National Lotteries Board v South African Education and Environment Project and Others

The National Lotteries Board (NLB) refused to approve three funding applications submitted by two registered charities, the South African Education and Environment Project (SAEP) and the Claremont Methodist Church Social Impact Ministry, Sikhula Sonke, for grants from the National Lottery Distribution Trust Fund. The refusals were based on alleged non-compliance with the Board’s internal guidelines, including inconsistencies in the applicant’s name across documents, inadequate financial documentation, and failure to meet formal auditing requirements. The charities sought judicial review under the Promotion of Administrative Justice Act 3 of 2000 (PAJA). The Western Cape High Court reviewed and set aside the refusals, finding that the Board had applied its guidelines rigidly and unlawfully. The NLB appealed to the Supreme Court of Appeal.

The appeal was dismissed with costs, including the costs of two counsel. The High Court’s order reviewing and setting aside the Board’s decisions remained in force.

This case is a leading authority on the lawful use of administrative guidelines in South African administrative law. It affirms that guidelines may not be elevated into inflexible rules and underscores the constitutional duty to act fairly, reasonably, and with proper regard to the purpose of empowering legislation. The judgment also clarifies that administrators generally may not rely on post hoc rationalisations to justify decisions, reinforcing accountability and transparency in public administration.