Court cancels Kamanjab fuel licence over legal breaches

Justicia Shipena

The High Court has cancelled a petroleum retail fuel licence for Kamanjab after finding that the minister of mines and energy failed to follow the law and did not give reasons for key decisions.

High Court judge Tommasi Masuku ruled recently that a petroleum retail fuel license issued in 2012 to T&A Group Holdings and Investment CC was unlawful and invalid after multiple legal breaches. 

The court held that the licence violated the Petroleum Products and Energy Act and its regulations, as well as the Environmental Management Act.

The case was brought by Mattys Johannes du Plessis and Maryke du Plessis, trustees of the Kamanjab Service Station and General Dealer Business Trust, which operates an existing fuel station in the town. 

They asked the court to review and cancel a licence granted to another operator. 

They said the licence holder failed to start operating within the required time, received extensions without proper applications or reasons, did not obtain an environmental clearance certificate, and benefited from decisions that were never explained.

Masuku said administrative officials must give reasons for their decisions, especially when they affect others. He found that the minister failed to do so at every critical stage. 

“Failure to give reasons renders the decision unlawful and invalid.” 

The court ruled that the duty to give reasons is rooted in Article 18 of the Constitution, which requires fairness and reasonableness in administrative action.

The court found that the licence holder did not begin fuel retail operations within six months as required by law and that there was no proper record showing that lawful extensions were applied for or granted. 

It also found that the project went ahead without an environmental clearance certificate, which is mandatory for fuel stations. 

The court noted that the licence appeared to have been shifted to a different individual without a formal application, calling this a serious breach of procedure.

The licence holders contended that the review came too late, claiming they had already invested millions of dollars in the project. 

The court rejected this argument, saying the alleged delay was not properly explained or supported by evidence. 

Masuku said that even where delay is raised, courts should not allow unlawful decisions to stand. 

“Illegality cannot be protected by delay,” he said in effect, stressing the need to uphold the rule of law.

The High Court reviewed and set aside the 2012 decision to grant the petroleum retail licence for Kamanjab. 

The court said the ruling does not prevent the affected party from submitting a fresh application that complies with the law.

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