Wilmot Mandla Chagi and Others v Special Investigating Unit

The applicants, former employees of the Transkei Agricultural Corporation Limited (Tracor), sued for delictual damages arising from the conduct of members of a Special Investigating Unit (SIU) during an investigation conducted between 1998 and 1999. The alleged conduct included defamation in summonses accusing the applicants of fraud and theft, and unlawful freezing of their bank accounts, impairing their dignity. The First SIU was established in 1997 and later replaced by a Second SIU through Proclamation R118 of 2001, which repealed the proclamation establishing the First Unit and created a new unit to continue investigations, including that of Tracor. The damages action was instituted shortly after the 2001 Proclamation. The Second SIU defended the action, arguing it was not liable for the conduct of the First SIU. Both the High Court and Supreme Court of Appeal agreed. The applicants sought leave to appeal to the Constitutional Court.

Leave to appeal was granted. The Court held that the liabilities incurred by the First Special Investigating Unit were not extinguished by Proclamation R118 of 2001. (Further determination of whether liability lay with the First or Second Unit and the identity of the cited party followed from this interpretation.)

The case is significant for affirming that statutory liabilities of state-created entities cannot be extinguished by executive action through repeal of a proclamation. It reinforces constitutional access to courts under section 34 and clarifies the interaction between the SIU Act, the State Liability Act, and the Interpretation Act. It also limits executive power to avoid state liability by restructuring institutions.