South African Education and Environment Project and Another v National Lotteries Board and Others (22352/2009) [2010] ZAWCHC 220 (26 August 2010)

South African Education and Environment Project and Another v National Lotteries Board and Others (22352/2009) [2010] ZAWCHC 220 (26 August 2010)

The court held that the National Lotteries Board and its Distribution Agencies erred in treating their internal guidelines as binding rules, applying them with undue rigidity and failing to exercise the discretion required by the Lotteries Act and PAJA. The guidelines have no statutory force and must be applied flexibly, considering the merits of each application. The NLB's refusal of the applicants' funding applications was based on technicalities and documentary requirements that were either inconsistently applied or not supported by law. The court found that the applicants had substantially complied with the requirements and that any deficiencies could have been resolved through...

Citation
[2010] ZAWCHC 220
Parties
Applicant: South African Education and Environment Project; Applicant: Claremont Methodist Church Social Impact Ministry, Sikhula Sonke; Respondent: National Lotteries Board; Respondent: Tebogo Maitse NO (as chairperson of the Distribution Agency for Charities); Respondent: Dorcas Jafta NO (as chairperson of the Distribution Agency for Arts, Culture and National Heritage); Respondent: Minister of Trade and Industry
Court
Western Cape High Court, Cape Town
Jurisdiction
South Africa
Judgment Date
26 August 2010
Case Number
22352/2009
Procedural Posture
Review Application / Judgment
Outcome
Application for review granted. The decisions of the National Lotteries Board to refuse the specified funding applications are reviewed and set aside.
Judges
P.A.L. Gamble
Legal Topics
Promotion of Administrative Justice Act, Review of Administrative Action, Lotteries Act, Guidelines Vs Regulations, Procedural Fairness
Administrative Law Civil Procedure Promotion of Administrative Justice Act Review of Administrative Action Lotteries Act Guidelines Vs Regulations Procedural Fairness

Case Brief

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Parties

South African Education and Environment Project

Applicant

Claremont Methodist Church Social Impact Ministry, Sikhula Sonke

Applicant

National Lotteries Board

Respondent

Tebogo Maitse NO (as chairperson of the Distribution Agency for Charities)

Respondent

Dorcas Jafta NO (as chairperson of the Distribution Agency for Arts, Culture and National Heritage)

Respondent

Minister of Trade and Industry

Respondent

Procedural Posture

Review Application / Judgment

Legal Issues

  1. 1 Whether the National Lotteries Board's refusal of the applicants' funding applications was lawful and rational.
  2. 2 Whether the guidelines issued by the Distribution Agencies have binding legal status or are merely advisory.
  3. 3 Whether the National Lotteries Board applied its guidelines with undue rigidity, resulting in unfair administrative action.

Ratio Decidendi

The court held that the National Lotteries Board and its Distribution Agencies erred in treating their internal guidelines as binding rules, applying them with undue rigidity and failing to exercise the discretion required by the Lotteries Act and PAJA. The guidelines have no statutory force and must be applied flexibly, considering the merits of each application. The NLB's refusal of the applicants' funding applications was based on technicalities and documentary requirements that were either inconsistently applied or not supported by law. The court found that the applicants had substantially complied with the requirements and that any deficiencies could have been resolved through...

Court Disposition

Application for review granted. The decisions of the National Lotteries Board to refuse the specified funding applications are reviewed and set aside.

Orders

  • The decisions of the National Lotteries Board to refuse funding applications under reference numbers 35336, 27999, and 33667 are reviewed and set aside.
  • The National Lotteries Board is to reconsider these funding applications and make decisions within sixty calendar days of this order.