Eastern Cape NGO Coalition v MEC for the Department of Social Development, Eastern Cape Province (2460/2018) [2021] ZAECGHC 36 (16 March 2021)

Eastern Cape NGO Coalition v MEC for the Department of Social Development, Eastern Cape Province (2460/2018) [2021] ZAECGHC 36 (16 March 2021)

The court found that while the Department's policy shift towards transformation and rural prioritisation was constitutionally permissible, the process by which subsidies were reduced lacked proper consultation with affected NGOs. The meetings relied upon by the respondent did not constitute genuine consultation, as they occurred after the decision to reduce subsidies had already been made. The absence of meaningful engagement violated the principles of rationality and responsiveness required by the Constitution and the applicable policy and service level agreements. Although the reduction of subsidies itself was not objectionable given budgetary constraints and transformation imperatives,...

Citation
[2021] ZAECGHC 36
Parties
Applicant: Eastern Cape NGO Coalition; Respondent: MEC for the Department of Social Development, Eastern Cape Province
Court
Eastern Cape High Court, Grahamstown
Jurisdiction
South Africa
Judgment Date
16 March 2021
Case Number
2460/2018
Procedural Posture
Review Application / Judgment
Outcome
The respondent's decision to reduce or terminate NGO subsidies in 2017/2018 is declared irrational and unlawful due to lack of proper consultation. Prayers for further relief, including compensation and setting aside the allocations, are dismissed. The respondent is ordered to pay 60% of the applicant's taxed costs.
Judges
A Govindjee
Legal Topics
Consultation Requirements, Irrationality Review, Social Security Rights, Public Administration Principles, Legitimate Expectation
Administrative Law Constitutional Law Consultation Requirements Irrationality Review Social Security Rights Public Administration Principles Legitimate Expectation

Case Brief

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Parties

Eastern Cape NGO Coalition

Applicant

MEC for the Department of Social Development, Eastern Cape Province

Respondent

Procedural Posture

Review Application / Judgment

Legal Issues

  1. 1 Was the respondent's decision to reduce or terminate NGO subsidies in 2017/2018 unlawful and unconstitutional due to lack of consultation?
  2. 2 Did the process followed by the Department meet the requirements of rationality and legality under the Constitution?
  3. 3 Is there a duty to consult NGOs prior to subsidy reductions?

Ratio Decidendi

The court found that while the Department's policy shift towards transformation and rural prioritisation was constitutionally permissible, the process by which subsidies were reduced lacked proper consultation with affected NGOs. The meetings relied upon by the respondent did not constitute genuine consultation, as they occurred after the decision to reduce subsidies had already been made. The absence of meaningful engagement violated the principles of rationality and responsiveness required by the Constitution and the applicable policy and service level agreements. Although the reduction of subsidies itself was not objectionable given budgetary constraints and transformation imperatives,...

Court Disposition

The respondent's decision to reduce or terminate NGO subsidies in 2017/2018 is declared irrational and unlawful due to lack of proper consultation. Prayers for further relief, including compensation and setting aside the allocations, are dismissed. The respondent is ordered to pay 60% of the applicant's taxed costs.

Orders

  • The respondent's decision to reduce or terminate subsidies given to non-governmental organisations in 2017/2018 is declared to be irrational and unlawful.
  • Prayers 2, 3 and 4 of the Notice of Motion are dismissed.