Gauteng Gambling Board and Another v MEC for Economic Development, Gauteng Provincial Government

The Gauteng Gambling Board, a statutory body established under the Gauteng Gambling Act 4 of 1995, owned premises in Centurion and later relocated to a purpose-built building in Bramley, Johannesburg, at a cost of approximately R101 million with the approval of the MEC and provincial treasury. The MEC for Economic Development instructed the Board to relocate again to a central government hub in Johannesburg’s CBD and to accommodate a private commercial entity, African Romance, in the Board’s Bramley building. The Board refused, citing lack of statutory power, financial prudence obligations under the PFMA and Treasury Regulations, and the impracticality and unlawfulness of the instructions. Following the refusal, the MEC threatened the Board, demanded its resignation, and ultimately terminated the membership of all Board members under s 8(2) of the Act, ostensibly for failure to comply with relocation instructions. The Board challenged the termination as unlawful, procedurally unfair, and motivated by an ulterior purpose.

The appeal was upheld. The decision of the MEC terminating the membership of all Board members on 23 January 2012 was declared unlawful and invalid and set aside. The MEC was ordered to pay the appellants’ costs on an attorney-and-client scale, both in the High Court and on appeal.

This case is significant for reinforcing the principle of legality in South African constitutional and administrative law. It affirms that executive authorities may not use statutory powers for ulterior purposes or beyond their lawful scope, particularly in relation to independent statutory bodies. The judgment also underscores the financial governance duties imposed by the PFMA and signals that courts may in future hold public officials personally liable for costs where they act in a high-handed and unlawful manner.