Matsepe and Another v Minister of Finance and Others (10139/2022) [2022] ZAGPPHC 824 (1 November 2022)

Matsepe and Another v Minister of Finance and Others (10139/2022) [2022] ZAGPPHC 824 (1 November 2022)

The court found that Regulation 6(c) of the Municipal Investment Regulations applies exclusively to municipalities, municipal entities, and their investment managers, not to third parties such as the First Applicant. The First Applicant is not threatened by coercive action under Regulation 6(c), and thus cannot raise a collateral challenge. The criminal charges against the First Applicant are based on POCA and PRECCA, focusing on corruption and money laundering, and are not dependent on the validity of Regulation 6(c). The applicants failed to establish locus standi and did not bring the application within the prescribed time period. Consequently, both the collateral challenge and the...

Citation
[2022] ZAGPPHC 824
Parties
Applicant: Kabelo John Matsepe; Applicant: Moshkate Investment Group (Pty) Ltd; Respondent: Minister of Finance; Respondent: Minister of Cooperative Governance and Traditional Affairs; Respondent: National Director of Public Prosecution; Respondent: South African Local Government Association
Court
North Gauteng High Court, Pretoria
Jurisdiction
South Africa
Judgment Date
1 November 2022
Case Number
10139/2022
Procedural Posture
Review Application / Final Judgment on Application for Review and Collateral Challenge
Outcome
Application dismissed with costs, including costs of two counsel. Condonation application also dismissed.
Judges
E.M Kubushi
Legal Topics
Municipal Investment Regulations, Collateral Challenge, Locus Standi, Promotion of Administrative Justice Act, Principle of Legality
Administrative Law Civil Procedure Municipal Investment Regulations Collateral Challenge Locus Standi Promotion of Administrative Justice Act Principle of Legality

Case Brief

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Parties

Kabelo John Matsepe

Applicant

Moshkate Investment Group (Pty) Ltd

Applicant

Minister of Finance

Respondent

Minister of Cooperative Governance and Traditional Affairs

Respondent

National Director of Public Prosecution

Respondent

South African Local Government Association

Respondent

Procedural Posture

Review Application / Final Judgment on Application for Review and Collateral Challenge

Legal Issues

  1. 1 Whether Regulation 6(c) of the Municipal Investment Regulations is lawful and valid.
  2. 2 Whether the applicants are entitled to raise a collateral challenge to Regulation 6(c) in these proceedings.
  3. 3 Whether the criminal charges against the First Applicant are premised on Regulation 6(c).

Ratio Decidendi

The court found that Regulation 6(c) of the Municipal Investment Regulations applies exclusively to municipalities, municipal entities, and their investment managers, not to third parties such as the First Applicant. The First Applicant is not threatened by coercive action under Regulation 6(c), and thus cannot raise a collateral challenge. The criminal charges against the First Applicant are based on POCA and PRECCA, focusing on corruption and money laundering, and are not dependent on the validity of Regulation 6(c). The applicants failed to establish locus standi and did not bring the application within the prescribed time period. Consequently, both the collateral challenge and the...

Court Disposition

Application dismissed with costs, including costs of two counsel. Condonation application also dismissed.

Orders

  • The condonation application is dismissed.
  • The application is dismissed.