The Gauteng Economic Development Department’s legal battle with a former top official is heading to the Labour Court after it was granted a stay of the operation and execution of a R1.14 million arbitration award.
The department had offered up a salary of two years or R2.6m as security to Sibusiso Dlangalala, who was its agency oversight and corporate governance director, until he was unfairly dismissed after the expiry of his fixed-term contract, which had been extended a number of times.
In November last year, the General Public Service Sector Bargaining Council (GPSSBC) reinstated Dlangalala with backpay of nearly R1.14m, and the arbitration award was later certified by the Commission for Conciliation, Mediation and Arbitration (CCMA) in accordance with the Labour Relations Act (LRA).
According to the LRA, an arbitration award issued by a commissioner is final and binding and may be enforced as if it were a Labour Court order in respect of which a writ has been issued. After certification, the CCMA then submits the certified award and the completed LRA 7.18 form to the deputy sheriff for enforcement.
Last month, the sheriff descended on the department’s Eloff Street headquarters, where MEC Lebogang Maile has an office, in a bid to attach furniture for auction to fulfil the GPSSBC arbitration award.
However, last week, the department successfully asked the Labour Court to stay the operation and execution of the arbitration award pending the determination of its review application.
The department wanted the security it has furnished in terms of the LRA of 24 months’ salary or R2.6m be declared satisfactory.
“The Gauteng Department of Economic Development hereby confirms that it has furnished and holds available as security an amount equivalent to 24 months’ remuneration being the sum of R2.6m in compliance with the LRA,” read the department’s court papers.
Dlangalala had rejected the security and instructed the sheriff to proceed with the attachment and execution of the department’s immovable property.
Head of the provincial Economic Development Department, Motlatjo Moholwa, told the court that the security the department has furnished fully complies with the LRA and has been furnished for the purpose of automatically suspending the operation and enforcement of GPSSBC Commissioner John Siavhe’s arbitration award pending the finalisation of its review proceedings.
“If this honourable court does not intervene, the applicants (department) face the imminent and irreparable harm of unlawful attachment and removal of state-owned movable assets, notwithstanding that the operation of the arbitration award is automatically suspended by law once security has been furnished in compliance with the LRA,” Moholwa explained.
He said the prejudice to the department would not be merely financial, and the execution against its assets will materially impair its ability to perform its statutory and constitutional functions, including the delivery of public services.
“Government departments rely on their movable, systems, and infrastructure for their daily operations and the seizure thereof would cause disruption to governance,” Moholwa added.
In addition, the attachment and removal of departmental assets and funds would have grave consequences for public financial management, auditing, and compliance.
“Public finances and state property are governed by strict statutory and regulatory frameworks, including those under the Public Finance Management Act and (National) Treasury.
“Any disruption, unauthorised movement of assets or irregular execution will expose the department to adverse audit findings, financial irregularities, and potential personal liability for accounting officers,” Moholwa said.
Loyiso Sidimba
iol.co.za
