South African National Roads Agency Limited v City of Cape Town

SANRAL proposed that portions of the N1 and N2 national roads leading into Cape Town be declared toll roads under s 27 of the South African National Roads Agency Limited and National Roads Act 7 of 1998. Following an environmental authorisation process and an ‘intent to toll’ process, SANRAL applied to the Minister of Transport for approval, which was granted in September 2008, and the roads were declared toll roads. The City of Cape Town opposed the tolling, contending that socio-economic impacts were inadequately considered and that statutory prescripts were not complied with. In 2012, approximately four years after the relevant decisions, the City launched a PAJA review application in the Western Cape High Court to set aside the Minister’s approval and SANRAL’s declaration. The High Court condoned the delay, reviewed and set aside the decisions, and remitted the matter. SANRAL appealed to the Supreme Court of Appeal, while the City cross-appealed regarding a later 2014 SANRAL board resolution and the refusal of an interdict.

The appeal by SANRAL was dismissed with costs. The cross-appeal was upheld to a limited extent: the 2014 SANRAL board resolution declaring the toll roads was declared invalid and set aside. No order was made on the interdictory relief, as it was premature.

The case is significant for reinforcing the principle of legality in administrative action by organs of state, particularly in large infrastructure and toll road projects. It clarifies that compliance with internal governance requirements of statutory bodies is a prerequisite for lawful ministerial approval, and that serious legality defects may justify condonation of unreasonable delay under PAJA.