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Weaponising the Public Finance Management Act: A new legal trend threatening public sector discipline
Weaponising the Public Finance Management Act: A new legal trend threatening public sector discipline

Daily Maverick

time03-06-2025

  • Business
  • Daily Maverick

Weaponising the Public Finance Management Act: A new legal trend threatening public sector discipline

A concerning trend is emerging in public sector employment. Employees facing disciplinary action are increasingly wielding the Public Finance Management Act 1 of 1999 (PFMA) not as the accountability tool it was designed to be, but as a shield against workplace consequences. This strategic pivot transforms financial governance legislation into an employment litigation weapon with potentially far-reaching implications for public administration. The PFMA was enacted in 1999 with the primary purpose of establishing a robust framework for financial governance in South Africa's public sector. At its core, the act aims to secure transparency, accountability, and sound management of revenue, expenditure, assets and liabilities across national and provincial government institutions. Among its core objectives, it provides mechanisms to prevent irregular, unauthorised, as well as fruitless and wasteful expenditure, thereby safeguarding public resources against misuse. The recent Labour Court case of Vico v The Department of Forestry, Fisheries and Environment offers a compelling illustration of this new phenomenon. Thembalethu Vico, a director within the department who faced dismissal following disciplinary proceedings related to the removal of confiscated abalone valued at approximately R7.5-million, sought to challenge his dismissal through an unusual legal avenue: by attacking the procedural aspects of his disciplinary hearing through the lens of the PFMA. At the heart of Vico's application was an attempt to secure declaratory relief related to what he characterised as incomplete disciplinary proceedings. His arguments centred on several PFMA-related assertions: that the employer had 'unjustly and unfairly terminated' the briefing contract of the disciplinary hearing chairperson; that this termination caused 'unreasonable delay' in his disciplinary hearing; that respondents 'contravened the applicant's right to fair labour practice'; and rather notably, that expenditure on recusal applications against the chairperson constituted 'fruitless and wasteful expenditure' under the PFMA. The Labour Court's response was unequivocal. In his judgment, Judge Robert Lagrange not only dismissed the application, but characterised it as 'vexatious in nature', ordering the applicant to pay the respondents' costs. 'An attempt to circumvent the proper forums for labour disputes' The court found that Vico was 'no stranger to legal principles and reasoning' and determined that his PFMA-based arguments represented an attempt to circumvent the proper forums for labour disputes — namely the General Public Service Sectoral Bargaining Council where he had already lodged an unfair dismissal claim. This case highlights a broader issue deserving closer scrutiny: the strategic repurposing of financial management legislation to serve employment law objectives. The PFMA, enacted in 1999, was designed to promote transparent and effective management of government finances — not as a mechanism for employees to challenge disciplinary outcomes. Yet increasingly, we witness creative legal arguments that stretch the PFMA beyond its intended boundaries. Several notable examples demonstrate this concerning pattern in other contextual scenarios: Unsuccessful tender bidders increasingly invoke the PFMA not to address genuine financial irregularities, but to contest legitimate procurement decisions they simply disagree with. By alleging technical PFMA violations, these bidders attempt to overturn procurement outcomes through financial management legislation rather than following appropriate procurement appeal processes. Some employees facing disciplinary action for performance or conduct issues have strategically repositioned themselves as 'whistleblowers' under section 51 of the PFMA. By claiming they were disciplined for reporting financial misconduct, rather than for their own workplace infractions, they attempt to transform standard employment disputes into protected disclosure matters. Some senior employees facing poor performance reviews have contested their evaluations by claiming they were instructed to take actions that would violate the PFMA. This transforms performance management into a complex legal dispute about financial legislation interpretation. Public entities facing pressure to implement organisational changes have cited PFMA compliance concerns as reasons to delay implementation, effectively using financial legislation as a strategic tool to resist operational reforms. Perhaps most troublingly, the PFMA has become weaponised in political contexts, with allegations of technical PFMA violations used to undermine political opponents in positions of financial accountability, regardless of whether actual financial mismanagement occurred. In the misconduct context, the implications of this trend are significant. Public sector managers face the daunting prospect of defending not only the substantive merits of disciplinary decisions, but also navigating complex arguments about whether their internal processes satisfy the technical requirements of financial legislation. This creates a chilling effect on departmental decision-making, potentially undermining efforts to address misconduct effectively. More worryingly, this legal strategy diverts valuable court resources. Judge Lagrange noted that the application was largely an attempt to revisit a matter that had already been decided, writing that 'it beggars belief that the applicant could have seriously believed that he could simply avoid the unequivocal effect of the judgment by approaching this court under the guise of an application for declaratory relief'. When courts must attend to such applications, genuine cases requiring judicial attention face delays. The Department of Forestry, Fisheries and the Environment's approach in the Vico case provides a template for addressing such claims. Rather than becoming entangled in debates about the PFMA's application to employment matters, they successfully redirected the court's attention to the jurisdictional question: Whether the Labour Court was the appropriate forum for what was essentially an attempt to relitigate disciplinary proceedings through a different legal framework. Distinct forums and remedies PFMA matters and employment disputes are meant to follow different procedural paths, with distinct forums and remedies designed to preserve the integrity of both systems. When properly invoked, PFMA concerns should follow established channels that begin with internal departmental controls, escalate to Treasury oversight, proceed through audit mechanisms via the Auditor-General's examination, involve executive accountability and operate through specific financial misconduct procedures established in the PFMA — all pathways that exist distinctly from labour dispute mechanisms. Notably absent from the PFMA is any provision making the Labour Court a forum for adjudicating PFMA violations, which is why the Department of Forestry, Fisheries and the Environment correctly focused on the jurisdictional question, highlighting that the applicant was attempting to bypass proper forums for both employment disputes (the General Public Service Sectoral Bargaining Council) and financial governance concerns (internal controls, Treasury oversight and potentially criminal proceedings). As this trend continues to evolve, public sector employers would be wise to develop proactive strategies. This includes ensuring that disciplinary procedures are documented with meticulous attention to detail, that financial decisions related to such proceedings are properly authorised, and that legal teams are prepared to address PFMA-based arguments directly. The PFMA represents a crucial pillar of democratic governance and institutional transformation. The act has become instrumental in the country's ongoing struggle against corruption and State Capture — challenges that have threatened South Africa's democratic foundations and economic stability. However, the judiciary's response in the Vico case sends a clear message: the PFMA cannot be weaponised to circumvent established labour relations processes. This judgment establishes an important precedent that may discourage frivolous applications of this nature. Ultimately, public administration requires both financial accountability and efficient personnel management. When these systems are placed in artificial opposition through creative litigation strategies, neither objective is well served. The Labour Court's firm stance in the Vico case represents a welcome correction — one that reinforces the proper boundaries between financial governance and employment law in South Africa's public sector. DM

‘Relentless threat to wildlife': Here's how many rhinos were poached in SA in 2025 so far
‘Relentless threat to wildlife': Here's how many rhinos were poached in SA in 2025 so far

The Citizen

time06-05-2025

  • The Citizen

‘Relentless threat to wildlife': Here's how many rhinos were poached in SA in 2025 so far

A provincial breakdown shows that SANParks experienced the highest number of rhino losses. More than 100 rhinos were killed in South Africa due to poaching during the first three months of 2025, according to the Department of Forestry, Fisheries and Environment. The latest figures, released by the department on Monday, reveal that a total of 103 rhinos were poached nationwide between January and March. This equates to an average of 34.33 rhinos lost to poaching each month. Rhino poaching stats in SA A provincial breakdown shows that South African National Parks (SANParks) experienced the highest number of rhino losses, with 65 animals killed. KwaZulu-Natal (KZN) reported 16 cases, followed by Limpopo with 10 and Free State with five. North West and Mpumalanga recorded the lowest cases of rhino poaching, with four and three, respectively. However, no incidents of rhino poaching were reported in the Eastern Cape, Northern Cape, Western Cape, or Gauteng. ALSO READ: SA rhino poaching falls, with KZN leading the way Commenting on the statistics, Forestry, Fisheries and Environment Minister Dion George said the absence of poaching in four provinces was 'encouraging', but he expressed concern about the overall death toll. George described the situation as 'a stark reminder of the relentless threat to our wildlife'. 'Yet, the absence of poaching in four provinces shows that our targeted interventions are yielding results, and we must build on this progress,' he said. The minister also highlighted that targeted measures have contributed to 15 arrests related to rhino poaching. Moreover, five poaching-related cases have been finalised in the same period. Anti-poaching efforts George stressed that the department is working in close collaboration with the National Prosecuting Authority (NPA) and the South African Police Service (Saps), aiming to improve opposition to bail for repeat offenders and illegal immigrants. 'We are working closely with the NPA and Saps to ensure that repeat offenders and those with no fixed address face stronger opposition to bail,' the minister remarked. He added that to bolster efforts against wildlife crimes, the department is turning to technology, including drones and thermal radar, while also engaging communities near protected areas to address the root causes of poaching through sustainable development 'The South African government remains steadfast in its commitment to combating wildlife crime. READ MORE: Mozambican man sentenced to 30 years imprisonment for rhino poaching in SA 'We continue to strengthen anti-poaching measures, including enhanced ranger patrols, advanced surveillance technologies, and collaboration with national and international law enforcement agencies,' George said. 'We call on every South African and the global community to stand with us in safeguarding our rhinos. 'Public awareness, responsible tourism and support for conservation initiatives are critical to ensure future generations can witness the magnificent animals in the wild,' the statement further reads. George also extended an invitation to individuals and organisations willing to support anti-poaching operations by donating equipment such as binoculars, radar sets, and other essential gear. 'The department will continue to monitor the situation closely and provide regular updates on our efforts to protect South Africa's rhinos and other endangered species.' In 2024, a total of 420 rhinos were killed in South Africa.

South Africa grants Eskom coal plants limited emissions exemptions
South Africa grants Eskom coal plants limited emissions exemptions

Zawya

time03-04-2025

  • Business
  • Zawya

South Africa grants Eskom coal plants limited emissions exemptions

South African coal-fired power stations have received limited exemptions from air quality laws and harmful emissions reduction regulations, the environment minister said on Monday, but he stressed that the measures did not constitute a "blanket reprieve". The retired coal-fired Komati Power Station, operated by Eskom, is seen near Komati village, in the Mpumalanga province in South Africa, 9 May 2024. The government is struggling to strike a balance between calls to reduce its carbon footprint and stop harmful emissions and the need to provide electricity to Africa's most advanced economy, which has stagnated due to power cuts. Power utility Eskom, whose fleet of old coal-fired power plants generates most of South Africa's electricity, had applied to exempt eight of its plants from minimum emission standards prescribed in air quality regulations. In granting the exemptions, the Ministry of Forestry, Fisheries and Environment (DFFE) said it would require Eskom to step up monitoring, appoint environmental health specialists and provide mobile health clinics, among other measures. "These exemptions are not a blanket reprieve but are tailored to each facility with stringent conditions," environment minister Dion George told a press conference. Six of the plants - Lethabo, Kendal, Tutuka, Majuba, Matimba and Medupi - will have exemptions capped at five years, expiring on 1 April 2030, while the Duvha and Matla power stations will be exempted until their planned decommissioning dates in 2034. Eskom said it was reviewing Monday's decision and was committed to reducing negative societal impacts on health and the environment. The utility, one of the continent's worst polluters, has been running its plants hard in an attempt to end a decade of economically devastating power cuts and clear a maintenance backlog amid regular breakdowns. It has previously said that retrofitting its plants, many of them 30 to 40-years-old, with new technology to reduce harmful emissions is too costly. Early this month a 10-year study found that people living near coal-fired power stations, mostly concentrated in Mpumalanga province's coal belt, had a mortality rate 6% higher than their peers elsewhere in South Africa. The report from the South African Medical Research Council and Britain's Department for International Development found higher rates of birth defects and cardiovascular and lung disease in communities near plants. It recommended phasing out the coal-fired plants. "We want enough electricity to grow our economy, and we want clean, breathable air," George said. "It is completely unacceptable when our children have problems with their lungs, and babies are born with cleft palates."

South Africa Grants Emissions Exemptions to Coal-Fired Plants in Effort to Avoid Blackouts
South Africa Grants Emissions Exemptions to Coal-Fired Plants in Effort to Avoid Blackouts

Yahoo

time31-03-2025

  • Business
  • Yahoo

South Africa Grants Emissions Exemptions to Coal-Fired Plants in Effort to Avoid Blackouts

South African officials will allow some of the country's coal-fired power plants to operate without the need to adhere to regulations on carbon and other emissions. The move comes as South Africa continues to struggle with producing enough electricity to power the country's growing economy. South Africa, which relies on coal for more than 80% of its power generation, for years has experienced power supply shortages, resulting in hours-long blackouts and load-shedding measures, part of an effort to protect the power grid. Dion George, the country's environment minister, on March 31 during a news conference in Cape Town said eight coal-fired plants run by Eskom, the state-owned utility, would be allowed to skirt emission rules in an attempt to focus on providing a steady supply of electricity. George said the Kendal, Lethabo, Majuba, Matimba, Medupi, and Tutuka plants were given a five-year exemption. The coal-fired Duvha and Matla facilities were given exemptions until 2034, when those facilities are scheduled to be retired. Five other Eskom-operated plants also were granted exemptions until June 2030. The utility has said its plan to stabilize the nation's power supply includes delaying the decommissioning dates of some of its coal-fired stations. George said South Africa must increase its supply of renewable energy "with urgency," and said the country needs to accelerate its transition away from coal-fired power. The minister said Eskom wanted longer extensions to keep coal-fired plants online, and added, "I did not give them what they wanted." George said, "These exemptions are not a blanket reprieve but are tailored to each facility with stringent conditions." The Ministry of Forestry, Fisheries and Environment said it would require Eskom to increase its monitoring of power plant emissions, appoint environmental health specialists, and provide mobile health clinics as part of the plan. Eskom officials said the utility was reviewing the order, and said it is committed to reducing negative societal impacts on health and the environment from its coal-fired fleet. Eskom previously has said that retrofitting aging power plants with emissions control technology would be too costly. Many of the utility's coal-fired facilities have operated for three decades or more. A recent report from the South African Medical Research Council and the UK's Dept. for International Development said a 10-year study found that people living near coal-fired power stations in South Africa, particularly in the area around the Mpumalanga province's coal belt—home to several coal-fired power plants—had a mortality rate 6% higher than other areas of South Africa. The report said there are higher rates of birth defects, and cardiovascular and lung disease, in communities near coal plants. Said George, "We want enough electricity to grow our economy, and we want clean, breathable air. It is completely unacceptable when our children have problems with their lungs, and babies are born with cleft palates." South African Electricity Minister Kgosientsho Ramokgopa earlier in March said the country's power supply continues to be taxed because of delays in construction of more generation capacity. The country's lone nuclear power plant, the two-unit 1,860-MW Koeberg station north of Cape Town, earlier this month experienced an unplanned shutdown of Unit 2, taking it offline for several hours at the same time Unit 1 was offline for maintenance. Koeberg, whose units have operated since 1976 and 1984, respectively, provides about 5% of South Africa's electricity. The country also has discussed building more nuclear power plants. Renewable energy currently accounts for less than 10% of South Africa's power supply, according to government data. Officials have a goal for at least one-third of the country's electricity to come from renewables by 2030, and have acknowledged meeting that target—considered to be about 19 GW of generation capacity—would require significant investment from international banks. Officials said three utility-scale solar farms are planned for construction by JUWI South Africa, a major solar power developer, this year. The arrays in total will have about 340 MW of generation capacity. The company said the projects include: A 120-MW facility for Teraco Data Centres, Africa's largest data center company, supplying multiple locations via wheeling innovation from a generation site in the Free State Province. A 120-MW plant for Sasol and Air Liquide, in partnership with independent power producers TotalEnergies, Mulilo and Reatile Group. A 100-MW facility for Glencore Mine, providing clean energy to its ferrochrome smelters in partnership with Pele Green Energy. "These projects underscore the critical role of private sector leadership in driving South Africa's energy transition," said Richard Doyle, managing director of JUWI Renewable Energies. "As one of the pioneers of the country's renewable energy sector, JUWI is proud to partner with energy-intensive industries and IPPs to deliver innovative projects that enhance energy resilience, reduce emissions, and accelerate progress toward net zero. These projects reflect our commitment to building a sustainable energy future for South Africa." —Darrell Proctor is a senior editor for POWER.

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