THE SUPREME COURT OF APPEAL OF SOUTH AFRICA

JUDGMENT

Case No:  160/09
In the matter between:

N N MADZHADZHI                                                                 FIRST APPELLANT
N M MUDALAHOTHE                                                       SECOND APPELLANT
R R SUMBANA                                                                      THIRD APPELLANT
R A RAMUGONDO                                                            FOURTH APPELLANT

v

PRESIDENT OF THE RSA                                                 FIRST RESPONDENT
PREMIER OF THE LIMPOPO PROVINCE                    SECOND RESPONDENT
MEMBER OF THE EXECUTIVE COUNCIL OF                 THIRD RESPONDENT
LIMPOPO CHARGED WITH LOCAL GOVERNMENT
AND HOUSING
MINISTER OF PROVINCIAL AND LOCAL                   FOURTH RESPONDENT
GOVERNMENT
INDEPENDENT COMMISSION FOR THE                          FIFTH RESPONDENT
REMUNERATION OF PUBLIC OFFICE BEARERS
MINISTER OF FINANCE                                                    SIXTH RESPONDENT

Neutral citation:
Madzhadzhi v President of the RSA (160/2009) [2010]
ZASCA 57 (1 April 2010).
Coram:

Mpati P, Cloete, Cachalia, Malan et Tshiqi JJA
Heard:

11 March 2010
Delivered:

1 April 2010

Summary: Section 5 (2) of the Remuneration of Public Office Bearers Act 20 of 1998 prohibits
traditional leaders from being paid two incomes for holding two ‘public offices’ simultaneously, but
it does not prohibit them from being paid a salary as a traditional leader if  they are also employed
in the public service – Section 219 (1) of the Constitution recognises that national and provincial

governments have concurrent legislative and executive competence over traditional leaders, but
their salaries must be determined by national framework legislation. Where such salaries are
determined by a provincial statute, the provincial determination is valid in the absence of a
constitutional challenge to the statute. – Application for declaratory relief. Declaratory order not
affecting the consequences of an invalid decision, which remains valid until set aside – Declarator
refused.

________________________________________________________________

ORDER
________________________________________________________________

On appeal from: North Gauteng High Court (Pretoria) (Phatudi AJ sitting as
court of first instance).

The following order is made:

(1)
The appeal is dismissed.

(2)
The cross-appeal is upheld to the extent that the order of the high court is
amended as follows:

‘The application is dismissed, each party to pay its own costs.’

________________________________________________________________

JUDGMENT
________________________________________________________________

CACHALIA JA (Mpati P, Cloete, Malan and Tshiqi JJA concurring):

[1] This is an appeal against a judgment of the Northern Gauteng High Court
(Phatudi AJ) refusing declaratory relief to the appellants. It concerns a dispute

over the remuneration of headmen and headwomen, who are traditional leaders,
in Limpopo Province. It is convenient to refer to them as headmen. There are
several hundred headmen who have an interest in the outcome of these
proceedings. The four appellants were selected to bring test cases. The second
and third respondents oppose the relief sought. It would be convenient to refer to
them together as the respondents or the provincial government. The first, fifth
and sixth respondents elected to abide the decision of the court. No relief is
sought against the fourth respondent.

[2] The four appellants fall into three categories – the first and fourth
appellants are in the first. The first appellant is, in addition to being a headman
who is paid from the public purse, employed by the province as a public servant
under the Public Service Act  1994 (the PSA).1 The second, who is a headman,
was, but no longer is, a public servant. Their dispute with the provincial
government arose after their salaries as headmen were terminated on the ground
that s 5(2) of the Remuneration of Public Office Bearers Act 20 of 1998
(REPOB)2 precluded their being paid salaries. In the high court they sought a
declaratory order to the effect that the section did not debar them from receiving
salaries as traditional leaders even though they were also being employed and
paid as public servants.

[3] The second and fourth appellants fall into the second category. (The
fourth appellant falls into both the first and second categories). The second
appellant was recognised as a headman after 1 October 2002. His complaint is
that the provincial government determined his earnings at R13 000 per annum,
which is lower than the R30 000 per annum paid to headmen appointed before
this date.  The relief he seeks is to secure the higher salary of R30 000. I mention
at this stage that the fourth appellant retired from the public service on 31 March
2005. His salary as a headman was then reinstated, but at the newly determined

1 Proclamation 103 published in GG 15791, 3 June 1994.
2 Quoted in para 18.

rate of R13 000. His grievance is that his salary ought to have been reinstated at
R30 000, which is what he was earning before 1 October 2002. I deal with his
case in paras 30 and 31.

[4] The third appellant became a headman before 1 October 2002. He earned
R30 000 annually and falls into the third category. His complaint is that he is
entitled to salary increments, which the President has determined periodically for
kings and chiefs (whose status is higher than that of headmen) – a grievance
shared by the other appellants who earn R13 000.

The present dispute

[5] In 2001 the provincial government undertook an investigation into the
appointment and remuneration of headmen in the province. It emerged that some
were being employed as public servants under the PSA. They were thus
receiving two incomes – as headmen and as public servants. So, on 29 July
2002, the Senior Manager for Traditional Affairs took steps to stop this. He
addressed a letter to the first appellant in these terms:

‘1.
In terms of our records, you are earning a salary as a Traditional Leader and also
as a government employee.

2.
According to the Public Office Bearers Act 20 of 19983, section 5(2) a “traditional
leader, member of a Provincial House of Traditional Leaders or a member of the
National House of Traditional Leaders who holds different public offices simultaneously,
is only entitled to the salary, allowance and benefits of the public office for which he or
she earns the highest income.” This implies that Traditional Leaders who are employed
in the Public Service must only get a salary which is the [higher] of the two to avoid dual
remuneration.

3 This is obviously a reference to REPOB, quoted below in para 18.

3.
. . . [You] are requested to indicate to this office on or before 30 August 2002
which salary should be stopped failing which [your] salary as a Traditional Leader will be
terminated with effect from 30 September 2002 . . . ’

[6] Similar letters were addressed to other headmen who fell into this
category. Neither the first appellant nor any of the other headmen to whom the
letters were sent responded. So on 30 September 2002 the provincial
government terminated the salaries they were earning as headmen as it had
threatened to do.

[7] The investigation also revealed that most of the functions and
responsibilities of headmen have been reduced – and are being performed by
government authorities and local councillors. And so, after consulting with
traditional leaders, the provincial government decided to reduce the salaries of
headmen from R30 000 per annum to R13 000 per annum with effect from 1
October 2002. However, headmen appointed before this date would continue to
receive R30 000. The appellants claim to be unaware of this decision, but
nothing turns on this. There were no further developments for more than three
years after these decisions were implemented.

[8] On 14 December 2005 attorneys representing all these headmen wrote to
the Premier. They complained that the termination of their clients’ salaries was
unlawful and should be reinstated with retrospective effect – from 1 October
2002. They also demanded the termination of ‘the discriminatory system’ of
remunerating headmen and the initiation of ‘a process in terms of which the
salaries and allowances of all traditional leaders will be determined by the
President in terms of s 5 of [REPOB]’.

[9] On 25 January 2006 the provincial government, by letter, requested the
appellants’ attorneys to provide details of all the headmen they represented, their
current status and copies of the letters received by their clients purporting to

terminate their remuneration as headmen. The attorneys provided the
information on 14 March 2006, but not the letters. The province then undertook a
verification exercise of the names that the attorneys had provided – there were
several hundred. By 7 August 2006 the matter had not progressed any further.
So, the attorneys gave the province 14 days to respond. They failed to do so and
on 1 December 2006 the appellants launched the present proceedings in the
high court.

The proceedings in the high court

[10] In the high court the appellants sought declaratory relief in terms of
s 19(1)(a)(iii) of the Supreme Court Act 59 of 1959 in these terms:4

‘(a)
that the First and Fourth Applicants (and all other headmen and headwomen who
find themselves in a similar position to the First and Fourth Applicants) are and
were at all relevant times –
(i)
not debarred by the provisions of section 5(2) of the Remuneration of
Public Office Bearers Act, 1998 (Act 20 of 1998), from receiving
remuneration as headmen and headwomen;
(ii)
entitled to [their remuneration, together with] increments at such times as
increments were granted to Kings and Chiefs, as headmen and
headwomen;
[notwithstanding their employment as officers or employees in the public
service;]
(b)
that the Second, Third and Fourth Applicants (and all other headmen and
headwomen who find themselves in a similar position to the Second Applicant)
are and were at all relevant times entitled to receive in their capacities as
headmen or headwomen remuneration, together with increments at such times
as increments were granted to Kings and Chiefs, similar to the remuneration that
was paid to headmen and headwomen appointed before 2002.

4 The reason for the square brackets appears from para 28 below.

. . .’

[11] The relief is claimed in two parts: the first and fourth appellants seek an
order that s 5(2) of REPOB5 did not permit the provincial government to terminate
their salaries as headmen even though they were also receiving salaries as
public servants. Secondly, the second, third and fourth appellants claim an
entitlement to be paid a salary of R30 000, which is what headmen who were
appointed before 1 October 2002 are being paid (not the R13 000 that some
currently receive) together with increments.

[12] The learned judge agreed with the interpretation contended for by the
appellants that the reference to ‘public office’ in s 5(2) of REPOB referred only to
elected officials in any of the three spheres of government or to traditional
leaders; it did not include public servants. However, he then characterised the
dispute as a review under the Promotion of Administrative Justice Act 3 of 2000
(PAJA). And, having done so, he found that because the first appellant had not
instituted review proceedings within 180 days after becoming aware of the
decision to terminate their salaries as headmen, as required by s 7 of PAJA, she
was not entitled to the relief claimed. It appears that the judge inadvertently
omitted to deal with the fourth appellant’s claim on this aspect.

[13] It seems that the judge also rejected the first and fourth appellants’
applications on the merits by finding that they ‘would not have been . . . entitled
to claim any additional remuneration in respect of their official duty or work (as
traditional leaders) without permission granted by the relevant executing
authority’. There is no indication in the judgment that the judge considered the
second part of the relief claimed by the second, third and fourth appellants. In the
event, he dismissed the application but ordered the respondents to pay the costs.
The respondents cross-appeal the costs order.

5 Quoted in para 18.

Legislative background.

[14] One of the central issues in the dispute, which has a bearing on both parts
of the relief claimed, is whether the authority over the remuneration of traditional
leaders in the province (and particularly headmen) was vested in the President
by virtue of s 5(1) of REPOB,6 or in the provincial government. It is therefore
necessary to examine the legislative history of the remuneration of traditional
leaders in the province.

[15] Before South Africa’s democratic transition in 1994 the responsibility for
regulating the affairs of traditional leaders lay with various ‘self-governing
territories’. In the Venda territory, which is now part of the Limpopo Province,
chiefs and headmen were appointed under legislation administered by the former
Venda Government. Their remuneration was determined under s 19 of the Venda
Traditional Leaders Proclamation 29 of 1991 (the Venda Proclamation).
According to Proclamation 109 of 19 June 1994, under the Constitution of the
Republic of South Africa Act 200 of 1993 (the Interim Constitution), the
determination of traditional leaders’ salaries fell within the province’s competence
in terms of s 126 read with schedule 6.7 The administration of the Venda
Proclamation was assigned to the province, which was then known as the
Northern Province. Following the assignment of the Venda Proclamation to the
Northern Province, its Executive Council, the Council for National Unity, on 8
April 1994 and by resolution 10/94, determined a uniform salary to be paid to
chiefs at R46 311 per annum and to headmen at R30 000 per annum.

6 Quoted in para 18.
7 Ex Parte Speaker of the Kwazulu-Natal Provincial Legislature: In re Kwazulu-Natal Amakhosi
and Iziphakanyiswa Amendment Bill of 1995; Ex Parte Speaker of The Kwazulu-Natal Provincial
Legislature: In re Payment of Salaries, Allowances and Other Privileges to the Ingonyama Bill of
1995 1996 (4) SA 653 (CC) para 8 and Ex Parte Chairperson of the Constitutional Assembly: In
re Certification of the Constitution of the Republic of South Africa, 1996 1996 (4) SA 744 (CC)
para 433.

[16] The following year the national government was also given the power to
determine the remuneration of traditional leaders in terms of s 2 of the
Remuneration of Traditional Leaders Act 29 of 1995 – though this law did not
remove the provinces’ power over remuneration.8 Remuneration paid by the
national government was to be additional to any salaries traditional leaders
received from a province.9 So, while the national government was given authority
to determine salaries for traditional leaders, the province’s authority to pay the
salaries of chiefs and headmen under the Venda Proclamation continued. A dual
system of remuneration existed. The preamble to Act 29 of 1995 specifically
acknowledged this duality by stating:

‘ . . . AND WHEREAS the subjects and followers of particular tribal hierarchies do not
necessarily all reside in a single province and the constituencies of traditional hierarchies
transcend provincial boundaries;
AND WHEREAS the need for members of traditional hierarchies to be supported,
maintained and remunerated in respect of their tribal roles from national governmental
level and from national funds as opposed to the provincially administered statutory
functions they may fulfil and in respect of which they may be remunerated by provincial
or local governments is recognised.’

[17] The final Constitution10 (the Constitution) came into force on 4 February
1997. Traditional leadership is included in Schedule 4 and is subject to Chapter
12. It is thus a function over which national and provincial governments have
concurrent legislative and executive competence. However, in the Certification

8 Section 2: ‘Remuneration and allowances of traditional leaders
(1) Notwithstanding any other law, a traditional leader may be paid out of the National Revenue
Fund such remuneration and allowances as the President may determine after consultation with
the Council of Traditional Leaders established by section 184(1) of the Constitution and the
Commission on Remuneration of Representatives contemplated in section 207 of the
Constitution.
(2) For the purposes of subsection (1), the President may –
(a) on the grounds of the status and powers of traditional leaders differentiate between different
categories of traditional leaders; and
(b) determine that the remuneration and allowances payable to traditional leaders in different
categories may differ.’
9 S Woolman et al Constitutional Law of South Africa 2 ed (2009) p 26-32.
10 Act 108 of 1996.

judgment,11 the Constitutional Court stated that even though the provinces
retained most of their powers and functions over traditional leaders in the
Constitution, a significant diminution in their authority occurred when the
framework for their remuneration was transferred from provincial to national
legislation by s 219(1)(a).12 But this did not mean that there was any
constitutional impediment to national legislation retaining the existing dual system
of remuneration, which followed the introduction of Act 29 of 1995 referred to
above. Nor did it prevent provinces from implementing national legislation. This
much is clear from s 219(4) of the Constitution.13

[18] REPOB was the national framework legislation passed to comply with
s 219(1)(a) of the Constitution. It commenced operation on 23 September 1998.
Section 5 deals with the remuneration of traditional leaders. It provides:

‘5     Salaries, allowances and benefits of traditional leaders, members of local
Houses of Traditional Leaders, members of provincial Houses of Traditional
Leaders and members of National House of Traditional Leaders. –
(1)
Traditional leaders, members of any local House of Traditional Leaders,
members of any provincial House of Traditional Leaders and members of the National
House of Traditional Leaders shall, despite anything to the contrary in any other law
contained, be entitled to such salaries and allowances as may from time to time be
determined by the President after consultation with the Premier concerned by
proclamation in the Gazette, after taking into consideration –

(a)
any recommendations of the Commission;
. . .
(2)
Despite the provisions of subsection (1), a traditional leader, a member of a local
House of Traditional Leaders, a member of a provincial House of Traditional Leaders or

11 See above n7 at para 409.
12 Section 219(1): ‘An Act of Parliament must establish a framework for determining –
(a)  the salaries, allowances and benefits of members of the National Assembly, permanent
delegates to the National Council of Provinces, members of the Cabinet, Deputy Ministers,
traditional leaders and members of any councils of traditional leaders.’
13  Section 219(4): ‘The national executive, a provincial executive, a municipality or any other
relevant authority may implement the national legislation referred to in subsection (1) only after
considering any recommendations of the commission established in terms of subsection (2).’

a member of the National House of Traditional Leaders who holds different public offices
simultaneously, is only entitled to the salary, allowances and benefits of the public office
for which he or she earns the highest income, but –
(a)
this subsection shall not preclude the payment of out of pocket expenses for the
performance of functions other than those for which such office bearer receives such
highest income; and
(b)
where only an allowance has been determined in terms of subsection (1) in
respect of a traditional leader’s membership of a local House of Traditional Leaders, a
provincial House of Traditional Leaders or the National House of Traditional Leaders,
such a traditional leader shall be entitled to such an allowance in addition to his or her
salary, allowances and benefits as a traditional leader.
. . .
(4)
The amount payable in respect of salaries, allowances and benefits to traditional
leaders, members of local Houses of Traditional Leaders, members of provincial Houses
of Traditional Leaders and members of the National House of Traditional Leaders shall
be paid from monies appropriated for that purpose by Parliament in respect of the
National House of Traditional Leaders and by a provincial legislature in respect of
traditional leaders, members of local Houses of Traditional Leaders and members of
provincial Houses of Traditional Leaders, as the case may be.’

[19] REPOB’S effect is that the authority for deciding the salaries for traditional
leaders now vests in the President, who must consult the Premier concerned and
consider any recommendations of the Independent Commission for the
Remuneration of Office Bearers, envisaged in s 219(2) of the Constitution, before
making a decision. REPOB repealed Act 29 of 1995,14 but not the Venda
Proclamation. So while REPOB contemplates that the President will determine
the salaries of traditional leaders, the province retained the authority over the
remuneration of chiefs and headmen – notwithstanding s 5(1) of REPOB. There
is no constitutional challenge to the Venda Proclamation. So we must accept that
the province’s determination of salaries for headmen in 2002 was valid. This is

14 Section 10: ‘Repeal of laws. – The Payment of Members of Parliament Act, 1994 (Act No. 6 of
1994), the Remuneration and Allowances of Executive Deputy Presidents, Ministers and Deputy
Ministers Act, 1994 (Act No. 53 of 1994), and the Remuneration of Traditional Leaders Act, 1995
(Act No. 29 of 1995), are hereby repealed.’

because s 2(1) of Schedule 6 of the Constitution, which deals with transitional
arrangements, provides that all law that was in force when the Constitution took
effect continues to remain in force subject to amendment or repeal and
consistency with the Constitution.

[20] In 2005 the provincial legislature promulgated the Limpopo Traditional
Leadership and Institutions Act 6 of 2005. In terms of s 34 read with Schedule 1
of that Act, the Venda Proclamation was repealed with effect from 1 April 2006.15
Section 21(1) provides that the salaries of traditional leaders would thereafter be
dealt with under REPOB – in other words, by the President. This brought the dual
system of remuneration of traditional leaders in the province to an end.

[21] Since then it appears that the President has from time to time
determined16 salaries for kings, chiefs and also chairpersons and deputy
chairpersons of the National House of Traditional Leaders, who are all senior
leaders in the traditional leader hierarchy, but has not done so for headmen, who
are not. Headmen continued to receive the same salary that the province
determined on 1 October 2002.

[22] I turn to consider the first part of the relief claimed, which deals with the
dispute over the interpretation of s 5(2) of REPOB. It is not in dispute that at the
time the province stopped paying salaries, which the first and fourth appellants
were receiving as headmen, they were also being paid as public servants. The
reason that the province gave for terminating their salaries was that s 5(2) of
REPOB prohibited them from receiving salaries both as traditional leaders and as
public servants.17 However, in its answering affidavit, the province gave a
different reason – that s 30 of the PSA precluded the payment of salaries to
anyone who performed any other remunerative work without the relevant
department’s permission. In his written argument, Mr Tokota, who appeared for

15 Provincial Gazette 1240, 31 March 2006.
16 See for example; GN R36, GG 19901, 1 April 1999 and GN R23, GG 22182, 30 March 2001.
17 The reason appears from the letter in para 5.

the respondents, relied on both grounds to justify the decision. As I understand
his submission it was that the purpose of s 5(2) of REPOB is to prevent
traditional leaders and other public office bearers from earning ‘double salaries.’
Being employed in the public service constitutes the ‘holding of public office’ as
contemplated by s 5(2). To interpret it in any other way, so the submission went,
would defeat the purpose of s 5(2) of REPOB and bring it into conflict with s 30 of
the PSA.

[23] Section 5(2) of REPOB and s 30 of the PSA18 serve different purposes.
The former is concerned with preventing persons who hold more than one ‘public
office’ from receiving more than one salary. The latter is aimed at preventing
public service employees from performing remunerative work outside their
employment in the relevant department if this conflicts with their responsibilities
in the public service. The executive authority may, however, grant permission for
the employee to do other paid work if this does not interfere with his or her
employment or otherwise contravene the public service code of conduct.

[24] It is apparent that even though ‘public office’, as the term is used in s 5(2)
of REPOB, is not defined an ‘office bearer’ referred to in s 5(2)(a) is defined in
s 1. It refers only to elected officials and traditional leaders.19 And from s 5(2) of
REPOB it is clear that the reference to ‘holders of public office’ means ‘office

18 Section 30 of the PSA provides: ‘Other remunerative work by employees.
(1)  No employee shall perform or engage himself or herself to perform remunerative work
outside his or her employment in the relevant department, except with the written permission of
the executive authority of the department.
(2)  For the purposes of subsection (1) the executive authority shall at least take into account
whether or not the outside work could reasonably be expected to interfere with or impede the
effective or efficient performance of the employee’s functions in the department or constitute a
contravention of the code of conduct contemplated in section 41(1)(b)(v).
(3)  (a)  The executive authority shall decide whether or not to grant permission, contemplated in
subsection (1), within 30 days after the receipt of the request from the employee in question.
(b)  If the executive authority fails to make a decision within the 30 day period, it would be
deemed that such permission was given.’
19 “Office bearer” means a Deputy President, a Minister, a Deputy Minister, a member of the
National Assembly, a permanent delegate, a Premier, a member of an Executive Council, a
member of a provincial legislature, a traditional leader, a member of a local House of Traditional
Leaders, a member of a provincial House of Traditional Leaders, a member of the National House
of Traditional Leaders and a member of a Municipal Council.

bearers’ who are traditional leaders or who hold some office by virtue of their
position as traditional leaders such as members of the National or Provincial
House of Traditional Leaders. In the PSA an employee is defined and does not
include any one of the categories of persons to whom the definition of ‘office
bearer’ in REPOB may apply. So a ‘holder of public office’ as envisaged in s 5(2)
clearly cannot include a public service employee.

[25] But the most telling explanation for why a ‘holder of public office’ in s 5(2)
can refer only to traditional leaders (and not public servants) is because of the
mischief at which s 5(2) of REPOB is aimed. From the legislative history which I
traced earlier, both REPOB and its predecessor, the Remuneration of Traditional
Leaders Act 29 of 1995, contemplated a dual system of remuneration (by
national and provincial government) for traditional leaders. This meant that some
traditional leaders could be drawing more than one salary – one from national
government and the other from a province, or possibly two salaries from the
same sphere of government. Section 5(2) of REPOB was probably aimed at
preventing this mischief. Its object was not to prevent public servants from being
paid for their responsibilities as traditional leaders. That problem is adequately
provided for in s 30 of the PSA. And if the provincial government is of the view
that the remunerative work performed by headmen conflicts with their duties in
the public service, it may take steps to end the practice under the relevant
provisions of the PSA.20 The provincial government was therefore not entitled to
invoke s 5(2) of REPOB when it stopped paying salaries to headmen in this
category. It used this power for an unauthorised purpose.21 I should add that
during oral argument before us Mr Tokota properly conceded that his written
submissions to the contrary were not sustainable. It follows that the high court’s
interpretation of the relevant provisions was correct.

20 See for example s 31 of the PSA.
21 Minister of Education v Harris 2001 (4) SA 1297 (CC) para 17.

[26] This brings me to the question whether the first and fourth appellants are
entitled to the first part of the declaratory relief requested. As I mentioned earlier,
the high court characterised the application for a declarator as a review and then
dismissed it on the ground that the appellants had unduly delayed their
application.

[27] Even though the appellants could have reviewed the decision under
PAJA, this does not mean that their application was a review under PAJA. But
the fact that a litigant has an alternative remedy is relevant to the exercise of a
court’s discretion as to whether a declaratory order should be granted.22 The high
court erred in this regard. I turn to consider whether the appellants are entitled to
the order.

[28] During argument it was put to counsel for the appellants, Mr Wessels, that
the first part of the relief claimed, in its present form will have the consequence
that the appellants receive salaries as headmen and the provincial government
will be obliged to continue paying them as public servants notwithstanding s 30 of
the PSA, which is aimed at preventing persons undertaking other remunerative
work where this conflicts with their work as public servants. In response the
appellants applied to amend the terms of the relief claimed by deleting the words
in square brackets.23 We approved the amendment and must consider whether
the relief can be granted in its present form.

[29] The first and fourth appellants have established that s 5(2) was no bar
their right to receive salaries as headmen. The question now is whether we
should grant or refuse the declaratory order they ask for. The major impediment
to granting such an order is that it will not validate the decision not to pay them or
undo its consequences. No purpose will therefore be served by granting an
order.

22 Lion Match Co Ltd v Paper Wood & Allied Workers Union 2001 (4) SA 149 (SCA) para 25.
23 See above in para 10.

[30] A part of the fourth appellant’s dispute with the respondents is over the
reduction of his salary from R30 000 to R13 000, after he resigned from the
public service on 31 March 2005. He was appointed as a headman in 1985. In
this capacity he earned a salary of R30 000 until 1 October 2002 when it was
terminated unlawfully. He remained in the public service. When he retired from
the public service his salary as a headman was reinstated – but at the revised
amount of R13 000. The respondents do not aver that he ceased being a
headman during this period. They, however, deny that he is entitled to a salary of
R30 000 because, they say, he was ‘reappointed’ as a headman after he retired
from the public service and was thus only entitled to the revised salary. They
provide no details of his alleged reappointment. Their bare denial that his salary
was reinstated creates no genuine dispute of fact. He would appear therefore to
be entitled to his original income of R30 000, which other headmen who were
appointed before 1 October 2002 continued to receive. In his case declaratory
relief is sought in the second part of the relief claimed.

[31] However, for the reason given in para 29, the grant of a declaratory order
would also be inappropriate for this part of his case. It should be pointed out that
the fourth appellant had an opportunity to review two decisions. The first was the
decision to terminate his headman’s salary of R30 000 on 1 October 2002; the
second was the decision to reinstate his salary, but at the reduced amount
following his retirement from the public service on 31 March 2005. He failed to
institute proceedings in good time on both occasions and cannot complain
belatedly that an injustice is being done to him.

[32] I turn to consider the rest of the relief claimed in the second part – that the
provincial government unfairly discriminated against the second, third and fourth
appellants in this category by determining a salary of R13 000 for headmen
appointed after 1 October 2002, but did not reduce the salaries of those
appointed before this date – they were still paid R30 000; and that the President

unfairly discriminated against them by not determining salary increments for
them, as he did for kings and chiefs.

[33] The appellants’ allegations regarding where the authority for the
determination of the salaries of headmen lay on 1 October 2002 are
contradictory. They allege that this authority was vested in the President by virtue
of s 5(1) of REPOB – not the province. But they then contradict this allegation by
complaining that the provincial government discriminated against them by
making the determination. However, I have pointed out earlier that the dual
system of remuneration continued in the province until the Venda Proclamation
was repealed with the commencement of the Limpopo Traditional Leadership
and Institutions Act 6 of 2005 in April 2006 – a fact of which neither the parties
nor their respective legal representatives appear to have been aware. So this
means that the province retained the authority to determine salaries of traditional
leaders, at least until April 2006 – and had the authority to do so in 2002,
notwithstanding s 5(1) of REPOB. The appellants’ case in this regard can
therefore only be that the provincial government – not the President – unfairly
discriminated against them by determining a salary of R13 000 in 2002.

[34] However, the appellants’ case discloses no cause of action. The founding
affidavit contains no factual or legal basis for the assertion that headmen who
were appointed after 1 October 2002 had a right to receive a salary of R30 000,
or to be given increments thereafter, either by the provincial government or by
the President. And the fact that the President determined increments for senior
traditional leaders did not confer any such right on the appellants, or impose any
obligation on the provincial government, which remained responsible for their
remuneration until April 2006, to grant increments to them.

[35] The case the appellants make for unfair discrimination is in any event not
sustainable. From the equality jurisprudence that the Constitutional Court has

developed, differentiation between people or categories of people is permissible
if it bears a rational connection to a legitimate governmental purpose.24

[36] It appears from the respondents’ answering papers, though admittedly not
completely clearly, that the province made a policy decision, which I have
referred to in para 7, to reduce the salaries of headmen because the diminution
of their functions and responsibilities with the advent of the new constitutional
order no longer justified a salary of R30 000 – hence its decision to pay headmen
appointed after 1 October 2002 a reduced salary of R13 000. If this is so, the
decision was rationally made for a legitimate governmental purpose. But it
suffices to say that the second, third and fourth appellants have not established
that the provincial government discriminated unfairly against them.

[37] It follows that the appellants have failed to establish any basis for the relief
claimed.  Regarding costs, the judge a quo, as I have mentioned, made the
respondents liable for the costs despite having dismissed the application. He did
so because, in his view, the respondents had been remiss in failing to resolve the
dispute with the appellants amicably, choosing instead to defend the case in
court. That was not a proper exercise of his discretion. Once the respondents
had disputed the claims that were advanced by the appellants, there was no way
in which the respondents could have resolved the dispute save to agree to the
appellants’ demands. They were not obliged to do so for the reasons I have
given. However, the first and fourth appellants were entitled to go to court
because the provincial government had wrongly terminated their salaries. And in
the case of the fourth appellant, his salary as a headman was, in addition,
unlawfully reinstated at R13 000 instead of R30 000 after he retired from the
public service. So the respondents were not blameless. In the circumstances the
appropriate costs order, both in this court and the court below, should be that the
parties pay their own costs.

24 Harksen v Lane & others 1998 (1) SA 300 (CC); National Coalition for Gay and Lesbian
Equality v Minister of Justice & others 1999 (1) SA 6 (CC).

[38] I therefore make the following order:

(1)
The appeal is dismissed.

(2)
The cross-appeal is upheld to the extent that the order of the high court is
amended as follows:

‘The application is dismissed, each party to pay its own costs.’

______________
A CACHALIA
JUDGE OF APPEAL

APPEARANCES

APPELLANTS:

J K Wessels (with him W T B Ridgard)
Instructed by Mathobo Rambau & Sigogo, Pretoria
Matsepe Attorneys, Bloemfontein

SECOND, THIRD AND
FOURTH RESPONDENTS:
B R Tokota SC (with him D T Skosana)
Instructed by State Attorney, Pretoria
and Bloemfontein
SUPREME COURT OF APPEAL OF SOUTH AFRICA

PRESS RELEASE

1 April 2010
STATUS: Immediate
MADZHADZHI V PRESIDENT OF THE RSA (160/09) [2010] ZASCA (March
2010)
Please note that the media summary is intended for the benefit of the media
and does not form part of the judgment of the Supreme Court of Appeal

The Supreme Court of Appeal today dismissed an appeal by traditional
leaders, who are headmen and headwomen (headmen) against a decision of
the North Gauteng High Court refusing declaratory relief concerning their
dispute with the Limpopo Provincial Government over their salaries. The
appellants had two complaints. First, that provincial government did not have
the power to stop paying some of their salaries as headmen in terms of s 5(2)
of the Remuneration of Public Office Bearers Act 20 of 1998 (REPOB) even
though they were also being paid salaries as public servants by virtue of their
employment in the public service. Second, for those who were receiving
salaries as headmen, they complained that the President and the provincial
government were unfairly discriminating against them by not paying salary
increments to them as chiefs and kings were receiving.

The SCA agreed with the appellants that s 5(2) of REPOB precludes the
payment of two salaries to traditional leaders who are ‘holder(s) of public
office’ – but does not prevent a traditional leader who is also a public servant
from being paid as a traditional leader because a public servant is not a
‘holder of public office’ as envisaged in the section. The court said that the
provincial government may take steps in terms of s 30 of the Public Service
Act of 1994 to prevent public servants who are also traditional leaders from

performing other remunerative work outside the public service if this conflicts
with their duties as public servants.  But it may not take such action under s
5(2) of REPOB. So, because the provincial government used the incorrect
power to stop paying the appellants its decision was unlawful. However the
SCA held that because the appellants sought only a declaration of their rights,
and did not seek to invalidate or set aside the decision of the provincial
government to terminate their salaries, it could not grant the declaration
because this would not change the consequences of the invalid decision.

Concerning the second dispute, that the appellants were unfairly
discriminated against by not being granted salary increments, the SCA held
that the appellants’ case did not disclose any cause of action.

However, the SCA held that because the provincial government had acted
unlawfully by terminating the salaries of some headmen, it ordered that each
party pay its own costs, even though the appellants had failed to obtain the
relief they had sought.