Kruger V President Insurance Co LTD 1994
Kruger V President Insurance Co LTD 1994
versus
JUDGMENT
SKWEYIYA J:
Introduction
[1] The applicant, Mr Kruger, an attorney, has approached this Court to secure
confirmation of the Pretoria High Court’s order declaring a proclamation issued by the
and void and of no force and effect.” Because the issuing of the Proclamation
SKWEYIYA J
concerned the “conduct of the President”,1 the High Court referred its order to this
[2] We also have before us an application by the Road Accident Fund (the Fund)
which was established as a juristic person by section 2(1) of the Road Accident Fund
Act 56 of 1996 (the Principal Act).3 The object of the Fund is payment of
compensation in accordance with the provisions of the Principal Act.4 The Fund
applies for direct access to this Court to obtain certainty about the status of another
Proclamation which was issued by the President on 28 July 2006 and published in
Government Gazette No 29086. It seeks an explicit order on its effect in this regard
because of what it refers to as the uncertainty created by the order made in the Pretoria
High Court. More particularly, it seeks an order declaring that the Second
Act 19 of 2005 (the Amendment Act) into force and operation on 31 July 2006. The
Fund’s legal representatives were given leave to file written submissions in this matter
1
Section 167(5) of the Constitution provides:
“The Constitutional Court makes the final decision whether an Act of Parliament, a provincial
Act or conduct of the President is constitutional, and must confirm any order of invalidity
made by the Supreme Court of Appeal, a High Court, or a court of similar status, before that
order has any force.”
2
Section 172(2)(a) provides:
“The Supreme Court of Appeal, a High Court or a court of similar status may make an order
concerning the constitutional validity of an Act of Parliament, a provincial Act or any conduct
of the President, but an order of constitutional invalidity has no force unless it is confirmed by
the Constitutional Court.”
3
Section 2(1) of the Principal Act provides: “There is hereby established a juristic person to be known as the
Road Accident Fund.”
4
Section 3 of the Principal Act.
2
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[3] The matter concerns the constitutional validity of the two Proclamations, both
of which were issued by the President with the intention of bringing into operation
certain sections of the Amendment Act which would result in the amendment of a
[4] The one, Proclamation R27, was published in the Government Gazette on 19
July 2006 (the First Proclamation) and the other, Proclamation R32, was published in
the Government Gazette on 31 July 2006 (the Second Proclamation). They both bear
[5] Section 101 of the Constitution, which deals with decisions by members of
3
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and quick access by the public to formal orders and decisions by legal authorities. In
the present matter such authority is the President who is the head of State and head of
the National Executive. The authority is vested in him and he exercises such authority
[7] For ease of reference the full text of each of the two Proclamations, as they
5
Section 85 of the Constitution, which deals with the executive authority of the Republic, provides that:
“(1) The executive authority of the Republic is vested in the President.
(2) The President exercises the executive authority, together with the other members of the
Cabinet, by—
(a) implementing national legislation except where the Constitution or an Act of
Parliament provides otherwise;
(b) developing and implementing national policy;
(c) co-ordinating the functions of state departments and administrations;
(d) preparing and initiating legislation; and
(e) performing any other executive function provided for in the Constitution or in
national legislation.”
4
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First Proclamation
PROCLAMATION
by the
President of the Republic of South Africa
T.M. MBEKI
President
J.T. RADEBE
Minister of the Cabinet
5
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Second Proclamation
PROCLAMATION
by the
President of the Republic of South Africa
Given under my Hand and the Seal of the Republic of South Africa at
Pretoria this 28th day of July Two Thousand and Six.
T.M MBEKI
President
J.T.RADEBE
Minister of the Cabinet
6
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[8] The two Proclamations were issued and published within days of each other
by the President, who was competent in terms of section 13 of the Amendment Act6 to
authorise the President to fix the date on which an Act of Parliament is to come into
legislation.8
[10] In Ex Parte Minister of Safety and Security and Others: In re: S v Walters and
“The national legislative process is concluded by section 81, which reads as follows:
‘A Bill assented to and signed by the President becomes an Act of Parliament, must
be published promptly, and takes effect when published or on a date determined in
terms of the Act.’ For present purposes two features of the section should be noted.
First, that it requires prompt publication of the Bill once it has become an Act and,
6
Section 13 of the Amendment Act reads as follows:
“This Act is called the Road Accident Fund Amendment Act, 2005, and takes effect on a date
determined by the President by proclamation in the Gazette.”
7
Section 81 of the Constitution provides that:
“A Bill assented to and signed by the President becomes an Act of Parliament, must be
published promptly, and takes effect when published or on a date determined in terms of the
Act.”
8
Section 13(3) of the Interpretation Act 33 of 1957 provides that:
“If any Act provides that that Act shall come into operation on a date fixed by the President or
the Premier of a Province by proclamation in the Gazette, it shall be deemed that different
dates may be so fixed in respect of different provisions of that Act.”
9
[2002] ZACC 6; 2002 (4) SA 613 (CC); 2002 (7) BCLR 663 (CC).
7
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secondly, that there are two possible inception dates for such an Act; either upon its
publication or on another date determined in the Act itself or in a manner it
prescribes. Parliament is thus afforded the power by section 81 of the Constitution
not to fix the date of inception of an enactment itself but to prescribe in such
enactment how such date is to be determined.
Although the Constitution does not expressly say so, it is clear that this power vested
in Parliament to include in an enactment terms for determining its date of inception,
includes the power to prescribe that such date is to be determined by the President.
The language of section 81 is wide enough to allow such a procedure and there is no
objection in principle to a Legislature, in the exercise of its legislative powers,
leaving the determination of an ancillary feature such as an inception date to an
appropriate person. It is therefore recognised legislative practice to use this useful
mechanism to achieve proper timing for the commencement of new statutory
provisions. Accordingly this Court has twice accepted the existence and
constitutional propriety of the practice without comment.”10 (Footnotes omitted.)
Parte President of the Republic of South Africa and Others,11 Chaskalson P referred to
the power of the President to bring law into operation as a power which lies between
the law-making and the administrative process. This exercise of public power, it was
held, has to be carried out lawfully and consistently with the provisions of the
this and went on to say that the functionary best placed to make such determination is
10
Id at para 70-1.
11
[2000] ZACC 1; 2000 (2) SA 674 (CC); 2000 (3) BCLR 241 (CC).
12
Id at para 79.
13
[2001] ZACC 10; 2002 (1) SA 447 (CC); 2001 (11) BCLR 1126 (CC).
8
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ordinarily the head of the executive responsible for the implementation of the
legislation.14
[12] As indicated above, the First and Second Proclamations bear the names of the
President and the Minister of Cabinet responsible for the implementation of both the
Principal Act and the Amendment Act. But it is the President who has to determine
when the provisions of the Amendment Act will come into effect.
[13] The power the President has under section 13 of the Amendment Act, though
and the administrative processes and has to be exercised lawfully and in compliance
legislative process. Being Proclamations bringing a statute into force, they had to be
[14] It is accepted by all the parties that the Second Proclamation was issued to
correct a bona fide error which had been made in the First Proclamation and that the
President had become aware of that error before 31 July 2006, the date on which the
sections mentioned in that Proclamation were to come into operation. The First
sections which were to come into operation on 31 July 2006, instead of sections 1, 2,
14
Id at para 23.
15
Pharmaceutical Manufacturers above n 11 at para 79.
9
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[15] It should however be noted that Mr Kruger does not directly attack the
validity of the Second Proclamation in his application to this Court and does not seek
an order that it be declared invalid, hence the application for direct access to this Court
by the Fund.
(a) Whether this Court should confirm the High Court’s declaration of invalidity in
Second Proclamation.
[17] Before I deal with these issues, I shall first deal with three other matters that
arise in this case, namely: the applicant’s application for condonation, the application
for direct access to this Court by the Fund and the question of Mr Kruger’s locus
Condonation
[18] The applicant applied for condonation for the late filing of the record. The
record was filed only one court day late. The applicant offers two reasons for this:
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first, there was a delay in the preparation of the record because the High Court file
was lost and second, the courier service employed by the applicant mislaid the
[19] The circumstances as presented by the applicant coupled with the lack of
prejudice suffered by any of the respondents by the late filing of the full record are
[20] The first and second respondents denied that Mr Kruger had standing to bring
the application in the High Court. They argued that he had neither a direct nor a
substantial interest in the litigation. This challenge was not pursued in this Court,
correctly so in my view.
“Anyone listed in this section has the right to approach a competent court, alleging
that a right in the Bill of Rights has been infringed or threatened, and the court may
grant appropriate relief, including a declaration of rights. The persons who may
approach a court are—
(a) anyone acting in their own interest;
(b) anyone acting on behalf of another person who cannot act in their own name;
(c) anyone acting as a member of, or in the interest of, a group or class of
persons;
(d) anyone acting in the public interest; and
(e) an association acting in the interest of its members.”
11
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[22] This provision introduces a radical departure from the common law in relation
to standing.16 It expands the list of persons who may approach a court in cases where
there is an allegation that a right in the Bill of Rights has been infringed or threatened
to include anyone acting in the public interest or on behalf of another person who
16
Lawyers for Human Rights and Another v Minister of Home Affairs and Another [2004] ZACC 12; 2004 (4)
SA 125 (CC); 2004 (7) BCLR 775 (CC) at para 14. See also para 17.
17
Above [21].
18
Ferreira v Levin NO and Others; Vryenhoek and Others v Powell NO and Others [1995] ZACC 13; 1996 (1)
SA 984 (CC); 1996 (1) BCLR 1 (CC).
19
Id at para 229.
12
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Section 38, however, is not of direct application in this case as it does not concern a
country where we have a large number of people who have had scant educational
opportunities and who may not be aware of their rights. Such an approach to standing
[24] Mr Kruger asserts locus standi on two grounds: a direct and personal interest
and as a person acting in the public interest.20 Although Mr Kruger may not have
established standing on either basis under the restricted rules of standing operative at
[25] As an attorney in a specialist personal injury legal firm who works regularly
in this field, Mr Kruger has a direct and professional interest in the validity of the
can establish both that a proclamation is of direct and central importance to the field in
which he or she operates, and that it is in the interests of the administration of justice
that the validity of that proclamation be determined by a court, that practitioner may
Kruger has shown that he is a personal injury attorney and that the validity of the
20
Above [21].
13
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established that significant legal uncertainty has arisen because of the contents of the
First Proclamation and the publication of the Second Proclamation. The effect of this
injury attorney must be able to understand and engage with the legislative scheme on
which he or she and his or her clients rely in order to seek compensation. The
uncertainty created by the issue of the two Proclamations and their effect on Mr
Kruger’s ability to manage his clients’ affairs are reason enough to grant standing to
the applicant.
[26] In recognising the applicant’s standing in this case, I emphasise that it arises
because of the need for legal certainty and the administration of justice. Legal
practitioners must not assume that they will be allowed to bring applications to this
circumstances where they cannot show that it will be in the interest of the
[27] It is not necessary, given this conclusion, to decide whether a litigant, when
to act in the public interest. That question can stand over for another day.
14
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[28] The Fund applies for direct access to this Court to obtain certainty about the
status of the Second Proclamation, and more particularly, whether it lawfully brought
[29] The application is governed by Rule 18 of this Court’s Rules,21 read with
section 167(6)(a) of the Constitution.22 The legal principles that are applicable in the
granting of an application for direct access to this Court are fully set out in the
judgment of Ngcobo J in Zondi.23 This Court has discretion whether to grant direct
access. It will only do so in exceptional cases and when it is in the interests of justice
in the light of the facts of each case.24 There are compelling reasons why the
application by the Fund for direct access to this Court should be granted.
[30] First, the Fund is a juristic person established by the Principal Act.25 The
Act’s purpose is to provide to victims of motor vehicle accidents the “greatest possible
protection”.26 The Fund’s priority in bringing the application is to defend the validity
21
Rule 18(1) states:
“An application for direct access as contemplated in section 167(6)(a) of the Constitution shall
be brought on notice of motion, which shall be supported by an affidavit, which shall set forth
the facts upon which the applicant relies for relief.”
22
Section 167(6)(a) reads:
“National legislation or the rules of the Constitutional Court must allow a person, when it is in
the interests of justice and with leave of the Constitutional Court—
(a) to bring a matter directly to the Constitutional Court”.
23
Zondi v MEC, Traditional and Local Government Affairs and Others [2004] ZACC 19; 2006 (3) SA 1 (CC);
2005 (4) BCLR 347 (CC) at paras 12-5.
24
Concerned Land Claimants’ Organisation (Port Elizabeth) v Port Elizabeth Land and Community
Restoration Association and Others [2006] ZACC 14; 2007 (2) SA 531 (CC); 2007 (2) BCLR 111 (CC) at paras
18-9.
25
Above n 3.
26
Engelbrecht v Road Accident Fund and Another [2007] ZACC 1; 2007 (6) SA 96 (CC); 2007 (5) BCLR 457
(CC) at para 23.
15
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of the Second Proclamation and, if it were held to be invalid, to obtain certainty about
its status.
[31] Secondly, the victims of accidents are obviously prejudiced by the uncertainty
surrounding the status of the provisions of the Amendment Act. It is not disputed that
the Fund, its Board, its Chief Executive Officer (CEO) and its entire staff have been
operating on the understanding that sections 1 to 5 of the Amendment Act have been
in force since 31 July 2006. It is thus in the interest of all that certainty be achieved as
soon as possible.
[32] Thirdly, the First and Second Proclamations are closely related to one another
in time and in purpose. They were issued in the same month and year and were both
published to make it public that certain provisions of the Amendment Act would be
[33] Finally, the application for direct access raises issues closely related to those
already before this Court in the confirmation proceedings. It cannot be in the interests
of justice to require the Fund to begin fresh proceedings in the High Court seeking the
16
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[34] In Fourie27 this Court granted direct access to an applicant who challenged
the validity of a statute that was not before the Court because—
“[t]he direct access application fills a gap in the Fourie case referred to by the High
Court, this Court and the SCA. The common law in relation to marriage has been
overtaken by statute in a great number of respects. To deal with it as if the Marriage
Act did not exist would be highly artificial and abstract. The overlap between the
issues raised and their strong interconnectedness requires them to be dealt with in an
integrated and comprehensive fashion. There would be grave disadvantages to all
concerned if the issues raised were to be decided in a piecemeal way.”28
The circumstances in the application for direct access by the Fund are exceptional. It
is in the interests of justice that the validity of the two Proclamations be considered
together.
[35] A brief analysis of the Principal Act, the Amendment Act and the two
[36] The Principal Act provides for the establishment of the Road Accident
Fund.29 Sections 2 to 16 of this Act are, in the main, administrative in that they create
the machinery by which the Fund is administered. The Fund is controlled, managed
27
Minister of Home Affairs and Another v Fourie and Another (Doctors for Life International and Others,
Amici Curiae); Lesbian and Gay Equality Project and Others v Minister of Home Affairs and Others [2005]
ZACC 19; 2006 (1) SA 524 (CC); 2006 (3) BCLR 355 (CC).
28
Id at para 42.
29
Above n 3.
17
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and administered by its Board, CEO and staff. Broadly, sections 17 to 25 of the
Principal Act are substantive in the sense that they prescribe the rules according to
The Road Accident Fund Amendment Act 19 of 2005 (the Amendment Act)
administrative parts (sections 2 to 16) and substantive parts (sections 17 to 25) of the
Principal Act. As noted above,30 section 13 of the Amendment Act, read with section
13(3) of the Interpretation Act 33 of 1957 permits the President to stagger the
[38] A reading of the two Proclamations suggests, and this was common cause
between the parties, that the President intended to stagger the implementation of the
Amendment Act by first putting into effect the amendments to the administrative
Act: sections of the Principal Act which were to be amended by sections 1 to 5 of the
Amendment Act.
30
Above [8]-[9].
18
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[40] Each of the five sections in the Amendment Act has a heading in bold letters
which identifies the section of the Principal Act which is to be amended. In the next
line, and in line with where each of the five section numbers of the Amendment Act
appear, the section of the Principal Act which appears in the heading appears once,
more, albeit in less bold letters. There is nothing which draws the attention of the
19
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brief analysis of the relevant sections of the Amendment Act and of the Principal Act
Section 4
[42] Section 1 of the Amendment Act added two new subsections to the Principal
Act, namely, sections 4(4) and 4(2)(i) of the Principal Act. The new subsections
provide that the Fund may enter into agreements with other parties including other
Section 6
[43] Section 2 of the Amendment Act amended section 6(1) of the Principal Act
by shifting the Fund’s financial year-end from 30 April to 31 March of every year.
Section 10
[44] Section 3 of the Amendment Act amended section 10 of the Principal Act
which concerns the constitution and operation of the Board of the Fund.
Sections 11 and 12
[45] Sections 4 and 5 of the Amendment Act deleted section 11(1)(a)(iv) of the
Principal Act (which related to matters on which the Board of the Fund could make
recommendations to the Minister) and amended section 12(1)(a) and (b) of the
20
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Principal Act. This latter section relates to the qualification, experience and
[46] The issuing of the First Proclamation would have resulted in its coming into
administrative amendments (section 4 of the Principal Act) and four of the substantive
amendments (sections 6, 10, 11 and 12 of the Principal Act) made by the Amendment
Act.
made a genuine and bona fide mistake. It is common cause that he intended the First
Amendment Act into operation from 31 July 2006. He failed to do so only because
the First Proclamation incorrectly identified those provisions. It is logical that they
should be the first amended provisions of the Principal Act to be brought into
operation and it is reasonable to infer that that was the intention of the Minister of
21
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Principal Act. The provisions could have been brought into operation immediately as
[49] All parties accept the contention that the First Proclamation was objectively
irrational because the provisions of the Amendment Act (sections 4, 6, 10, 11 and 12)
[50] This acceptance is well-founded. Section 4, listed in both the First and
are listed in the Second Proclamation. The effect of the First Proclamation, if taken
literally, was to put into operation an arbitrary selection of one of the administrative
and 12) made by the Amendment Act. Furthermore, it would have made no sense if
the President had mentioned that he had listed section 4 in the First Proclamation as
the only provision of the Amendment Act which would come into operation on 31
July 2006. Section 4 by itself would achieve little and it would be arbitrary and
irrational to have it as the only section capable of implementation on the face of the
First Proclamation.
[51] The other sections listed in the First Proclamation deal with varied topics:
22
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(a) section 6 introduces a new section which substitutes section 17 of the Principal
Act. It deals with the liability of the Fund to the victims of motor vehicle
accidents;31
(b) section 10 deals with the amendment of a section of the Principal Act relating
(c) section 11 concerns regulations promulgated under the Principal Act; 33 and
31
Section 6 provides:
“The following section is hereby substituted for section 17 of the principal Act:
‘Liability of Fund and agents
17(1) The Fund or an agent shall—
(a) subject to this Act, in the case of a claim for compensation under this section
arising from the driving of a motor vehicle where the identity of the owner or the
driver thereof has been established; and
(b) subject to any regulation made under section 26, in the case of a claim for
compensation under this section arising from the driving of a motor vehicle where
the identity of neither the owner nor the driver thereof has been established,
be obliged to compensate any person (the third party) for any loss or damage which the
third party has suffered as a result of any bodily injury to himself or herself or the
death of or any bodily injury to any other person, caused by or arising from the driving
of a motor vehicle by any person at any place within the Republic, if the injury or death
is due to the negligence or other wrongful act of the driver or of the owner of the motor
vehicle or of his or her employee in the performance of the employee’s duties as
employee: Provided that the obligation of the Fund to compensate a third party for non-
pecuniary loss shall be limited to compensation for a serious injury as contemplated in
subsection (1A) and shall be paid by way of a lump sum.’”
32
Section 10 provides that:
“Section 23 of the principal Act is hereby amended by the substitution for subsection (3) of
the following subsection:
‘(3) Notwithstanding subsection (1), no claim which has been lodged in terms of section
17(4)(a) or 24 shall prescribe before the expiry of a period of five years from the date on
which the cause of action arose.’”
33
Section 11 provides that:
“The following section is hereby substituted for section 26 of the principal Act:
‘26(1) The Minister may make regulations regarding any matter that shall or may be
prescribed in terms of this Act or which it is necessary or expedient to prescribe in order
to achieve or promote the object of this Act.’”
34
Section 12 provides that:
23
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[52] It follows that the First Proclamation is objectively irrational because the
provisions of the Amendment Act which it purported to put into operation were an
arbitrary selection. Under the doctrine of objective invalidity, the First Proclamation
should be regarded as having been a nullity from the outset.35 It was invalid ab initio
and therefore has no effect in law.36 Furthermore, if the First Proclamation were to
[53] First, it would not be possible to determine what injuries entitle a third party
(a) section 6 of the Amendment Act substitutes section 17 of the Principal Act.
(b) section 11 of the Amendment Act substitutes section 26 of the Principal Act. It
authorises the Minister to make regulations regarding “injuries which, for the
“Any claim for compensation under section 17 of the principal Act in respect of which the
cause of action arose prior to the date on which this Act took effect must be dealt with as if
this Act had not taken effect.”
35
Ferreira v Levin above n 18 at paras 25-30. See also Gory v Kolver NO and Others (Starke and Others
Intervening) [2006] ZACC 20; 2007 (4) SA 97 (CC); 2007 (3) BCLR 249 (CC) at para 39; Ingledew v Financial
Services Board: In re Financial Services Board v Van der Merwe and Another [2003] ZACC 8; 2003 (4) SA
584 (CC); 2003 (8) BCLR 825 (CC) at para 20; Ex Parte Women’s Legal Centre: In re Moise v Greater
Germiston Transitional Local Council [2001] ZACC 2; 2001 (4) SA 1288 (CC) at paras 12-4; Prince v
President, Cape Law Society [2000] ZACC 28; 2001 (2) SA 388 (CC); 2001 (2) BCLR 133 (CC) at paras 36-7.
36
Ferreira v Levin above n 18 at para 28.
24
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(c) regulations have not been made determining what constitutes a “serious
injury”.
suffered in an accident.
[54] Second, it is not possible to determine at what rate the medical expenses will
(a) section 6 of the Amendment Act introduces section 17(4B) into the Principal
Act. This provides that the liability of the Fund for medical expenses shall be
The result is that it is impossible for an attorney to advise a client as to what medical
expenses he or she may claim from the Fund. It may even be that no expenses may be
claimed.
[55] Both the Minister and the Fund asked that this Court find and declare that the
[56] Counsel for the Minister and the Fund argued that, had the President used the
25
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the validity of the Second Proclamation would not be in dispute as that could have
been regarded as one continuous act by the President for the following reasons.
[57] First, it would be patent that the President was rectifying a mistake he had
made in the already published First Proclamation and that the ‘re-proclamation’ was
issued to give effect to his true intention of bringing into operation the correct sections
[58] The second is that he would bring into operation the sections which he had
initially intended to. This would not be ultra vires in terms of section 13 of the
Amendment Act.
[59] Third, this would not do harm to nor prejudice anyone as it would result in the
bringing into operation of those sections of the Amendment Act on the fixed date of
31 July 2006, which had been the intention from the beginning.
[60] Counsel for the applicant urged that in order for the President to correct an
error made in an issued proclamation, recourse would have to be had to a court of law
or parliament. It would not, so the argument went, fall within the powers of the
President to correct such an error without having the invalid proclamation set aside.
In my view, this question needs to be answered in the light of the provisions of section
26
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13 of the Amendment Act,37 read with section 81 of the Constitution.38 The power
date upon which legislation will be brought into force. The question is whether,
proclamation issued in error, if the withdrawal is done before the relevant legislation
To read them otherwise would be to require the President, when seeking to correct an
error, to approach this Court to declare invalid a proclamation issued in error even if
the proclamation has not yet had any direct legal effect. Where the President has
issued a proclamation in error, and this proclamation has yet to come into force, it is
appropriate that the power to issue such proclamation includes the power to withdraw
it. The power to withdraw accords with the nature of the power to issue and publish
proclamations of this sort and the lawful exercise of this power will not be harmful to
the rule of law. However, in my view, the President does not have the power to
amend a proclamation issued in error where the original proclamation was void from
its commencement, as in this case. I cannot see that a nullity can be amended. It can
[62] Counsel for the Minister argued that the status of the Second Proclamation be
judged on its substance and not its form. While I support in general the principle that
37
Above n 6.
38
Above n 7.
27
SKWEYIYA J
substance should take precedence over form, that principle must yield in appropriate
[63] On the facts of the present case the President could lawfully have withdrawn
the First Proclamation once he had realised his mistake as long as he did so in
unambiguous terms, and before 31 July 2006. It would impose an undue burden on
the President to have required him to apply to court to have the incorrect proclamation
set aside even when the proclamation had not yet come into force.
[64] However, that is not what happened here. Instead, the President issued the
Proclamation. The President cannot have the power to amend a nullity as I have said
above.39 Moreover, the Second Proclamation did not withdraw the First
Proclamation; nor on its face could the legal position with regard to the Amendment
consider the text of the void First Proclamation to give the Second Proclamation
meaning. Thus, to ascertain the full ambit of the substance of the Second
view, this is undesirable. The Second Proclamation thus lacked clarity and this is
39
Above [61].
40
Affordable Medicines Trust and Others v Minister of Health and Others [2005] ZACC 3; 2006 (3) SA 247
(CC); 2005 (6) BCLR 529 (CC) at paras 108-9.
28
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[65] The power entrusted to the President under section 13 of the Amendment Act
had to be carried out lawfully and consistently with the Constitution. Two of the
values on which our country is founded are the supremacy of the Constitution and the
rule of law.41 It follows from this that when executive officials are required by law to
such decisions will have legal consequences, they should be communicated in clear
language so that those who are affected can know what it is that they should do in
[66] The public should not have to depend on lawyers to interpret the meaning and
import of words in proclamations in order for them to know whether a particular piece
of legislation passed by Parliament has taken effect. The issue and publication of the
two Proclamations in the present matter was meant to let the public know that specific
sections of the Amendment Act would come into force on 31 July 2006 and this meant
that there should have been no doubt in the minds of the public as to which sections of
[67] The doctrine of legality requires that the two Proclamations should neither be
vague nor uncertain and this cannot be said to be the case in respect of the Second
Proclamation. The President should have, in the circumstances, withdrawn the First
41
Section 1(c) of the Constitution.
42
Affordable Medicines above n 40 at para 109.
29
SKWEYIYA J
Consequences of invalidity
[69] The applicant, the Minister and the Fund concur in the assertion that were it to
emerge that the Second Proclamation did not validly bring sections 1 to 5 of the
devastating.
[70] The Minister, the Fund, its Board, its CEO, its entire staff, the courts and
claimants have since 31 July 2006 operated on the understanding that sections 1 to 5
[71] The Minister affirms that he, the Board, the Chair, the Vice-Chair and
members of the Board and the CEO of the Fund have acted under the amended
administrative provisions since 31 July 2006 and says that the implications of a
finding that sections 1 to 5 did not come into force on that date would wreak havoc
[72] The Fund gives details regarding the complications that would arise in the
event of this Court holding that sections 1 to 5 of the Amendment Act did not come
43
The Fund submits that the following complications would arise. First, all of the members of the Fund’s Board
were appointed by the Minister of Transport on 1 August 2006, in accordance with the procedure prescribed by
30
SKWEYIYA J
with the Constitution must be declared invalid. Both the First and Second
Proclamations must therefore be declared invalid. This Court has the further power in
terms of section 172(1)(b) of the Constitution to make any order that is just and
equitable. In my view, given the evidence placed before this Court by the Minister
and the Fund, it would be appropriate to ensure that the President issues a new
proclamation bringing the correct provisions of the legislation into force with effect
from 31 July 2006. Although it is unusual to bring legislation into force so that it has
the amended version of the Principal Act. If sections 1 to 5 of the Amendment Act did not come into force on
31 July 2006, all the members of the Board would have been unlawfully appointed.
Secondly, and as a consequence of the unlawful appointments of the Board members, all the decisions of the
Board taken since 1 August 2006 would arguably be invalid. The Board has adopted no fewer than 93
resolutions since then. They include resolutions approving various strategic plans, quarterly reports and
financial statements; revising the Fund’s policies; entering into reinsurance agreements with local and
international reinsurers; entering into commutation agreements with international reinsurers; entering into
insurance contracts to provide cover for directors and officers of the Fund; approving the settlement of a number
of different claims in excess of R5 million each; approving the purchase of a new enterprise resource planning
solution to the value of approximately R60 million; approving the purchase of a new claims management system
to the value of approximately R90 million; approving salary increases for staff at management level and salary
agreements with the South African Transport & Allied Workers Union; determining and approving a new
executive structure for the Fund; approving contracts for the appointment of a new executive team for the Fund,
including executive appointments of the CEO, Chief Financial Officer, Marketing & Communications
Executive, Human Resources Executive, Information Technology Executive and Business Development
Executive; and approving amendments to the Fund’s delegation of authority structure.
Thirdly, if sections 1 to 5 of the Amendment Act did not come into force on 31 July 2006, it would also raise
significant doubt over decisions taken by the Fund’s executives since that date. All of the present incumbents,
save for the CEO, were appointed by the Board subsequent to 31 July 2006. If the Board itself was not lawfully
constituted, then arguably all of these appointments were invalid, as were all decisions made by such appointees.
Fourthly, the delegation of authority under which all of the Fund’s executives acted (including the CEO) would
arguably be invalid as these delegations were adopted by the Board after 31 July 2006. This is particularly
concerning in respect of decisions taken by the CEO. The Act, as amended, requires the CEO to be responsible
for managing the “day to day affairs of the Fund”. This would mean that the CEO has made countless decisions
concerning the Fund during the relevant period, including giving approval for all settlements with claims of
more than R3 million.
In the circumstances, the Fund submits that if the Second Proclamation did not validly bring sections 1 to 5 of
the Amendment Act into force on 31 July 2006, it would cause chaos and severely prejudice the Fund, the
claimants who rely on it and other entities which have contracted with it.
The Fund accepts that there may be a way for courts to hold particular resolutions, decisions or contracts to be
valid, notwithstanding the apparent illegalities and lack of authority described above. However, it argues that
even this process would cause massive uncertainty and flux in the road accident sector. It would cause the Fund
great expense in defending each decision challenged on this basis.
31
SKWEYIYA J
retrospective operation, it is entirely appropriate in this case as it will ensure that all
the conduct of the Fund which relied on the two Proclamations since 31 July 2006 will
not be void on the grounds that the Proclamations themselves have been declared
invalid.
[74] The President should be given 30 days to issue the new proclamation. In the
meantime, this Court should ensure that no disruption to the administration of the
Fund should occur by providing that the Fund shall continue to act as if the relevant
sections of the Amendment Act had validly been brought into force and that
everything that has been done by the Fund since 31 July 2006 which relied on the
provisions of the new legislation shall be deemed not to be invalid on the ground only
that the two Proclamations have been declared to be invalid. If the meaning of the
Second Proclamation had been clear, the mechanism to achieve this end would have
[75] Accordingly, it will be just and equitable to order that the Fund may continue
to act as if sections 1 to 5 of the Amendment Act were brought into force lawfully on
31 July 2006, and to provide that anything done under those provisions from 31 July
2006 to the date 30 days after the issue of this order shall not be invalid on the ground
that the provisions of the Amendment Act were not in fact brought into force on 31
July 2006.
32
SKWEYIYA J
Costs
[76] In this Court all parties sought clarity. It would be remiss to award a costs
order which hinders the public’s access to the courts in order to gain clarity. It is
appropriate to support the costs order made in the High Court because at that stage of
the proceedings there was no need for the respondent to oppose the application.
[77] In this Court, the applicant sought an order requiring the first and second
respondents to pay the costs of the application. The second respondent argued that it
would not be appropriate to make any order for costs against him in this Court
[78] Although the second respondent did not oppose the application in this Court,
costs should still be awarded against him. The opposition at the lower court level
impacted the course that this litigation has had to take. Thus, while the confirmation
would nonetheless have had to come to this Court, it is still appropriate to order that
[79] The third respondent applied for direct access. This was granted. The costs
Order
33
SKWEYIYA J/JAFTA AJ
(a) The applicant’s application for condonation of the late filing of the record is
granted.
(c) The application for direct access by the third respondent is granted.
(d) The order handed down by the Pretoria High Court on 14 June 2007, declaring
that Proclamation R27 of 2006 is null and void and of no force and effect, is
(e) Proclamation R32 of 2006 is declared to be invalid with effect from 31 July
2006.
the Road Accident Fund Amendment Act, 2005 (Act No. 19 of 2005) into
effect, with effect from 31 July 2006, within 30 days of the date of this order.
(e) of this order, the Fund may continue to act for 30 days from the date of this
order as if sections 1, 2,3,4 and 5 of the Amendment Act were brought into
(e) of this order, everything that has been done by the Fund since 31 July 2006
on the basis that sections 1,2,3,4 and 5 of the Amendment Act were brought
(i) not be invalid on the ground that the First and Second Proclamations
34
SKWEYIYA J/JAFTA AJ
(ii) be deemed valid as if sections 1,2,3,4 and 5 of the Amendment Act had
(i) The first and second respondents are ordered to pay the costs of the applicant in
both courts, jointly and severally, the one paying the other to be absolved,
Langa CJ, O’Regan ADCJ, Kroon AJ, Madala J, Mokgoro J, Ngcobo J, Nkabinde J
JAFTA AJ:
disagree with the conclusion which he has come to regarding the invalidity of both
Proclamation R27 which came into operation at midnight on 30 July 2006. When
read together, the two Proclamations convey and put into force the President’s correct
decision in relation to bringing into operation certain sections of the Road Accident
Fund Amendment Act 19 of 2005 ( the Amendment Act). I come to this finding for
35
JAFTA AJ
[82] The facts are set out in the judgment of Skweyiya J. For ease of reading, I will
refer only to facts which are relevant to my reasons and findings. In 2005, Parliament
enacted the Amendment Act. This Act was signed into law by the President on 23
December 2005. It was published on 5 January 2006. However, it did not come into
Government Gazette.1 Section 13 of the Amendment Act provides that it will come
into force “on a date determined by the President by proclamation in the Government
Gazette.”
[83] In July 2006, the President decided to bring into operation certain sections of
the Amendment Act which did not require that measures be put in place before
implementation of the Act. The sections which the President decided to bring into
operation dealt with administrative matters. They were sections 1, 2, 3, 4 and 5 of the
Amendment Act which amended sections 4, 6, 10, 11 and 12 of the Road Accident
[84] But when Proclamation R27 was drafted in order to carry out the President’s
4 and 5 of the Amendment Act. However, it correctly referred to section 4 of that Act.
The Proclamation was published on 19 July 2006 with this error. The President had
1
Section 81 of the Constitution outlines the process by which an Act of Parliament is put into operation. For the
full text of the section see [107] below.
36
JAFTA AJ
Amendment Act would come into operation. The Proclamation purported to bring
[85] Before 31 July 2006, the President became aware that Proclamation R27 did not
correctly reflect his decision in that it referred to four incorrect sections, namely,
sections 6, 10, 11 and 12. In order to rectify this error the President issued
Proclamation R32, which was published on 31 July 2006. Evidently, the latter was
intended to amend the former, insofar as it referred to the wrong sections. Both
[86] On 31 July 2006, the applicant instituted a review application in the Pretoria
High Court, seeking an order declaring Proclamation R27 to be null and void and of
no force and effect. At the time he instituted the application, he was not aware that
the President had sought to rectify the error by amending Proclamation R27. It was
pointed out in the answering affidavit, filed on behalf of the second respondent, that
the President had issued Proclamation R32 so as to amend the first one. In reply, the
applicant contended that the law did not authorise the President to rectify the error in
37
JAFTA AJ
[87] The applicant persisted in his challenge on the ground that Proclamation R27
had been erroneously issued. He formulated his challenge in the following terms:
“The Proclamation [R27] was issued in error. What the President actually intended
was to bring into operation sections 1, 2, 3, 4 and 5 of the amending Act, which
respectively amends sections 4, 6, 10, 11 and 12 of the principal Act.
The Department of Transport, which operates under the direction of the Minister of
Transport, has acknowledged that the Proclamation was issued in error. It has stated
that the Proclamation will be withdrawn, and a new Proclamation will be issued in its
place.
I submit that the President does not have the power to withdraw a Proclamation
which he has issued, bringing an Act or a section of an Act into operation. The result
is that Proclamation R27 of 2006 continues in effect, notwithstanding any notice of
its purported withdrawal.
The consequence of the erroneous bringing into operation of sections 4, 6, 10, 11 and
12 of the amending Act is that parts of the principal Act are incapable of operation.”
[88] The President did not file opposing papers in the High Court. But the Minister
Director General: Transport Regulation and Public Entity Oversight Division. She
disputed that Proclamation R27 was issued in error and contended that it was properly
issued even though it contained the error of referring to wrong sections. She
explained:
“Although the Proclamation was correctly issued, it referred to wrong sections of the
amending Act which were to be put into operation, and should have referred to
sections 1, 2, 3, 4, and 5 of the amending Act. As a result of this error of having
referred to incorrect sections of the amending Act, a second Proclamation was issued,
38
JAFTA AJ
[89] The High Court (per Preller J) held that the applicant had the requisite locus
standi to challenge the validity of Proclamation R27. It also upheld the applicant’s
argument to the effect that this Proclamation was erroneously issued by the President.
Regarding Proclamation R32, the High Court found that the President had no
authority to issue the Second Proclamation, the effect of which was to amend the first
one. It reasoned:
“Because new laws often require regulations and the taking of other administrative
steps in order to operate effectively, the practice has developed over many years for
Parliament to leave it to the executive to decide when everything necessary is in place
for a new law to function. In such case there is a provision in the Act which
empowers the President to bring the Act into operation (and nothing more) by
proclamation when the time is ripe. The provision certainly does not empower the
President to later revoke the proclamation if he no longer likes the Act, thereby
effectively repealing it.
Taking this argument to its logical conclusion would mean that the President would
have the power to revoke by proclamation any Act that he or his predecessors have
previously brought into operation by publishing a proclamation to that effect in the
Gazette. One can hardly imagine the consequences if e.g. the statutes protecting land
tenure, the labour legislation or even the Criminal Procedure Act should be revoked
in terms of this hypothetical extended power. Such a regime will simply be
government by decree which is the antithesis of the Rule of Law which is one of the
cornerstones of our Constitution.
My conclusion is therefore that the President’s power to bring an Act into operation
by way of a proclamation does not include the power to either amend or revoke that
proclamation.”
39
JAFTA AJ
[90] Following the above reasoning and findings, the High Court issued the
following order:
“1. It is declared that Proclamation R27 of 2006 is null and void and of no force
and effect.
The issues
[91] This Court must be satisfied that the declaration of invalidity was properly
made before it can confirm the High Court’s order. The first issue for consideration is
whether the entire Proclamation R27 was invalid ab initio. If it was not, the next issue
will be whether the President had the power to rectify the error in Proclamation R27
by issuing Proclamation R32 which sought to amend the First Proclamation. I address
these issues in turn. Before doing so, however, I must mention that in this Court,
counsel for the Minister did not persist in the argument that the applicant lacked locus
[92] The answer to this question lies in the consideration of the ground on which the
40
JAFTA AJ
attacked on the sole ground that it refers to sections which the President did not intend
to put into force. It is common cause that the President had decided to put into force
10, 11 and 12 instead of sections 1, 2, 3, 4 and 5. Section 4 was the only section to
which a correct reference was made. Insofar as reference was made to the other
sections, it did not reflect the President’s true decision; otherwise the Proclamation
[93] I have difficulty in accepting that the error, which is limited in extent, has the
effect of nullifying the entire Proclamation R27. In determining the validity of the
Proclamation it is important to recall that it is not the President’s decision that is under
attack here but the incorrect recordal of that decision in the Proclamation. In other
words, the Proclamation’s validity is challenged on the basis that it does not represent
contains good and bad parts. The question that arises is whether the bad part can be
Severability
provisions.2 Under the common law, severance is employed to sever the bad part of a
2
South African Liquor Traders Association and Others v Chairperson, Gauteng Liquor Board and Others
[2006] ZACC 7; 2006 (8) BCLR 901 (CC) at para 31.
41
JAFTA AJ
force, provided the test for severance is met. This test entails two stages. During the
first stage the focus is on determining whether the good can be severed from the bad.
If so, then one has to determine whether what remains gives effect, in the present
context, to the purpose which the President sought to achieve. In Coetzee,4 Kriegler J
“Although severability in the context of constitutional law may often require special
treatment, in the present case the trite test can properly be applied: if the good is not
dependent on the bad and can be separated from it, one gives effect to the good that
remains after the separation if it still gives effect to the main objective of the statute.
The test has two parts: first, is it possible to sever the invalid provisions and, second,
if so, is what remains giving effect to the purpose of the legislative scheme?”5
(Footnote omitted.)
[95] The application of severance, as it appears above, does not depend on whether
the entire objective is achieved by executing what remains after severance. The
question is whether giving effect to the remaining part will achieve the intended
objective, albeit partially. In applying the test to the present case, the enquiry is first,
whether reference to the incorrect sections 6, 10, 11 and 12 can be severed from the
rest of Proclamation R27 and if so, second, whether giving effect to what remains of
3
Cine Films (Pty) Ltd and Others v Commissioner of Police and Others 1972 (2) SA 254 (A) at 268D-F; [1972]
2 All SA 85 (A) at 95; and Divisional Commissioner of SA Police, Witwatersrand Area and Others v SA
Associated Newspapers Ltd and Another 1966 (2) SA 503 (A) at 513A-C; [1966] 3 All SA 1 (A) at 7.
4
Coetzee v Government of the Republic of South Africa; Matiso and Others v Commanding Officer, Port
Elizabeth Prison and Others [1995] ZACC 7; 1995 (4) SA 631 (CC); 1995 (10) BCLR 1382 (CC).
5
Id at para 16.
42
JAFTA AJ
[96] There can be no doubt that the wrong sections can be severed from the correct
one. Section 13 of the Amendment Act empowers the President to choose the sections
he decides to put into force at any given time. The number of the sections to be put
into operation falls within his discretion. It can be one or more sections which he
identifies for this purpose. The coming into operation of section 4 of the Amendment
Act6 does not depend on the implementation of the severed sections 6, 10, 11 and 12.
As a result, putting section 4 into force would achieve the President’s objective. In
fact it seems to me that this section came into operation on 31 July 2006. According
[97] However, sections 6, 10, 11 and 12 did not, contrary to the view held by the
applicant,8 come into force because they did not form part of the President’s decision.
The fact that these sections appeared in the Proclamation did not make them part of
the sections which the President had intended to put into operation. This is common
cause. It is the decision of the President that put section 4 into operation and not the
Proclamation which was just a means of executing the President’s decision. The
6
Section 4 reads:
“Section 11 of the principal Act is hereby amended by the deletion in subsection (1)(a) of
subparagraph (iv).”
7
Section 13(2) provides:
“Where any law, or any order, warrant, scheme, letters patent, rules, regulations or by-laws
made, granted or issued under the authority of a law, is expressed to come into operation on a
particular day, it shall be construed as coming into operation immediately on the expiration of
the previous day.”
8
Above at [87].
43
JAFTA AJ
power conferred on the President by section 13 of the Amendment Act can only be
exercised if the President applies his mind to the relevant issues. He has to consider
whether the necessary framework for implementing the Act is in place before putting
into force parts of the Act which require the existence of such framework. In this
case, the President had decided to put into force those sections of the Act which did
not require any measures to be in place. It is this exercise of public power which is
counsel for the applicant argued that Proclamation R27 was invalid because it was
irrational and was issued in error. He submitted that the present case “is for practical
purposes on all fours with the Pharmaceutical Manufacturers case.” In my view the
Pharmaceutical Manufacturers, the President became aware of the error after the
relevant Act had been put into operation. Thus he had no power to withdraw a
proclamation which had already become effective and put the relevant Act into force.
In the present case, the President became aware and took remedial action before the
influenced the exercise of public power by the President. He was made to believe
incorrectly that the regulatory framework necessary for the implementation of the Act
9
Pharmaceutical Manufacturers Association of SA and Another In re: ex parte President of the Republic of
South Africa and Others [2000] ZACC 1; 2000 (2) SA 674 (CC); 2000 (3) BCLR 241 (CC).
44
JAFTA AJ
was in place before he took the decision to bring it into force. His true decision there
was to bring the relevant Act into force. Had he been given the true facts he could not
have made the decision and therefore issued the Proclamation. It was in that context
[100] As observed in the above dictum, the requirement of rationality applies to the
exercise of public power. In the present case, the President had properly and
appropriately exercised the power by deciding to put into operation only those
sections which did not require any measures to be put in place before implementation.
The error came into existence after the decision had been taken and when it was
flows from the fact that it did not reflect the correct decision of the President. It
follows that the President’s decision, which is not challenged in these proceedings,
10
Id at para 90.
45
JAFTA AJ
remains intact. The question that arises at this stage is whether the President could
rectify the error in Proclamation R27. This is the issue which I will discuss in turn
below.
[101] Before I address the question whether the President was empowered to issue the
counsel to the effect that Proclamation R27 was a nullity from the outset. In their
“We accept the essence of the applicant’s contentions about the First Proclamation:
2. It is appropriate for this court to confirm the High Court’s order declaring the
First Proclamation to be invalid. There is no reason to limit the retrospective
operation of the order of invalidity.
4. It follows that the First Proclamation never brought into operation the
provisions to which it erroneously referred. It had no effect in law at all.”
[102] The difficulty with the concession is that it departs from the wrong premise,
namely, that all the sections to which the First Proclamation refers were incorrect. It
overlooks the fact that section 4 had been correctly referred to. As a result it makes no
46
JAFTA AJ
cannot apply to that part of the Proclamation which was not affected by the error and
thus not invalid. In the light of this finding the question that arises is: what is the
effect of the concession on the determination of the issue? I proceed to address this
question.
[103] Ordinarily a court accepts, without deciding, factual concessions made by the
parties because the effect thereof is that the conceded issue is no longer placed in
dispute. This rule extends to legal concessions but only to the extent that a court is
satisfied that a concession was properly made. If the court is of the view that a legal
concession was improperly made, it is entitled to reject it and decide the issue as if it
said:
“Here, we are concerned with a legal concession. It is trite that this Court is not
bound by a legal concession if it considers the concession to be wrong in law.
Indeed, in Azanian Peoples Organisation (AZAPO) and Others v President of the
Republic of South Africa and Others, this Court firmly rejected the proposition that it
is bound by an incorrect legal concession, holding that, ‘if that concession was wrong
in law [it] would have no hesitation whatsoever in rejecting it’. Were it to be
otherwise, this could lead to an intolerable situation where this Court would be bound
by a mistake of law on the part of a litigant. The result would be the certification of
law or conduct as consistent with the Constitution when the law or conduct in fact is
inconsistent with the Constitution. This would be contrary to the provisions of
11
Matatiele Municipality and Others v President of the Republic of South Africa and Others (1) [2006] ZACC
2; 2006 (5) SA 47 (CC); 2006 (5) BCLR 622 (CC).
47
JAFTA AJ
section 2 of the Constitution which provides that the ‘Constitution is the supreme law
of the Republic; law or conduct inconsistent with it is invalid’.”12 (Footnote omitted.)
[104] When the President became aware of the error in the Proclamation he sought to
rectify it. But because the Proclamation had already been published, he deemed it
extent necessary, the first one. Both in the High Court and in this Court, the applicant
argued that the President was not empowered to amend Proclamation R27 in the
applicant argued that the only options which were available to the President were to
submitted that section 13 of the Amendment Act does not authorise the President to
continued the argument, the President would be able to repeal provisions in an Act of
provisions into force. This would, concluded the argument, be a far-reaching and
startling power which could cause the law to change from time to time as the
President determined.
[105] When taken at face value, the above argument is seductively persuasive. The
High Court upheld it and rejected the assertion that the President had amended
12
Id at para 67.
13
Above n 9.
48
JAFTA AJ
Proclamation R27. It reasoned that were the President to have the power to amend, he
could “revoke by proclamation any Act that he or his predecessors had previously
this were to happen, the High Court reasoned, it would constitute “government by
decree which is the antithesis of the Rule of Law which is one of the cornerstones of
our Constitution.”14
[106] However, the demise of the above argument lies in its foundation. It is based
on the wrong premise, which is that the President sought to amend the Proclamation
which had brought into force sections 6, 10, 11 and 12 of the Amendment Act, when
this was clearly not the position. These sections were never brought into operation
because, as stated earlier, they did not form part of the President’s decision and were
not intended to come into force. In the present case, the President sought to rectify an
error which had no legal force and effect. As mentioned above, only section 4 came
into operation on 31 July 2006. To the extent that Proclamation R32 refers to section
4 as one of the substituted sections, it has no legal force. In fact the inclusion of
[107] The issue that requires consideration in this regard is whether the President was
empowered to rectify the error which arose in the present matter. Reference to
14
Above at [89].
49
JAFTA AJ
Pharmaceutical Manufacturers is not helpful to this enquiry because the error we are
concerned with here is of a different kind. In determining this issue, the starting point
must be the Constitution, which is the genesis of the President’s power to bring Acts
“A Bill assented to and signed by the President becomes an Act of Parliament, must
be published promptly, and takes effect when published or on a date determined in
terms of the Act.”
[108] The constitutional power to bring an Act of Parliament into force can be
exercised by the President only if the Act authorises it. In other words, the exercise of
the power and the manner of doing it depends on the terms of the Act to be brought
into operation. If an Act of Parliament is silent on the issue, it comes into operation
antecedent measures to be put in place before they can be implemented. In that event,
the practice is for Parliament to authorise the President, once the measures are in
place, to bring the Act into force. This is normally done by adding a section to this
[109] In the present case, section 13 of the Amendment Act authorises the President
to bring its provisions into force on a date determined by him and it requires him to do
the President is to bring the Act into force when circumstances are conducive for it to
circumstances are conducive for bringing the Act into operation and to decide whether
50
JAFTA AJ
to bring into force the entire Act or only parts of it. Once this determination is made,
the President is under the duty to bring the Act or its part into operation. However, he
Gazette which sets out his decision. It is in this context that the question whether the
[110] Although neither the Constitution nor the Amendment Act confer express
power on the President to amend proclamations containing errors such as the present,
necessary for the President to have it in order to properly discharge his duty to bring
the determined parts of the Act into operation. The facts of the present case
demonstrate this point. It cannot be argued that the President lacks the power to
correct proclamations drafted in a manner that does not correctly reflect his decision.
To hold otherwise would defeat the very purpose for which the power was conferred
on the President.
authorisation of taking steps reasonably necessary to achieve the main purpose.15 The
15
Masetlha v President of the Republic of South Africa and Another [2007] ZACC 20; 2008 (1) SA 566 (CC);
2008 (1) BCLR 1 (CC) at para 68; GNH Office Automation CC and Another v Provincial Tender Board,
Eastern Cape and Another 1998 (3) SA 45 (SCA) at 51G; Moleah v University of Transkei and Others 1998 (2)
SA 522 (Tk) at 536I.
51
JAFTA AJ
“It is trite that the power to do that which is expressly authorised includes the power
to do that which is necessary to give effect to the power expressly given. The power
of Parliament to redraw provincial boundaries therefore includes the power that is
reasonably necessary for the exercise of its power to alter provincial boundaries.”16
(Footnote omitted.)
[112] For these reasons, I conclude that the President had the power to rectify the
error in Proclamation R27 by issuing Proclamation R32. It follows that, to the extent
described above, both Proclamations are valid. The High Court erred in declaring the
Costs
[113] The general rule applicable to the issue of costs should be followed in this
(a) The declaration of invalidity made by the High Court is not confirmed.
(b) The order of the High Court is set aside and replaced with the following order:
16
Above n 10 at para 50.
52
YACOOB J
YACOOB J:
Introduction
[115] This case is concerned with the validity of two Proclamations issued by the
Fund Amendment Act2 (the amending Act). The first of these Proclamations was
issued on 11 July 2006 (the first Proclamation) and the second, around two weeks
later on 28 July 2006 (the second Proclamation). I have read the judgments of
Skweyiya J and Jafta AJ and find myself unable to agree with their reasoning and their
validity of each of the two Proclamations whose validity is in issue in this case and
concludes that:
(c) the second Proclamation was aimed at validating the first Proclamation;
(f) it would be just and equitable to allow the President to correct the defect and to
ensure that the first Proclamation is treated as if it had brought the correct
1
Sections 84, 85 and 101 of the Constitution.
2
Act 19 of 2005.
YACOOB J
(b) the part that is valid can and should be severed from the part that is not;
(c) the part that is good can be amended by the President and has been amended by
[117] The approach in this judgment is to read both Proclamations together and to:
(b) hold that it is not just and equitable for the invalidity to take effect until the
(c) find that the second Proclamation did not successfully amend the first;
(d) sever those parts of the first Proclamation which are bad; and
(e) read in the amendments intended by the President when issuing the second
Proclamation.
[118] The fundamental difference between the judgment of Skweyiya J and this
judgment is, in my view, that this judgment expressly focuses on whether it is just and
does not conduct this enquiry but concludes that the first Proclamation was invalid
54
YACOOB J
[119] I agree with Skweyiya J that the application for condonation must be granted.
So too must the application for direct access made by the Road Accident Fund (the
Fund) established in terms of section 2(1) of the Road Accident Fund Act (the main
Act).3 However, I would allow the application on the basis that the validity of the
second Proclamation for which the Fund contends is interwoven with the validity of
the first and that both Proclamations need to be read and considered together. I
application for direct access because there is no need to do so in the light of the order
aimed at ensuring that people who are injured in motor collisions are properly
compensated by the Fund. In doing so the attorney would need to understand the
compensation regime, to advise clients and to operate the system in order that clients
are properly compensated. A compensation law that is irrationally brought into force
[121] The amending Act amended the main Act. Section 13 of the amending Act
provided that the amending legislation would come into force on a date “determined
3
Act 56 of 1996.
55
YACOOB J
sections 1, 2, 3, 4 and 5 of the amending Act into operation, published4 the first
“[I] hereby determine 31 July 2006 as the date on which sections 4, 6, 10, 11 and 12
will come in operation.”
[122] It is apparent therefore that the President brought sections 4, 6, 10, 11 and 12 of
the amending Act into operation but intended to bring into operation sections 1, 2, 3, 4
and 5 of that Act. It follows that section 4 of the amending Act was rightly brought
into operation while the others were not.6 The basis of this error emerged easily
and 12 of the main Act respectively. The President in fact had in mind bringing into
force the amended sections 4, 6, 10, 11 and 12 of the main Act. Amendments were
[123] This error was apparently realised before 28 July 2006 and, on that date, the
4
Proclamation R 27, GG 29041, 19 July 2006.
5
It will be remembered that the first Proclamation was issued on 11 July 2006.
6
In my view nothing turns on the fact that section 4 of the amending legislation was rightly brought into
operation.
7
Reflected in the following table:
Section of amending Act Section of main Act amended
1 4
2 6
3 10
4 11
5 12
56
YACOOB J
“[I] hereby, amend Proclamation No. R. 27 of 2006, by the substitution for the
reference to section 4, 6, 10, 11 and 12 in the said Proclamation for the reference to
section 1, 2, 3, 4 and 5 of the Amendment Act, 2005 (Act No. 19 of 2005).” 8
[124] The second Proclamation was issued by the office of the President some days
before 31 July 2006 when the incorrect sections would erroneously have been brought
into force. This Proclamation was however published on the same day as that on
which the incorrect sections were brought into force. The second Proclamation was
evidently aimed at correcting the errors in the first and both were published at the time
the challenge to the validity of the first Proclamation was made before the High Court.
determine if the office of the President had succeeded in putting right the error which
was known to exist. Although all the parties before us conceded that the first
The answer is not straight-forward but, if it is not in favour of the President, the first
[125] I have already pointed out that the President sought to amend the first
Proclamation by the second Proclamation. Two inter-related questions arise. The first
proclamation. And the second is whether the President successfully amended the first
8
Proclamation R 32, GG 29086, 31 July 2006.
57
YACOOB J
[126] I cannot at this stage envisage any substantial objection to the President having
the power to amend a proclamation which that office realises is patently erroneous in
order to correct the error (and for no other purpose) provided that the amendment is
properly effected before the proclamation comes into effect. Neither the Constitution
nor the provisions of section 13 of the amending Act precludes this course. Nor
times and must be given the opportunity to change their decisions if the officials
concerned discover that the decisions were patently erroneous. To compel parties to
approach a court to set aside a decision that is obviously in error would be inconsistent
with that responsiveness with which the Constitution charges all organs of state. The
energy as well as the financial and other resources that would need to be expended in
order to set aside an obviously incorrect decision when that decision has been
corrected before it came into force is counter-productive, overly technical and cannot
[127] Different considerations apply when the error is discovered and the correction
are not concerned with that situation and it need not be addressed further.
58
YACOOB J
[128] The situation in this case is that the decision to correct was made and the
amending Proclamation was signed by the President three days before the first
Proclamation came into force, but the second Proclamation was published on 31 July
2006: the same day on which the first Proclamation came into force. If the President
did indeed have the power to amend there would have been, in my view, no difficulty
about the validity of the amendment had the second Proclamation been published on
29 July 2006. In this regard, it seems to me to place form over substance to make a
distinction between, on the one hand, withdrawal of the first Proclamation and the
replacement of that Proclamation by another and, on the other hand, the amendment of
the first Proclamation by the second. Each approach would produce the same result
published before the date upon which the erroneous proclamation comes into
nor there.
[129] It is however not necessary to decide whether it would have been competent for
the President to amend the first Proclamation, had the amending Proclamation been
published before the first one. This is because this case must be decided on the
footing that the second Proclamation was published after the first.
[130] It cannot be gainsaid that the second Proclamation was not published a day
before the first Proclamation came into operation. It was published on the same day.
59
YACOOB J
was published at the same time as the incorrect sections of the amending Act were
brought into force, or whether the second Proclamation was published only after the
first Proclamation came into operation. In our law, a determination that a provision of
a law would come into operation on 31 July 2006 results in the provision coming into
force at midnight on 31 July 2006.9 It follows that the first Proclamation came into
force at midnight on 31 July 2006. We know that 31 July 2006 appears as the date of
have no idea whether the Government Gazette was in fact published a little time
before midnight or some time after. It would be wrong to assume that the second
This judgment must proceed on the basis that publication was effected after midnight.
operation and the second Proclamation not. In these circumstances, the first
[132] The next question is whether the second Proclamation had the effect of
validating the first Proclamation which had come into force in an invalid state. I do
not think so. In the circumstances the parties were right in conceding that the first
Proclamation was invalid. The fact that the second Proclamation did not amend the
9
Section 13(2) of the Interpretation Act 33 of 1957.
60
YACOOB J
[133] It is appropriate to consider the just and equitable order that falls to be made
stressed at the outset of this enquiry that it does not follow from a finding of invalidity
in relation to any instrument that that instrument is invalid from the moment of its
including this Court, to declare both Proclamations inconsistent with the Constitution
inconsistent with the Constitution and invalid with retrospective effect. Indeed a court
is expressly given the power (and in my view obliged) to make an “order that is just
and equitable”11 including an order limiting the retrospective effect of the invalidity12
obligation of this Court to consider whether it is just and equitable that the first
Proclamation be regarded as invalid from the date of its promulgation. This Court has
“[t]he Court’s order does not invalidate the law; it merely declares it to be invalid. It
is very seldom patent, and in most cases is disputed, that pre-constitutional laws are
inconsistent with the provisions of the Constitution. It is one of this Court’s functions
to determine and pronounce on the invalidity of laws, including Acts of Parliament.
This does not detract from the reality that pre-existing laws either remained valid or
10
Section 172(1)(a) provides that a court “deciding a constitutional matter within its power . . . must declare that
any law or conduct that is inconsistent with the Constitution is invalid”.
11
Section 172(1)(b).
12
Section 172(1)(b)(i).
13
Section 172(1)(b)(ii).
61
YACOOB J
became invalid upon the provisions of the Constitution coming into operation. In this
sense laws are objectively valid or invalid depending on whether they are or are not
inconsistent with the Constitution. The fact that a dispute concerning inconsistency
may only be decided years afterwards, does not affect the objective nature of the
invalidity. The issue of whether a law is invalid or not does not in theory therefore
depend on whether, at the moment when the issue is being considered, a particular
person’s rights are threatened or infringed by the offending law or not.
A pre-existing law which was inconsistent with the provisions of the Constitution
became invalid the moment the relevant provisions of the Constitution came into
effect. The fact that this Court has the power in terms of section 98(5) of the
Constitution to postpone the operation of invalidity and, in terms of section 98(6), to
regulate the consequences of the invalidity, does not detract from the conclusion that
the test for invalidity is an objective one and that the inception of invalidity of a pre-
existing law occurs when the relevant provision of the Constitution came into
operation. The provisions of sections 98(5) and (6), which permit the Court to
control the result of a declaration of invalidity, may give temporary validity to the law
and require it to be obeyed and persons who ignore statutes that are inconsistent with
the Constitution may not always be able to do so with impunity.”14
[134] This was said in relation to the interim Constitution. Applied to our
Constitution the passage means that, like in the interim Constitution, the default
position is that laws declared invalid by this Court are to be regarded as invalid from
the date of their inception. However like under the interim Constitution, this Court
has the power to control retrospectivity and the effects of a declaration of invalidity.
[135] In this case the President sought to rectify an error but did so a little too late.
There is no point in declaring the first Proclamation to be invalid ab initio because the
consequences would be to frustrate the bona fide effort of the Executive to correct the
14
Ferreira v Levin NO and Others; Vryenhoek and Others v Powell NO and Others [1995] ZACC 13; 1996 (1)
SA 984 (CC); 1996 (1) BCLR 1 (CC) at paras 27-8.
62
YACOOB J
error. It would be just and equitable, in all the circumstances, to give effect to the
severance and reading in. This would be the correct course particularly in the light of
the fact that the Fund has for the past two years proceeded on the basis that this was
so.
[136] In the result, I would sever from the first Proclamation the phrase “4, 6, 10, 11
and 12” and read in to the Proclamation in the place of the severed phrase the phrase
“1, 2, 3, 4 and 5”. After this exercise, the relevant part of the Proclamation would
read as follows:
[137] For the purpose of clarity I would require the President to ensure that the terms
of the first Proclamation that result from the reading in and severance proposed by this
63
For the Applicant: Advocate Geoff Budlender instructed by
Kruger & Co.