SA Metal & Machinery Co (Pty) Ltd v The State

SA Metal & Machinery Co (Pty) Ltd, a scrap metal merchant, and one of its employees, Mr Allan de Klerk, were charged in the Regional Court with theft and with contravening s 37(1) of the General Law Amendment Act 62 of 1955 in respect of copper cathodes that were later proven to be stolen in a hijacking. The State alleged unlawful acquisition or possession of stolen goods without reasonable cause to believe the seller was authorised. The cathodes were received at the appellant’s Elandsfontein premises from a registered dealer, Meadon Scrap, and loaded for export. De Klerk relied on information from the yard foreman, Visser, and prior legitimate dealings with Meadon Scrap. Both accused were acquitted on the theft charges but convicted under s 37(1) in respect of the cathodes. On appeal, De Klerk’s conviction was set aside, but the company’s conviction was upheld by the High Court. The company appealed to the Supreme Court of Appeal.

The appeal was upheld. The conviction and related sentence of SA Metal & Machinery Co (Pty) Ltd were set aside.

The case clarifies the limits of corporate criminal liability under s 332 of the Criminal Procedure Act and the operation of the evidential presumption in s 37(1)(b) of the General Law Amendment Act. It underscores the importance of properly identifying, in the charge sheet, the employees whose conduct is relied upon to attribute criminal liability to a corporate accused, and affirms the centrality of fair trial rights.