Special Investigating Unit and Another v Hlatshawayo and Others (GP/20/2020) [2023] ZAST 6 (15 March 2023)

Special Investigating Unit and Another v Hlatshawayo and Others (GP/20/2020) [2023] ZAST 6 (15 March 2023)

The Tribunal found that the plaintiffs failed to establish any liability on the part of Mr Hlatshwayo under contract, delict, or the Public Finance Management Act. The evidence presented was insufficient and largely hearsay, and the plaintiffs did not plead a proper cause of action. The delivery note confirmed that 400,000 masks were delivered, and the internal audit did not conclusively prove a shortfall attributable to Mr Hlatshwayo. The attempt to impute liability under the PFMA was rejected as Mr Hlatshwayo was not the accounting officer, and no proper pleading was made under section 45(e). Consequently, the claim against Mr Hlatshwayo was dismissed. The preservation order over his...

Citation
[2023] ZAST 6
Parties
Applicant: Special Investigating Unit; Applicant: Minister In The Department Of Agriculture, Land Reform and Rural Development; Respondent: Jacob Basil Hlatshwayo; Respondent: Government Employees Pension Fund; Respondent: Acting Director-General: Department of Agriculture, Land Reform & Rural Development; Respondent: Black Dot Property Consulting (Pty) Ltd
Court
Special Tribunal
Jurisdiction
South Africa
Judgment Date
15 March 2023
Case Number
GP/20/2020
Procedural Posture
Civil Trial / Judgment After Trial and Interlocutory Application
Outcome
Plaintiffs' action against the first defendant is dismissed; the preservation order over Mr Hlatshwayo's pension benefits is discharged; each party to bear its own costs; the agreement between the Department and Black Dot is declared invalid and set aside; trial against Black Dot postponed sine die.
Judges
L.T. Modiba
Legal Topics
Public Procurement, Contractual Liability, Public Finance Management Act, Declaratory Relief, Preservation Order, Costs Award
Civil Procedure Administrative Law Commercial and Corporate Public Procurement Contractual Liability Public Finance Management Act Declaratory Relief Preservation Order +1 more

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Parties

Special Investigating Unit

Applicant

Minister In The Department Of Agriculture, Land Reform and Rural Development

Applicant

Jacob Basil Hlatshwayo

Respondent

Government Employees Pension Fund

Respondent

Acting Director-General: Department of Agriculture, Land Reform & Rural Development

Respondent

Black Dot Property Consulting (Pty) Ltd

Respondent

Procedural Posture

Civil Trial / Judgment After Trial and Interlocutory Application

Legal Issues

  1. 1 Whether the agreement between the Department and Black Dot Property Consulting (Pty) Ltd was unlawful and should be set aside.
  2. 2 Whether the first defendant, Mr Hlatshwayo, is liable for the alleged shortfall of surgical masks under contract, delict, or the Public Finance Management Act.
  3. 3 Whether the preservation order over Mr Hlatshwayo's pension benefits should be discharged following the dismissal of the claim against him.

Ratio Decidendi

The Tribunal found that the plaintiffs failed to establish any liability on the part of Mr Hlatshwayo under contract, delict, or the Public Finance Management Act. The evidence presented was insufficient and largely hearsay, and the plaintiffs did not plead a proper cause of action. The delivery note confirmed that 400,000 masks were delivered, and the internal audit did not conclusively prove a shortfall attributable to Mr Hlatshwayo. The attempt to impute liability under the PFMA was rejected as Mr Hlatshwayo was not the accounting officer, and no proper pleading was made under section 45(e). Consequently, the claim against Mr Hlatshwayo was dismissed. The preservation order over his...

Court Disposition

Plaintiffs' action against the first defendant is dismissed; the preservation order over Mr Hlatshwayo's pension benefits is discharged; each party to bear its own costs; the agreement between the Department and Black Dot is declared invalid and set aside; trial against Black Dot postponed sine die.

Orders

  • By agreement between the plaintiffs and the first defendant, the agreement concluded between the second plaintiff and the fourth defendant on 20 April 2020 is declared invalid and set aside.
  • The plaintiffs’ action against the first defendant in respect of claim 2 is dismissed.