High Court judge withdraws from Entrepo case over friendship link

Renthia Kaimbi

Acting High Court judge Reinhard Tötemeyer has stepped down from hearing the government’s urgent case against Entrepo Finance. He withdrew after revealing a longstanding friendship with the company’s chief executive officer.

Tötemeyer’s recusal has now paused the matter until a new judge can be appointed.

The revelation came as a surprise to legal teams, who expected any personal connections to be disclosed at the start of proceedings. 

Judicial ethics mandate the early declaration of potential conflicts, enabling all parties to evaluate the judge’s impartiality.

The Ministry of Finance and the Prime Minister applied for his recusal. 

They argued that Tötemeyer could not reasonably preside over the case because he is also serving as legal counsel in a separate matter challenging the same legislation at the centre of the dispute.

They said he had already argued in the parallel case that section 35(1) of the Microlending Act is unconstitutional.

This, they noted, creates a reasonable belief that he may not approach the government’s position with an impartial mind as it seeks to defend that law.

They also raised concerns that he may have been exposed to confidential discussions with clients in the related litigation that could influence the present case. 

“Unless the consultations and the advice are disclosed, the Minister will never know what facts which may have a bearing on the present matter were disclosed to the presiding judge,” argued the state. 

Tötemeyer maintained that he could remain impartial but chose to withdraw after acknowledging his personal connection to Entrepo’s chief executive.

Lawyers for the sixth respondent, Avril Payroll Deduction Management, opposed the recusal. 

They argued that a professional lawyer can separate their work as an advocate from their duties as a judge.

The Ministry of Finance has been facing several legal challenges since announcing plans to end the Payroll Deduction Management System, which allows civil servants to repay loans directly from their salaries.

Entrepo Finance is seeking urgent relief to prevent the government from blocking new deductions on the system.

The company wants the court to allow the system to continue operating as it did at the end of August until the main case is decided. 

In the main application, Entrepo is challenging the government’s decision to discontinue the system by 30 November 2025 and to phase out certain financial products.

Entrepo is also asking that the government pay its legal costs for both the urgent and main matters.

The case will return to court later today for the urgent hearing before a different judge.

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