Golden Arrow Bus Services (Pty) Ltd operated a commuter bus service in the Cape Metropolitan area under a 1997 subsidy agreement with the State, represented inter alia by the Minister of Transport. By January 2009, the State owed Golden Arrow approximately R94.5 million in unpaid subsidies. A consent order of the Cape High Court declared the State liable to make funds available for payment, but payment was not effected due to lack of funds in the Department of Transport. Golden Arrow then brought further proceedings seeking payment directly from the National Revenue Fund under s 3 of the State Liability Act 20 of 1957, and orders compelling the Minister of Finance to effect payment from the Fund. The High Court granted declaratory relief permitting such payment. The Minister of Finance appealed against those declaratory and related orders.
The appeal succeeded. Paragraphs 4 and 5 of the High Court’s order, which declared that payment could be made directly from the National Revenue Fund and granted leave to seek further relief, were set aside. The costs order was amended to substitute the Minister of Transport for the Minister of Finance as the liable party for costs in the court a quo.
The case clarifies that judgment debts against the State are not automatically payable as direct charges against the National Revenue Fund. It reinforces constitutional limits on public finance management, affirms the role of the PFMA in regulating withdrawals from the Fund, and aligns Supreme Court of Appeal jurisprudence with the Constitutional Court’s Nyathi decisions. The judgment underscores the need for legislative mechanisms to ensure effective enforcement of court orders against the State without undermining separation of powers or fiscal control.