Case Law[2022] ZASCA 2South Africa
Eastern Cape Rural Development Agency and Another v Agribee Beef Fund (Pty) Ltd and Others (827/2020) [2022] ZASCA 2; 2023 (5) SA 100 (SCA) (6 January 2022)
Supreme Court of Appeal of South Africa
6 January 2022
Headnotes
Summary: Procurement – Section 217(1) of the Constitution – whether a tripartite agreement between two organs of state and a private entity was one that contemplated contracting for goods or services – the agreement, in furtherance of the objects of the organs of state, required the private entity to provide smallholder farmers with cattle, paid for with public funds, veterinary kits and feed supplements, and to provide training and mentorship – the agreement was for the provision of goods and services as contemplated by s 217(1) – no procurement process complying with s 217(1) preceded the agreement – the agreement was declared to be invalid.
Judgment
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## Eastern Cape Rural Development Agency and Another v Agribee Beef Fund (Pty) Ltd and Others (827/2020) [2022] ZASCA 2; 2023 (5) SA 100 (SCA) (6 January 2022)
Eastern Cape Rural Development Agency and Another v Agribee Beef Fund (Pty) Ltd and Others (827/2020) [2022] ZASCA 2; 2023 (5) SA 100 (SCA) (6 January 2022)
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sino date 6 January 2022
THE
SUPREME COURT OF APPEAL OF SOUTH AFRICA
JUDGMENT
Case no. 827/2020
Reportable
In
the matter between:
EASTERN
CAPE RURAL DEVELOPMENT AGENCY
FIRST APPELLANT
MEMBER
OF THE EXECUTIVE COUNCIL FOR
RURAL
DEVELOPMENT AND AGRARIAN
REFORM,
PROVINCE OF THE EASTERN CAPE
SECOND APPELLANT
and
AGRIBEE
BEEF FUND (PTY) LTD
FIRST
RESPONDENT
BERLIN
BEEF (PTY)
LTD
SECOND RESPONDENT
THE
RESPONDENTS LISTED ON
SCHEDULE
1 HERETO
THIRD TO TWENTY EIGHTH RESPONDENTS
Neutral
citation:
Eastern
Cape Rural Development Agency and Another
v
Agribee Beef Fund (Pty) Ltd and Others
(Case
no. 827/2020)
[2022] ZASCA 2
(6 January 2022)
Coram:
Saldulker ADP, Dambuza, Mathopo,
Mocumie and Plasket JJA
Heard:
22 November 2021
Delivered:
This judgment was
handed down electronically by circulation to the parties’
representative via email, publication on the Supreme
Court of Appeal
website and release to SAFLII. The date and time of hand-down is
deemed to be 10:00 am on 6 January 2022.
Summary:
Procurement –
Section 217(1) of the Constitution – whether a tripartite agreement
between two organs of state and a private entity
was one that
contemplated contracting for goods or services – the agreement, in
furtherance of the objects of the organs of state,
required the
private entity to provide smallholder farmers with cattle, paid for
with public funds, veterinary kits and feed supplements,
and to
provide training and mentorship – the agreement was for the
provision of goods and services as contemplated by s 217(1)
– no
procurement process complying with s 217(1) preceded the agreement –
the agreement was declared to be invalid.
ORDER
On
appeal from:
Eastern
Cape Division of the High Court, Grahamstown (Brooks J sitting as
court of first instance):
1
The appeal is upheld with costs.
2
The order of the court below is set aside and replaced with the
following
order.
‘
1
It is declared that the agreement concluded on 16 July 2018 between
the Department
of Rural Development and Agrarian Reform in the
Eastern Cape provincial government, the Eastern Cape Rural
Development Agency and
the Eastern Cape Beef Fund is invalid.
2
The first respondent is directed to pay the applicants’ costs.’
JUDGMENT
Plasket JA
(Saldulker ADP, Dambuza, Mathopo and Mocumie JJA concurring)
[1]
On 16 July 2018, a tripartite agreement was concluded by the
Department of Rural Development
and Agrarian Reform of the Eastern
Cape provincial government (the Department), the Eastern Cape Rural
Development Agency (the Agency)
and a private entity referred to as
the Eastern Cape Beef Fund (the ECBF). This is the trading name of
Agribee Beef Fund (Pty) Ltd
(Agribee), the first respondent. The
agreement was to endure for a period of a few months short of three
years, terminating on 31
March 2021. By notice of motion dated 19
March 2019, the Agency and the MEC of the Department applied, in the
Eastern Cape Division
of the High Court, Grahamstown for an order
setting aside the agreement. Brooks J dismissed the application with
costs but later
granted the Agency and the Department leave to appeal
to this court.
[2]
One issue arises for determination. It is whether the agreement was
one that contemplated
the provision of goods or services. As the
Department and the Agency are both organs of state as defined in s
239 of the Constitution,
if the agreement is of this character, it
may be set aside if its conclusion was not preceded by a procurement
process that met the
requirements of s 217(1) of the Constitution.
This section provides:
‘
When an
organ of state in the national, provincial or local spheres of
government, or any other institution identified in national
legislation, contracts for goods or services, it must do so in
accordance with a system that is fair, equitable, transparent,
competitive
and cost-effective.’
That
system is provided for by primary legislation such as the
Preferential Procurement Policy Framework Act 5 of 2000
and the
Public Finance Management Act 1 of 1999
, subordinate legislation such
as Treasury Regulations, and other instruments such as Supply Chain
Management Policies.
[1]
Background
[3]
Baxter, writing in 1984 of a different constitutional arrangement to
the present, said
that the public service constituted ‘the largest
grouping of central government institutions’ consisting at the
time, inter alia,
of ‘departments of State as well as four
provincial administrations’.
[2]
The departments of state were confined to the central government and
it is probably true to say that they were the principal vehicles
for
state administration in the centralized system then in existence.
Now, departments of state have a wider meaning because of the
federal
character of our present constitutional arrangement, with
significant, original and autonomous governmental power in the
hands
of the nine provincial governments.
[4]
The Department of Rural Development and Agrarian Reform in the
Eastern Cape provincial
government is a ‘department’ as defined
in s 1 of the Public Service Act, 1994.
[3]
Section 7(2) provides that, for purposes of the administration of the
public service, there are national departments and national
components, as well as provincial departments and provincial
components. All are set out by name in schedules to the Act. The
Department
is listed in column 1 of Schedule 2 as one of the
departments of the Eastern Cape provincial government.
[5]
The Department’s principal mandate, according to the deponent to
the founding affidavit,
Mr Nhlanganiso Dladla, the chief executive
officer of the Agency, is to ‘support and grow the Eastern Cape
agricultural sector’.
It is also the department in the provincial
government that is responsible for the administration of the Eastern
Cape Rural Development
Agency Act 9 of 1999 (EC) (the ECRDA Act).
More will be said of this, and particularly of the ECRDA Act below.
[6]
As part of fulfilling its mandate, the department had, in 2016,
adopted a strategy which
it called the Eastern Cape Agricultural
Economic Transformation Strategy. Its focus was, to quote Dladla, on
the support of ‘smallholders,
subsistence/communal and commercial
farmers and/or investors from all sectors in their partnerships and
which sought through investment
to turn smallholders into
[agri]-entrepreneurs and subsistence and communal farms into
profitable businesses’. Part of the strategy
dealt with beef
production in the province and, in particular, mentioned a project
initiated by ‘Berlin Beef’, apparently a reference
to Agribee.
[7]
Provision was made in the Department’s budget for 2018/2019 for
funding for what was
termed ‘beef commercialisation’. An amount
of R15 million was earmarked for red meat development in respect of
smallholder farmers
for that year. (A total amount of R67 535 000
was budgeted for a three-year period.) The idea, Dladla said, was for
this
amount to be transferred to the Agency for it to use
appropriately in terms of a service level agreement between the
Department and
the Agency. That agreement was in fact concluded.
[8]
The Agency was, in its original form, known as the Eastern Cape Rural
Finance Corporation.
That entity was created by the Eastern Cape
Rural Finance Corporation Act 9 of 1999 (EC). In terms of the Eastern
Cape Rural Development
Agency Amendment Act 1 of 2012 (EC), the short
title of the 1999 Act was changed to the Eastern Cape Rural
Development Agency Act
9 of 1999, and the name of the body created
and empowered by the Act was changed to the Eastern Cape Rural
Development Agency.
[9]
Section 2 of the ECRDA Act established the Agency as a statutory body
with juristic
personality. It has limited liability and perpetual
succession. It is capable of suing and being sued in its own name.
The Eastern
Cape provincial government is the Agency’s sole
shareholder, although it may transfer shares to other entities, but
may not transfer
them to natural persons.
[4]
[10]
Section 3 sets out the objects of the Agency. This section states:
‘
The
objects of the corporation are to promote, support and facilitate
rural development in the Province by
(1) mobilising financial
resources and providing financial and supportive services to persons
domiciled, ordinarily resident or carrying
on business within the
Province;
(2) promoting and encouraging
private sector investment in the Province and the participation of
the private sector in contributing
to economic growth;
(3) promoting, assisting and
encouraging the development of the Province's human resources and
financial infrastructure, in association
with other institutions
having similar or related objects;
(4) acting as the governments
agent for performing any developmentrelated tasks and
responsibilities that the government considers
may be more
efficiently or effectively performed by a corporate entity;
(5) driving and coordinating
integrated programmes of rural development, land reform and agrarian
transformation in the Province;
(6) project managing rural
development interventions in the Province;
(7) promoting applied research
and innovative technologies for rural development in the Province;
(8) planning, monitoring,
implementing and evaluating rural development in the Province;
(9) facilitating the
participation of the private sector and community organizations in
rural development programmes.’
[11]
Section 4 arms the Agency with the powers necessary to achieve its
objects. It may, for instance, in
order to attain its objects: raise
funds from both the public and private sectors through loans, grants
and donations; lend or advance
money and recover debt owed to it;
acquire, hold and deal with ‘movable or immovable property, whether
corporeal or incorporeal’;
charge for services that it renders,
including to the government; establish a fund to support rural
development programs; and ‘generally,
do all things necessary for
the attainment of its objects, the exercise of its powers, or the
management and administration of its
affairs, whether or not
expressly provided for in this section’.
[12]
Section 5 is concerned with the Agency’s method of operation and
area of operation. It may operate
anywhere in the Eastern Cape
province
[5]
but, if it considers
it necessary in order to attain its objects, it may ‘become
involved in projects and programmes and enter
into transactions with
persons outside the Province’.
[6]
In terms of s 5(1), the Agency must, as far as possible and
consistently with good business practice, conduct its activities in
order
to:
‘
(a)
raise and apply its funds and other resources in a responsible
manner and in such a way that the corporation's activities are
sustainable;
(b)
support the government's agricultural, land reform and rural
development strategies;
(c)
maximise and spread the development impact of such activities;
(d)
develop synergistic relationships with other agencies for the
delivery of development in the Province and avoid duplicating
functions
and resources;
(e)
promote and encourage private sector participation in economic growth
and employment creation;
(
f
)
reinforce and promote values consistent with the Constitution.’
The agreement
[13]
There are a number of factual disputes concerning how the agreement
came about and how it was signed,
purportedly on behalf of the
Department and the Agency, by senior officials. It is not necessary
to traverse the evidence in this
regard or to make findings
concerning these issues. They are irrelevant to the job at hand,
which entails an interpretive exercise
aimed at determining whether
the agreement was one for the provision of goods or services.
[14]
The agreement appears to have had its genesis in an unsolicited
approach made by Agribee to the Department
in which it proposed a
project aimed at developing black smallholder beef farmers into
commercial farmers. It is not in dispute that
no procurement process
that complied with the requirements of s 217(1) of the Constitution
occurred before the agreement was concluded.
[15]
The agreement’s preamble noted that the Department, the Agency and
the ECBF wished to implement a project
to support beef production and
contribute to rural development; that the Department had a budget for
three years of R67 535 000
[7]
which it would transfer to the Agency ‘for the project by ECBF in
support of 200 black farmers in beef value chain production’;
that
the Agency was authorised to receive the funds for the project, to
administer them and to transfer them to the ECBF; and that
the ECBF
would function as ‘the operating company to implement and manage
the project’.
[16]
Clause 1 contains definitions. It defines the ‘Implementing agent’
as the ECBF and ‘The Project’
as ‘the Eastern Cape Beef Value
Chain Development Program’. The term ‘The Fund’ is defined to
mean ‘any transfer of funding
from [the Department] to [the Agency]
for onward transfer to ECBF, the purpose of which is to implement,
administer and or support
the Project’.
[17]
Clause 2 summarises the object of the agreement and defines the roles
of the parties. It notes that the
ECBF ‘has been identified as the
suitable partner for commercialization of 200 black smallholder beef
cattle farmers in the Eastern
Cape’. It notes too that in terms of
the Department’s Agriculture Transformation Strategy, it ‘strives
to expand beef production
in the Eastern Cape by tapping into the
underutilized 40% cattle population that are in the hands of
smallholder farmers’. The
Agency, clause 2 asserts, was
established, as an ‘entity’ of the Department, to ‘champion
rural development’ in the Eastern
Cape and is able to receive and
administer the project’s funds.
[18]
Clause 3 defines the purpose of the agreement as follows:
‘
Develop,
promote commercial cattle production and marketing of appropriate
products to promote rural economic development through
establishment
of economically sustainable cattle production in the Eastern Cape
that create jobs, empowerment, promote value addition
and increase
agricultural contribution to provincial [GDP].’
[19]
The objectives of the agreement are listed in clause 4. First, the
project aimed to transform the beef
production value chain by
‘introducing 200 smallholder black farmers into local and
international markets’. Secondly, the project
aimed to background
and finish 18 000 steers over a three year period. Thirdly, the
project was intended to introduce ‘superior
genetic material’ to
25 of the identified farms. Fourthly, it sought to facilitate ‘market
access for the finished steers in
the local and international
markets’. Finally, it was aimed at facilitating ‘[agri]-processing
and value-adding of the finished
steers to create broad-based BEE
participating in the beef value chain’ and to create ‘new
sustainable jobs in the beef value
chain’.
[20]
In order to achieve these objects, in terms of clause 5, the
Department appointed the Agency to receive
and administer the
project’s funds on behalf of the Department. The ECBF was appointed
‘to be the agricultural and business developer
for the Project
accountable to [the Agency]’. In terms of clause 6, the agreement
was to endure from the date of the last signature,
which was 16 July
2018, until 31 March 2021. Its budget, according to clause 7.1, was
R67 535 000, which would be utilized
in accordance with a
business plan and administered by the Agency.
[21]
Clause 8 lists the duties of the ECBF. They include using the funds
‘for the purposes set out in the
business plan, implementation plan
and budget of the project, which have been approved by the
Department’; putting in place ‘appropriate
internal procurement
and financial controls to ensure effective, efficient and transparent
financial management’ and the keeping
of ‘proper books of
account’; drafting annual implementation plans and submitting them
timeously to the Department; and submitting
reports to the
Department.
[22]
In terms of clause 9, the duties of the Department include the
transfer of the project’s funds to the
Agency; the evaluation of
business plans; the monitoring and evaluation of the project; the
verification of reports and invoices;
and the maintenance of records
relating to the project.
[23]
The duties of the Agency are listed in clause 10. They include the
implementation of the project; receiving
and administering the
project’s funds; maintaining accurate records of all project
transactions; the monitoring and evaluation
of the implementation of
the project; and reporting to the Department on a quarterly and
annual basis.
[24]
It will be noted that the agreement is rather sparse on the detail of
how the project will in fact operate.
That is to be found in the
business plan. Essentially, the Department’s funds were to be
utilized by the ECBF, after having been
channeled through the Agency,
to purchase beef weaners
[8]
and
to supply them, at cost, to the farmers identified as beneficiaries
of the project. The farmers were then required to background
[9]
these cattle. When they were ready to be placed in feedlots,
[10]
the farmers would then sell them, hopefully at a profit. The ECBF was
required to provide the feedlots, abattoirs and access to markets.
In
addition, the ECBF was to supply the farmers with veterinary packs,
supplementary feed, accredited training, mentorship and support.
The nature of the
agreement
[25]
In order to answer the question that this appeal raises – whether
the agreement was one that required,
for its validity, the completion
of a public procurement process that met the requirements of s 217(1)
of the Constitution – it
is necessary to consider the obligations
that are imposed by it on the parties within the broader context of
its purpose. This, it
seems to me, is far more likely of producing a
correct result than an attempt to pigeon-hole the agreement, as the
court below did.
In other words, it does not matter what descriptor
is given to the agreement. What is important is whether it is an
agreement relating
to the procurement of goods or services. This
approach is in harmony with the approach taken by this court in
Airports
Company South Africa SOC Ltd v Imperial Group Ltd and Others
,
[11]
in which the reach of s 217(1) of the Constitution, and the meaning
of the terms in dispute before us, were dealt with.
[26]
The Airports Company SOC Ltd (ACSA) is a state-owned company – and
an organ of state – that manages
airports. It issued a request for
bids (RFB) in respect of the granting of concessions for car-rental
facilities at the airports
it managed. It intended to make available
to the successful bidders the use of car-rental kiosks and parking
bays, in return for
payment. The RFB was challenged by the Imperial
Group Ltd on the ground, inter alia, that it was in conflict with s
217(1) of the
Constitution.
[27]
As in this case, the central issue was whether the RFB related to the
procurement of goods or services
as envisaged by s 217(1). It was
argued on behalf of ACSA that it would simply be granting concessions
to successful bidders at a
price and so goods or services were not
procured by it.
[28]
Two judgments were delivered that differed in emphasis, perhaps, but
not in the result. Both held that
the terms of s 217(1) were clear
and unambiguous. Molemela JA, with whom Tshiqi JA concurred, held
that s 217(1) does not limit the
meaning of procuring goods or
services to state expenditure and it ‘does not restrict the means
by which goods and services are
acquired’.
[12]
She held that the RFB envisaged the successful bidders ‘performing
a service on behalf of ACSA’ by promoting the interests and
needs
of airport-users in accordance with ACSA’s objects.
[13]
Section 217(1) was, accordingly, applicable.
[29]
In this process, Molemela JA held, the objects of the legislation
that created ACSA were ‘helpful in
ascertaining whether the RFB
amounted to contracting for goods or services’. Among ACSA's
objects was 'the acquisition, establishment,
development, provision,
maintenance, management, control or operation of any airport, any
part of any airport or any facility or
service at any airport
normally related to the functioning of an airport'. It was evident,
she held, that ‘the concessions envisaged
in the RFB are aligned to
ACSA's objects and key to ACSA's operations’, and that by inviting
bids, ACSA ‘considered itself to
be contracting for services’.
[14]
She concluded, on this issue, as follows:
[15]
‘
ACSA's
contention that it was effectively leasing its property to successful
bidders so that those bidders could engage in a direct
relationship
with members of the public fails to take into account the assertions
set out in the extracts above. Bearing those assertions
and ACSA's
strategy in mind, as well as the presentation ACSA made to
prospective bidders as part of the pre-tender roadshow, it
cannot be
gainsaid that the essence of the transaction is that ACSA contracts
with car-rental companies to complete and enhance the
services
available to its customers at its airports in accordance with its own
mandate as contemplated in the ACSA Act. In this case
the focus falls
on what constitutes services in s 217 of the Constitution. The
successful operation of a modern airport is heavily
dependent upon
passengers on arrival being able to secure transport to their
ultimate destination, and the ability to hire a car
for onward travel
is essential. In order to ensure the availability of that service for
its passengers, ACSA had to contract with
car-hire firms to provide
it. The RFB proposes to do that by leasing facilities at airports to
car-rental firms. ACSA's suggestion
that the granting of concessions
to car-rental firms as envisaged in the RFB did not equate to it
contracting for services with those
bidders within the meaning of s
217 of the Constitution thus amounts to the elevation of form over
substance.’
[30]
In similar vein, Ponnan JA, with whom Cachalia and Wallis JJA
concurred, said the following of s 217(1)
and its scope:
[16]
‘
The
language of s 217(1) is clear. It applies whenever an organ of state
“contracts for goods or services”. These words are plain
and
unqualified. They make it clear that the section applies whenever an
organ of state contracts for goods or services, whether
for itself or
for somebody else. ACSA's restrictive reading thus finds no support
in the plain language of the section. ACSA suggests
that the ambit of
the section is limited by the reference to the word “procurement”
in the heading and in s 217(2). The ordinary
meaning of “procure”
is “obtain”. In any event, s 217(1) spells out what the section
means when it speaks of “procurement”,
which is “to contract
for goods or services”. It thus places the meaning of the word
beyond doubt. ACSA suggests that the RFB
is not directed at
procurement but only at contracts for the lease of premises to
car-rental companies, who provide their services
directly to the
public. But, that is to elevate form above substance. The substance
of the transaction is that ACSA contracts with
car-rental companies
to provide a public service at its airports. That is how ACSA itself
described the transaction in the RFB.’
[31]
Before I turn to an application of the principles set out in
Airports
Company South Africa
to the facts of this case, it is necessary to say something of
another argument made on behalf of Agribee. It was that this court,
in
Auditor-General
of SA v MEC for Economic Opportunities, Western Cape and Another
,
[17]
held, in circumstances similar to those in this case, that payments
made in respect of an entity that performed a similar role to
the
ECBF were classified as transfers, and not payments for goods and
services, because that body was the agent of the provincial
government. From this, it followed, according to the argument, that
the procurement of goods and services did not arise in this case,
with the result that s 217(1) was not implicated.
[32]
Agribee reads too much into
Auditor-General
of SA
.
It concerned the interpretation of an accounting standard issued by
the National Treasury that had its origin in s 216(1) of the
Constitution. It had nothing to do with procurement and the
applicability of s 217(1). Indeed, the court made the point
specifically
that procurement issues were not even alluded to in the
papers and may have been of interest to the Auditor-General ‘down
the line,
as it were’.
[18]
The case is thus distinguishable from the present matter and no
authority for the proposition that s 217(1) is of no application
to
the agreement with which we are concerned.
[33]
It is clear from the terms of the agreement that the project pursued
by the Department, the Agency and
the ECBF fell within the core
functions of both the Department and the Agency. In respect of the
objects of the Department, it was
aimed at support for, and the
growth of, a part of the agricultural sector in the Eastern Cape, in
line with its strategy to focus,
inter alia, on the commercialization
of smallholder beef production. From the Agency’s point of view,
the agreement was aimed at
promoting, supporting and facilitating
rural development, in relation to beef production in particular, in
the province.
[34]
In order to achieve these objects, public money – more than R67. 5
million over three years – was
budgeted. The funds were to be used
to pay for the ECBF’s acquisition of beef weaners, which it was
required to deliver, at cost,
to the project’s beneficiaries. It
was also required to provide veterinary kits, supplementary feed and
so on. After the cattle
had been backgrounded by the beneficiaries,
the ECBF was required to step in again to deliver them to feedlots,
to arrange for their
slaughter and to market the product.
[35]
The agreement, therefore, contemplated that goods, in the form of
beef weaners, would be delivered to
beneficiaries by the ECBF,
together with veterinary kits and feed supplements. In addition
certain services, such as training and
mentorship, would be provided
to beneficiaries by the ECBF.
[36]
While the direct beneficiaries of the goods and services were the
smallholder farmers who had been identified
as participants in the
project, the Department and the Agency also benefited from the
services provided by the ECBF. They contracted
with the ECBF to
provide the goods and services that, otherwise, they would have had
to provide in order to fulfil their mandates.
If the ECBF had not
undertaken the task, the Department and the Agency would have had to
acquire the beef weaners, care for them
prior to delivery, arrange
for their delivery to feedlots when they were ready, arrange for
their slaughter and arrange for the marketing
of the product. These
were services the ECBF provided to the Department and the Agency in
terms of the agreement.
[37]
The conclusion is, in my view, inescapable that s 217(1) applied to
the agreement. The absence of any
procurement process, let alone one
that met the requirements of the section, prior to the conclusion of
the agreement renders it
invalid.
[19]
It follows that the court below erred in its characterization of the
agreement as one that did not require compliance with s 217(1).
In
the result, the appeal must succeed.
The order
[38]
Mr Rorke, who appeared for the appellants no longer sought the review
and setting aside of the agreement
but, rather, a declaratory order
to the effect that it was invalid. He submitted that this was the
appropriate remedy in the light
of the Constitutional Court’s
finding as to the effect of such an order in
Buffalo
City Metropolitan Municipality v Asla Construction (Pty) Ltd
.
[20]
In that case, Theron J held that the effect of a declarator, rather
than an order setting aside the agreement, was to preserve the
accrued rights of the parties but not ‘further rights under the
invalid agreement’.
[21]
I
propose to make an order in those terms.
[39]
I make the following order.
1
The appeal is upheld with costs.
2
The order of the court below is set aside and replaced with the
following
order.
‘
1
It is declared that the agreement concluded on 16 July 2018 between
the Department
of Rural Development and Agrarian Reform in the
Eastern Cape provincial government, the Eastern Cape Rural
Development Agency and
the Eastern Cape Beef Fund is invalid.
2
The first respondent is directed to pay the applicants’ costs.’
C Plasket
Judge
of Appeal
APPEARANCES
For the
appellants:
S Rorke SC
Instructed
by:
Wesley Pretorius and Associates Inc, East London
Honey
Attorneys, Bloemfontein
For the first
respondent:
C J Pammenter SC and J Y Thobela-Mkhulisi
Instructed by:
Garlicke & Bousfield Inc, Durban
Webbers
Attorneys, Bloemfontein
[1]
Allpay
Consolidated Investment Holdings (Pty) Ltd and Others v Chief
Executive Officer, South African Social Security Agency and
Others
[2013]
ZACC 42
;
2014 (1) SA 604
(CC);
2014 (1) BCLR 1
(CC) paras 31-40;
Joubert
Galpin Searle Inc and Others v Road Accident Fund and Others
2014 (4) SA 148
(ECP) para 57.
[2]
Lawrence
Baxter
Administrative
Law
(1984) at 112.
[3]
Proclamation
103 of 1994,
Government
Gazette
15791 of 3 June 1994.
[4]
Section
7.
[5]
Section
5(2).
[6]
Section
5(3).
[7]
This
total amount was made up of R15 million in the first year,
R21 308 000 in the second year and R31 227 000
in the third year.
[8]
A
weaner is a calf that has been weaned during the current year.
[9]
The
term ‘backgrounding’ refers to the optimal use of pasture and
forages for the weaners until they are ready to be placed
in a
feedlot.
[10]
A
feedlot is a feeding facility for the ‘finishing’ of beef cattle
prior to slaughter.
[11]
Airports
Company South Africa SOC Ltd v Imperial Group Ltd and Others
[2020]
ZASCA 2
;
2020 (4) SA 17
(SCA).
[12]
Para
22.
[13]
Para
26.
[14]
Para
24.
[15]
Para
25.
[16]
Para
63.
[17]
Auditor-General
of SA v MEC for Economic Opportunities, Western Cape and Another
[2021]
ZASCA 133.
[18]
Para
34.
[19]
Premier,
Free State and Others v Firechem Free State (Pty) Ltd
[2000]
ZASCA 28
;
2000 (4) SA 413
(SCA) para 30;
Metro
Projects CC and Another v Klerksdorp Municipality
[2003] ZASCA 91
;
2004 (1) SA 16
(SCA) para 14.
[20]
Buffalo
City Metropolitan Municipality v Asla Construction (Pty) Ltd
[2019]
ZACC 15
;
2019 (4) SA 331
(CC);
2019 (6) BCLR 661
(CC).
[21]
Para
105.
sino noindex
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