the
preservation order and the application had not been effected on Mr
Gcaba. Only on
17 August 2023 after cooperation between the State
Attorney and the investigating officer, the preservation order and
the forfeiture
application were served on Mr Gcaba personally at the
Regional Court for the Regional Division of KwaZulu-Natal, Durban. Mr
Gcaba
was appearing in the criminal matter related to this
application and was also advised about the court date.
[1]
This was after numerous unsuccessful attempts by the State Attorney
to get the sheriff to serve the preservation application order
as
well as the forfeiture order on Mr Gcaba at his given address.
[8]
On 27 October 2023, the application was heard in the high court and
dismissed on the basis that,
in terms of s 40
(a)
of POCA, the
preservation order had expired because ‘…the application
[for a forfeiture order] was served on [Mr Gcaba]
way beyond the
expiration of the 90-day period. The preservation order had therefore
lapsed’. In terms of s 48(1) of POCA
the NDPP may only apply
for a forfeiture order in respect of property while the preservation
order in respect of that property
is still in force.
The
NDPP’s submissions
[9]
POCA does not prescribe or stipulate a specific time limit for the
service of a preservation order
on a respondent. It merely requires,
in terms of s 39(1) and (2), service of the preservation order, ‘as
soon as practicable
after the making of the order’, in the
manner in which a summons, whereby civil proceedings in the high
court are commenced,
is served. Furthermore, POCA does not expressly
provide that a preservation order would expire in the event that it
is not served
within 90 days from the date of the grant thereof. The
90 days commence after the date of the publication of the notice of
the
making of the preservation order in the
Gazette
(s 40).
Section (40)(
a
) provides for the expiration of the
preservation order at the end of the 90 days, unless an application
for the forfeiture order
is pending before a high court by such date.
[10]
The obvious purpose of a preservation order is to ensure that the
property is preserved until the grant or
refusal of a forfeiture
order. It is unclear why the failure to serve or a delay in the
service of a forfeiture order within the
90day period prescribed by s
40
(a)
of POCA, would impinge on any of Mr Gcaba’s rights
in an unacceptable manner. This is so because in the absence of
service,
the preservation order may not be confirmed, and the
forfeiture may not be granted. This can only happen when the
preservation
order and a forfeiture order application are served in
the same manner in which a summons in civil proceedings in the high
court
are commenced.
[11]
It is a frequent occurrence in litigation that the service of papers
is sometimes delayed. The reasons for
the delay in this matter do not
appear from the record and there is nothing in the record to indicate
that the delay in service
was deliberate. In an affidavit filed in
support of the condonation application in this Court, Mr Kenneth Mark
Samuel, a Deputy
Director of Public Prosecutions with personal
knowledge of the facts, explains that there were efforts to serve the
relevant documents
personally at Mr Gcaba’s place of residence,
but the delays were essentially due to lack of coordination. It
is only
after the staff of his office, the State Attorney and the
investigating officer coordinated their efforts, that the sheriff
managed
to serve the preservation application, its order and the
forfeiture application personally on Mr Gcaba on 17 August 2023.
Accordingly,
the NDPP submitted, that Mr Gcaba had been served and
his entitlement to resist the confirmation of the preservation order
and
the grant of the forfeiture order remained unaffected. The fact
that Mr Gcaba elected not to contest those processes, was entirely
his prerogative.
[12]
There is no ambiguity in the word ‘pending’ as
contemplated by s 40
(a)
of POCA. Additionally,
there is no absurdity which results from interpreting the word
‘pending’ as meaning that the
papers in the forfeiture
application have been issued and that the application has accordingly
commenced or launched and awaiting
a final decision as contemplated
in
Malebane
v Dykema.
[2]
[13]
Chapter 6 proceedings under POCA are proceedings
in
rem
because
their focus is on property that is used to commit an offence, or
which constitutes the proceeds of unlawful activity. In
advancing
this argument the NDPP rely on
National
Director of Public Prosecutions and Another v Mohamed N O and
Others
,
[3]
which held that ‘Chapter 6 is therefore focused, not on
wrongdoers, but on property that has been used to commit an offence,
or which constitutes the proceeds of crime’. The NDPP also
relies on
MV
Jute Express v Owners
of the Cargo Lately Laden on Board the MV Jute Express
[4]
where this Court dealt with an action
in
rem
and
held ‘…that in the case of an action
in
rem
the
moment of commencement is deemed to be the
issue
of
process and, in case of an action
in
personam,
the
service
of process.’
(Emphasis added.)
[14]
Based on these authorities, Chapter 6 of POCA encapsulates the
preservation and forfeiture provisions which
are in
rem,
by
parity of reasoning, the
issue
and not the
service
of
the application is required to avert the expiration of the
preservation order. This interpretation does not result in any
absurdity.
The NDPP submits that it is feasible for an application
for a forfeiture order in respect of property co-owned by two or more
persons
to be considered ‘pending’ where the papers in
the preceding preservation application have been issued and the
forfeiture
application is served on only one of the co-owners within
the 90-day period but not on the others. Such an application would be
‘pending’ against that co-owner but not on others. And
that an interpretation that service is required in such circumstances
would result in absurdity.
[15]
It is also feasible that a preservation order is not directed at a
reasonably identifiable respondent. In
such circumstances, it is
submitted, it may materialise that upon the grant and publication of
a preservation order no person delivers
a notice in terms of s 39(3)
to oppose the grant thereof, nor an affidavit in terms of s 39(5)
setting out the requisite particulars
and grounds of opposition. In
such an instance they would accordingly not be obliged to deliver a s
48(3) notice to any person.
In such circumstances, according to the
NDPP, the service requirement would be meaningless and would serve as
an impediment to
the grant of a forfeiture order.
[16]
If due regard is to be had to the text, context and purpose of the
word ‘pending’ in s 40
(a)
of POCA and the ordinary
grammatical sense thereof, the requirement of service, ie, to render
the forfeiture application ‘pending’,
would clearly
result in an absurdity. Lastly, the high courts’ decisions,
which held that service within 90 days is a necessary
requirement in
order to preserve the validity of the preservation order, were
clearly wrong and ought not to be endorsed by this
Court.
Discussion
[17]
Our jurisprudence on interpretation emphasises a contextual and
purposive approach
.
This
Court in
Natal
Joint Municipal Pension Fund v Endumeni Municipality
(
Endumeni
)
[5]
said that interpretation
requires a holistic consideration of the text, context and purpose of
legislation, with preference given
to sensible, and businesslike
meanings, over rigid formalism.
[6]
[18]
The key issue for consideration is whether the high court was correct
to conclude, relying on
Levy
v National Director of Public Prosecutions
(
Levy
)
[7]
and in
National
Director of Public Prosecutions v Moolla
(
Moolla
),
[8]
that the matter was not ‘pending’ because the
preservation order had expired due to non-service of the forfeiture
application on Mr Gcaba within 90 days of the publication of the
preservation order. And whether the interpretation of the term
‘pending’ by the court in
Levy,
and the other courts that
relied on that interpretation, was correct. And, similarly, whether
the finding to the contrary in
NDPP
v Hilda van der Burg and Another
(
Van
der Burg
),
[9]
was correct.
[19]
This Court
in
Knoop
NO and Others v
National Director of Public Prosecutions (Knoop)
,
[10]
where it dealt with appealability of preservation orders, stated that
‘
if
the NDPP does not institute that application (forfeiture) within a
period of 90 days of publication of the notice of the preservation
order, the preservation order expires’.
[11]
This Court also stated that inherent in chapter 6 of POCA is that
forfeiture should proceed without delay and it explains the 14-day
time limit for a person to enter an appearance after notice of the
preservation order, as well as the cutoff of 90 days for the
institution of a forfeiture application. It is however not apparent
from this judgment what is meant by the word ‘institution’
of a forfeiture application, could it have meant only the issuance of
the application and not service. It bears repeating that
o
n
11 January 2023, while the preservation order was still in force,
that is within the prescribed 90 days period, the NDPP launched
the
forfeiture application. In
Knoop
this
Court
was not called to specifically deal with the meaning of ‘pending’
in s 40 as we are enjoined to do.
[12]
[20]
The court in
Levy
concluded that whilst the interpretation of
the word ‘pending’ is ambiguous, it can either mean that
service of an
application is required or not required. It concluded
that for the proceedings to be ‘pending’ and for the
preservation
order not to be considered to have lapsed, not only the
issue of the forfeiture application but also service thereof was
required
within the period of 90 days. It held that it preferred that
interpretation, because POCA is impactful on individuals’
rights.
[21]
The court in
Levy
applied
Mahlangu
and Another v Van Eeden and Another
(
Mahlangu
)
[13]
where Dodson J stated that he was of the view ‘…that
when pending proceedings are referred to at common law, they
are
proceedings which have commenced by the service and not mere issue of
summons’. In
Levy
the court also took into
account a number of decisions
[14]
dealing with the question when a matter is considered to be ‘pending’
before a court, including what was said by Eloff
J in
Noah
v Union National South British Insurance Co Ltd
(
Noah
)
[15]
,
namely, that ‘. . . the word ‘‘pending’’
has different meanings in different contexts . . .’.
[16]
[22]
Mahlangu
referred to the decision
of the Constitutional Court in
S
v Mhlungu and Others
(
Mhlungu
)
[17]
where the Constitutional
Court, relying on the decisions of
Noah
and
Arab
Monetary Fund v Hashim and Others (Arab Monetary Fund),
[18]
stated that ‘…[t]he
term ‘‘pending’’ in relation to proceedings
may have different connotations
according to its context’
[19]
.
The Constitutional Court in
Mhlungu
further stated the
following with reference to what was said in
Arab
Monetary Fund
:
‘
As
Hoffmann J said in the latter case at 558 (at 649j All ER), in the
normal meaning of the term proceedings “are pending
if they
have begun but not yet finished”. It is clear enough that a
‘‘pending’’ proceeding is one
not yet
decided. … What is not so clear is when a legal proceeding may
be said to have begun.’
[20]
[23]
It seems that in several decisions of the different divisions,
reliance was placed on
Levy
as to what is considered
to be the proper interpretation of the term ‘pending’
[21]
.
The Western Cape Division of the High Court, in
Van
der Burg
,
[22]
relied on
Noah
and stated: ‘…s
40 of POCA merely requires that an application for a forfeiture order
must be “
pending”
within ninety days after
the date on which notice of a preservation order is published in the
Government
Gazette
.
That does not presuppose the service of the application, but merely
the issuing thereof. I accordingly find that there has been
proper
compliance with the provisions of s 48(1) as read with s 40 of POCA’.
In
National
Director of Public Prosecutions v Pule
[23]
the high court relied on
Van
der Burg
and
concluded that where the application for a forfeiture order was
issued on a date that ‘preceded the lapse of the 90-day
period.
That to me is the date on which the wheels of justice in the
forfeiture application could be said to have begun rolling.
Service
of the application took place at later stage, beyond the lapse of the
period of 90 days’. The court also did not
state why it
preferred the interpretation followed in
Van
der Burg
but
simply stated that: ‘…The argument that the preservation
order has become lapsed is not persuasive. I have no doubt
that the
issuing of the application satisfied the provisions of section 40 of
POCA in that, by the date on which the preservation
order would have
lapsed, there was already a pending application for forfeiture’.
[24]
[24]
In my view, the interpretation followed by the court in
Levy
to conclude that a forfeiture application is not ‘pending’,
unless service thereof had been effected within 90 days
from the date
of the publication of a preservation order, did not follow a
purposive and contextual approach in the interpretation
of the
relevant provision of POCA. Such an approach was also not followed in
Van Der Burg
, although the court there came to a different
conclusion. In
Van Der Burg
the court simply relied on
Noah
for its conclusion, that on the mere issue of summons a matter
becomes ‘pending’.
[25]
The decisions seem not to have had sufficient regard for the purpose
and overall context of POCA, which is
to combat organised crime,
which includes the recovery of the proceeds of unlawful activity; and
the civil forfeiture of criminal
property that has been used to
commit an offence or of property that constitutes the proceeds of
unlawful activity.
[26]
In dealing with the interpretation of these provisions, and
especially with the term ‘pending’,
the courts have
stressed that the term ‘pending’ is dependent on the
context in which it is used. It may have a normal
or extended
meaning. In
Noah
[25]
the
court said that ‘interpretation of “pending” is
therefore conditioned by the context in which it [was] used’.
This stance was confirmed by the Constitutional Court in
Mhlungu
where
it was stated that the term ‘pending’ in relation to
proceedings may have different connotations according to
its
context.
[26]
The
Constitutional Court also stated that in the ordinary meaning of this
term, the proceedings are ‘pending’ if they
have begun
but not yet finished. In
Arab
Monetary Fund
the
court stated that ‘…There seems no doubt that in modern
English procedure a personal action is begun when the writ
is issued.
It follows that as a matter of ordinary language; it must thereafter
be pending.’
[27]
[27]
The
interpretation advanced by the NDPP is consistent with the statutory
framework and the overall purpose of POCA. It bears repeating
that
the purpose, as stated by the Constitutional Court in
Mohamed
,
[28]
is this:
‘
[14]
…
The
law has also failed to keep pace with international measures aimed at
dealing effectively with organised crime, money laundering
and
criminal gang activities. Hence the need for the measures embodied in
the Act.
[15]
It is common cause that conventional criminal penalties are
inadequate as measures of deterrence when organised crime leaders
are
able to retain the considerable gains derived from organised crime,
even on those occasions when they are brought to justice.
The above
problems make a severe impact on the young South African democracy,
where resources are strained to meet urgent and extensive
human
needs. Various international instruments deal with the problem of
international crime in this regard, and it is now widely
accepted in
the international community that criminals should be stripped of the
proceeds of their crimes, the purpose being to
remove the incentive
for crime, not to punish them. This approach has similarly been
adopted by our Legislature.
[16]
The present Act (and particularly Chaps 5 and 6 thereof) represents
the culmination of a protracted process of law reform which
has
sought to give effect to South Africa’s international
obligation to ensure that criminals do not benefit from their crimes.
The Act uses two mechanisms to ensure that property derived from
crime or used in the commission of crime is forfeited to the State.
These mechanisms are set forth in Chap 5 (comprising ss 12 to 36) and
Chap 6 (comprising ss 37 to 62). Chapter 5 provides for the
forfeiture of the benefits derived from crime, but its confiscation
machinery may only be invoked when the “defendant”
is
convicted of an offence. Chapter 6 provides for forfeiture of
the proceeds of, and instrumentalities used in crime but
is not
conviction-based; it may be invoked even when there is no
prosecution.’ (Footnotes omitted.)
[28]
It is for these reasons that POCA makes use not only of conventional
procedures in terms of criminal and
procedural law, to curb the
scourge of organised crime, but draws on the law in civil proceedings
relating to service and the giving
of notice to persons in the
Gazette,
which is a rather extraordinary measure of informing
persons of what would happen to their property that was either
prima facie found to be the proceeds of crime or used in the
commission of a criminal offence.
[29]
The question whether the preservation order was served in terms of s
39(2) on Mr Gcaba before the expiry
of the 90 days, is not central to
the inquiry whether the forfeiture application was pending in terms
of s 40
(a)
of POCA. The fact that the preservation order was
only served after the 90-day period cannot in my view disqualify the
NDPP from
seeking a forfeiture application, which is the second stage
of a two-stage process. The only question which needs to be
considered
is whether the preservation order was still in force, and
the forfeiture application was still ‘pending’.
[30]
I am of the view that in order for a forfeiture application to be
regarded as ‘pending’ for the
purposes of s 40
(a),
it
is not a requirement that there should be service of that application
within the period of 90 days.
There
are principally four reasons that compellingly show that the word
pending” in s 40
(a)
means ‘issue’
and not ‘issue and serve’. Firstly,
service
is not a requirement because, as stated in
Mohamed
,
[29]
the focus of the proceedings is not on the alleged wrongdoers, but on
the property that has been used to commit an offence, or
which
constitutes the proceeds of crime, after it has been shown, during
the preservation proceedings, that reasonable grounds
exist to come
to such a conclusion. It is for this reason also that s 50(3) states
that the absence of a person whose interest
in the property may be
affected by a forfeiture order does not prevent the high court from
making the order. The guilt of the owners,
possessors or persons that
may have an interest in the property is not relevant to the
proceedings and it does not affect the validity
of the forfeiture
proceedings in terms of s 50(4).
[31]
In this regard it was stated in
MV
Jute Express
that
an action
in
rem
commence
with the issue of summons, unlike an action
in
personam
which
commence with the service of process.
[30]
Whilst that case was concerned with an Admiralty Jurisdiction
Regulation Act
105
of 1983 (AJRA),
it
is of equal application here where the focus is not on the person,
but on the property which the State seeks to declare forfeited.
This
was confirmed by this Court in
Knoop
with
reference to what the Constitutional Court stated in
Mohamed
.
[31]
[32]
In my view, mere issue and not service of the application within the
90 days would not unduly infringe upon
an individual’s rights.
The person’s property rights, if any, are at best only limited,
for the period of the
duration of the preservation order, after
judicial sanction, at the time when the preservation order was
granted. I therefore disagree
with the finding in
Levy
that
the term ‘pending’ should be interpreted to include the
issue
and
service
of
a forfeiture application on account that ‘. . .a statute makes
serious inroads on the rights of an individual . . . ’.
[32]
There are sufficient safeguards in POCA
[33]
to prevent an abuse of process and to protect the rights of affected
persons, after the issue of the application, whilst the proceedings
are pending and unduly delayed, and the preservation order is still
in force.
[33]
Secondly, and more significantly, is that if the word ‘pending’
is assigned the meaning ascribed
to it in
Levy
it would imply
that every forfeiture application would have to be issued and served,
within the 90 days even though there might
be no one to serve it
upon, thereby undermining the other provisions of POCA. As already
discussed, it may occur that no one with
an interest in the property
is known to the NDPP, or those with an interest in the property have
not entered an appearance as required
in terms of ss 39(3), (4) and
(5) of POCA, or are unwilling to participate in the proceedings or
may not wish
to be associated with the property that was seized or is under
preservation.
[34]
Thirdly, s 48(2) allows the NDPP to apply for a forfeiture order in
respect of property while a preservation
order in respect of that
property is in force. On a proper construction of s 40, a
preservation order is in force for a period
of ‘90 days after
the date on which notice of the making of the [preservation] order is
published in the Gazette’.
It might happen that while the issue
of the forfeiture application in that time is possible, for various
reasons, service of that
application may not be possible within that
period. Such a forfeiture application would be rendered futile if
‘pending’
means ‘issue and serve’ because the
application would not be ‘pending’ and thus result in an
extension
of the duration of the preservation order which is legally
impermissible. That is not a sensible outcome.
[35]
The absurdity of such an outcome is further illustrated with
reference to the following realistic, albeit
hypothetical, set of
facts. The NDPP has published a preservation order that it obtained
in respect of certain property. It only
manages, despite reasonable
effort to do so, to serve the notice of the preservation order as
contemplated in terms of s 39(1)
of POCA shortly before the expiry of
the 90 days since publication of the preservation order. Because the
NDPP wants to bring a
forfeiture application in respect of the
property, it is forced to issue that application while the
preservation order is still
in force. Notice of the forfeiture
application must be given to everyone who entered an appearance in
terms of s 39(3). Persons
on whom the preservation notice were served
has 14 days to enter an appearance. The 14 days only expire after the
expiry of the
90 days. Service of the forfeiture order must only be
effected on those who enter such appearance, and it is only possible
to know
at the end of the 14 days which persons must be served.
Technically it means that the forfeiture application cannot be
launched
because the preservation order ceased to be in force on the
90
th
day, since it was not ‘pending’ during
that period for lack of service. There are other examples with the
resultant
anomalies.
[36]
Fourthly,
in
MV
Jute Express
it
was said that as matter of settled procedural law, in all matters
that:
[34]
‘
this
Court had long since held that all actions commence with the issue of
summons: Marine and Trade Insurance Co Ltd v Reddinger
1966
(2) SA 407(A)
at 413D and
Labuschagne
v Labuschagne
;
Labuschagne
v Minister van Justisie
1967
(2) SA 575(A)
at 584.
There
was therefore no need for the lawgiver to say anything in s 3(5)
about when action would commence. It was a matter of settled
procedural law.’
(Emphasis
added.) In
Seaspan
Holdco 1 Ltd and Others v MS Mare Tracer Schiffahrts and Another
(
Seaspan
)
[35]
this Court dealt with the provisions of the Admiralty Jurisdiction
Regulation Act 105 of 1983 (ARJA) in a different context and
confirmed what was stated in
MV
Jute Express
regarding
the commencement of an
action
in rem
.
The upshot of what was stated in that case in the context of the ARJA
was that,
MV
Jute Express
did
not decide that an arrest of a vessel actual or deemed was
unnecessary in order to institute an
action
in rem
.
[36]
It confirmed what was stated in
MV
Jute Express
that
actions in general start with the issue of process and not only
confined to
actions
in rem
in
Admiralty matters. It did not change what was said in
MV
Jute Express
about
the settled procedural law in civil proceedings in South
Africa.
[37]
On the aforegoing exposition, the established jurisprudence in civil
proceedings, which would include application
proceedings, is that the
proceedings are commenced by the issue of the initiating process, eg.
summons. A priori, proceedings which
have commenced are certainly
‘pending’. Accordingly, properly construed, the word
‘pending’ can only mean
that the forfeiture application
has been issued. Service is not required in addition, to render it
‘pending’.
[38]
The word ‘pending’ cannot be given two
meanings. Stated otherwise, it cannot mean ‘issue
and service’
and ‘issue’ at the same time. It is one or the other.
Unless that is so, the uncertainty that the
second judgment purports
to avoid will prevail. The second judgment seems to suggest that this
judgment has not said when the forfeiture
application ought to be
served. That is not correct. It is clear that the commencement of the
90 days is not tied to the service
referred to in s 39(1)(
a
),
but to the publication referred to in s 39(1)(
b
). By so doing,
the legislature clearly seems to have accepted that service may not
be required or may involve practical difficulties
resulting in delay.
POCA does not provide that the service of the preservation order or
forfeiture application be effected within
90 days. In terms of s
39(1) the preservation order should be served ‘as soon as
practicable after the making of the order.’
In terms of s 48(2)
14 days’ notice of the forfeiture application must be given to
everyone who entered an appearance in
terms of s 39(3). I have
alluded to examples where service legitimately might not be possible
within the 90 days, and the debilitating
consequences that may follow
if there is a hard rule that service of the preservation order and of
the forfeiture application be
made within the 90 days.
[39]
In the present matter, at the time of the hearing of the application,
despite the expiration of the 90 day
period on 27 October 2023, the
preservation order was still in force, because the forfeiture
application was ‘pending’
in terms of s 40
(a)
of
POCA, ie even though service of that application only took place on
17 August 2023. The NDPP complied with the provisions of
s 48(2) by
serving the application on Mr Gcaba more than 14 days before the
application was heard. The high court, therefore, effectively,
erred
in finding that the application was futile because the 90-day period,
from the date of the publication in the
Gazette
the
preservation order had lapsed; and the forfeiture application was not
‘pending’ within that period.
[40]
The NDPP submitted that the order of the high court refusing the
application of the forfeiture order ought
to be set aside on the
basis of the undisputed facts and the merits of the case. It urged us
to replace the order of the high court
with an order granting the
forfeiture application.
[41]
The evidence establishes on a balance of probabilities that the R46
120 is the proceeds of crime and that
Mr Gcaba can hardly make any
lawful claim to it. Despite being served with relevant papers,
including the preservation order and
the forfeiture application, and
having had 14 days to respond, Mr Gcaba did not oppose the relief
sought. He also took no other
steps, including those contemplated in
ss 47(1) and (3) of POCA to rescind the preservation order. In any
event, as stated before,
even if he has an interest in the property,
in terms s 50(3) of POCA, his absence could not have prevented the
high court or prevent
this Court from making the forfeiture order
sought. The NDPP has made out a case for the forfeiture of the
property in terms of
s 50(1)
(b)
of POCA and the high court
ought to have concluded accordingly. Out of an abundance of caution,
in addition to publication of the
forfeiture order in the
Gazette,
service of the forfeiture order, made by this Court in substitution
of the high court’s order, would have to be served on
Mr Gcaba.
[42]
From the second judgment it appears that there is a concern with the
fact that the high court had initially
granted an order without
reasons. Unfortunately, the NDPP never raised this issue and all the
facts in that regard are not before
us. In the high court, unopposed
motion court matters (which this one was) are usually disposed of
without reasons and reasons
are requested in which event they must be
promptly provided. Due to the paucity of information on the record
before us, we cannot
find that there has been a departure from the
norm that requires censure by this Court.
[43]
The following order is made:
1.
The appeal is upheld.
2. The
order of the high court dated 27 October 2023, dismissing the
application for a forfeiture order, is set
aside and replaced with
the following:
‘
1.
An order is granted in terms of s 50(1) of the Prevention of
Organised Crime Act 121 of 1998 (POCA) declaring
forfeit to the State
R46 120 (the property) held under the reference: SAP13/886/2021
via Durban Central CAS 257/03/2021 at
the Durban Central Police
Station.
2.
After the forfeiture order referred to in paragraph 1 takes effect,
the Station Commander, Durban Central
Police Station, is directed to
forthwith deposit the property into the banking account described
below:
2.1 Name of
Account: Criminal Asset Recovery Account
2.2 Name of
Bank: The Reserve Bank of South Africa
2.3 Account
number: 8[...]
2.4 Deposit
reference number: 1[...]
3.
In terms of s 50(5) of POCA, the State Attorney, Durban is directed
to forthwith publish a notice of
this Order in the
Government
Gazette
.
4. The
Applicant is directed to deliver a copy of this order by hand, or
through
email to:
4.1
The Station Commander, Durban Central Police Station, SAPS and
4.2
The SAP13 Exhibit Clerk, Durban Central Police Station.
5.
The Applicant is directed to forthwith serve a copy of this
judgment on the Respondent, Sithembiso
Adolphus Gcaba, within 20 days
of this order.
6.
Any person whose interest in the property concerned is affected by
the forfeiture order, may within 20
days after they have acquired
knowledge of such order, in terms of the relevant provisions of POCA,
apply for the order to be varied
or rescinded by the high court.
7.
Any person affected by the forfeiture order, who was entitled to
receive notice of the forfeiture application
under s 48(2) of POCA
but who did not receive such notice, may within 45 days after the
publication of the notice of the forfeiture
order in the
Government
Gazette
, apply to the high court for an order under s 54 of POCA,
to exclude his, her or its interest in the property, or to be part of
the operation of the order in respect of the property
8.
In terms of s 50(6) of POCA, this forfeiture order shall not take
effect before the period allowed for
an application under s 54 of
POCA, or an appeal under s 55 of POCA has expired, or before such
application or appeal is disposed
of.’
R C A HENNEY
ACTING JUDGE OF APPEAL
# Makgoka JA (Dawood AJA
concurring):
Makgoka JA (Dawood AJA
concurring):
[44]
I have read the judgment prepared by my colleague, Henney AJA (the
first judgment).
I disagree with its interpretation of s 40(
a
)
and its conclusion to uphold the appeal. In my view, a proper
interpretation of that provision means that the NDPP is required
to
issue and serve the forfeiture application within 90 days. Failing to
do so, the preservation order lapses. My core disagreement
with the
interpretation of the first judgment is the uncertainty it will
create in the proceedings under Chapter 6 of POCA.
Facts
[45]
The basic facts relevant to the appeal are these. The NDPP obtained a
preservation
order against the respondent
ex parte
on 28
September 2022. Section 39(1)(
a
) provides that a preservation
order must be served ‘as soon as practicable’ after being
obtained. The NDPP did not
comply with this provision. It only served
it after 11 months. The NDPP published the preservation order in the
Gazette
on 14 October 2022. On 11 January 2023, the NDPP
issued the forfeiture application in terms of s 48. This was well
within the 90-day
period envisaged in s 40
(a)
. However, the
NDPP failed to serve the application until 17 August 2023, ie after
11 months, when it served it together with the
preservation order.
In
the high court
[46]
The forfeiture application came before the high court on 27 October
2023 after
several failed attempts. The respondent did not oppose the
application. The high court had to interpret s 40
(a)
, which in
relevant part reads:
‘
A
preservation of property order shall expire 90 days after the date on
which notice of the making of the order is published in
the
Gazette
unless —
(a)
there is an application for a forfeiture order pending before the
High Court in respect of the property, subject to the preservation
of
property order.’
[47]
The high court held that to avert the lapsing of a preservation
order, and
make it pending as envisaged in s 40
(a)
, both the
issue and service of the forfeiture application should take place
within 90 days of the preservation order being published
in the
Gazette.
It thus dismissed the application. The high court
relied on
Levy.
In turn,
Levy
relied, among others,
upon
Mahlangu.
In the latter case, the Land Claims Court, in
the context of the
Extension of Security of Tenure Act 62 of 1997
,
held that legal proceedings are commenced by the issue and service of
summons.
[48]
Levy
rested
on two premises. The first is that in adversarial proceedings, they
cannot be said to be ‘pending’ where one
of the parties
was unaware of such proceedings. The second is that the word
‘pending’ is ambiguous and thus may be
interpreted as
requiring service of the application on a respondent or not doing
so. POCA, the court said, ‘. . .ma[d]e
serious inroads on
the rights of an individual. . .’
[37]
,
and as such, its provisions had to be restrictively construed to
limit violation of rights. The high court, relying on
Levy
,
dismissed the
forfeiture
application brought by the
NDPP
but subsequently granted it leave to appeal to this Court.
In
this Court
[49]
The NDPP asserted that it can serve the
forfeiture application after the 90day period referred to in
s 40
(a)
,
as long as the application was issued within that period. The first
judgment comprehensively sets out the NDPP’s submissions.
It is
therefore not necessary to regurgitate them here.
An
overview of the interrelated provisions
[50]
The contextual setting of
s 40
(a)
is that it is part of
interrelated provisions of POCA, together with
ss 38
,
39
,
40
,
48
and
50
. Thus,
s 40
(
a
)
cannot be interpreted in isolation
from these provisions.
Sections 38
,
39
and
40
all fall under Chapter
6,
Part 2
of the POCA, titled
Preservation of Property Orders
,
while
ss 48
and
50
fall under
Part 3
, titled
Forfeiture of
Property
. The provisions therefore provide for a seamless
three-step procedure from the obtaining of a preservation order until
the property
is forfeited. The first is the obtaining of a
preservation order in terms of
s 38.
It is sought, and granted, by
the high court on ex parte application, prohibiting any person from
dealing in any manner with the
property referred to in the order. For
the preservation order to be granted, the court must, in terms of
s
38(2)
, be satisfied that there are reasonable grounds to believe,
among others, that the property concerned is the proceeds of unlawful
activities.
[51]
The second is the notification of the existence of a preservation
order.
Section 39(1)
requires the NDPP to do two things after the
granting of the preservation order:
Service
of the notice of
the preservation order
(s 39(1)
(a)
) and
publication
of
the notice in the
Gazette
(s 39(1)
(b
)). The
sub-sections are joined by ‘and’, which means they must
be read conjunctively, ie both must be satisfied. The
structure of
s
39
seems to suggest that
service
of the preservation order
must precede
publication
in the
Gazette
. This is
because
s 39(1)
decrees that service has to take place ‘as soon
as practicable’ and ‘shall be served in the manner in
which a
summons whereby civil proceedings in the high court are
commenced, is served’, ie service through the sheriff, which
can
take place within a few weeks.
[52]
The situation is different when it comes to publication in the
Gazette
. One must overcome administrative hurdles to have a
document published there. In this context, publication in the
Gazette
is usually the final step of the two requirements. This, in my view,
explains why
s 40(
a
) links the duration of the preservation
order to its publication in the Gazette rather than its service,
setting a 90day expiry
period unless a forfeiture application is
pending before the high court.
[53]
Section 39(3)
provides for the entering of an appearance to defend by
the two categories of persons mentioned above, ie those who receive
the
notice of a preservation order by way of service by the sheriff
and those who receive it through publication in the
Gazette
.
In terms of
s 39(4)
, those who were notified of it by service must
deliver their appearance to defend within 14 days after service,
while those who
received notice through publication in the
Gazette
must do so within 14 days of such publication. In each instance, the
appearance to defend serves to give ‘notice of [the
person’s]
intention
to oppose the making of a forfeiture order
or to
apply for an order excluding his or her interest in the property
concerned from the operation thereof’. (Emphasis added.)
[54]
Section 39(5)
provides that the appearance to defend shall be
accompanied by an affidavit stating: (a) full particulars of the
identity of the
person entering the appearance; (b) the nature and
extent of his or her interest in the property concerned; and (c) the
basis of
the defence upon which he or she intends to rely in opposing
a forfeiture application or applying for the exclusion of his or her
interests from the operation thereof. This provision is significant
because it creates procedural rights as set out in (a)–(c)
above.
[55]
The third and final step is an application for
a forfeiture order in terms of
s 48
, read with
s 50.
Section
48(1)
allows the NDPP to apply to the high court for forfeiture of
the property which is subject to a preservation order. In terms of
s
48(1)
, ‘if a preservation of property order is in force’,
the NDPP may apply to the high court for an order forfeiting to
the
State all or any of the property that is subject to the preservation
of property order. In terms of
s 48(2)
, the NDPP shall give 14 days’
notice of such application, ‘…to every person who
entered an appearance in terms
of
section 39(3)
’. Such a notice
must be served by a sheriff
(s 48(3)).
Thus, the forfeiture
application comes at the tail-end of the process.
Analysis
[56]
Section 40
(a)
must be interpreted in a
unitary exercise, simultaneously considering the text, purpose and
context of POCA.
[38]
In
addition, the provision must be considered through the prism of s
39(2) of the Constitution, which enjoins us to construe it
in
accordance with the spirit, purport and objects of the Bill of
Rights. The inevitable starting point is the language of the
provision. It seeks to limit the duration of a preservation order. It
will lapse within 90 days, unless within that period, an
application
for forfeiture is ‘pending’. As to its purpose, s
40
(a)
is meant to ensure that
the preservation order is either confirmed by a forfeiture order or
is discharged without delay.
[57]
It is so that s 40
(a)
does not prescribe a time
frame within which a forfeiture application should be served.
If
a statute decrees for something to be done without providing a time
frame within which it has to be done, it is usually interpreted
to
mean that it has to be done within a reasonable period.
[39]
I consider a period of 90 days after publication of the preservation
order in the
Gazette
,
to be more than reasonable for the NDPP to serve the forfeiture
application. The first judgment does not disagree with the general
proposition that the forfeiture application must be served within a
reasonable time after publication of the preservation order.
Yet, it
is silent on either: (a) what it deems to be a reasonable period
within which a forfeiture application should be served;
and (b)
whether it considers a period of 90 days to be a reasonable period
within which the forfeiture application must be served.
[58]
The essence of the NDPP’s argument is
that once it applies for a forfeiture order, it can delay serving it
for as long as
it wishes. Considering s 40(
a)
,
either on its own or in conjunction with the related provisions,
there are no textual or contextual indicators for that proposition.
On the contrary, there are strong indicators in the related
provisions against it. That time is of the essence is clear from s
39(1). The provision sets the tone by commanding the NDPP to serve
and publish the preservation order ‘as soon as practicable
after the making of the order’. In terms of s 39(4)(
a
),
a person who is served with a preservation order must deliver his or
her appearance to defend within 14 days of service.
[59]
In
Knoop
,
this Court described the
relationship
between the preservation and forfeiture stages of proceedings
as
‘
closely
intertwined and symbiotic’.
[40]
It
also made this trenchant observation:
‘
Inherent
in Chapter 6 of POCA is the recognition that
forfeiture
should proceed without undue
delay.
This
explains the fourteen-day limit for a person to enter an appearance
after receipt of notice of the preservation order, as well
as the
cut-off of ninety days for the institution of a forfeiture
application.
The
aim is to progress towards the forfeiture stage as soon as
possible
’
.
[41]
(Emphasis added.)
[60]
These
obiter
dicta put paid to the notion that the NDPP is entitled to delay the
service of the forfeiture application. This should be the end
of the
debate. Although the interpretation of s 40(
a
)
was not in issue there, its dicta about the need for a speedy
disposal of preservation and forfeiture proceedings are apt in the
interpretative exercise for that provision.
We
are, in any event,
bound by
the
Knoop
dicta that ‘
forfeiture
should proceed without undue delay’
,
and that ‘
[t]he
aim is to progress towards the forfeiture stage as soon as possible
’.
[61]
The
first judgment can only depart from these dicta if it concludes
either that they are clearly wrong
[42]
or that they were expressed without any reasoned analysis.
[43]
But none of these can be said about the
Knoop
dicta.
In
Steenkamp
v South African Broadcasting Corporation
(
Steenkamp
),
[44]
this
Court held that it
will
not lightly depart from a view previously expressed by it,
particularly by five of its members sitting together, even if
expressed
obiter
.
[45]
Knoop
is
a unanimous judgment of five members of this Court, and its dicta
should not be lightly departed from or ignored.
By
ignoring its dicta, the first judgment goes against the authority of
this Court as expressed in
Steenkamp
.
[62]
The NDPP has 90 days after the publication of
the preservation order during which it could serve the forfeiture
application. That
period, in my view, is more than reasonable to
serve a court process. Failure to do so leads to u
nreasonable
delays, which, in turn, adversely affect the administration of
justice.
The fate of the
property that is the subject of a preservation order must be
determined within a reasonable time. The Legislature
deemed 90 days a
reasonable period for notifying all interested persons of the
preservation order, thereby making it ripe for a
forfeiture
application.
[63]
When viewed against these considerations, the
interpretation asserted by the NDPP runs into difficulties. On the
architecture of
the interrelated provisions, the lapse of the 90day
period is the penultimate step towards the forfeiture application. In
other
words, it is envisaged that once the 90 days expire, and the
period for entering an appearance to defend in terms of s 39(2) has
expired, the path would have been cleared for the forfeiture
application in terms of s 48 to be considered by the court.
[64]
On the interpretation asserted by the NDPP, if
it has issued the forfeiture application within 90 days of
publication in the
Gazette
,
the application is pending, and it is entitled to sit idly and not
serve it on a respondent. The potential for abuse of preservation
orders is inherent in that interpretation. The NDPP could unduly
prolong the duration of a preservation order by simply issuing
a
forfeiture application and then delaying serving it. The present case
illustrates that. As mentioned, the preservation order
was only
served 11 months after it was issued.
[65]
According
to the NDPP, there is no time limit for serving the forfeiture
application. Thus, a preservation order could go on indefinitely,
as
long as the forfeiture application has been issued. This is obviously
untenable. As cautioned in
Endumeni
,
we must avoid an interpretation that leads to impractical,
unbusinesslike or oppressive consequences or that will stultify the
broader operation of the legislation.
[46]
Constitutional
values
[66]
The
interpretation preferred by the NDPP and accepted by the first
judgment is at odds with both constitutional values and the common
law. As regards the former, the Constitutional Court pointed out in
Fraser
v ABSA
,
[47]
that while POCA plays a legitimate and vital role in combating crime,
it could also have potentially far-reaching and abusive effects.
The
Court made a similar observation in
Mohunram
v National Director of Public Prosecutions.
[48]
It said that s
tatutory
civil forfeiture of assets is meant to pursue worthy and noble
objectives aimed at curbing serious crime. And yet, ‘there
is
no gainsaying that, in effect, it is draconian’.
[49]
[67]
The
above remarks were made in the context that forfeiture applications
under POCA invariably implicate property rights of respondents.
The
effect of a preservation order is that it prohibits any person from
dealing in any manner with the property referred to in
the order.
There is therefore no question that the preservation and forfeiture
provisions of POCA limit the right to enjoy property
fully. For that
reason, we must construe s 40(
a
)
and related provisions in accordance with the rights and values
protected in the Constitution, as commanded in s 39(2) of the
Constitution. The Constitutional Court explained this in
Makate
v Vodacom
:
[50]
‘
[I]f
the provision under construction implicates or affects rights in the
Bill of Rights, then the obligation in section 39(2) is
activated.
The court is duty-bound to promote the purport, spirit and
objects of the Bill of Rights in the process of interpreting
the
provision in question.
The
objects of the Bill of Rights are promoted by, where the provision is
capable of more than one meaning, adopting a meaning that
does not
limit a right in the Bill of Rights. If the provision is not
only capable of a construction that avoids limiting
rights in the
Bill of Rights but also bears a meaning that promotes those rights,
the court is obliged to prefer the latter meaning.
. . .’
[51]
[68]
Following the above principles, we are enjoined
to adopt a construction that minimally interferes with the
constitutional right
affected by the provisions. Interpreting s 40(
a
)
to mean that the NDPP has an unlimited right to delay the
determination of a forfeiture application by failing to serve it
within
90 days does not achieve that purpose. It conflicts with what
s 39(2) of the Constitution dictates. Section 39(2) is not a judicial
expedience that a court can dispense with when convenient. It is a
constitutional injunction which binds all courts to apply it.
The
first judgment accepts that a preservation order has the effect of
limiting a person’s right to their property. Despite
this, the
first judgment does not consider at all how this intersects with the
injunction of s 39(2).
[69]
The NDPP has not suggested that it would suffer
any hardship, inconvenience or prejudice if required to serve the
forfeiture application
within 90 days after the publication of the
preservation order. As mentioned, the application must be served by a
sheriff. It does
not take much to do so. On the contrary, the
prejudice to a person whose property is the subject of a preservation
order is evident
if a forfeiture application is not timeously
adjudicated on. And it cannot be finally adjudicated upon until it is
served. There
is no provision in POCA by which a respondent can
expedite the adjudication of the forfeiture application.
Failure
to notify respondent of proceedings
[70]
The
NDPP’s case is further weakened by the fact that the
preservation order was not served ‘as soon as practicable’
as commanded in s 39(1). It was served simultaneously with the
forfeiture application, 11 months after it was granted. In such
circumstances, it is difficult to accept how the application could be
said to be ‘pending’. Thus, for Mr Gcaba, until
both the
forfeiture application and the preservation order were served
simultaneously, he would have been oblivious to the fact
that the
NDPP was pursuing any POCA proceedings against him. As aptly remarked
in
Union
Government v Willemse
:
[52]
‘
A
demand cannot be considered to be made until it is communicated to
the person who is required to comply with it. Nor can any summons
have any effect as a summons until it is served on the party who is
called upon to obey it’
[53]
[71]
In the circumstances, it cannot be said that
the forfeiture application is ‘pending’ between the NDPP
and the respondent
where the latter is unaware of such proceedings.
As I see it, until at least the preservation order is served under s
39(1), a
forfeiture application cannot be considered by the court.
Therefore, the forfeiture application in the present case could not
have
been pending, because the preservation order had not been served
as envisaged in s 39(1). Consequently, on this basis, the NDPP’s
application could not succeed.
[72]
As already observed, ss 39(1)(
a
) and (
b
),
which provide for service and publication respectively, are linked by
the word ‘and’, indicating that both must be
fulfilled.
This is because they target two different groups of persons. First,
those on whom the NDPP must serve the preservation
order, identified
as ‘persons known to [the NDPP] to have an interest in property
which is subject to the order’. Second,
those who must be
notified of the preservation order by publication in the
Gazette
,
namely, the general public, including potential interested parties in
the preserved property.
[73]
In the scheme of the relevant provisions, the only
category of people who would be ‘deemed’
to have been
notified are those envisaged in s 39(1)(
b
),
who would obtain knowledge of the preservation order by publication
in the
Gazette
.
But the category of persons envisaged in s 39(1)(
a
),
upon whom it is mandatory to serve, cannot be ‘deemed’ to
have obtained knowledge because they would have, as a matter
of fact,
been served with the preservation order.
The
first judgment
[74]
The first judgment postulates that ‘it may also not be possible
to direct a preservation order to an
identifiable person because the
ownership of the property may be unknown’. The first judgment
further states that ‘[t]his
would render the requirement of
service nugatory where people do not deliver notice in terms of s
39(3) to oppose the application
after the publication of the order’.
[75]
It is unclear how any of the above has a bearing on the
interpretative exercise of s 40(
a
), or how s 39(3) would be
rendered nugatory. If, at the preservation order stage, the
NDPP does not have an identifiable
person to associate the preserved
property with, it is not required to serve the preservation order
under s 39(1)(
a
). This is because, as that section explicitly
states, the NDPP must ‘give notice of the order to all persons
known to [it]
to have an interest in property subject to the order’.
It follows that if the NDPP is unaware of such persons, it bears no
obligation to give notice under s 39(1)(
a
). In such cases, the
NDPP only needs to publish the preservation order in the
Gazette
in accordance with s 39(1)(
b
).
[76]
The central thesis of the first judgment is that
because
proceedings in terms of Chapter 6 of POCA are in
rem
, it
suffices for the forfeiture application to be ‘pending’
if the NDPP merely issued the application without serving
it. For
this proposition, the first judgment relies on
MV
Jute Express.
The
first judgment also relies on the obiter remarks in
MV
Jute Express
that all civil proceedings commence with the
issuance of a summons. In
Seaspan
,
this Court departed from
MV Jute
Express
, and held that an
action in
rem
is commenced by
service
of a writ. This put paid to the central
thesis of the first judgment that all civil proceedings commence on
the issue of summons.
[77]
That notwithstanding, both
MV
Jute Express
and
Seaspan
concerned
the interpretation of s
1(2) and related provisions of the Admiralty Jurisdiction Regulation
Act, which concern a highly technical
field of the law. It is thus
not helpful as an interpretative aid in construing the word ‘pending’
in the specific
context of s 40(
a
).
[78]
This underscores the importance of context when interpreting a
provision with reference to an unrelated statutory
provision. The
Constitutional Court pointed out in
Mhlungu
that in the normal
meaning of the term ‘pending’, proceedings ‘are
pending if they have begun but not yet finished,
but the term may
have different connotations according to its context. Dodson J also
correctly observed in
Mahlangu
that ‘generalised
statements that proceedings commence on the issue of summons, on
closer analysis, relate to a particular
context’. He further
pointed out that the statements are not valid in all instances. He
cited as an example the law on prescription,
where the proceedings
only become pending between the parties when the running of
prescription is interrupted by the issue
and
service
of summons, as held by this Court in
Kleynhans
v Yorkshire Insurance Company
.
[54]
There are statutory exceptions as well, for example,
s 1(4)
of the
Institution of Legal Proceedings Against Certain Organs of State Act
40 of 2002
, which provides that legal proceedings under that Act are
instituted by service of process on an organ of State.
[79]
As part of its reasoning for its preferred interpretation of s 40(
a
),
the first judgment invokes the post-forfeiture provisions, such as
rescission of the preservation order, as ‘safeguards’.
This is unhelpful. The issue we have to determine is the pathway to
obtaining a forfeiture order. If, on a proper construction
of s
40(
a
), the forfeiture application must be issued and served
within 90 days of the publication of the preservation order, it is
irrelevant
that the order can be rescinded later.
[80]
The first judgment holds that s 40(
a
) does not require the
NDPP to serve the forfeiture application within 90 days of the
publication of the preservation order in the
Gazette
. But the
first judgment provides no guidance as to when the forfeiture
application must be served. This, in my view, is a significant
weakness in the first judgment. The absence of such guidance leaves
it to the NDPP's whims when to serve the forfeiture application.
This
creates uncertainty. The first judgment offers no reflection on this
aspect.
Uncertainty
in the law
[81]
Recently, this Court held in
Schoeman
v
Director of Public Prosecutions
(
Schoeman
)
[55]
that every judgment must ‘account for the systemic consequences
of its decision’. By offering no insights about the
uncertainty
its order is likely to create, the first judgment fails this critical
injunction. Writing for the majority in
Schoeman
,
and commenting on the uncertainty likely to result from the first
judgment in that case, Unterhalter JA asked:
[56]
‘
The
first judgment offers no reflection upon the consequences of its
decision. What is the law after the first judgment is handed
down?’
[82]
I ask the same question here. Having determined that the NDPP is not
obliged to serve the forfeiture application
within 90 days of the
publication in the
Gazette
, what is the law as to when the
NDPP is required to serve the forfeiture application after the
publication of the preservation
order? Can it, in its discretion,
serve it after a month, six months, a year, two years, five years, or
even ten years? As was
the case here, the NDPP served the application
after 11 months. How should Judges in the various divisions of the
high court approach
forfeiture applications served inordinately long
after publication of the preservation orders? Should they insist that
the NDPP
apply for condonation for such delays, even though there is
no provision for condonation application in POCA? If there has to be
condonation, what is the cut-off point beyond which such condonation
should be sought? These are pertinent questions that require
clarity.
The first judgment offers none.
[83]
Two related principles of statutory interpretation are apposite here.
The first is that, if possible, a statute
must be interpreted to
avoid a
lacuna
,
as held by this Court in
Davehill
v Community Development Board
[57]
relying on
Koller,
N O v Steyn, N O
En
’n Ander’
[58]
This was recently affirmed by the Constitutional Court in
Shiva
Uranium v Tayob.
[59]
The second is a need for statutory interpretation to achieve
reasonable certainty, as recognised by the Constitutional Court in
Abahlali
Basemjondolo Movement SA v Premier of the Province of
KwaZulu-Natal
[60]
and in
Affordable
Medicines Trust v Minister of Health.
[61]
[84]
What these decisions entail is that the law must indicate to those
affected, what is required of them, so
that they may regulate their
conduct accordingly. Stated in a different but relevant context of
the need to follow precedent in
Ruta
v Minister of Home Affairs
,
[62]
the
Constitutional Court emphasised that without
certainty,
predictability and coherence, ‘[t]he courts would operate
without map or navigation, vulnerable to whim and fancy’.
[63]
This
is how courts are likely to operate in the absence of any guidance or
a time frame for when the NDPP is required to serve
the forfeiture
application.
[85]
In my view, the NDPP's interpretation of s 40(
a
)
faces formidable difficulties. These, in turn, weaken the
foundational thesis of the first judgment. By contrast, the
interpretation
requiring the NDPP to issue and serve the forfeiture
application within 90 days of the publication of the preservation
order provides
certainty to the forfeiture procedure.
It
permits a harmonious interpretation of s 40(
a
)
with its related provisions, and presents no anomalies, absurdities,
or difficulties. Considering the language, purpose, and context
of s
40(
a
)
and related provisions, it is the more preferable construction.
The
specific facts of the present matter
[86]
The appeal should fail for the simple reason that the NDPP flouted
the relevant provisions of the POCA. As
mentioned, s 39(1)(
a
)
requires the NDPP to serve the preservation order on the respondent
‘as soon as practicable’ after it has been granted.
The
NDPP failed to serve the preservation order as envisaged in that
section. It served the preservation order on 17 August 2023,
some 11
months after it was granted. It was served together with the
forfeiture application. I have already alluded to
Knoop
, in
which this Court addressed the close relationship between
preservation and forfeiture proceedings, and the need for the NDPP
to
apply for the forfeiture order as soon as the preservation order has
been published.
[87]
The question is simply whether the NDPP complied with the
Knoop
dicta where it failed for 11 months to: (a) serve the preservation
order ‘as soon as practicable’ after obtaining it;
(b)
serve a forfeiture application after issuing it. The ineluctable
answer is No. The NDPP failed to observe the
Knoop
dicta, and
for that reason, its appeal should fail.
[88]
It must also be borne in mind that the notice of application for a
forfeiture order is not required to be
served personally upon a
respondent. Section 48(3) provides that it ‘shall be served in
the manner in which a summons whereby
civil proceedings in the High
Court are commenced, is served’. Apart from personal service,
rule 4(1) of the Uniform Rules
of Court provides the various other
manners in which a document may be served, which do not entail
personal service. Therefore,
the NDPP cannot complain that it had
difficulty in effecting personal service on the respondent because he
was evading service.
[89]
The question that remains unanswered by the NDPP is why there would
be a need to issue a forfeiture application
and delay serving it for
more than three months. If there had been any legitimate reasons for
this, the NDPP would have disclosed
them. It has not, and I find
none. The NDPP’s failure to serve the forfeiture application
timeously is not adequately explained.
The NDPP says that the failure
was due to ‘lack of coordination between it and the State
Attorney’. It is not clear
what this is supposed to mean. The
NDPP does not say that it attempted to serve the application but was
unsuccessful.
[90]
In the absence of a proper explanation, I attribute its failure to
serve the forfeiture application for 11
months to sheer ineptitude.
The NDPP is an organ of the State and must conduct itself as a model
litigant. To borrow from Cameron
J in
MEC
for Health, Eastern Cape v Kirland Investments
:
‘
Government
is not an indigent or bewildered litigant, adrift on a sea of
litigious uncertainty, to whom the courts must extend a
procedure-circumventing lifeline. It is the Constitution’s
primary agent. It must do right, and it must do it
properly’.
[64]
[91]
The procedural lapses by the NDPP in this application demonstrate how
its preferred interpretation of s 40(
a
)
would lead to un
certainty,
unpredictability and incoherence in our law.
A court, especially an appellate court like ours, can ill afford to
condone such an outcome. The high court was correct in its
conclusion.
Order
without reasons
[92]
The high court dismissed the application without reasons on 27
October 2023 and only furnished reasons upon
request. The first
judgment states that we should not comment on this issue as the NDPP
did not raise it. This misses the point
because this Court does not
require a complaint by any of the parties for it to pronounce on
matters of judicial accountability,
of which an order without reasons
is. The practice of issuing orders without reasons has been
deprecated by both this Court and
the Constitutional Court,
[65]
even though none of the parties had raised it.
[93]
Although the application was unopposed, it was not a typical
unopposed motion. A complex question of interpretation
was debated
before the Judge, with different divisions of the high court holding
divergent views on the matter. Significantly,
there is no case from
Kwazulu-Natal on the issue. Therefore, this was a significant case
because whatever the outcome, it bound
all Judges in that division.
Moreover, since the order issued was one of dismissal of the NDPP’s
application, it had far-reaching
implications, not only for the NDPP
but also for Judges within the division. Between the time the order
was made and the reasons
provided, the Judges in KwaZulu-Natal were
bound by the order without reasons behind it. For these reasons, it
was inappropriate
for the Judge to grant an order without giving
reasons.
[94]
Commenting on a similar situation recently, this Court in
MEC
for Health, Gauteng Provincial Government v AAS obo CMMS
remarked:
‘
Although
the high court subsequently furnished reasons upon request, its
failure to do so when it made the order remains unexplained.
It often
happens that a court, due to reasons of urgency or expediency, makes
an order without reasons. But, in those circumstances,
the salutary
practice is to inform the parties that the reasons for the order
would follow in due course. There is no indication
in its
subsequently furnished reasons that any of the above circumstances
necessitated the high court to grant an order without
reasons, or
that it had intended to give them later’.
[66]
These
remarks are worth reiterating here.
Conclusion
[95]
In all the circumstances, had I commanded the majority, I would
dismiss the appeal.
T MAKGOKA
JUDGE OF APPEAL
Appearances:
For
appellant:
V
Gajoo SC (with V Ngqasa)
Instructed
by:
State
Attorney, Durban
State
Attorney, Bloemfontein.
[1]
See paragraphs 6-8 of the affidavit of Kenneth Mark Samuel filed in
support of the application for condonation.
[2]
Malebane
v Dykema
[2018]
ZASCA 174
;
[2019] 1 All SA 316
(SCA); 2018 JDR 2116 (SCA) paras
14-16.
[3]
National
Director of Public Prosecutions and Another v Mohamed N O and Others
[2002] ZACC 9
;
2002 (9) BCLR 970
(CC);
2002 (4) SA 843
(CC);
2002 (2) SACR 196
(CC) para 17.
[4]
MV Jute
Express v Owners of the Cargo Lately Laden on Board the MV Jute
Express
1992
(3) SA 9
(A) at 17A-C;
[1992]
2 All SA 95 (A).
[5]
Natal
Joint Municipal Pension Fund v Endumeni Municipality
[2012]
ZASCA 13
;
[2012] 2 All SA 262
(SCA);
2012 (4) SA 593
(SCA)
(
Endumeni
).
[6]
Endumeni
para 18.
[7]
Levy v
National Director of Public Prosecutions
2002
(1) SACR 162
(W) para 9.
[8]
National
Director of Public
Prosecutions v Moolla
[2010]
ZAGPJHC 56;
2010 (2) SACR 429
(GSJ)
(Moolla).
[9]
NDPP v
Hilda van der Burg and Another
(5576/06)
CPD (22 December 2008)
(Van
der Burg).
[10]
Knoop
NO and Others v
National Director of Public Prosecutions
2024
(1) SACR 121 (SCA).
[11]
Para 40.
[12]
Ibid para 42.
## [13]Mahlangu
and Another v Van Eeden and Another(LCC53/99)
[2000] ZALCC 17; [2000] 3 All SA 321 (LCC) (2 June 2000) para 27.
[13]
Mahlangu
and Another v Van Eeden and Another
(LCC53/99)
[2000] ZALCC 17; [2000] 3 All SA 321 (LCC) (2 June 2000) para 27.
[14]
Noah v
Union National South British Insurance Co Ltd
1979
(1) SA 330
(T) (
Noah
);
Bienenstein
v Bienenstein
1965
(4) SA 449 (T).
[15]
Noah
ibid.
[16]
Levy
para
7.
[17]
S v
Mhlungu and Others
1995
(2) SACR 277(CC); 1995 (3) SA 867 (CC); 1995 BCLR 793 (CC)
[18]
Arab
Monetary Fund v Hashim and Others
[1992]
1 WLR 553
([1992]
1
All ER 645 (Ch)).
[19]
Mhlungu
para 51.
[20]
Mhlungu
para 51
.
[21]
Moolla
;
NDPP v
Jansen van Vuuren
2010
JDR 1358 (GNP);
NDPP
v Landomax (Pty) Ltd and Others
(M194/2015)
[2017] ZANWHC (4 May 2017);
National
Director of Public Prosecutions v Bacela and Another
(FB 09/2020) [2022]
ZANWHC (28 October 2022);
Quantoi
v NDPP
&
Others ZAECDG (657/2022) 20 August 2024.
[22]
Van der
Burg
para
26.
[23]
National
Director of Public Prosecutions v Pule
(M321/2023)
[2024] ZANWHC 234
(16 September 2024) para 41.
[24]
Ibid para 42.
[25]
Noah
at
332G.
[26]
Mhlungu
para 51.
[27]
Arab
Monetary Fund
at
558H.
## [28]National
Director of Public Prosecutions and Another v Mohamed N O and Others2002
(9) BCLR 970 (CC); 2002 (4) SA 843 (CC) paras 14-16.
[28]
National
Director of Public Prosecutions and Another v Mohamed N O and Others
2002
(9) BCLR 970 (CC); 2002 (4) SA 843 (CC) paras 14-16.
[29]
Mohamed
para 17.
[30]
MV Jute
Express
at
17A–C.
[31]
Paras 33 and 34.
[32]
Levy
para 9.
[33]
See, inter alia, ss 47 and 49 regarding the rights of a person
affected by a preservation order. See also
Knoop
para 38.
[34]
MV Jute
Express
at
16 H-I.
## [35]The
Seaspan Grouse
[35]
The
Seaspan Grouse
## Seaspan
Holdco 1 Ltd and Others v Ms Mare Tracer Schiffahrts and Another2019 (4) SA 483 (SCA) para 29.
Seaspan
Holdco 1 Ltd and Others v Ms Mare Tracer Schiffahrts and Another
2019 (4) SA 483 (SCA) para 29.
[36]
Ibid
para 30.
[37]
Levy
para
9.
[38]
Endumeni
para
18.
[39]
S
v Mohamed
1977
(2) SA 531
(A) at 543C;
Titus
v Union & SWA Insurance Co Ltd
1980
(2) SA 701
(TKS);
Cadac
(Pty) Ltd v Weber-Stephen Products Co and Others
[2010]
ZASCA 105
;
[2011] 1 All SA 343
(SCA);
2011 (3) SA 570
(SCA); 2010
BIP 307 (SCA) para 23;
Camps
Bay Rate Payers and Residents Association and Others v Minister of
Planning, Culture and Administration, Western Cape, And
Others
2001
(4) SA 294
(C) at 306H-307G.
[40]
Knoop
para 44.
[41]
Knoop
para 42.
## [42]Patmar
Explorations (Pty) Ltd and Others v Limpopo Development Tribunal and
Others[2018]
ZASCA 19; 2018 (4) SA 107 (SCA) para 7.
[42]
Patmar
Explorations (Pty) Ltd and Others v Limpopo Development Tribunal and
Others
[2018]
ZASCA 19; 2018 (4) SA 107 (SCA) para 7.
[43]
Richman
v Ben-Tovim
[2006]
ZASCA 121
;
2007 (2) SA 283
(SCA);
[2007] 2 All SA 234
(SCA) para 8.
[44]
Steenkamp
v South African Broadcasting Corporation
[2002]
2 All SA 180
(A);
2002 (1) SA 625
(SCA) (
Steenkamp
).
[45]
Ibid para 12.
[46]
Endumeni
para 26.
[47]
Fraser
v ABSA Bank Ltd (National Director of Public Prosecutions as Amicus
Curiae)
[2006]
ZACC 24
;
2007 (3) SA 484
(CC);
2007 (3) BCLR 219
(CC) para 46.
[48]
Mohunram
and Another v National Director of Public Prosecutions and Another
(Law Review Project as Amicus Curiae)
[2007]
ZACC 4; 2007 (4) SA 222 (CC); 2007 (6) BCLR 575 (CC); 2007 (2) SACR
145 (CC).
[49]
Ibid para 118.
[50]
Makate
v Vodacom (Pty) Ltd
[2016]
ZACC 13; 2016 (6) BCLR 709 (CC); 2016 (4) SA 121 (CC).
[51]
Ibid paras 88 and 89.
[52]
Union
Government v Willemse
1922
OPD 14
at 17.
[53]
Ibid at 17.
[54]
Kleynhans
v Yorkshire Insurance Co Ltd
1957
(3) SA 544
(A) at 552B.
[55]
Schoeman
v Director of Public Prosecutions
[2025]
ZASCA 124
;
2025 (2) SACR 561
(SCA) para 88.
[56]
Ibid para 87.
[57]
Davehill
(Pty) Ltd and Others v Community Development Board
1988
(1) SA 290
(A) at 300C-D.
[58]
Koller,
N O v Steyn, N O En ’n Ander
1961
(1) SA 422
(A) at 429B-C.
[59]
Shiva
Uranium (Pty) Limited (In Business Rescue) and Another v Tayob and
Others
[2021]
ZACC 40
;
2022 (2) BCLR 197
(CC);
2022 (3) SA 432
(CC) para 38.
[60]
Abahlali
Basemjondolo Movement SA v Premier of the Province of Kwa-Zulu Natal
[2009] ZACC 31
;
2010 (2)
BCLR 99
(CC) para 87.
[61]
Affordable
Medicines Trust and Others v Minister of Health and Others
[2005] ZACC 3
;
2006 (3)
SA 247
(CC);
2005 (6) BCLR 529
(CC) para 108.
[62]
Ruta
v Minister of Home Affairs
[2018]
ZACC 52
;
2019 (3) BCLR 383
(CC);
2019 (2) SA 329
(CC).
[63]
Ibid para 21.
[64]
MEC for
Health, Eastern Cape and Another v Kirland Investments (Pty) Ltd
t/a Eye and Laser
Institute
[2014] ZACC 6
;
2014 (5) BCLR 547
(CC);
2014 (3) SA 481
(CC) para 82.
[65]
Botes
and Another v Nedbank Ltd
1983
(3) SA 27
(A) at 27D;
Strategic
Liquor Services v Mvumbi NO and Others
[2009]
ZACC 17
; (2009) 30 ILJ 1526 (CC);
2010 (2) SA 92
(CC);
2009 (10)
BCLR 1046
(CC);
[2009] 9 BLLR 847
(CC) para 14.
[66]
MEC
for Health, Gauteng Provincial Government v AAS obo CMMS
[2025]
ZASCA 91
;
2025 (6) SA 152
(SCA) para 160.
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