Professional Documents
Culture Documents
Applicant
and
First Respondent
Second Respondent
Third Respondent
MINISTER OF COMMUNICATIONS
Fourth Respondent
Fifth Respondent
WJ EDELING N.O.
Sixth respondent
Seventh Respondent
Eighth Respondent
Page 2
TABLE OF CONTENTS
INTRODUCTION .............................................................................................................. 3
THE APPLICABLE TEST THIS IS NOT A POSTPONEMENT APPLICATION ............... 4
THE STAY SHOULD BE GRANTED................................................................................. 5
Prima facie right to review ................................................................................................. 6
The decision of the Public Protector .................................................................................. 6
The first ground of review ................................................................................................ 10
The second ground of review .......................................................................................... 15
The third ground of review .............................................................................................. 18
Delay .............................................................................................................................. 19
Summation prima facie right......................................................................................... 20
Direct link between the two cases ................................................................................... 20
The relief sought in the DA application ............................................................................ 20
The link between the two cases ...................................................................................... 21
The prayer relating to the order of the Supreme Court of Appeal .................................... 25
Summation it would be appropriate to stay the DA application ..................................... 27
Balance of convenience favours the SABC ..................................................................... 27
CONCLUSION ................................................................................................................ 30
ORDER SOUGHT ........................................................................................................... 31
Page 3
INTRODUCTION
The Democratic Alliance (the DA) has brought an application for wide-ranging
relief that stems from a report published by the Public Protector on 17 February
2014 (the Public Protectors report) that considered various allegations of
alleged corporate governance failures at the first respondent (the SABC).
After the DA launched its application, the SABC brought an application seeking
an order staying the DAs application pending the finalisation of a review of the
Public Protectors report. A few days after launching the stay application, the
SABC launched its review in the Gauteng Division of the High Court, sitting in
Pretoria.
The SABC submits that the issues arising in the DAs application will be
materially affected if the Pretoria High Court upholds the SABCs review
application. It would therefore not be in the interests of justice for this Court to
determine the DAs application now, while the SABCs review application is
pending. Rather, it is the SABCs submission that the most convenient and
equitable way forward is for the SABCs review application to be ventilated first,
and for the DAs application to be considered in the light of the order made by
the Pretoria High Court in that review.
Page 4
THE APPLICABLE TEST THIS IS NOT A POSTPONEMENT APPLICATION
5.1
In the case of stay applications that are brought pending the finalisation
of a review, it has been held that an applicant must show:
5.3
5.2.1
5.2.2
Township Management Consultants (Pty) Ltd v Simmons 1991 (3) SA 456 (W) at 460
Spier Properties (Pty) Ltd v Chairman, Wine and Spirit Board 1999 (3) SA 832 (C) at 840
Page 5
As appears from the judgment of Nicholas J in Fisheries E
Development Corporation of SA Ltd v Jorgensen and Another;
Fisheries Development Corporation of SA Ltd v AWJ
Investments (Pty) Ltd and Others 1979 (3) SA 1331 (W) at
1340, a stay can be granted by the Court in the exercise of its
inherent discretion to avoid injustice and inequality but in this
enquiry Courts do not act on abstract ideas of justice and
equity. They must act on principle. Accordingly, where there
is such an application for a stay on the grounds of prejudice,
such prejudice and harm must not be 'problematical,
hypothetical and speculative' (at 1341).
It is submitted that, in the light of what has been said above, the proper
approach to be adopted to this application is for this Court to assess the
following:
6.1
First, it should satisfy itself that the review brought by the SABC raises
triable issues.
6.2
6.3
Thirdly, if they do, it would ordinarily stay the DAs application unless
the DA (or any of the other parties) could point to prejudice that militates
against staying the DAs application.
Page 6
Prima facie right to review
8.1
First, the SABC argues that the approach adopted by the Public
Protector was bad in law because it hamstrung the ability of the SABC
to conduct a full disciplinary enquiry into the conduct of Mr Motsoeneng.
8.2
8.3
Thirdly, the SABC impugns the factual findings made by the Public
Protector.
The decision of the Public Protector that is the subject of the SABCs review
was the following:
9.1
In her report, the Public Protector investigated, and made findings on,
the following eight issues, which had been raised in complaints made to
her:
9.1.1
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SABC and who is now the COO, were irregular and
accordingly
constitute
improper
conduct
and
maladministration.
9.1.2
9.1.3
9.1.4
9.1.5
9.1.6
Page 8
amounted to financial mismanagement and accordingly
improper conduct and maladministration.
9.1.7
9.1.8
Whether
the
Department
and
former
Minister
of
9.2
The Public Protector made a series of factual findings that had the
effect of upholding all of the complaints that had been made to her. The
SABC seeks to review and set aside all of her findings, except for the
finding against the Minister summarised in paragraph 9.1.8 above.
9.3
As a result of the findings that she made, the Public Protector ordered
the following relief, requiring the SABC board to ensure that:
9.3.1
9.3.2
9.3.2.1
Page 9
and salary increments of Ms Sully Motsweni, and
for his role in the purging of senior staff members
resulting
in
numerous
labour
disputes
and
9.3.2.2
9.3.3
9.3.4
9.3.5
Page 10
administration of its affairs in accordance with the laws,
corporate policies and principles of corporate governance.
9.3.6
9.3.7
The roles and relationship of the SABC Board and COO are
defined, particularly in relation to the role of a relationship with
the GCEO to avoid the paralysis and premature exit of
GCEOs while adhering to established principles of corporate
governance.6
10
The Public Protector made a series of factual findings in respect of the issues
summarised in paragraph 9.1 above. As a result of the factual findings that she
made, the Public Protector made the orders summarised in paragraph 9.3
above. In its review, the SABC argues that there were two possible approaches
that the Public Protector could have taken when making her decision:
10.1
First, her decision could have left the SABC at large to institute
disciplinary proceedings against Mr Motsoeneng in which the merits of
the charges against him were ventilated and, in the event that a finding
Page 11
of guilt was made in respect of some or all of the charges, an
appropriate sanction was determined.
10.2
11
The SABC seeks to review the decision of the Public Protector reflected in her
report because it gives effect to the second of these two options:8
11.1
11.2
See, for example, Ramotsepane v Barmot Truck Hire [2002] JOL 9936 (LAC) at para 86
10
Harding v Petzetakis Africa (Pty) Ltd [2011] JOL 27893 (LC) at para 79
Page 12
11.3
11.4
12
It is submitted that the EFF judgment supports the arguments advanced by the
SABC. In that case, the Constitutional Court held the following:
12.1
11
Economic Freedom Fighters v Speaker of the National Assembly 2016 JDR 0578 (CC)
12
Page 13
12.2
occasionally,
be
the
only
real
option.
And
so
might
12.3
12.4
13
14
Page 14
informed by the subject-matter of investigation and the type of findings
made.15
12.5
12.6
12.7
13
15
16
17
18
Page 15
The second ground of review
14
Section 6(9) of the Public Protector Act 23 of 1994 provides that [e]xcept
where the Public Protector in special circumstances, within his or her discretion,
so permits, a complaint or matter referred to the Public Protector shall not be
entertained unless it is reported to the Public Protector within two years from
the occurrence of the incident or matter concerned.
15
16
In its review, the SABC argues that section 6(9) establishes a default position
that the Public Protector may not entertain a complaint unless it is referred to
her within two years of the occurrence of the incident that is the subject of the
investigation. But, the Public Protector may exercise her discretion to entertain
the matter, even if the two-year rule has not been complied with, if there are
special circumstances. This entails that, when a complaint is referred to the
Public Protector more than two years after the alleged event occurred, she
must apply her mind to the question whether special circumstances warrant the
consideration of the complaint.19
19
Page 16
17
The Public Protector said the following about section 6(9) of the Public
Protector Act in her report:
17.1
17.2
17.3
20
21
22
Page 17
chose to look the other way in the face of complaints being lodged with
my office.23
18
In its review, the SABC argues that the decision of the Public Protector to
entertain the complaint about Mr Motsoenengs qualifications falls to be
reviewed and set aside because:
18.1
The Public Protector approached the enquiry in the wrong way she
started by assuming that she was empowered to consider the complaint
even though it was more than two years old, and that she then retained
a discretion to refuse to consider it. The position is the opposite and this
error clearly influenced the manner in which the Public Protector
exercised her discretion whether to consider the complaint.
18.2
18.3
It was therefore incorrect for the Public Protector to find that the
complaint about Mr Motsoenengs qualifications when he joined the
SABC was a continuous problem.
18.4
To the extent that the Public Protector exercised her discretion at all on
the question whether special circumstances suggested that she should
consider the complaint even though it was more than two years old, her
reasoning in doing so is summarised in paragraph 17.3 above. It is
23
Page 18
submitted that the reasoning given there is self-evidently circular
because each and every complaint to the Public Protector that falls
within her jurisdiction raises issues of profound importance. If that alone
constituted a special circumstance as envisaged by section 6(9) of the
Public Protector Act, then all complaints that are more than two years
old could be entertained. It is quite clear from the wording of section
6(9) that something special, which goes beyond the duty of the Public
Protector to investigate maladministration, is required. The SABC
therefore argues that the decision of the Public Protector is therefore
reviewable.24
19
It is submitted that the arguments raised by the SABC in its second ground of
review stand a reasonable prospect of being accepted by the review court.
20
20.1
The SABC has made clear in its founding affidavit in the review that it
awaits receipt of the record before formulating its fact-based grounds of
review.
20.2
24
25
Afrisun Mpumalanga (Pty) Ltd v Kunene NO 1999 (2) SA 599 (T) at 628-9
Page 19
'The object of review proceedings in terms of rule 53 is to
enable an aggrieved party to get quick relief where his rights
or interests are prejudiced by wrongful administrative action
and the furnishing of the record of the proceedings is an
important element in the review proceedings: see Jockey Club
of South Africa v Forbes 1993 (1) SA 649 (A) at 660D I; S v
Baleka and Others 1986 (1) SA 361 (T) H at 397I 398A.
The applicant should not be deprived of the benefit of this
procedural right unless there is clear justification therefor: see
Crown Cork & Seal Co Inc and Another v Rheem South Africa
(Pty) Ltd and Others 1980 (3) SA 1093 (W) at 1095F H.'
20.3
20.4
The SABC submits that, until it has been furnished with the review
record, it is not possible to assess the prospects of success of its factual
grounds of review. It is submitted that it would not be appropriate in the
circumstances for this Court to find that the SABC has no prospects of
success in this regard.
Delay
21
The main focus of the parties (especially the Public Protector), when arguing
against the granting of the stay application, is on delay. They suggest that the
26
Fizik Investments (Pty) Ltd t/a Umkhombe Security Services v Nelson Mandela Metropolitan
University 2009 (5) SA 441 (SE) at para 71. See also Jockey Club of SA v Forbes 1993 (1) SA
649 (SCA) at 660
Page 20
SABCs review cannot succeed because of its delay in bringing it. But the
SABC has brought a condonation application in its review. It is well-accepted
that condonation in review applications turns largely on the prospects of
success and prejudice to other parties.27 The prospects of success cannot be
determined against the SABC before the record has been provided and a
supplementary affidavit filed. And none of the parties has yet filed an answering
affidavit in the SABC review pointing to any prejudice. It is therefore submitted
that the delay by the SABC in launching its review does not serve to undermine
the SABCs prospects of success at this stage.
22
It is submitted that, in the light of everything said above, this Court should find
that the SABCs review raises triable issues and that it has a prima facie right to
succeed on review.
23
It is submitted that, for the reasons given below, any decision that this Court
might make in the DAs application will be materially affected if the SABCs
review succeeds.
27
Camps Bay Rate Payers and Residents Association v Harrison [2010] 2 All SA 519 (SCA) at
para 54
Page 21
24
24.1
24.2
There is the relief aimed at reviewing and setting aside the disciplinary
enquiry conducted in respect of Mr Motsoeneng in October 2015.29
24.3
There is the relief that is directed to ensuring that only the question of
sanction is ventilated at fresh disciplinary proceedings to be held
against Mr Motsoeneng.30
24.4
24.5
28
29
30
Page 22
25
The SABCs review of the Public Protectors report will have a material impact
on the relief sought in the DAs application. In particular:
25.1
Prayer 1 of the DAs application is based squarely on the notion that the
SABC did not properly implement the Public Protectors findings and
remedial action. If the Public Protectors report is set aside, prayer 1 will
fall away.
25.2
25.3
25.4
31
32
33
Page 23
what was required by the Public Protector, the DA will have to establish
a self-standing entitlement to impugn the legality of the disciplinary
proceedings. It is self-evident that the entire paradigm in which prayers
4 and 5 will be considered will dramatically be altered.
25.5
25.6
25.7
Page 24
Motsoeneng to be suspended. It follows that prayer 10 should only be
ventilated once the review is finalised.
26
It may be seen from the discussion above that all of the relief sought by the DA
is based squarely on the legitimacy, and binding status, of the Public
Protectors report. In those circumstances, it would be inimical to the interests
of justice for the DAs application to be ventilated while the SABCs review of
the Public Protectors report is pending.
27
As shown above, it will be argued by the SABC in its review that it was wrong
for the Public Protector to leave open only the issue of sanction; she ought to
have made a ruling that preserved the right of the SABC to ventilate all of the
factual disputes relevant to the conduct of Mr Motsoeneng in fresh proceedings.
27.1
Page 25
basis discussed here, then there will be no basis for the granting of
prayer 6.
27.2
It may therefore be seen from the discussion above that, with the
exception of prayer 2 of the notice of motion (which is addressed
below), the outcome of the relief sought by the DA will be determined by
the outcome of the review brought by the SABC. In those
circumstances, it would be in the interests of justice for the DAs
application to be stayed until the review is finalised.
28
29
The Supreme Court of Appeal made the following findings which are relevant to
the present application:
29.1
29.2
[A]bsent a review, once the Public Protector had finally spoken, the
SABC was obliged to implement her findings and remedial measures.35
34
35
Page 26
29.3
taken
by
the
Public
Protector
might,
in
appropriate
30
31
Even if this Court is not with the SABC on this score, and takes the view that
prayer 2 is entirely self-standing, it would remain in the interests of justice for
36
Page 27
the stay application to be granted. The overwhelming majority of the relief
sought by the DAs application will be materially affected by the outcome of the
SABCs review. Therefore, it would be a waste of judicial resources, and
constitute the inappropriate piecemeal ventilation of the DAs application, for
prayer 2 to be considered in isolation of the rest of the application.
32
It is submitted that, based on what has been said above, the outcome of the
DAs application will be materially affected by the outcome of the SABCs
review. The position does not apply in reverse. It is therefore submitted that this
Court court should stay the DAs application pending the finalisation of the
SABCs review.
33
Once an applicant for a stay like the SABC demonstrates first, that the pending
review raises triable issues and, secondly, that those issues impact on the
present application, the prejudice to the applicant for the stay if it is not granted
is self-evident. It is then for the party resisting the stay to establish prejudice
that militates against the stay the onus in this sense then shifts to the DA. In
its stay application, the SABC alleges that it will be severely prejudiced if the
stay application is not granted. Since, as demonstrated in detail above, much of
the relief sought by the DA would be profoundly affected if the Public
Protectors report is set aside, it argues that it would be grossly unfair for the
Page 28
DAs application to be considered while the review is pending.37 This is clearly
the case unless and until the SABCs review succeeds, this Court would be
obliged to proceed in the DAs application that the Public Protectors report is
valid until set aside. Everything contained in the report would have to be
accepted as correct. Quite clearly, this would make a profound difference to the
prospects of success of the DAs application.
34
The SABC argues, further, that the DA will suffer no prejudice if the stay
application is granted:
34.1
There have been several litigious disputes arising from the Public
Protectors report and the SABCs response to it.
34.2
The report itself was published over two years ago. In the light of all of
these facts, there can be no prejudice if the DAs application awaits the
outcome of the SABCs review.
34.3
37
38
Page 29
35
The DA has filed an answering affidavit in the SABCs stay application. In its
answering affidavit, it argues that it will suffer prejudice if the stay application is
granted. But, it is submitted that it has failed to establish this:
35.1
The DA argues that granting the stay will allow the SABC to evade the
consequences of the SCAs order in SABC v DA (supra). It also argues
that granting the stay will allow the SABC to vacillate unlawfully in
response to the Public Protectors report.39 The DA also argues that the
public interest will be prejudiced because the DA and the public will be
deprived of effective relief in terms of the SCAs order.40
35.2
39
40
41
See Consolidated News Agencies (Pty) Ltd (in Liquidation) v Mobile Telephone Networks (Pty)
Ltd and Another 2010 (3) SA 382 (SCA) at paras 89 and 90; Minister of Home Affairs and
Another v Fourie and Another (Doctors for Life International and Others as Amici Curiae);
Lesbian and Gay Equality Project and Others v Minister of Home Affairs and Others 2006 (1)
Page 30
judicial resources, coupled with the prejudice that the SABC will suffer if
it is required to respond to the DA application before the review is
finalised, militate against the hearing of the DA application now.
36
CONCLUSION
37
37.1
37.2
37.3
SA 524 (CC) at para 42; Hassim v Commissioner, South African Revenue Service 2003 (2) SA
246 (SCA) at para 10; Guardian National Insurance Co Ltd v Searle NO 1999 (3) SA 296 (SCA)
at 301B-D
Page 31
38
The Public Protector has opposed the granting of the stay application,42 and
should accordingly be liable for the SABCs costs jointly and severally with the
DA.43
ORDER SOUGHT
39
39.1
39.2
that the DA and Public Protector pay the SABCs costs in the stay
application.
42
43
Chairman of the Board of the Sanlam Pensionfoends v Registrar of Pension Funds 2007 (3) SA
41 (T) at para 50