Case Law[2022] ZASCA 62South Africa
Astral Operations Ltd t/a Country Fair Foods and Others v The Minister for Local Government, Environmental Affairs and Development Planning (Western Cape) and Others (1104/2020) [2022] ZASCA 62; [2022] 3 All SA 1 (SCA); 2023 (2) SA 102 (SCA) (29 April 2022)
Headnotes
Summary: Environmental law – application for environmental authorisation in terms of s 22 of the Environment Conservation Act 73 of 1989 (ECA) – Appeal against the decision of the competent authority – powers of the appeal authority under s 35 of the ECA – appeal authority has wide powers including the power to substitute or replace the decision of the competent authority appeal dismissed.
Judgment
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## Astral Operations Ltd t/a Country Fair Foods and Others v The Minister for Local Government, Environmental Affairs and Development Planning (Western Cape) and Others (1104/2020) [2022] ZASCA 62; [2022] 3 All SA 1 (SCA); 2023 (2) SA 102 (SCA) (29 April 2022)
Astral Operations Ltd t/a Country Fair Foods and Others v The Minister for Local Government, Environmental Affairs and Development Planning (Western Cape) and Others (1104/2020) [2022] ZASCA 62; [2022] 3 All SA 1 (SCA); 2023 (2) SA 102 (SCA) (29 April 2022)
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sino date 29 April 2022
THE
SUPREME COURT OF APPEAL OF SOUTH AFRICA
JUDGMENT
Reportable
Case
No:1104/2020
In the matter
between:
ASTRAL OPERATIONS
LTD t/a
COUNTRY
FAIR
FOODS
First Appellant
PIONEER FOODS
(PTY) LTD t/a
TYDSTROOM
POULTRY
Second Appellant
BOTTELFONTEIN
ACTION GROUP
Third Appellant
and
THE MINISTER FOR
LOCAL GOVERNMENT,
ENVIRONMENTAL
AFFAIRS AND DEVELOPMENT
PLANNING
(WESTERN
CAPE)
First Respondent
THE
CITY OF CAPE
TOWN
Second Respondent
THE MINISTER FOR
ENVIRONMENTAL AFFAIRS,
FORESTRY AND
FISHERIES
Third Respondent
Neutral
Citation:
Astral
Operations Ltd t/a Country Fair Foods
and
Others v The
Minister for Local Government, Environmental Affairs and Development
Planning (Western Cape)
and Others
(3509/2014)
[2022]
ZASCA 62
(29 April 2022)
Coram:
ZONDI, MOLEMELA, DLODLO and GORVEN
JJA and MUSI AJA
Heard:
21 February 2022
Delivered:
This judgment was handed down
electronically by circulation to the parties' representatives by
email, publication on the Supreme Court
of Appeal website and release
to SAFLII. The date and time for hand-down is deemed to be 14h00 on
29 April 2022.
Summary:
Environmental law –
application for environmental authorisation in terms of s 22 of the
Environment Conservation Act 73 of 1989
(ECA) – Appeal against the
decision of the competent authority – powers of the appeal
authority under s 35 of the ECA – appeal
authority has wide powers
including the power to substitute or replace the decision of the
competent authority appeal dismissed.
ORDER
On
appeal from
: The
Western Cape Division of the High Court
,
Cape Town (
Desai J
sitting
as court of first instance):
The
appeal is dismissed, with costs, including the costs of two counsel.
JUDGMENT
Zondi JA
(Molemela, Dlodlo and Gorven JJA and Musi AJA concurring):
[1]
This is an appeal against a declaratory
order granted by the Western Cape Division of the High Court, Cape
Town (the high court) (per
Desai J) in favour of the first
respondent, the Member of the Executive Council for Environmental
Affairs and Development Planning
in the Western Cape Provincial
Administration (the MEC) and the second respondent, the City of Cape
Town (the City) (the respondents).
The national Minister of
Environmental Affairs was joined as a third respondent in the review,
but took no part in the proceedings.
The appeal concerns a question
that was reserved for separate determination by agreement between the
parties, when a set of separate
decisions relating to environmental
authorisation for a proposed new landfill site for the City was
reviewed and set aside.
[2]
The question that was reserved for separate determination was the
following:
‘
Whether
in dealing with the appeal against the decision of the Director:
Integrated Environmental Management (Region B) in the Department
Environmental Affairs and Development Planning of the Western Cape
Province (per the record of the decision dated 16 July 2007, “the
record of decision”), to grant authorisation under section 22 of
the Environment Conservation Act, 73 of 1989, for activities related
to the establishment and operation of a regional landfill at the
location described in Part B of the record of decision known as
Brakkefontein, the appeal authority will be entitled to authorise the
activities at the Kalbaskraal location.’
[3]
The high court answered the question in the affirmative and granted
the appellants leave
to appeal to this Court. The issue is whether
the high court was correct in its determination.
[4]
The factual background is briefly the following: the first and second
appellants are
commercial enterprises with extensive broiler chicken
farming interests close to the footprint of the proposed regional
landfill
for the City, near the Bottelfontein Farm in the Western
Cape, for which environmental authorisation was granted by the MEC on
30
August 2013.
[5]
The third appellant is an association of farmers who carry on mixed
farming activities,
primarily the cultivation of cereal crops, on
farms around Bottelfontein. The farms are located in an important
wheat producing area
of the Western Cape.
[6]
The first and second appellants’ main practical concerns relate to
the impact of the
landfill on the groundwater used at the broiler
houses, and vectors (namely flies, rodents and birds) transporting
pathogens from
the landfill to the broiler houses. The third
appellant’s main concerns are that the operation of the landfill
will give rise to
the contamination of the groundwater upon which the
vast majority of its members depend for their farming activities.
[7]
In 2000, the City appointed consultants to identify and assess
potential sites for a
new landfill to service it. In June 2002, four
sites were short-listed and then selected for a more detailed site
ranking process.
These sites were Kalbaskraal, Atlantis, Vissershoek
and Eendekuil.
[8]
On 30 April 2007, the City applied to the Western Cape Department of
Environmental Affairs
and Development Planning (the department) for
an environmental authorisation in terms of s 22(3) of the Environment
Conservation
Act 73 of 1989 (the ECA), for the establishment of the
new regional landfill on one of two shortlisted sites, namely a site
near
Atlantis and a site near Kalbaskraal. The application form
described the ‘Project’ as the ‘Identification of a new
regional
landfill site to service the CMA’ (ie the Cape
Metropolitan Area) and gave the location and certain further
particulars of the
‘Atlantis site’ and the ‘Kalbaskraal site.’
[9]
The submission of the
application form was preceded by the following:
On
28 January 2004, the City’s environmental assessment practitioner,
Crowther Campbell & Associates (CCA), submitted to the
department
a final scoping report (FSR) relating to four possible sites, namely
the Atlantis site, the Kalbaskraal site and two further
sites that
were subsequently eliminated, being the Eendekuil site and the
Vissershoek site.
[10]
One
of the relevant factors in determining how many sites should be
shortlisted was the requirement of the Environmental Impact
Assessment
(EIA) regulations and the National Environmental
Management Act 107 of 1998 (NEMA) that alternatives be given due
consideration.
The sites were consequently investigated as
alternatives. Although in terms of the
Minimum
Requirements for Waste Disposal by Landfill
,
[1]
the
City was required to proceed with an EIA on only the top ranked site,
namely Kalbaskraal, the City obtained legal advice to the
effect that
the EIA should include at least two
sites to meet the
requirement that alternatives be assessed. This accorded with the
stance of the department, which required that
‘at least two site
alternatives, preferably more, be considered as part of the EIA
phase’.
[11]
On 10 May 2004, the department
accepted the FSR, and when doing so advised that, having considered
the four sites, the EIA phase of
the project should ‘proceed for
the two top ranking sites, namely Kalbaskraal and Atlantis’.
[12]
On 23 January 2007, CCA submitted to the department a Final
Environmental Impact Assessment Report (the
FEIR) relating to the
Atlantis and Kalbaskraal sites respectively, which
contained a comparative evaluation of the environmental impacts of a
regional landfill
at each of the two potential sites. It also listed
the advantages and disadvantages of each of the sites
,
but no recommendation as to which of the two should be
authorised
.
The
choice of either site would require mitigation measures to be put in
place. It was left to the decision-maker to weigh the various
considerations and reach a conclusion as to which of the two sites
was preferable
.
[13]
On 16 July 2007,
the Director:
Integrated Environmental Management in the Department Environmental
Affairs and Development Planning of the Western
Cape Province,
Mr Barnes, (the Director) acting under authority delegated by
the MEC, granted the City an environmental authorisation
in terms of
s 22(3) for the establishment of the new regional landfill at
the Atlantis site. In reaching that decision, the
Director: (a)
concluded that the ‘No-Go Option’ (ie
the option of not proceeding with the establishment of a regional
landfill site) was unacceptable
given the expected volume of waste to
be generated during the next 30 years; and
(b)
considered the relative environmental impacts of a regional landfill
on the Atlantis site and on the Kalbaskraal site, being ‘
the
two alternative sites to be comparatively assessed
’
.
[14]
Thereafter, 348 appeals were lodged in terms of s 35(3) of the ECA
against the Director’s decision.
On 23 July 2008 the erstwhile
Mayor of the City wrote to the MEC stating that the City would like
her, in dealing with the appeal,
to review the decision that
instructs the City to use only the Atlantis site, and to ‘leave
open to the City the option of using
the Kalbaskraal site’.
[15]
On 7 April 2009, the then MEC, Mr
Uys, upheld the
appeals and granted environmental authorisation for the establishment
of the new regional landfill at the Kalbaskraal
site (the first
decision)
.
In
determining the appeals, the MEC considered the merits of both the
Atlantis site and the Kalbaskraal site, as alternatives
.
[16]
On 25 September 2009, the appellants
applied for judicial review of the MEC’s decision. Their grounds of
review included the allegation
that the MEC had acted in a
procedurally unfair manner because they were not given any prior
notice of the possibility of his authorising
the establishment of the
landfill at the Kalbaskraal site
.
[17]
On 16 October 2009, the City conceded the
review on the ground that the MEC’s decision was procedurally
unfair because the MEC ought
to have informed all the registered
interested and affected parties (the I&APs) that he was
contemplating authorising the
establishment of the regional landfill
at the Kalbaskraal site instead of at the Atlantis site and outlined
the reasons why he was
doing so, so that the I&Aps, who would be
adversely affected, could make representations to him regarding his
intended decision
and the reasons for it
.
[18]
After the exchange of correspondence
between the parties regarding the terms of the referral of the first
decision to the MEC, on
5 January 2010, by agreement between the
parties, a rule
nisi
was issued calling upon all interested parties to show cause on 20
April 2010 why the following order should not be made
:
‘
1.1
The decision taken on 7 April 2009 by the First Respondent [the MEC]
in terms of sections 22(3)
and 35(4) of the Environment
Conservation Act 73 of 1989 (hereinafter “the ECA”):
1.1.1
upholding appeals in terms of section 35(3) of the ECA against
the decision by the Director: Integrated
Environmental Management
(Region B) in the Western Cape Department of Environmental Affairs
and Development Planning (hereinafter
“the Director”) on 16 July
2007 to authorise the establishment of a new regional landfill site
and associated infrastructure
to service the City of Cape Town
(hereinafter “the new regional landfill”) on Portion 1 of the
Farm Brakkefontein, No. 32 (known
as “Donkergat”), located
approximately 40km north of Cape Town, approximately 3.6km north-east
of Duynefontein, approximately
6.5km south of Atlantis, approximately
5.5km south of the Witsand informal settlement and approximately 7km
west of the N7 national
road, hereinafter “the Atlantis site”;
and
1.1.2
replacing the Director’s decision with a decision in terms of
section 22(3) of the ECA authorising
the establishment of the
new regional landfill on the alternative site, being Portions 2, 10
and 13 of the farm Munniks Dam and a
portion of farm 1098 (together
known as “Bottelfontein”) located approximately 50km north-east
of Cape Town, approximately 20km
south of Malmesbury, approximately
8km east of Philadelphia, approximately 7km south of Kalbaskraal,
approximately 5km north of Klipheuwel
and approximately 10km east of
the N7 national road, hereinafter “the Kalbaskraal site”,
is
reviewed and set aside.
1.2
The said appeals are referred back to the First Respondent for
reconsideration.’
[19]
On 11 May 2010, the rule
nisi
was made final, thus setting aside the first decision, and remitting
the appeals to the MEC for reconsideration
.
In due course a comprehensive supplementary EIA and
public participation process was undertaken to ensure that updated
specialist
input from the various experts and further comment by
I&APs in relation to the establishment of the regional landfill
site on
the Atlantis site or the Kalbaskraal site would be placed
before the MEC with a view to his taking a fresh decision.
[20]
On
14 November 2012, CCA submitted and
advertised for public comment a final supplementary environmental
impact report (FSEIR)
,
containing updated information about both sites
including updated assessments of the environmental impacts of the
regional landfill
on each of them, and recommending that one or the
other be approved as the site for the landfill. The FSEIR contained a
section dealing
with the advantages and disadvantages in relation to
each site
.
As
before, the FSEIR did not contain a recommendation as to which site
was preferable. In the section headed ‘Reasoned Opinion on
Authorisation’ it argued strongly against the alternative of not
going ahead with the establishment of a new regional landfill
site,
ie in favour of authorising its establishment on either the Atlantis
site or the Kalbaskraal site
.
[21]
On 25 January 2013, the attorneys for the
first appellant submitted comments to CCA regarding the FSEIR and
specialist reports
.
On 31 August 2013, the MEC, acting in terms of s 35(3)
and (4) of the ECA, again upheld the appeals against the Director’s
decision and granted the City an environmental authorisation in terms
of s 22 of the ECA for the establishment of the new regional
landfill at the Kalbaskraal site (the second decision).
Like
the Director, the MEC considered and rejected the ‘No-Go Option’
and undertook a detailed comparative assessment of the two
sites
.
[22]
As appears from his record of decision, the main reasons the MEC
preferred the Kalbaskraal site over
the Atlantis site were outlined
as follows:
(a)
the town of Atlantis was created by the
Apartheid regime;
(b)
the Atlantis community has low social
morale associated with its residents’ perception as the neglected
stepchild of Cape Town where
people have been ‘dumped’ over the
years;
(c)
there was strong
opposition to the proposed Atlantis site from the surrounding
communities;
(d)
the establishment of a regional landfill
in the vicinity of Atlantis is likely to contribute to the
community’s social self-perception
as a ‘dumped’ unvalued
community; and
(e)
this negative social impact is not
associated with the Kalbaskraal site.
[23]
Dissatisfied with the MEC’s decision the appellants,
on
28 January 2014, instituted proceedings for judicial review
in
the high court in which they sought an order: (a) reviewing and
setting aside the MEC’s decision to grant the City an environmental
authorisation in terms of s 22 of the ECA for the establishment
of the new regional landfill at the Kalbaskraal site, (b) reviewing
and setting aside the MEC’s decision to uphold the appeals against
the Director’s decision granting the City an environmental
authorisation for the establishment of the new regional landfill at
the Atlantis site and, (c) remitting the appeals to the MEC for
reconsideration.
[24]
By agreement between the
parties,
on 29 April 2019, the high court
reviewed and set aside the MEC’s decisions, referred the appeals
back to the MEC for reconsideration
and reserved for determination
and decision by the high court the issue set out in paragraph 2 of
this judgment. As already stated,
the high court in a judgment
delivered on 17 June 2020 determined the reserved question in favour
of the MEC and the City and ordered
the appellants to pay the costs
jointly and severally, including costs of two counsel.
[25]
Before considering the appellants’ grounds of appeal it is
necessary, briefly, to set out the applicable
statutory provisions.
The provisions that are relevant to the determination of this appeal
are ss 21, 22, 33 and 35 of the ECA. Section
21(1) provides that the
national Minister may, by notice in the Government Gazette, identify
those activities which in his or her
opinion may have a substantial
detrimental effect on the environment, whether in general or in
respect of certain areas. It is common
cause that the establishment
and operation of the City’s proposed regional landfill site will
involve undertaking some of the identified
activities in respect of
which authorization will be required.
[26]
In broad terms, s 22(1) provides that no person shall undertake an
activity identified in terms of s 21(1),
or cause such an
activity to be undertaken, except by virtue of a written
authorisation issued by the national Minister or by a competent
authority designated by the national Minister. It is common
cause that the MEC is the competent authority in the Western Cape
Province. Section 22(2) provides that an authorisation under s 22(1)
shall only be issued after reports concerning the impact
of the
proposed activity and of alternative proposed activities on the
environment have been complied with and submitted to the
decision-maker.
[27]
Section 22(3) states that the Minister or competent authority may, in
his or her discretion, refuse or
grant the authorisation for the
proposed activity or an alternative proposed activity on such
conditions, if any, as he or she may
deem necessary. Section 33(1),
which deals with delegation of powers, provides that the MEC may
delegate the powers conferred on
him or her under the ECA to any
officer or employee of the provincial administration. In the instant
matter the MEC delegated his
powers to the Director.
[28]
Section 35(3) provides that any person who feels aggrieved at a
decision of an officer or employee of
the provincial administration
exercising any power delegated to them in terms of the ECA by the
MEC, may appeal against such decision
to the MEC. Section 35(4)
provides that the MEC ‘…may, after considering such an appeal,
confirm, set aside or vary the decision
of the officer or employee or
make such order as he may deem fit…’.
[29]
The appellants raised two main issues concerning the interpretation
of these provisions. The first, is
whether the same activity
(establishment of a new regional landfill) proposed at different
locations is an alternative proposed activity
contemplated by ss
22(2) and (3) (the section 22 point). The second is whether, when
determining an appeal in terms of s 35(3) and
(4), the MEC may step
into the shoes of the first-instance decision-maker (in this case the
Director) and take any decision which
the Director could have taken,
or conversely, whether when the MEC upholds an appeal he or she must
remit the matter to the Director
for a fresh decision (the section 35
point).
[30]
In relation to the first point (the section 22 point), the appellants
submitted that establishing a regional
landfill at the Atlantis site
and establishing a regional landfill at the Kalbaskraal site are not
‘alternative proposed activities’
as contemplated in s 22(2), and
consequently the MEC was not entitled, on appeal, to authorise the
Kalbaskraal site as an alternative
proposed activity in terms of s
22(3). In support of their contention, the appellants referred to the
City’s application for authorisation
which they claimed makes it
clear that an application was for authorisation at two different
sites.
[31]
I disagree with the appellants. The MEC was entitled on appeal to
authorise the landfill activity to
be carried out at Kalbaskraal as
an alternative proposed site. The words ‘alternative proposed
activities’ appearing in s 22(2)
and s 22(3) must be interpreted
contextually and purposively. There is no good reason – textual,
contextual or purposive
[2]
– to interpret ‘alternative proposed activities’ as being
limited to different types of activities at the same location, and
not also as including the same activity at different locations. In
the present case it is common cause that the Director, in undertaking
a comparative assessment of the two sites, had regard to the fact
that the study which had been undertaken by the City had considered
the alternatives to waste disposal by landfill. The study found that
the alternatives identified did not negate the need for a new
regional landfill site. Again, the MEC, in his reasons for the
decision, considered the availability of alternatives and concluded
that no reasonable or feasible alternatives existed to the
landfilling of waste. He regarded alternative waste management
methods
and technologies as complementary strategies to disposal by
landfill. He also considered the option of not proceeding with the
establishment
of the landfill site (namely, the ‘No-Go Option’).
He found the implications associated with the option of not
proceeding with
the establishment of a new landfill site to be
unacceptable.
[32]
I agree with the respondents’ submission that, contextually, it is
possible to read s 22(2) of the
ECA as permitting the undertaking of
comparative assessment of the proposed site and alternative proposed
sites in circumstances
where there are no available alternatives to
the proposed activities by which the solid waste can be disposed of.
In such circumstances
it will permissible for the decision maker to
consider reports concerning the impact on the environment of
establishing the landfill
on the proposed site and of doing so at one
or more alternative proposed sites. This is exactly what the Director
and the MEC did
in this case. They each considered the impact on the
environment of granting authorisation for a landfill in Atlantis or
Kalbaskraal
or of not granting authorisation at all. It is clear that
the sites were presented as alternatives and were equally subjected
to
environmental scrutiny as required by s 22(2).
[33]
As counsel for the respondents correctly pointed out, in the
Regulations made in terms of NEMA on 21
April 2006,
[3]
‘alternatives’, in relation to a proposed activity, is defined as
meaning:
‘…
different
means of meeting the general purpose and requirements of the
activity, which may include alternatives to –
(a)
the property on which or location where it is proposed to undertake
the activity; (b) the type of activity to be undertaken;
(c)
the design or layout of the activity;
(d)
the technology to be used in the activity; and
(e)
the operational aspects of the activity;…’
[34]
The 2010 EIA Regulations,
[4]
which govern the present appeals, were formulated in a very similar
way to the 2006 Regulations,
[5]
and the definition of ‘alternatives’ in relation to a proposed
activity expressly includes:
‘…
alternatives
to-
(a)
the property on which or location where it is proposed to undertake
the activity;…’
The first point
raised by the appellants must therefore fail.
[35]
As regards the second point, (the section 35 point) it was submitted
by the appellants that the MEC’s
powers on appeal were limited to a
consideration of the application and the decision in respect of
Atlantis site. Those powers, it
was contended, did not include the
power to grant environmental authorisation for the activities at a
different site, namely Kalbaskraal.
This was so, proceeded the
argument, because the subject matter of the appeal to the MEC was the
Director’s decision granting environmental
authorisation for the
listed activities at the Atlantis site, there having been no decision
made and thus capable of appeal in respect
of Kalbaskraal site. The
appellants emphasised that s 35(3) confers an entitlement on a person
who feels aggrieved at ‘a decision’
of the employee or officer
exercising the delegated power to appeal against that decision and
that the powers conferred upon the
appellate decision-maker by s
35(4) must be exercised after considering ‘such an appeal.’
[36]
The appellants submitted that, when determining an appeal in terms of
ss 35(3) and (4), the appeal authority
may not step into the shoes of
the first-instance decision-maker and take any decision which the
first-instance decision-maker could
have taken. Building on this
submission, the appellants argued that if the appeal authority
decides to set aside the decision under
appeal (as opposed to merely
varying it), he or she may not replace it with an entirely different
decision which the first-instance
decision-maker could have taken.
Thus, where the decision appealed against is the granting of
authorisation for a proposed activity,
the appeal authority may not
set aside the granting of that authorisation and replace it with the
granting of an authorisation for
an alternative proposed activity.
Instead, the appellants contended, an appeal authority who sets aside
a decision under appeal must
remit the matter to the first-instance
decision-maker for the taking of a fresh decision. This was so, it
was argued, because the
remedial powers conferred by s 35(4) to
‘confirm, set aside or vary the decision’ do not also include the
power to substitute.
[37]
The correctness of the appellants’ submissions depends on the
construction of the provisions of s 35(3)
and s 35(4) of the ECA
considered textually, contextually and purposively and the nature of
the appeals they envisage. As already
alluded to, where a decision
has been made by someone acting under powers delegated by a competent
authority, referred to in s 22,
any person who feels aggrieved
at the decision is entitled to appeal against it to the competent
authority in terms of s 35(3) and
s 35(4) of the ECA.
[38]
Sections 35(3) and (4) read as follows:
‘
(3)
Subject
to the provisions of subsections (1) and (2) any person who feels
aggrieved at a decision of an officer or employee exercising
any
power delegated to him in terms of this Act or conferred upon him by
regulation, may appeal against such decision to the Minister
. . . in
the prescribed manner, within the prescribed period and upon payment
of the prescribed fee.
(4)
The
Minister, the Minister of Water Affairs or a competent authority, as
the case may be, may, after considering such an appeal, confirm,
set
aside or vary the decision of the officer or employee or make such
order as he may deem fit, including an order that the prescribed
fee
paid by the applicant or such part thereof as the Minister or
Administrator concerned may determine be refunded to that person.
’
[39]
Appeals under ss 35(3) and (4) are appeals in the wide sense
described in
Tikly
and Others v Johannes NO and Others,
[6]
namely a
complete re-hearing of, and fresh determination on the merits of the
matter with or without additional evidence or information.
In
Hangklip/Kleinmond
Federation of Ratepayers Associations v MEC for Environmental
Planning and Economic Development: Western Cape
[7]
(
Hangklip/Kleinmond
)
,
the
high court held that an appeal to the MEC under s 35(3) of the
ECA is an appeal in the wide sense.
The court had
this to say regarding the nature of the appeal under s 35(3) and s
35(4) of the ECA:
[8]
‘
In
considering and in the end upholding the appeal, the minister acted
in terms of section 35(4) of ECA which provides that the minister
“
may, after
considering such appeal, confirm, set aside or vary the decision of
the officer or employee or make such order as he may
deem fit
.
. .”. The appeal under section 35(4) is an appeal in the wide
sense. It involves a complete rehearing and a fresh determination
on
the merits of the application with or without additional evidence or
information.
The
minister came to the conclusion that authorisation should be granted.
Mr Jamie SC, who appeared with Ms Bawa for the fourth
respondent
submitted that in giving her approval, the minister acted under
section 35(4) and not, as was submitted by counsel for
all the other
parties, under section 22(3) of ECA. We do not agree with Mr Jamie’s
submission. Having decided to uphold the appeal,
the minister then
decided to substitute the director’s decision with her own
decision. In deciding which decision she should make
she must act in
terms of the provision under which the first decision-maker (the
director) acted. That provision is section 22(3)
of ECA.
Section
22(3) confers a wide discretion on the competent authority who “may
at his or its discretion refuse or grant the authorisation
for the
proposed activity or an alternative proposed activity on such
conditions, if any, as he or it may deem necessary”.
The
minister is therefore empowered, in granting authorisation to impose
such conditions as she deemed necessary, provided such condition
is
within the authority given to her under the provisions of ECA read
with the relevant provisions of NEMA.’
[40]
In
Sea
Front for All and Another v MEC: Environmental and Development
Planning, Western Cape Provincial Government and Others
[9]
(
Sea
Front for All
)
,
the high
court, without citing
Hangklip/Kleinmond
,
held that:
‘
As
emphasised by Baxter
Administrative
Law
(1984) at 255,
the precise form that an administrative appeal must take and the
powers of the appellate body will always depend on
the terms of the
relevant statutory provisions. In regard to an inter-departmental
appeal, such as the present appeal to the MEC,
the learned author
expresses the following view at 264-265:
“
If
an appeal does lie to a Minister the power of decision is thereby
kept fully within the departmental hierarchy and the appellate
body
(the Minister) is usually in a position to exercise the widest
appellate jurisdiction. Such appeals therefore normally take
the form
of ‘wide’ appeals, or re-hearings
de
novo
.”’
…
In
the instant matter the power of decision on appeal is also kept fully
within the departmental hierarchy, which, as pointed out
by Baxter
supra
,
results in the appeal normally taking the form of a re-hearing
de
novo
. Notably too,
section 35(4) confers wider powers on the MEC than would be the
case in a “normal” appeal, namely, to confirm,
set aside or vary
the decision of the second respondent, or to make such order as she
may deem fit.
…
In
these circumstances, I incline to the view that the MEC, in dealing
with an appeal in terms of s 35(3) and (4) of the ECA,
does not
exercise appeal powers in the ordinary legal sense, but in the wider
sense, which empowers her not only to substitute her
own findings of
fact and legal conclusions for those of the second respondent, but to
conduct a re-hearing of the matter. Whilst
I agree with Mr Newdigate
that the 96 appeals which were lodged would be the MEC’s point of
departure, she was, in considering
the appeals, entitled to consider,
and in the instant case did consider, On Track’s application
afresh. That is why the review
before this Court is a review of the
decision of the MEC taken in terms of the 2007 ROD, and not a review
of the original ROD.’
[10]
[41]
The specific context of an
appeal under s 35(3) and (4), is a first-instance decision taken by
an officer or employee exercising a
power or authority delegated or
assigned to them by the appellate decision-maker. As the
first-instance decision-maker was
exercising the power of
the
appellate decision-maker, it follows that in determining appeals
under s 35(3) and (4) the appellate decision-maker should be
able to
exercise the decision-making powers to the full extent conferred upon
him or her by the underlying empowering provision –
which, in the
present case is s 22(3) of the ECA. In this case, the Atlantis and
Kalbaskraal sites were presented as alternatives.
The decision-maker
could grant or refuse authorisation in respect of either of the two
sites or both. The appeal authority could,
on appeal, also grant or
refuse authorisation in respect of either of the two sites or both
sites.
[42]
This is confirmed by the remedial
powers
conferred upon the appellate decision-maker by the language of
s 35(4). They are not limited to confirming, setting
aside
or varying the decision of the first-instance decision-maker. The
appellate decision-maker may also ‘make such order as he
may deem
fit.’
[43]
It is apparent from this analysis that an
appeal under ss 35(3) and (4) against a decision of an officer or
employee exercising delegated
authority on an application for an
environmental authorisation under s 22, involves a complete rehearing
and a fresh determination
of the merits of the application with or
without additional evidence or information; and, further, that the
appellate decision-maker
is free to substitute his or her own
decision for the decision under appeal. The high court was therefore
correct in determining
the separated question in favour of the
respondents.
[44]
The appellants, however, submitted that
Hangklip/Kleinmond
and
Sea
Front for All,
on which the
high court relied for the proposition that the appeal authority has
any power beyond an appeal against a decision to
grant or refuse
environmental authorisation, do not justify the finding that the
appeal authority can, on appeal against a decision
in respect of one
site, grant authorisation of another in respect of which there had
been no antecedent decision. They argued that
these cases are
distinguishable from the facts of the instant case in that those
cases dealt with the unitary applications for environmental
authorisation at single locations at first instance, whereas the
MEC’s decision related to an application at the first instance
for
environmental authorisation of the same activities, but at two
different locations that were geographically remote from one another.
There were, in effect, two applications and the fact that they were
contained in one set of documents is of no moment. The appellants
contended that the high court should have applied the principles
established in
Groenewald
NO and Others v M5 Developments (Cape) (Pty) Ltd
[11]
(
Groenewald
);
Potgieter
v Howie NO and Others
[12]
(
Potgieter
);
Ocean
Ecological Adventures (Pty) Ltd v Minister of Environmental
Affairs
[13]
(
Ocean
Ecological Adventures
)
and
Meyer
v Iscor Pension Fund
[14]
(
Meyer
).
[45]
It is not correct that the City’s application for authorisation
comprised two applications. In the
application form, the City
identified the project as ‘Identification of a new regional
landfill site to service the CMA’ and
the project location is
identified as ‘Atlantis site’ and ‘Kalbaskraal site.’ The two
sites were presented as alternatives
and were comparatively assessed.
This means that the application that was before the Director was the
application for environmental
authorisation at one or both of the two
sites and the decision could have been granted either granting or
refusing authorisation
in one or both of the two sites. In terms of
the principle established in
Hangklip/Kleinmond
and
Sea
Front for All,
the appeal authority, when considering the appeal
under s 35, was entitled to consider the application that was placed
before the
Director together with further information afresh.
[46]
The cases on which the appellants rely are distinguishable. The
appeal provision at issue in
Potgieter
was s 26B(15) of
the Financial Services Board Act 97 of 1990 which read:
‘
The
appeal board may – (a) confirm, set aside or vary the decision
under appeal, and order that any such decision of the appeal
board be
given effect to; or (b) remit the matter for reconsideration by the
decision-maker concerned in accordance with such directions,
if any,
as the appeal board may determine.’
[47]
As is apparent, unlike s 35(4) of the ECA, s 26B(15) of that Act did
not permit the appeal board to ‘make
any order [it] may deem fit’,
nor did it make any other provision for the appeal board to
substitute an entirely different decision
for that of the
first-instance decision-maker. On the contrary, paragraph (a) only
permitted the appeal board to vary the decision
under appeal and
paragraph (b) required the appeal board to remit the matter for
reconsideration by the decision-maker concerned
in accordance with
such directions as it may determine.
[48]
The appellants further referred to the
passages in paragraphs 25 and 26 in
Groenewald
in support of their contention that a power to vary does
not entail the power to substitute or replace.
Groenewald
concerned an appeal in terms of s 62(3) of the Local Government:
Municipal Systems Act 32 of 2000 (the Systems Act) against a decision
in a municipal procurement process involving multiple competing
bidders. Section 62(3) confers on the appeal authority the following
power:
‘
The
appeal authority must consider the appeal, and confirm, vary or
revoke the decision, but no such variation or revocation of a
decision may detract from any rights that may have accrued as a
result of the decision.’
[49]
In view of the considerable reliance placed by the appellants on the
decision in
Groenewald
, it would be appropriate to analyse
that decision in a little detail. In
Groenewald,
the appeal
arose out of the award of tender of a municipal contract by the
municipality to one of several entities who had tendered.
M5
Development’s (M5) tender was initially accepted, but pursuant to
an appeal Groenewald, who was at the time the acting manager,
reversed that decision and awarded the contract to ASLA. On review
the high court set aside the municipal manager’s decision to
award
the contract to ASLA and declared M5 to be entitled to enter into a
contract with the municipality pursuant to the allocation
of the
tender. Aggrieved by the high court decision, Groenewald, the
Municipality and ASLA appealed to this Court.
[50]
One of the issues before this Court was whether Groenewald, as appeal
authority, was entitled to award
the contract to an unsuccessful
tenderer who had not appealed against the initial decision to award
it to another. Arguing that Groenewald
had been perfectly entitled to
do so, counsel for the appellants, as a starting point, contended
that an appeal in terms of s 62
is a wide appeal involving a
re-hearing of the issues and that Groenewald was bound in his
re-hearing of the matter to award the
contract to the party to whom
it should have been awarded in the first place, even if that party
had not appealed.
[51]
In
rejecting counsel’s argument, this Court stated the following:
[15]
‘
The
obvious fallacy in the appellants’ argument is found on an
examination of the section under which the appeal authority is
empowered
to act. Section 62(1) allows a person to appeal by giving
‘written notice of the appeal and reasons’ to the municipal
manager
who, under s 62(2) has then to submit ‘the appeal’ –
obviously the notice of appeal and the reasons lodged therewith under
s 62(1) – to the appeal authority for it to consider ‘the appeal’
under s 62(3). Although in terms of this latter subsection
the appeal
authority is empowered to ‘confirm, vary or revoke the decision’
it exercises that power in the context of hearing
‘the appeal’
viz the appeal and the reasons lodged by the aggrieved person under s
62(1). That defines the ambit of the appeal,
the sole issue being
whether that aggrieved person should succeed for the reasons it has
advanced. It is not for the appeal authority
to reconsider all the
tenders that had been submitted. If that had been the legislature’s
intention, it would have said so. It
did not, and for obvious
reasons. There is a need in matters of this nature for decisions to
be made without unreasonable delay.
If each and every tender had to
be revisited it could easily become an administrative nightmare with
the appeal authority having
to hear representations from all parties
who tendered, some of whom might have no realistic prospect of
success, in regard to a myriad
of issues, many of which might in due
course be proved to be wholly irrelevant. This could never have been
the legislature’s intention.
It is inconsistent with the
requirement that a person aggrieved must file a notice of appeal with
reasons within a fairly short period.
Thus,
while I accept that the appeal is a wide one in the sense of a
rehearing, it is a re-hearing related to the limited issue of
whether
the party appealing should have been successful. In the context of a
municipal tender, an appeal by a person whose tender
was unsuccessful
therefore does not entitle the appeal authority to reconsider all the
tenders that were lodged and to decide whether
the committee which
adjudicated upon the tender ought to have awarded the contract to a
person whose tender was not accepted, but
who did not appeal against
that decision (and who might no longer have any interest in being
awarded the contract). In the present
case, the appeal related solely
to whether the contract should have been awarded to Blue Whale rather
than M5 and, having concluded
that issue against Blue Whale and
declining to consider ASLA’s appeal, the appeal should merely have
been dismissed and the adjudication
committee’s decision left
undisturbed.
Furthermore,
while Groenewald may have had concerns about the legality of the
award of the tender, it is important to bear in mind
that those
concerns were based on his perceptions flowing from his own
investigations on issues identified by him and that his conclusions
were challenged by M5.’
[52]
The
appeal authority has limited powers under s 62 of the Systems Act.
It is for this reason that this Court found in
Groenewald
that ‘
[i]n
the context of a municipal tender, an appeal by a person whose tender
was unsuccessful therefore does not entitle the appeal
authority to
reconsider all the tenders that were lodged
…’
.
[16]
An appeal
authority under s 35 of the ECA has wider powers including the
additional power to ‘make such order as he may deem fit’.
The
challenges which faced the appeal authority in
Groenewald
are
absent in this matter. The MEC in this matter, in considering the
appeals, had to decide whether authorisation should be granted
or
refused in respect of Atlantis site or Kalbaskraal site or both
sites.
[53]
Ocean
Ecological Adventures
does not assist the appellants. In that case the high court,
following
Groenewald
,
held,
obiter,
[17]
that where an applicant for a permit required by regulations made
under the
National Environmental Management: Biodiversity Act 10 of
2004
appealed in terms of
s 43
of the
National Environmental
Management Act 107 of 1998
against the refusal of its application on
the ground that it did not comply with one of three relevant
compulsory requirements, the
appellate decision-maker was not
obliged
to reconsider whether the permit applicant complied with the other
two compulsory requirements.
[18]
The court reasoned that there was nothing in the appeal to suggest
that the appellate decision-maker
had
to
look anew at the two other compulsory requirements. In the present
case the MEC could not properly determine the appeals against
the
Director’s decision without considering the City’s application
afresh. He was bound to look at it when he considered the
appeals.
[54]
Finally, the appellants referred to
Meyer,
which they contended was authority for the proposition
that the powers of the appeal authority on appeal are limited to a
consideration
of a decision which is the subject matter of the
appeal.
Meyer
concerned the powers of the high court when it entertains an appeal
under s 30P of the Pension Fund Act 24 of 1956 against a
determination
by the Adjudicator. Section 30P deals with access to
court. It provides:
‘
(1)
Any party who feels aggrieved by a determination of the Adjudicator
may, within six weeks after the date of the determination,
apply to
the division of the High Court which has jurisdiction, for relief,
and shall at the same time give written notice of his
or her
intention so to apply to the other parties to the complaint.
(2)
The division of the High Court contemplated in subsection (1) may
consider the merits of the complaint made to the Adjudicator
under
section 30A (3) and on which the Adjudicator's determination was
based, and may make any order it deems fit.
(3)
Subsection (2) shall not affect the court's power to decide that
sufficient evidence has been adduced on which a decision can
be
arrived at, and to order that no further evidence shall be adduced.’
[55]
This Court stated in
Meyer
that the appeal under s 30P is an
appeal in the wide sense and that the high court is therefore not
limited to a decision whether
the Adjudicator’s determination was
right or wrong, neither is it confined to the evidence or grounds
upon which the Adjudicator’s
determination was based. The court can
consider the matter afresh and make any order it deems fit but that
in doing so it is limited
by s 30P to a consideration of ‘the
merits of the complaint in question’ not to a consideration of the
Adjudicator’s determination
as the appellants contended. This Court
made it clear in para 8 of the judgment that ‘the dispute submitted
to the High Court for
adjudication must still be a “complaint” as
defined. Moreover, it must be substantially the same “complaint”
as the one determined
by the Adjudicator.’ This is what the MEC had
to do in considering the appeal in this matter. He had to determine
the appeal on
the basis of the City’s application together with any
further material that was placed before him. The ‘complaint’
under the
Pension Fund Act is the equivalent of the application under
s 22 of the ECA. It is therefore apparent that the
Meyer
case
does not support the appellants’ contention.
[56]
I, therefore, hold that an appeal under ss 35(3) and (4) against a
decision of an officer or employee
exercising delegated authority on
an application for an environmental authorisation under s 22,
involves a complete rehearing and
a fresh determination of the merits
of the application with or without additional evidence or
information; and further that the appeal
authority is free to
substitute his or her own decision for the decision under appeal.
[57]
In the result the appeal is dismissed, with costs, including the
costs of two counsel.
D H Zondi
Judge of Appeal
Appearances
For
appellant:
W Duminy SC (with him E Edmunds)
Instructed
by:
Edward Nathan Sonnenbergs, Cape Town
Lovius
Block Inc., Bloemfontein
For
respondents: AM Breitenbach SC (with
him M O’Sullivan)
Instructed
by: State
Attorney, Cape Town
State
Attorney, Bloemfontein
Winstanley
Inc., Cape Town
Claud
Reid Inc., Bloemfontein
[1]
(2
nd
ed., 1998. Department of Water Affairs and Forestry).
One
of three documents produced by the then Department of Water Affairs
and Forestry in 1998 dealing with waste management is available
at
http://sawic.environment.gov.za/documents/266.PDF
.
Retrieved on 13 April 2022.
[2]
Commissioner,
South African Revenue Service v United Manganese of Kalahari (Pty)
Ltd
[2020] ZASCA 16
;
2020 (4) SA 428
(SCA) para 8.
[3]
GN
R385 in Government Gazette 28753 of 21 April 2006.
[4]
GN
R543 in Government Gazette 33306 of 18 June 2010, as amended by GN
660 in Government Gazette 33411 of 30 July 2010.
[5]
S
ave
that an additional subsection (e) was added to the definition of
‘alternatives’, namely ‘the option of not implementing
the
activity’. The EIA Report also had to contain a ‘description and
comparative assessment of all alternatives identified
during the
[EIA] process’ (regulation 31(2)(i)).
[6]
Tikly
and Others v Johannes NO and Others
1963 (2) SA 588
(T) at 590F-591A.
[7]
Hangklip/Kleinmond
Federation of Ratepayers Associations v MEC for Environmental
Planning and Economic Development: Western Cape
[2009]
ZAWCHC 151.
[8]
Ibid
paras 42-44.
[9]
Sea
Front for All and Another v MEC: Environmental and Development
Planning, Western Cape Provincial Government and Others
[2010]
ZAWCHC 69
;
2011 (3) SA 55
(WCC)
.
[10]
Ibid
paras 23, 25 & 28.
[11]
Groenewald
NO and Others v M5 Developments (Cape) (Pty) Ltd
[2010]
ZASCA 47; 2010 (5) SA 82 (SCA).
[12]
Potgieter
v Howie NO and Others
[2013)
ZAGPPHC 313; 2014 (3) SA 336 (GP).
[13]
Ocean
Ecological Adventure (Pty) Ltd v Minister of Environmental Affairs
[2019]
ZAWCHC 42; [2019] 3 All SA 259 (WCC).
[14]
Meyer
v Iscor Pension Fund
[2002]
ZASCA 148; [2003] 1 All SA 40 (SCA).
[15]
Groenewald
paras
24-26.
[16]
Ibid
para 25.
[17]
Ocean
Ecological Adventures
paras
40.
[18]
Ibid
paras
42-43.
sino noindex
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