Chris Hani District Municipality v South African Local Government Bargaining Council (PR267/21) [2024] ZALCPE 8 (27 February 2024)

Chris Hani District Municipality v South African Local Government Bargaining Council (PR267/21) [2024] ZALCPE 8 (27 February 2024)

The commissioner’s decision that the employees were not guilty of negligence was reasonable and supported by the evidence. The responsibility for changing banking details lay with the SCM section, and the employees were not present when the fraudulent documents were processed. Ngwendu, as first authoriser, performed due diligence by confirming with the acting Expenditure Manager that the CFO had signed the supporting documents. The CFO’s own admission of reliance on junior staff and his failure to perform due diligence was not attributed to the employees. The Municipality’s inconsistent disciplinary action against other officials further undermined its case. The commissioner understood...

Citation
[2024] ZALCPE 8
Parties
Applicant: Chris Hani District Municipality; Respondent: South African Local Government Bargaining Council; Respondent: Mxolisi Alex Noziqwaba N.O.; Respondent: Buyiswa Ngwendu; Respondent: Philemon Thembinkosi Pambaniso
Court
Labour Court Port Elizabeth
Jurisdiction
South Africa
Judgment Date
27 February 2024
Case Number
PR267/21
Procedural Posture
Review Application / Judgment on Review of Arbitration Award
Outcome
Application dismissed; arbitration award upheld.
Judges
M Makhura
Legal Topics
Review of Arbitration Award, Negligence, Unfair Dismissal, Reinstatement, Disciplinary Procedure
Labour Law Civil Procedure Review of Arbitration Award Negligence Unfair Dismissal Reinstatement Disciplinary Procedure

Case Brief

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Downloadable case file Legal principles 4 Authorities cited 8 Party arguments 2 Amounts and remedies 1
Sign in to unlock

Parties

Chris Hani District Municipality

Applicant

South African Local Government Bargaining Council

Respondent

Mxolisi Alex Noziqwaba N.O.

Respondent

Buyiswa Ngwendu

Respondent

Philemon Thembinkosi Pambaniso

Respondent

Procedural Posture

Review Application / Judgment on Review of Arbitration Award

Legal Issues

  1. 1 Whether the commissioner’s award finding no negligence and ordering reinstatement was reviewable under section 145 of the LRA.
  2. 2 Whether the employees, as payment authorisers, were negligent in releasing payment to a fraudulent bank account.
  3. 3 Whether the commissioner properly applied the test for review and considered all relevant evidence.

Ratio Decidendi

The commissioner’s decision that the employees were not guilty of negligence was reasonable and supported by the evidence. The responsibility for changing banking details lay with the SCM section, and the employees were not present when the fraudulent documents were processed. Ngwendu, as first authoriser, performed due diligence by confirming with the acting Expenditure Manager that the CFO had signed the supporting documents. The CFO’s own admission of reliance on junior staff and his failure to perform due diligence was not attributed to the employees. The Municipality’s inconsistent disciplinary action against other officials further undermined its case. The commissioner understood...

Court Disposition

Application dismissed; arbitration award upheld.

Orders

  • The application is dismissed.
  • There is no order as to costs.