Case Law[2023] ZASCA 159South Africa
African National Congress v Ezulweni Investments (Pty) Ltd (979/2022) [2023] ZASCA 159 (24 November 2023)
Supreme Court of Appeal of South Africa
24 November 2023
Headnotes
Summary: Contract – conclusion – authority to conclude – test for factual disputes – evaluation of evidence – bare denials coupled with untenable version – no bona fide factual disputes.
Judgment
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## African National Congress v Ezulweni Investments (Pty) Ltd (979/2022) [2023] ZASCA 159 (24 November 2023)
African National Congress v Ezulweni Investments (Pty) Ltd (979/2022) [2023] ZASCA 159 (24 November 2023)
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sino date 24 November 2023
THE
SUPREME COURT OF APPEAL OF SOUTH AFRICA
### JUDGMENT
JUDGMENT
Not
Reportable
Case
no: 979/2022
In
the matter between:
AFRICAN
NATIONAL CONGRESS
APPELLANT
and
EZULWENI
INVESTMENTS (PTY) LTD
RESPONDENT
Neutral
citation:
African National Congress
v Ezulweni
Investments (Pty) Ltd
(Case no 979/2022)
[2023] ZASCA 159
(24
November 2023)
Coram:
GORVEN, MEYER and WEINER JJA and CHETTY and UNTERHALTER AJJA
Heard
:
7 November 2023
Delivered
:
24 November 2023
Summary:
Contract – conclusion – authority to conclude –
test for factual disputes – evaluation of evidence
– bare
denials coupled with untenable version – no
bona fide
factual disputes.
Civil
procedure – evidence on appeal – test –
requirements not met.
### ORDER
ORDER
On
appeal from:
Gauteng Division of the High Court, Johannesburg
(Adams, Makume and Twala JJ, sitting as court of appeal):
1
The application to admit evidence on appeal is dismissed with costs.
2
The appeal is dismissed with costs, including the costs of two
counsel where so employed.
# JUDGMENT
JUDGMENT
Gorven
JA (Meyer and Weiner JJA and Chetty and Unterhalter AJJA concurring)
[1]
The
respondent, Ezulweni Investments (Pty) Ltd (Ezulweni), claimed to
have concluded an agreement on 20 February 2019 with the appellant,
the African National Congress (the ANC).
[1]
This the ANC denied. Ezulweni then applied to the Gauteng Division of
the High Court, Johannesburg (the high court) for payment
of
R102 465 000, along with interest and costs. The high
court, per Bhoola AJ, granted the relief sought by Ezulweni.
The ANC
was granted leave to appeal to the full court of that division. The
full court, per Adams J, with Makume and Twala JJ concurring,
turned
down the appeal with costs. This court granted the ANC special leave
to appeal and this is the resultant appeal.
[2]
Two initial matters bear mention. The first is that the
appeal had
lapsed and an application was made by the ANC for its reinstatement.
After argument was heard, the panel adjourned briefly,
and thereafter
made an order reinstating the appeal. No costs order was sought or
made.
[3]
The second relates to an application to admit further
evidence on
appeal brought by the ANC. It was based on
s 19
(b)
of the
Superior Courts Act 10 of 2013
. Once more, after hearing the
submissions of the parties, the panel adjourned briefly, and then
made an order dismissing that application
with costs. It was
indicated at the time that the reasons for that decision would be
furnished along with the judgment in the appeal.
Those reasons are
given below after the appeal has been dealt with.
[4]
For the sake of brevity, I shall refer to the persons
who were
involved by only their surnames after first mention. The undisputed
facts follow. At all material times, the Chief Executive
Officer of
Ezulweni was one Mr Renash Ramdas. Ramdas described himself as a
long-standing and loyal member of the ANC. Another
company with which
Ramdas was associated had provided election banners and materials to
the ANC for the 2014 elections. Ramdas
had dealt with Mr Mabaso, the
Finance Manager of the ANC, on that occasion. A general election in
South Africa was called for 8 May.
During January, Ramdas
approached Mabaso and asked him to arrange a meeting with Mr
Mashatile, the Treasurer General of the ANC.
He indicated that he
wished to make a presentation for the supply of election banners,
their placement and removal for the new
election campaign. Mabaso
arranged a meeting later in January at the headquarters of the ANC,
Luthuli House. There he introduced
Ramdas to Mr Nkholise, the
Personal Assistant to the Head of the Elections Campaign, Mr Mbalula.
Mabaso, Nkholise and Ramdas agreed
to meet on 20 February.
[5]
Thus far there was no dispute. Thereafter, the versions
diverged
somewhat. The primary submission of the ANC before us was that the
papers exhibited factual disputes which could not be
resolved in
favour of Ezulweni. As a result, I shall summarise each of the
versions, in turn, so as to evaluate that submission.
Despite
diverging in certain respects, the versions coincide at various
points as will become clear.
[6]
The version of Ezulweni was deposed to by Ramdas. In
anticipation of
the meeting of 20 February, he sent Nkholise a quote dated
11 February reflecting the prices of items which
could be
supplied. The first item was titled ‘Banners’. These were
described as ‘230 cm x 100 cm PVC banner including
2 metal rod
U-bolts & nuts that fit onto street pole’ and the unit
price was R2 900.
[7]
The 20 February meeting took place at the Garden Court
Hotel in
Eastgate. The same three persons met on that occasion, along with an
additional person from Ezulweni. An oral agreement
was concluded.
Mabaso and Nkholise placed an order for 30 000 branded PVC
banners at an agreed price of R2 900 per banner.
In addition, a
price of R70 per banner was agreed for their placement and removal.
These would be employed as a final push to attract
voters to the
polling stations. Ezulweni would send designs for approval and place
the banners shortly before the elections. It
would remove them
thereafter.
[8]
After the meeting, Ezulweni set about filling the order.
This
included designing and ordering the printing of the banners from
entities in Durban and China, ordering the material for the
metal
hangers and employing additional staff to assist in the production.
Because some of the suppliers required deposits, Ramdas
initially
approached Nkholise, requesting assistance from the ANC in this
regard. Nkholise said that this was not possible due
to cash-flow
constraints caused by the general election, but he assured Ramdas
that Ezulweni would be paid immediately after the
election campaign.
The interim funding was then provided by one Mr Motlekar and the
directors of Ezulweni personally.
[9]
Thereafter, Ramdas ‘constantly communicated with
[Nkholise and
Mabaso] and kept them abreast of the progress of the project’.
He put up photographs ‘which were shared
with’ them and
which showed such progress. These two sets of averments were not
denied by the ANC, they were simply ‘noted’.
[10]
On 4 April,
Ezulweni sent an invoice to Nkholise for R87 million for the 30 000
PVC banners.
[2]
The legend was that these were ‘[as] per samples provided’.
The ANC admitted receipt. After the election, final invoices
for
R100 050 000 and R2 415 000 respectively were
sent.
[3]
[11]
On 9 April, Mabaso and Nkholise forwarded three documents to
Ramdas. The
first was an email containing the final design for the
‘Call to Vote’ banners. The second document was a
photograph
of a letter dated 2 April over the signature of Mbalula,
addressed to Mashatile, and copied to one Mahlalela and to Mabaso.
The
letter was headed ‘Re: Signing of Election’s money’
(the 2 April letter). It informed Mashatile and the others
as
follows:
‘
This
communiqué serves to inform the Finance department that
Comrade Lebohang Nkholise has been assigned as the signatory
for
bookings and money for the duration of the Elections Campaign’.
The
third document was a photograph of a letter dated 9 April (the
9 April letter) addressed to Mashatile containing the signature
of Mbalula which requested assistance with the payment of the invoice
of 4 April for R87 million and attached the invoice.
I shall
return to these letters in due course.
[12]
Ramdas had set up a dedicated WhatsApp group for the project
comprising Mabaso,
Nkholise and him. Between 29 April and 3 May,
Ramdas sent a large number of WhatsApp messages (the messages) to the
other two.
These included:
(a)
Photographs of the banners;
(b)
A message saying that Ezulweni had paid for the airfreight in the sum
of R1.2 million for importing the PVC banners from
China and
proof of that payment; (c) Photographs of the finished brackets of
the banners and a message advising that the banners
would be
distributed throughout the country, excluding Cape Town;
(d)
Photographs of the banners in various locations;
(e)
A message advising that, due to the nature of the logistics involved,
Ezulweni had employed 100 teams and that each team would
place 300
banners.
The
ANC admitted that such a group had been set up and that Mabaso and
Nkholise had received the messages and photographs sent by
Ramdas to
the group.
[13]
On 4 May, four days before election day, a meeting was held at the
Garden Court
Hotel between Ramdas, Mabaso and Nkholise. This was
admitted. The meeting included a progress report by Ramdas. By the
date of
this meeting, the banners and hangers had all been made. Two
days later, on 6 May, Ramdas sent a message to the other two
advising them of the areas where the banners had been placed along
with photographs of them
in situ
. After the election, Ezulweni
had the banners removed and informed Mabaso and Nkholise to that
effect, supplying photographs of
the stored banners.
[14]
The final two invoices were sent but remained unpaid. Various
approaches to
the ANC elicited unfulfilled promises. On 11 June,
Ramdas and Mabaso met at the Holiday Inn in Eastgate. Ramdas
requested
payment and claimed that Mabaso acknowledged indebtedness.
By letter dated 1 July, Ezulweni wrote to the Secretary-General
of the ANC, Mr Magashule, requesting resolution of the matter. No
response was received. By letter dated 25 July, Ezulweni wrote
to the
President of the ANC requesting payment. No response was received.
Two letters, dated 6 and 13 August respectively,
were sent to
the ANC by Ezulweni’s attorneys demanding payment. Only the
second of these received a response from Mashatile.
He acknowledged
receipt and said the ‘matter is receiving attention, I will
revert to you in due course.’ The promised
response did not
materialise. The ANC admitted the averments concerning these letters.
[15]
The version of the ANC follows. It admitted that the meetings
testified to
by Ramdas were held with Mabaso and Nkholise, but
contended that no agreement was either negotiated or concluded at any
of those
meetings. The sole content of the meetings, and the sole
purpose of Mabaso and Nkholise attending them, was to convey to
Ramdas
that only Mashatile could authorise election material, and
that a purchase order had to be issued before any agreement could be
concluded. In support of this contention, the answering affidavit
placed heavy reliance on the Supply Chain Policy of the ANC which
was
said to provide that such was the case. It had no such provisions.
The ANC abandoned reliance on the Supply Chain Policy in
the full
court and did not rely on it in this court. It is safe to say that
this aspect was the main basis on which the ANC sought
to meet the
claim of Ezulweni in the court of first instance.
[16]
The ANC denied that the quotation dated 11 February had been
sent to Nkholise
prior to the 20 February meeting. It admitted
receiving all of the messages sent by Ramdas on the dedicated
WhatsApp group
he set up. It said that no responses were ever sent
because none were required. It admitted receipt of the photographs
showing
the progress and the installed banners. It admitted sending
the email to Ramdas on 9 April containing the final design for
the ‘Call to Vote’ poster. This, it said, was sent for
information purposes and not ‘to confirm approval of any
agreement between the parties.’
[17]
It gave no explanation for its denial that Nkholise had sent Ramdas a
copy
of the 2 April letter assigning Nkholise as ‘signatory
for bookings and money for the duration of the Elections Campaign.’
It did not explain how this came into the possession of Ramdas. As
regards the 9 April letter, the following explanation was
given.
Nkholise wrote this letter after being approached by Ramdas on
9 April with an oral proposal. The nature of the proposal
was
not disclosed. In the letter, Nkholise requested Mashatile to make
payment to Ezulweni of R87
million for 30 000
banners and attached the invoice of 2 April with the legend ‘As
per samples provided’.
The letter was not signed by Mbalula.
His electronic signature was inserted by Nkholise, who intended to
put it before Mbalula
for his consideration. This never happened. Nor
did Nkholise send a copy to Ramdas. ‘As far as [Nkholise]
knows, the letter
stayed in his office’ because he ‘never
got the opportunity to discuss the letter with Mbalula before the
elections.’
[18]
The ANC made much of a letter dated 8 March addressed by Ramdas
to ‘The
Executive Council Elections’. The letter thanked
that body ‘for the opportunity of having been requested to
quote for
the 2019 elections’. It requested the issue of a
formal order ‘so that manufacturing and delivery can begin in
earnest’.
It said that Ezulweni could not ‘stress the
urgency of our request enough’. The ANC submitted that this
document showed
that no agreement had been concluded. In reply,
Ezulweni indicated that it sought assurance in this communication
which was provided
by the forwarding of the 2 April letter and
the 9 April letter, along with the final banner design.
[19]
The ANC admitted that Mabaso and Nkholise met with Ramdas on 11 June.
It admitted
that, at that meeting, Ramdas asked for payment of the
invoices. It said that, although he did so, Mabaso told him that
‘payment
would not be possible without a purchase order and
that a purchase order was never issued because there was no approval
by [Mashatile]’.
The ANC further admitted that no responses
were given to the various letters requesting payment sent by
Ezulweni, apart from the
last one indicating that the ANC would
revert to Ezulweni. This, it admits, was not done. Instead, the ANC
stated that the Finance
Department had investigated and decided that
there was no agreement. Significantly, no communication emanating
from the ANC denied
that the banners were supplied, placed, and taken
down as averred by Ezulweni.
[20]
The question arises whether the version of the ANC raises
bona
fide
factual disputes such that the matter should not have been
resolved in favour of Ezulweni on the papers. The test is a well-worn
one. In
Stellenbosch Farmers’ Winery Ltd v Stellenvale
Winery (Pty) Ltd
, it was held that:
‘
.
. . where there is a dispute as to the facts a final interdict
should only be granted in notice of motion proceedings if
the facts
as stated by the respondents together with the admitted facts in the
applicant’s affidavits justify such an order
. . . Where it is
clear that facts, though not formally admitted, cannot be denied,
they must be regarded as admitted.’
[4]
This
approach was later clarified and qualified by Corbett JA in
Plascon-Evans Paints Ltd v Van Riebeeck Paints (Pty) Ltd
:
‘
It
seems to me, however, that this formulation of the general rule,
and particularly the second sentence thereof, requires
some
clarification and, perhaps, qualification. . . [T]here may be
exceptions to this general rule, as, for example, where the
allegations or denials of the respondent are so far-fetched or
clearly untenable that the Court is justified in rejecting
them
merely on the papers . . .’.
[5]
Harms DP elaborated,
holding that where a ‘version consists of bald or
uncreditworthy denials, raises fictitious disputes
of fact, is
palpably implausible, far-fetched or . . . clearly
untenable’,
[6]
the court is justified in rejecting it merely on the papers. And
Heher JA explained that a ‘real, genuine and
bona
fide
dispute of fact can exist only where the court is satisfied that the
party who purports to raise the dispute has in his affidavit
seriously and unambiguously addressed the fact said to be
disputed’.
[7]
With that in mind, the version of the ANC must be evaluated.
[21]
It is not disputed that meetings between the three persons involved
took place
in January, 20 February, 4 May and 11 June. The ANC denied
that the purpose of the meetings was to negotiate an agreement and
denied
that Mabaso or Nkholise were authorised to conclude the
agreement contended for by Ezulweni. At all of the meetings, the two
of
them simply informed Ezulweni of the need to obtain a purchase
order and that only Mashatile could authorise the conclusion of an
agreement.
[22]
There are serious difficulties with this version. If such was the
case, it
begs the question why:
(a)
Any further meetings were held after the initial one if they
explained the clear position at that meeting.
(b)
In the face of that communication, Ezulweni went to the expense of
ordering materials and printing for the banners.
(c)
Ezulweni ‘constantly communicated with’ Mabaso and
Nkholise to keep them abreast of progress.
(d)
Mabaso and Nkholise did not respond to those messages by immediately
disabusing Ramdas of his belief that there was an agreement
to supply
the banners.
(e)
Ezulweni sent photographs of the progress of the project.
(f)
The photographs did not elicit a response from Mabaso and Nkholise
denying the agreement.
(g)
Ezulweni sent an invoice for R87 million to Nkholise on 4 April.
(h)
In response Nkholise drafted the 9 April letter to Mashatile
requesting payment of the R87 million rather than enquiring
from
Ramdas why an invoice had been sent when no agreement had been
concluded.
(i)
Despite having said that he intended to raise this with Mbalula,
Nkholise did not do so.
(j)
Nkholise intended to raise the letter with Mbalula if there was no
agreement.
(k)
A copy of the 9 April letter was sent by WhatsApp from Mabaso to
Ramdas that day.
(l)
An email was sent to Ramdas on 9 April containing the final design
for the ‘Call to Vote’ banners if it was sent
for
information purposes only.
(m)
Ezulweni would have had any interest in this design if there was no
agreement.
(n)
The 2 April letter came into the possession of Ramdas.
(o)
Ramdas sent Mabaso and Nkholise numerous messages between 29 April
and 3 May with photographs of the banners, information
that
Ezulweni had paid the airfreight charges for them to be sent from
China, photographs of the finished brackets, information
that
Ezulweni had employed 100 teams which would each place 300 banners,
and photographs of the banners in various locations.
(p)
The meeting which took place between the three of them on 4 May
was for the sole purpose of informing Ramdas that any agreement
for
the supply of such material required a purchase order and the
approval of Mashatile. This only four days before the elections.
(q)
It was claimed that there was no response to the message with
photographs sent in early May but Ezulweni was able to put up
in
reply an emoji sent by Mabaso of a clenched fist in response to that
message. This did not prompt an application to put up a
further
affidavit in order to rebut this.
(r)
The three of them held a meeting on 11 June where Ramdas
requested payment and Mabaso told him that no payment would be
forthcoming because no purchase order had been issued and Mashatile
had not approved the agreement.
(s)
The letters requesting payment were not immediately responded to
stating that there was no agreement between the parties. The
only
letter sent in response said that the matter would be looked into.
[23]
All of these factors, and more besides, demonstrate overwhelmingly
that the
version put up by the ANC as to the interaction between
Ramdas, Mabaso and Nkholise is utterly untenable and without
veracity.
The ANC’s version is not capable of belief in face of
the cascade of communications from Ramdas that were met with
deafening
silence from the ANC. The only credible response of an
entity in the position of the ANC, if its version was true, would
have been
immediately to set the record straight so as to prevent
Ezulweni proceeding at risk. This is especially so since it was
submitted
before us that the relationship between the ANC and Ramdas
was a warm one. Those responsible for the election were provided
evidence
of the work that was being done to produce the banners and
then instal them. How did these officials imagine this was happening,
save on the basis of an agreement with Ezulweni?
[24]
The denials of the ANC fall into the category of bald, uncreditworthy
denials
designed to create fictitious disputes of fact. The version
of the ANC accordingly does not raise
bona fide
factual
disputes. It does not warrant the approach that the matter should
have been decided on its version. On the contrary, the
court of first
instance and the full court were amply justified in basing their
findings on the version of Ezulweni where the two
versions
conflicted.
[25]
One must therefore proceed on the basis that an agreement was reached
on 20 February
on the terms contended for between Ramdas, on the
one part, and Mabaso and Nkholise, on the other. That does not lead
ineluctably
to the conclusion that a binding agreement between the
parties was struck. It leads to the enquiry as to whether Ezulweni
made
out the case that Nkholise was authorised to conclude such an
agreement on behalf of the ANC. The ANC submitted that Ezulweni
failed
to prove either express or ostensible authority on the part of
Nkholise to conclude such agreement.
[26]
The 2 April letter is central to the submission of Ezulweni that
Nkholise
had actual authority to conclude the agreement. The ANC
raised two arguments to counter this:
(a)
Properly construed, the 2 April letter did not confer authority on
Nkholise;
(b)
If it did so, the authority was conferred after 20 February, the date
on which Ezulweni claimed that the agreement was reached.
These
shall be dealt with in turn.
[27]
The first question relates to the interpretation of the 2 April
letter.
The letter was titled, ‘Re: Signing of Elections Money’
and reads in its body:
‘
This
communiqué serves to inform the Finance department that
Comrade Lebohang Nkholise has been assigned as the signatory
for
bookings and money for the duration of the Elections Campaign.’
The
document stated that Nkholise ‘has been assigned’. The
task to which he was assigned was to be the ‘signatory
for
bookings and money’ relating to the election campaign. The
agreement clearly fell within that framework. The assignation
clearly
took place prior to the date on which the letter was drafted or sent.
No specific date was given as to when the assignation
took place, but
it was said to be ‘for the duration of the Elections Campaign’.
The campaign had begun well before
Ramdas met Mabaso and Nkholise. On
the face of it, then, Nkholise had been assigned to this task for the
entire duration of the
election campaign.
[28]
The context supports this textual interpretation. It was drafted and
sent during
the election campaign. It appeared over the signature of
Mbalula, the Head of Elections, and was addressed to Mashatile, the
Treasurer
General, to Mabaso, the finance manager and to one Mr
Mahlalela whose position was not explained. It was not denied
that
the 2 April letter was sent to those addressees.
[29]
That Nkholise was authorised for the entire campaign is buttressed by
other
facts. The meeting in January, where Mabaso introduced Ramdas
to Nkholise, was arranged because Ramdas requested a meeting with
Mashatile. Ramdas told Mabaso that he wanted to ‘make a
presentation on behalf of the [respondent] for the supply of branded
goods to the ANC for the 2019 election campaign.’ Mabaso
brought Nkholise to the meeting for that purpose. Mabaso did not
bring Mashatile. The ANC did not explain why this was done if
Mashatile alone could conclude agreements on behalf of the ANC. The
overwhelming probability is that Nkholise was brought to that meeting
because he was the person authorised at that time to conclude
an
agreement concerning election campaign related matters.
[30]
The subsequent events also bear out this conclusion. At the meeting,
Nkholise
placed an order, based on the quotation sent on 11 February,
for the election banners. Nkholise and Mabaso were kept abreast
of
the steps taken by Ezulweni to fulfil its obligations under the
agreement by way of numerous uncontradicted messages. Ramdas
sent an
invoice dated 4 April based on the existence of the agreement.
That prompted Nkholise to draft the 9 April letter
to Mashatile
saying:
‘
This
letter serves to request your office to assist us with the payment
for 30 000 PVC Banners required for the elections campaign.
The
total cost is R87 000 000.00 (R2 900 per PVC banner).
This
letter is accompanied by an invoice from Ezulweni Investments.’
That
was clearly a letter which assumes an agreement. It annexed the
invoice without in any way disputing that it had been furnished
pursuant to a binding agreement. It simply requested payment from the
Treasurer General. That is not the action of an unauthorised
official. If Nkholise had not been authorised at the time the
agreement was concluded, the letter was likely to have requested
Mashatile to ratify his actions or would, at the least, have
explained the background to his submission of the invoice for
payment.
[31]
Both the 2 April letter and that of 9 April were sent to
Ramdas in
order to reassure him that the agreement would be fulfilled
and that Ezulweni would be paid. If the case of the ANC was that
Nkholise
was authorised to conclude agreements only after 2 April,
it lay in the mouths of the officials of the ANC to say so. There
would presumably have been a resolution or, if not, a minute of a
meeting at which the decision took place. Both would have shown
the
date on which the decision was arrived at. The ANC put up no such
evidence. The inference is irresistible that, by 20 February,
Nkholise was authorised to conclude agreements such as the present
one on behalf of the ANC.
[32]
In the result, I find that on 20 February Nkholise had actual
authority
to conclude the agreement in question. That is the end of
the matter. No purpose would be served in considering the submissions
on the alternatives of ostensible authority or estoppel raised by
Ezulweni. These were only relied upon if this court did not find
that
Nkholise had actual authority.
[33]
It remains
to deal with the reasons why the application to lead further evidence
brought by the ANC was dismissed with costs. As
indicated, it was
based on
s 19
(b)
of the
Superior Courts Act 10 of 2013
. This empowers this court to
‘receive further evidence’ on appeal.
[8]
The further evidence sought to be introduced was the ‘forensic
report and findings prepared by ENS Forensics (Pty) Ltd (ENS)
which
investigated the procurement process involving’ the two
parties. The report itself was not put up in the papers. Only
the
executive summary (the summary) was put up. The summary was neither
signed nor dated and the author was not identified in the
founding
affidavit. Neither the author, nor the persons to whom statements in
the report were attributed, put up affidavits confirming
those
statements.
[34]
The nub of the application appears from the following sentence in the
summary:
‘
On
23 February 2019, Mr Ramdas sent a WhatsApp message to Mr Mabaso
in which he stated that if the ANC confirmed two orders
with Ezulweni
Mr Ramdas had worked out the figures and that they could all make
“ten million each”.’
That
was stated as a fact. The conclusion drawn was that this ‘appears
to be indicative of a corrupt relationship between
Mr Mabaso and Mr
Ramdas’. The ultimate conclusion was that the conduct of Mr
Mabaso appeared ‘to be negligent and/or
irregular and/or
potentially corrupt’. Both of these conclusions are founded on
the statement of fact mentioned above. If
there was no evidence
supporting that statement, the conclusions would of necessity fall
away. There was no verification that the
message was authentic, or,
indeed, sent in the form in which it appeared in the report. Nor was
the entire message set out in the
summary.
[35]
The test for the admission of evidence on appeal was stated in
Pepkor
Holdings Ltd and Others v AJVH Holdings (Pty) Ltd and Others
:
‘
There must be a
reasonably sufficient explanation why the evidence was not tendered
earlier in the proceedings. The evidence
“must be weighty
and material and presumably to be believed”.’
[9]
These
principles followed time-honoured ones set out in
S v De Jager
:
‘
(a)
There
should be some reasonably sufficient explanation, based on
allegations which may be true, why the evidence
which it is sought to
lead was not led at the trial.
(b)
There
should be a
prima facie
likelihood of the truth of
the evidence.
(c)
The
evidence should be materially relevant to the outcome of the
trial.’
[10]
[36]
As to why the evidence was not led at the outset, the ANC submitted
that the
report only came to light recently. There was no evidence as
to when the final report had been completed. The ANC testified that
there had been a delay in obtaining the report because payment for
the report had been delayed. That may be so but it fails to
account
for the fact that Mabaso, who testified in the main application, was
the person said to have received the message. Mabaso
was reported to
have said that he ‘did not respond to the message and stated
during our interview that he did not recall
this message’.
[37]
The answering affidavit of Mabaso was deposed to on 11 October
2019, less
than eight months after the message was said to have been
received by him. It is highly unlikely that Mabaso would not have
been
able to recall the message at the time he deposed to the
answering affidavit. After all, it must be supposed that an
invitation
to participate in a corrupt transaction was not an
everyday occurrence for him. Despite this, Mabaso was silent on the
receipt
of the message. This can hardly be said to make out a case
that the evidence was not available at the time the application was
argued. As has already been noted, he actively mounted the case that
no agreement had been concluded rather than that he had received
this
message. He was totally silent on that point. That evidence was
available to the ANC in the mouth of its chief witness, Mabaso.
[38]
This leads to the next question of whether the evidence was
prima
facie
truthful. There are a number of difficulties with this
aspect. In the first place, the evidence proffered was all hearsay.
Secondly,
in application papers, the pleadings are made up of the
notice of motion and affidavits. The existing pleaded defence was
that
no agreement had been concluded. The alternative defence was
that, if it was found that a deal was struck, Nkholise did not have
the requisite authority to bind the ANC. To aver that a corrupt
relationship gave rise to the agreement presupposes the existence
of
an agreement and would be destructive of this pleaded case. The ANC
was not able to say how this new defence could stand alongside
of the
pleaded case. It would amount to pleading not alternative,
complementary, defences, as was done in the existing papers,
but one
which fundamentally contradicted those defences. That is
impermissible.
[39]
Thirdly, Ezulweni requested access to Mabaso’s device on which
the message
was supposedly received. The response was that it was not
in the possession of Mabaso, the ANC or ENS. This begs the question
how
ENS obtained access to the message which found its way into the
summary. No such information was forthcoming. Nor was any evidence
led as to why the device in question was not available for analysis.
Ezulweni had contracted a person for the purpose of assessing
the
authenticity of the message. The person contacted was an expert in IT
matters, including the forensic analysis of electronic
information,
transmission, storage and the like. As a result, he was not in a
position to assess its authenticity. He did testify,
without
challenge, that historic WhatsApp messages can be amended, edited or
faked. He stated that information on how to do so
is widely available
and can be achieved reasonably easily. In the light of the above, the
ANC failed to show the
prima facie
truthfulness of the factual
assertion relied upon.
[40]
The final enquiry is whether the evidence, if admitted, would be
materially
relevant to the outcome of the application. In this
regard, the message was purportedly sent on 23 February. The
agreement
has been found to have been concluded on 20 February.
That being so, any such message cannot have led to the conclusion of
the agreement, even accepting the executive summary at face value.
[41]
These factors present insuperable difficulties in the way of the
application
to admit the report as evidence on appeal on each of the
three requirements. All of this means that the case mounted by the
ANC
for the admission of this evidence on appeal fell woefully short
of the accepted test. It is for these reasons that the order was
made
dismissing the application with costs.
[42]
Dealing, then, with the costs in the main application, it is
appropriate that
costs should follow the result. Both parties
employed two counsel and this was warranted. The costs of two counsel
will be awarded
where two counsel were employed.
[43]
In the result, the following order issues:
1
The application to admit evidence on appeal is dismissed with costs.
2
The appeal is dismissed with costs, including the costs of two
counsel where so employed.
____________________
T
R GORVEN
JUDGE
OF APPEAL
Appearances
For
the appellant: F J Nalane SC with E Muller
Instructed
by: AMMM Incorporated, Alberton
Moroka
Attorneys, Bloemfontein
For
the respondent: A R Bhana SC with J Lubbe
(Heads of argument prepared by A Dodson SC and J Lubbe)
Instructed
by: Sarlie & Associates Incorporated,
Johannesburg
Symington
De Kok Incorporated, Bloemfontein
[1]
All of the events relevant to this matter took place in 2019. Unless
reference is made to another year, all dates refer to 2019.
[2]
This was a VAT exclusive amount. The final invoices included VAT.
[3]
On this occasion, both included VAT. The second invoice was for the
placement and removal of the banners.
[4]
Stellenbosch
Farmers’ Winery Ltd v Stellenvale Winery (Pty) Ltd
1957
(4) SA 234 (C)
at 235E-F.
[5]
Plascon-Evans
Paints Ltd v Van Riebeeck Paints (Pty) Ltd
[1984] ZASCA 51
;
1984 (3) SA 623
(A) at 634H-635D; [1984] 2
All SA 366 (SCA).
[6]
National
Director of Public Prosecutions v Zuma
[2009]
ZASCA 1;
2009
(2) SA 277 (SCA)
;
2009 (1) SACR 361
;
2009 (4) BCLR 393
;
[2008] 1
All SA 197
para 26.
[7]
Wightman
t/a JW Construction v Headfour (Pty) Ltd
[2008] ZASCA 6
;
2008 (3) SA 371
(SCA);
[2008] 2 All SA 512
para 13.
[8]
It also empowers high courts exercising appeal jurisdiction to do
so.
[9]
Pepkor
Holdings Ltd and Others v AJVH Holdings (Pty) Ltd and Others
[2020] ZASCA 134
;
2021 (5) SA 115
(SCA);
[2021] 1 All SA 42
(SCA)
para 49. The quote is from
Colman
v Dunbar
1933 AD 141
at 161–163. It is noted in this matter that the
Constitutional Court adopted a similar approach in the matter of
Rail
Commuters Action Group v Transnet Ltd t/a Metrorail and Others
[2004] ZACC 20
;
2005 (2) SA 359
(CC);
2005 (4) BCLR 301
paras 42 and
43 under the Supreme Court Act 59 of 1959.
[10]
S v De
Jager
1965 (2) SA 612
(A) at 613C-D.
sino noindex
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