Sakhingomso Training and Development Centre v Member of Executive Council for Social Development and Another (426/2021) [2022] ZAECMHC 15 (14 June 2022)

Sakhingomso Training and Development Centre v Member of Executive Council for Social Development and Another (426/2021) [2022] ZAECMHC 15 (14 June 2022)

The court found that the respondents failed to follow due process in suspending the applicant's funding, acting arbitrarily and without providing adequate reasons or a fair procedure. The department's duty to investigate mismanagement of funds does not absolve it from its constitutional and statutory obligations to act lawfully and fairly, especially where the rights of vulnerable children are at stake. The unilateral suspension of subsidies adversely affected the beneficiaries and violated their constitutional rights. The respondents' preliminary objections were dismissed as lacking merit. The decision to suspend funding was declared unlawful and set aside, and the department was ordered...

Citation
[2022] ZAECMHC 15
Parties
Applicant: Sakhingomso Training and Development Centre; Respondent: Member of Executive Council for Social Development; Respondent: Head of Department of Social Development in the Eastern Cape Province
Court
Eastern Cape High Court, Mthatha
Jurisdiction
South Africa
Judgment Date
14 June 2022
Case Number
426/2021
Procedural Posture
Review Application / Judgment
Outcome
Application granted. The decision to suspend funding is declared unlawful and set aside. Respondents ordered to pay all outstanding subsidies and costs.
Judges
N G Beshe
Legal Topics
Unlawful Administrative Action, Children S Rights, Non Profit Organizations Act, Procedural Fairness, Best Interests of Child
Administrative Law Constitutional Law Unlawful Administrative Action Children S Rights Non Profit Organizations Act Procedural Fairness Best Interests of Child

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Parties

Sakhingomso Training and Development Centre

Applicant

Member of Executive Council for Social Development

Respondent

Head of Department of Social Development in the Eastern Cape Province

Respondent

Procedural Posture

Review Application / Judgment

Legal Issues

  1. 1 Whether the decision by the second respondent to suspend monthly subsidy payments to the applicant was lawful, constitutional and procedurally fair.
  2. 2 Whether the suspension of funding infringed the constitutional rights of disabled children who are beneficiaries of the applicant's services.
  3. 3 Whether the respondents followed due process in arriving at the decision to suspend funding.

Ratio Decidendi

The court found that the respondents failed to follow due process in suspending the applicant's funding, acting arbitrarily and without providing adequate reasons or a fair procedure. The department's duty to investigate mismanagement of funds does not absolve it from its constitutional and statutory obligations to act lawfully and fairly, especially where the rights of vulnerable children are at stake. The unilateral suspension of subsidies adversely affected the beneficiaries and violated their constitutional rights. The respondents' preliminary objections were dismissed as lacking merit. The decision to suspend funding was declared unlawful and set aside, and the department was ordered...

Court Disposition

Application granted. The decision to suspend funding is declared unlawful and set aside. Respondents ordered to pay all outstanding subsidies and costs.

Orders

  • The decision taken by the second respondent to suspend funds due to the applicant is declared unlawful and is reviewed and set aside.
  • The department is ordered to pay to the applicant all amounts due to it by way of subsidies from April 2020 within sixty (60) days of granting of this order.