THEOCTOBER/

NOVEMBER2012EXAMI
NATI
ONPAPER
Afri
canSi l
ver( Pty)Ltdi sanest abli
shedmi ningcompanyt hathassuccessf ull
y
operatedi t
sbusi nessi nt heSout hAf r
icanmi ni
ngindustryovert hel astfive
decadesundert hepr eviousmi ningr egime.Sout hAfri
cai st heworld’sbiggest
producerofpl ati
num andAf r
icanSi lver(Pty)Ltdwast hel eadingcompanyt hat
extr
ac t
edpl ati
num i nt heBushvel dcompl ex,themai npr oducingar eaoft his
minerali n South Af r
ica.African Si l
ver( Pty)Lt d,as leading company t hat
special
izedinext ract
ingandr ef
iningt hi
smet al,hasspentyear sandmi l
li
onsof
Randsi n ordert oimpr ovei tsmi ning oper at
ions,specif
icall
yrelated tot he
extr
ac t
ionandr efinementofplatinum.

InOc t
ober2002,t heMi neralsandPet roleum Resour cesDevel opmentAct28of
2002( MPRDA)camei ntooper ati
on,whichmakespr ovisi
onf orequi tableaccess
toandsust ainabl
edevel opmentoft henat i
on’smi neralandpet roleum r esources.
Intermsoft he MPRDA,Af rican Sil
ver( Pty)Lt d’
sl imit
ed r ealr i
ghtt o mi ne
automat i
cally ceased t o existon t he datet he Actcame i nto oper ati
on.I n
consequence,Af ricanSi l
ver( Pty)Ltdhadt oappl yfor“ newor der”mi ningr i
ghts
tocarryonwi thit
sbusi ness.On16Januar y2003,Af r
icanSi l
ver( Pty)Lt dapplied
forminingr ightsint heBus hveldcompl ex.Theappl i
cationwassummar i
l
yt ur
ned
downbyt heDepar tmentofMi neral
sandEner gywi thoutgivinganyr easonst o
Afri
canSi lver( Pty)Lt d.Int hei nter
im,mi ningr i
ghtsper t
ainingt ot heBushvel d
complexwer egrantedt oAf r
icanGol den( Pty)Ltd.Theof f
ici
alwhot urneddown
Afri
canSi l
ver( Pt
y)Lt d’sapplicationisas hareholderinAf r
icanGol den( Pty)Ltd.

QUESTI
ON1

1.
1 I
denti
fyt
heorgansofst
ateinthegivensetoff
act
s.Explai
nyouranswer
swit
h
r
efer
encetot
heconst
it
uti
onaldef
ini
ti
onofor
ganofst
ate.
(
6)

I
nter
msofs239oft
heConst
it
uti
ont
hef
oll
owi
ngar
eor
gansofst
ate:

a)The DepartmentofMi ner

als and Energy (any depar
tmentofstat
e or
admi
nist
rat
ioni
nthenat
ional
,pr
ovinci
alorl
ocalsphereofgovernment
);

b)Theof f
ici
alwhomadet hedecisi
onintheDepar
tmentofMi
ner
alsandEnergy
(anyotherfunct
ionar
yorinst
it
uti
on(i
i)ex
erci
si
ngapubli
cpowerorperf
ormi
nga
publi
cfuncti
onintermsofanylegi
sl
ati
on)
.

1.
2 I
sadmini
str
ati
veacti
oninevi
denceinthesetoffact
s?Inyouransweryoushoul
d
gi
veaful
ldefini
ti
onoftheconcept“admini
str
ati
veacti
on”wit
hr ef
erencetot
he
pr
ovi
si
onsoft he Promot
ion ofAdmini
str
ati
ve Just
ice Act(
PAJA)3 of2000.
(
13)
 Secti
on1ofPAJAdef ines" admi nistr
ati
veact i
on”asanydeci si
ontak en,or
anyfailur
et ot akeadeci sion,by-
(a) anor ganofst ate,when-
(i) exer cising a poweri nt ermsoft he Const i
tuti
on ora pr ovi ncial
cons tit
ut i
on;or
(ii
) exer cisingapubl icpowerorper formi ngapubl icfunct i
oninter msof
anyl egi slation;or
(
b)anatur alorj uristicper son,ot hert hananor ganofst ate,whenexer cisinga
publicpowerorper formi ngapubl icfunctioni ntermsofanempower ing
provision,
whichadver sel yaf fectst her ightsofanyper sonandwhi chhasadi rect,
exter
nallegalef fect.
Therear eexcept ionst ot hedef i
nition.Theseexcept ionsar e,however ,not
appli
cablet ot hegi vensetoff act s.
Thedeci siont ot ur ndownAf ri
canSi l
ver(Pty)Lt damount st oadmi nistrati
ve
acti
onbecausei tcompl ieswi tht hedef i
nit
ionint hatitinvolvesadeci sionby
anor ganofst ate( theof fi
cial,t heappoi ntedper soni nt heDepar tmentof
Minerals and Ener gy)exer cising a publ ic powerorper forming a publ ic
f
unctionint ermsofanyl egi slationwhi chhasadver selyaffect edtheright sof
aper son( AfricanSi l
ver( Pt y)Lt d) )andwhi chappear stohavehadadi r
ect
exter
nallegalef fect.

1.
3 Dothef
oll
owingacti
onsconst
it
uteadmi
nist
rat
iveact
ion?Expl
ainyouranswer
s.
i
)Theenactmentoft
heMPRDA?

(2)
No,i
tisexcl
udedbysect
ion1(
b)dd)ofPAJA.
(

i
i)The deci
sion oft
he DepartmentofMi
ner
alsand Ener
gyt
o gr
antAf
ri
can
Gol
den(Pty)Ltdtheminer
alr
ights.

(2)
Yes,i
thasadirectnegat
iveext
ernall
egalef
fect(
onAf
ri
canSi
l
ver
)andi
twasmadeby
anorganofst
ate.

i
i
i)Ther
equestf
orr
easonsbyAf
ri
canSi
l
ver(
Pty)Lt
d.

(
2)
No,t
herequestf
orr
easonsi
snotadeci
si
onmadebyanor
ganofst
ate.
 [
25]

QUESTI
ON2

2.
1 Whati
sthebasi
sofadmi
nist
rat
ivel
egal
i
ty?

(3)
 Aprinci
pleusedbythecour t
stodet
er mi
newhetheradmi ni
str
ati
veacti
onwasnot
onl
yaut hor
isedbylawbutal soper
formedinaccordancewiththeprescr
ipt
slaid
downbyt helaw.
 Thatthepublicadmi
nistr
ati
onmustserveandpromotet hepubli
cint
erest
,prot
ect
andrespectfundamental
/humanri
ghts.

2.
2 Expl
aint
hepr
inci
pleofl
egal
i
tyi
ntheconst
it
uti
onalf
ramewor
k.

(
3)

 TheConst it
uti
oni sthesupr emel awoft hecount r
yandi sel
evatedaboveallstate
l
egislati
on.Section2oft heConst ituti
onpr ovi
dest hatanylaworconductt hatis
notinlinewit
ht heConst it
utionmaybedecl aredinval i
dbythecourt.
 Fedsur eLi
feAssur anceLTDvGr eaterJohannesbur g1999( 1)SA374( CC) :t
he
executive“mayexer ci
senopowerandper form nof uncti
onbeyondthatconferr
ed
upont hem bylaw.”
 Secti
on8oft heConst i
tuti
onpr ovidest hattheBi l
lofRight
sbi ndst
heexecut ive
authori
ty–st ateadmi ni
strationinal lspheresofgover nment–andal lorgansof
st
ate.Thi smeanst hator gansofst ateandi ndivi
dualsexerci
singpubli
cpower
areboundbyt helawandnotel evatedabovei t.

2.
3 In orderto det
ermine whet herAf r
ican Sil
ver( Pt
y)Ltd’srighttor easonabl
e
administ
rat
ive acti
on was i nf
ringed, explai
n t he Const it
uti
onal Cour t
’s
i
nterpret
ati
onoftherightt
or easonabl eadminist
rati
veact
ion.Inyouransweryou
shouldapplytheCour t
’sinterpr
etati
ontot hegivensetoff actsandr ef
ert ot
he
rel
evantcaselawandpr ovisionsinPAJA. (14)

- PAJAgi veseff
ecttother i
ghtt
or easonabl
eadmi ni
str
ati
veacti
onbygivi
ngan
i
ndi
vidualthecapaci
tyundersect
ion6(1)“toinsti
tut
eproceedi
ngsinacourtora
t
ri
bunalforthej
udici
alr
eviewofanadmi ni
strat
iveacti
on”onthegroundt
hat
:

- “t
heexer ciseoft hepowerortheper f
ormanceoft hefuncti
onauthor
isedbythe
empower ingpr ovisi
on,i
npur suanceofwhi chtheadmi ni
str
ati
veaction was
purpor
tedlyt aken,issounr easonabl
et hatnor easonablepersoncouldhave
exerci
sedt hepowerorper f
ormedt hef
unction”(secti
on6(2)(h)
)

- CCgavemeani
ngt
othecont
entofsec6(
2)(
h)i
nthecaseofBat
oSt
arFi
shi
ng
 (
Pty)Lt
dvMi
nist
erofEnvi
ronmentAf
fai
rs20044SA490.

- O’
ReganJemphasi sedtheimpor
tanceofreadi
ngsect
ion6(
2)(
h)i
nli
newi
tht
he
wor
dingofsect
ion33(1)oft
heConsti
tut
ion.

- Accordingt oO’ReganJ,t hesubsect

ionmustbeconstruedconsist
ent
lywit
hthe
Constit
utionandinpar t
icul
arsect
ion33whichrequi
resasimpletest
,namelythat
an admi nist
rat
ive deci
sion wi
llbe revi
ewabl
ei fi
ti s one t
hata reasonabl
e
decisi
on-makercoul d notreach.(al
so ref
err
ed toint he st
udyguide asthe
“si
mple”test)

- Whatwillconsti
tut
eareasonabl
edeci
si
onwi
l
ldependont
heci
rcumst
ancesof
eachcaseasi ti
scont
ext
-based.

- O’ReganJproceededtoenumer
atet
hef
act
orsr
elevantt
odet
ermi
ningwhet
hera
deci
sioni
sreasonabl
e.Theyi
ncl
ude:

- -t
henat
ureoft
hedeci
si
on

- -t
hei
dent
it
yandexper
ti
seoft
hedeci
si
on-
maker

- Ther
angeoff
act
orsr
elevantt
othedeci
si
on

- -t
her
easonsgi
venf
ort
hedeci
si
on

- -t
henat
ureoft
hecompet
ingi
nter
est
sinv
olved

- -
thei
mpactoft
hedeci
si
onont
hel
i
vesandwel
l
-bei
ngoft
hoseaf
fect
ed

[
20]

QUESTI
ON3

3.
1 Di
scusswhet
herbi
asi
sinevi
dencei
nthesetoff
act
s.

(10)
- Commonl awrulesofnaturalj
ust i
ce:
Audial
teram partem (
toheart heot hersi debef
oreadeci si
onistaken)
Nemoi udexi nsuacausar ul
e( noones houl
dbejudgei nhi sowncase–r ule
agai
nstbias/pr
ejudi
ce)
- Thelastruleisimportantinthiscont ext,inter
msoft hisrul
et hedeci
sion-maker
mustbe,andmustr easonablybeper ceivedtobe,impar t
ialorunbi
ased.Rul e
agai
nstbias.Themostcommonexampl esofbiasar
e:
Thepresenceofpecuni ary/
fi
nanci ali
nter est–moreevidentinthi
ssetoffacts.
Thepresenceofper sonalint
er est.
 - InRosevJohannesbur gLocalRoadTr anspor tati
onBoar d19474SA272( W)
thechai rmanoft heboar dresponsi bl
ef ort hegr anti
ngorr ef
usaloft ransport
l
icenceswasatt hesamet i
medi rectoroft het hreel arget axicompani esand
thereforebi ased.Thecour tfoundt hatther easonabl eper sonwoul dreali
set hat
thechai rmanwasi ndeedbi asedbecauseofhi sf i
nanciali nt
eresti nthet axi
company.
- Thet estt odet erminebi aswasf ormulat edbyt heAppel lateDi vi
sionin BTR
IndustriesSA vMet alandAl li
edWor ker sUni on 19923SA 673( A)as“ t
he
existence ofa r easonabl e suspicion ofbi as sat i
sfi
es t he testand t hatan
appr ehensi onoft her ealli
keli
hoodt hatthedeci sionmakerwi l
lbebi asedi snota
prerequi sitefordisqualif
yingbi as.
- InSACCAWUvI rvin&Johnson19997BCLR 725( CC)t heCC conf i
rmedt he
correctnessoft het estint heBTR case.Howevert heCC deci dedt ouset he
phrase“ ar easonabl eappr ehensionofbi as”r athert han“ ar easonablesus pi
ci
on
ofbias” .
- Theaf fectedi ndividualmer elyhast opr oveanappear anceofbi asratherthan
theexi stenceofact ualbias.
- Int he gi ven setoff acts one coul d ar gue t hatt here was undoubt edlya
reasonabl eappr ehensionofbi assincet heof ficeroft heDepar t
mentofMi nerals
andEner gyi sas hareholderinAf ri
canGol den.

3.
2 Di
scussful
l
ywhetherAf
ri
canSi
l
ver(
Pty)Lt
dhashadpr
ocedur
all
yfai
rtr
eat
ment
i
ntermsofPAJA.

(
10)

- Admi ni
strati
veact i
onwhi chmat eriall
yandadver selyaffectst her i
ghtorlegi
timate
expectati
onsofanyper sonmustbepr ocedur all
yf ai
r.(S3( 1)ofPAJA) .Brief
ly,
l
egiti
mat eexpect ationmeanst hatt her ulesoff airprocedur eareext endedt o
t
hosecaseswher enovest edr ightexi st
s,butonl ya“ l
egi t
imat eexpectati
on”ofa
benefitthatmaybegr ant edorabenef i
tt hatwi llnotbewi thdrawnbef orea
heari
nghasoccur red.Thi sexpect at
ionisnotmer elyahopeorwi sh,butbased
onsomet hingmor econcr ete,suchasanexpr esspr omi se,orar egularpracti
ce
whichcanr easonabl ybeexpect edt ocont i
nue.I tdoesnotmeant hattheper son
i
sguar anteedsuccess,butonl ythatheshoul dr eceiveahear ing.
- Fairadmi ni
strati
ve pr act i
ce dependson t he circumst ancesofeach case.( s
3(2)a)ofPAJA)
(
- Mandat oryr equirement s:( t
heseseem l i
keacodi f
icati
onofr ulesofnaturaljusti
ce)
(s3(2)(b)ofPAJA)
• Adequat enot iceoft henat ureandpur poseofpr oposedact ion
• Reasonabl eoppor tunitytomaker epresentations
• Cl earst atementofadmi nistrat
iveact i
on
• Adequat enot iceofr ightofr eviewori nternalappeal
• Adequat enot iceofr ighttor equestr easons
- Discr
etionar yrequi r
ement s:(s3( 3)ofPAJ A)
• Oppor t
unitytoobt ainassi stance,evenl egalassi stancei ncompl excases
 • Oppor t
unit
yt opr esentanddi sputeinf ormat ionandar gument s
• Oppor t
unit
yt oappeari nper son
- S3( 4)ofPAJAst atest hattherequi r
ement sins3( 2)ofPAJAmaybedepar ted
f
rom onlyi freasonableandj usti
fi
able.Thi si sdet erminedbyt akingallrelevant
f
actorsintoaccount ,whi chi
nclude:
• Theobj ect
soft heempower ingpr ovision
• Thenat ureandpur poseofandneedf ort heact i
on
• Thel i
kelyeff
ectoft headmi nistrat
iveact i
on
• Theur gencyoft hemat ter
• Theneedt opr omot eeffi
cientadmi ni
st rati
onandgoodgover nance.( s
3(4)b)
( )
Section3( 5)ofPAJAs t
atesthatt headmi nist r
atormayal sofollowadi ff
erent
butfairprocedur eiftheempower i
ngpr ovisionaut horisesthi
s
- Afr
icanSi l
ver( Pt
y)Lt dhasnothadpr ocedur all
yf airtr
eat mentintermsofPAJA
because,interali
a,
- Afr
icanSi l
ver( Pty)Ltdwasnotgi venanoppor t
unit
yt omaker epresentati
ons;
andwasnotgi venr easonsf ortheadmi nistrativeaction.S 3(4)andS 3( 5)of
PAJAdonotseem t ober el
evantforpr esentpur poses.

3.
3 Supposethereasonsgi
venfort
heref
usalofAf
ri
canSi l
ver(
Pty)Lt
d’sappl
i
cat
ion
arethatiti
snotaBEE compl i
antcompany.Discusswhetherthi
swouldbe
consi
dered“
adequate”r
easons.

(5)
- Theremustbeal inkbet weent headmi nist
rati
veact i
onandt her easonsgi ven.
- Ther easonsmust“ sui
t”theadmi ni
strati
veaction.
- InNomal avPer manentSecr et ary,Depar t
mentofWel f
are20018BCLR844( E)
thecour tf oundt hatt her easonsgi venmustbesuf f
ici
enti nformationf orany
disappointedappl i
cantt opr epar eanappeal( thetickingofboxesi nt hisi
nstance
discl
osenot hingoft her eas oningpr ocess)
- InMi nist
erofEnvi ronment alAf fair
sandTour ism vPhambi liFi sher
ies( Pty)Lt d;
Mi ni
sterofEnvi ronment alAf f
airsandTour i
sm vBat oStarFishi ng(Pty)Ltd[ 2003]
2Al lSa616( SCA)t hecour thel dthat“ i
tisapparentt hatreasonsar enotr eally
reasonsunl esstheyar epr oper lyinformati
ve.Theymustexpl ainwhyact i
onwas
takenornott aken,ot herwiset heyar ebet terdescr i
bedasf i
ndi
ngsorot her
i
nf or
mat i
on.
- Applicati
onf rom t hest udent :canar guewhi cheverway.Canr efert o Anset t
TransportI ndustries( Oper ati
ons)Pt yLtdvWr ait
h( 1983)48ALR500wher et he
courtfoundt hattheappl i
cantmustunder standther easonsgi ven.

3.
4 Explai
ninwhatcir
cumstancesadepar
tur
efr
om t
herequi
rementt
ofur
nishwri
tt
en
r
easonsmi ghthavebeenappl i
cabl
e.Inyouransweryoushouldr
efertothe
r
elevantpr
ovisi
onsinPAJA.

(5)
- Secti
on 5(
4)ofPAJA r
equi
rest
hatanydepar
tur
e mustbe r
easonabl
e and
 j
usti
fi
ablei nt hecircumstances.
- Administratormus tinfor
mt heappl i
cantoft hedepar ture.
- Thi
ssect ioni sal i
mi t
ati
onont her i
ghtt obegi venwr i
tt
enreasons.Thislimi
tat
ion
mustther eforebei naccordwi thsect ion36oft heConst i
tut
ion.
- To det ermi ne whet her this depar ture isr easonable and j ust
if
iabl
e, the
admini
st r
atormustt akecertai
nf actor sintoaccount
- Thesef actorsar esetoutinsect ion5( 4)(b):
Theobj ectsoft heempower i
ngpr ovision
Thenat ure,pur poseandl i
kelyef fectoft headmi nist
rati
veactionconcerned
Thenat ureandext entofthedepar ture
Therelationbet weent hedepar tureandt hepur pose
I
mpor t
anceoft hepur poseoft hedepar t
ure
Theneedt oi mproveanef fi
cientadmi nistr
ati
onandgoodgover nance

[
30]
QUESTI
ON4

4.
1 Li
stt
hef
ormsofi
nter
nalcont
rol
.

(3)
- Control by s uper
ior
/seni
or admi
nist
rat
ors or special
l
y const i
tut
ed
bodies/
inst
it
uti
ons
- Parl
iamentarycontr
ol
- Controlbypubli
cbodiesandcommissi
ons,suchast
hepubl
i
cprotect
orandthe
audit
or-gener
al

4.
2 Ment
iont
headvant
agesofi
nter
nalcont
rol
.

(5)
- Admi nistr
ati
vedeci si
onsar ethor
oughlyre-eval
uatedt
hroughint
ernalcont
rol
.
- Itispossibletobringineff
ici
entadminist
rat
orstothebook.
- Thr oughinternalcontrolsuchadmi ni
str
atorscanber epri
mandedorr equir
edto
giver easonsfortheirdecisi
ons.
- Internalcont rolis also less expensi
ve,l ess cumbersome and less ti
me-
consumi ngt hanjudici
alcontrol
.

4.
3 Li
stthe except
ionst
othe gener
alr
ulet
hati
nter
nalr
emedi
esmustf
ir
stbe
exhaust
ed. (7)

- Thecasehasal readybeenpr ej
udgesbyt headmini
str
ator.
- Thedecisionhasbeenmadei nbadf ai
th(malafi
de),f
raudulentlyoril
l
egall
y,or
hasineff
ectnotbeenmadeatal l.
- Theaggrievedpar t
yhasanopt ionwhethertouset heextraj
udicialr
emedyort o
proceeddirectt
ojudici
alr
eview(Jockeyclubcase).
- Theadmi nist
rat
iveauthor
it
yhascomet oanunacceptabledecisionasar esul
tof
 anerroroflaw.
- Theadmi nist
rat
ivebodyconcernedhasagreedthatjudi
ci
alreview pr
oceedings
mayst ar
timmedi at
ely.
- The administ
rat
ive bodyconcerned hasno aut
hori
tytor ecti
fythe part
icul
ar
i
rr
egulari
tycompl ai
nedof.
- Thei
nt er
nalremedycannotprovidet
hesamepr ot
ect
ionasjudici
alrevi
ew.

4.
4 Expl
aint
hevar
iousf
ormsofj
udi
ci
alcont
rol
.

(
10)
St
atut
oryappeal

- Thecour t
smayhearappealsonl ywher
ethi
sisprovi
dedforbystatut
e.
- Anappealmaybel odgedagainstafi
naldeci
si
onorf i
nalorder,notagai
nsta
provi
si
onalorder
.
- Detai
lsregar
dingtheappealwi
llappeari
ntherel
evantst
atut
e.

Judi
ci
alr
evi
ew

- Thecourtshaveinherentreviewj ur
isdi
cti
oninter
msofthecommonl aw
- Itent
ail
sreviewi
ngthelegal i
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[
25]

TOTAL:
{100}