East Rand Gold and Another v Commission for Conciliation Mediation and Others (J 1351/97) [1999] ZALC 70; (1999) 20 ILJ 2348 (LC) (7 May 1999)

65 Reportability

Brief Summary

Labour Law — Arbitration — Review of arbitration award — Applicant seeking to set aside award reinstating employees dismissed for misconduct — Arbitrator failing to consider credibility of witnesses in decision-making process — Court finding that failure to assess credibility constituted a gross irregularity — Award set aside and matter remitted for reconsideration.

IN THE LABOUR COURT OF SOUTH AFRICA
HELD IN JOHANNESBURG
Case no J 1351/97
In the matter between:
East Rand Gold and Uranium Co Ltd Applicant
AND
The Commission for Conciliation Mediation 
and Arbitration 1st Respondent
J.N Lebea 2nd Respondent
A.A Shabalala 3rd Respondent
SS Msibi 4th Respondent
MJ Cashibe 5th Respondent
LJ Dube  6th Respondent
I Tshabalala 7th Respondent
National Union of Mineworkers 8th Respondent
                                                 
JUDGMENT
   
MLAMBO J.
1. On 6 November 1997 the second respondent (“Lebea”), a commissioner  
under   the   auspices   of   the   Commission   for   Conciliation   Mediation   and

Arbitration (“the Commission”), issued an award in which he purported to inter  
alia, reinstate the Third to the Seventh respondents (“individual respondents”)  
in the employ of the Applicant.  Lebea, had been appointed in terms of  section 
136  of the Labour Relations Act no, 66 of 1995 (“the Act”) to arbitrate a dispute  
between the Applicant and the individual respondents who were represented  
(during the arbitration proceedings) by the Eighth respondent, their union.
2. The individual respondents had been dismissed by the applicant as a  
result   of   alleged   misconduct   involving   the   theft   of   gold   bearing   material  
belonging to the Applicant.  The Applicant approaches this court for an order to  
review and set aside the award issued by Lebea.
The factual background
3. The events and facts giving rise to the arbitration proceedings  
conducted by Lebea, and the background thereof, may for the sake  
of convenience be summarised as follows: 
3.1 The Third respondent (“Shabalala”) was charged with theft of  
gold bearing material from the Daggafontein plant, a division of the  
Applicant.  He appeared at an internal disciplinary hearing presided

over by Mr R Peacey (“Peacey”).
3.2 The Fourth respondent (“Msibi”) and the Seventh respondent  
(“Tshabalala”) were charged with gross negligence based on their  
alleged assistance in the removal of gold bearing material from the  
Applicant’s Daggafontein plant. Msibi’s internal disciplinary hearing  
was chaired by Peacey whilst Tshabalala’s hearing was chaired by  
Boshoff.   The allegation against them was that they neglected to  
search vehicles driven by Cashibe and Dube which allegedly were  
used   to   remove   gold   bearing   material   from   the   Applicant’s  
Daggafontein plant.
3.3 The   Fifth   respondent   (“Cashibe”)   and   the   Sixth   respondent   (“Dube”)  
were charged with being accomplices to theft in that it was alleged that they, in  
their capacities as drivers, assisted in the removal of gold bearing material out  
of   the   Applicant’s   Daggafontein   plant.     They   also   appeared   at   an   internal  
disciplinary hearing chaired by Peacey. 
3.4 All   the   individual   respondents   were   found   guilty   and   were   dismissed.  
They   all   lodged   appeals   in   terms   of   the   Applicant’s   disciplinary   code   and

procedure, which appeals were all unsuccessful.
4. The individual respondents then declared a dispute and referred it to the  
Commission in terms of the provisions of the Act.  Conciliation failed to resolve  
the   dispute   and   it   was   consequently   referred   to   arbitration.     The   arbitration  
proceedings before Lebea took place on the 11th through to the 14th of July  
1997 and thereafter on the 11th to the 14th of August 1997. 
5. In   the   arbitration   proceedings   the   individual   respondents   denied  
involvement   and   or   participation   in   theft   or   dishonest   conduct   as   well   as  
negligence.     On the 6th of November 1997 and in terms of   section 138(7)  
Lebea handed down his award.  The award is as follows:
“AWARD
Based on the above, I make the following award:
1. The   dismissal   of   Shabalala,   Cashibe,   Msibi,   Dube  
and Tshabalala was unfair.
2. The   company   is   ordered   to   reinstate   Shabalala,  
Cashibe,  Dube,  Msibi  and  Tshabalala  to  terms  and conditions  of  
employment not less favourable than those that would have applied  
to them had they not been dismissed.
3. The company is ordered to pay Shabalala, Cashibe,  
Msibi,   Dube   and   Tshabalala   an   amount   equivalent   to   7(seven)  
months’   remuneration   in   respect   of   the   period   of   their   unfair  
dismissal   being   their   arrear   earnings.     This   amount   shall   be  
calculated at the rate that would have applied to them as at the date  
of this award had they not been unfairly dismissed.   The payment  
as aforesaid will be effected within 10 (ten) days of the date of this  
award.

4. The reinstatement of the individual Applicants as set  
out in paragraph 1 hereof shall take place within 10 (ten) days of  
the date of this award.
5. I make no order as to costs.”
6.    The Applicant seeks to upset Lebea’s award in this review application  
on the following broad grounds:
6.1 “that the arbitrator , in coming to a conclusion without   inter alia   having  
regard to credibility of witnesses, committed a gross irregularity in terms of the  
provisions of section 145(2)(a)(ii) of the Act;
6.2 the provisions of section 33 of the Constitution of the Republic of South  
Africa   (1996)   (“the   Constitution”),   read   with   item   23(2)   of   schedule   6   to   the  
Constitution;
6.3 the common law grounds of review.”
The Applicant’s submissions
7. Mr  Pauw, counsel for  the Applicant, advanced  comprehensive  
submissions   in   support   of   the   Applicant’s   case.     He   submitted  
primarily that the award should be reviewed and set aside because

Lebea did not consider the credibility of the witnesses in assessing  
the   evidence   before   him.     This   submission   is   supported   by  
reference to certain portions of the award which, according to Mr  
Pauw, provided a conclusive demonstration that Lebea’s disregard  
of the credibility of witnesses amounted to a gross irregularity within  
the contemplation of section 145. Mr Pauw submitted that credibility  
was crucial in view of the individual respondents’ defence of alleged  
jealousy and racism by their accusers, Enslin and Pretorius, as well  
as  the  fact  that  Lebea  had  before  him  two  dramatically   opposed  
versions.   The following examples were cited which, according to  
Mr Pauw, demonstrate that credibility was crucial and should not  
have   been   overlooked   by   Lebea:   the   version   presented   by  
Shabalala that Enslin was a racist was not credible simply because  
Shabalala   had   never   lodged   a   grievance   regarding   such   racism;  
despite   such   racism   allegations   Shabalala   stated   that   he   still  
wanted to assist Enslin progress at work; Enslin denied hating black  
people and considered himself to be Shabalala’s friend; Enslin and  
Pretorius   were   never   attacked   as   lying;     Shabalala   could   not  
account for his whereabouts during a substantial portion of his shift

on 8 October 1996; Cashibe remembered almost nothing regarding  
the events of 8 and 9 October 1996; Msibi used to see Dube almost  
daily   except   for   8   and   9   October   1996;   Tshabalala   consistently  
failed   to   answer   direct   questions   and   contradicted   himself,   for  
example that he could not see the bakkie but saw a spare wheel at  
the   back   of   the   bakkie;   Shabalala  denied   the   versions   of   Enslin,  
Pretorius and Ngomane about where sample bags were kept; that  
Pienaar and Enslin gave evidence of confessions of guilt made to  
them by Shabalala.
Standard of review
7. In   Carephone   (Pty)   Ltd   v   Marcus   N.O   &   Others   (1998)   11  
BLLR 1093(LAC)   the Labour Appeal Court settled the question of  
the   ambit   of   the   review   jurisdiction   of   this   court   over   arbitration  
awards of the commission.  There the court reaffirmed the fact that  
the   administrative   justice   section   of   the   Bill   of   Rights   in   the  
Constitution   (108   of   1996)   has   broadened   the   scope   of   judicial  
review of administrative actions.  At paragraph 31 and 32 the court

said:
“The   peg   on   which   the   extended   scope   of   review   has   been   hung   is   the  
constitutional provision that administrative action must be justifiable in relation  
to the reasons given for  it(section 33 and item 23(b) of schedule 6 of  
the Constitution ).   This provision introduces a requirement of  
rationality   in   the   merit   or   outcome   of   the   administrative  
decision.  This goes beyond mere procedural impropriety.
But it would be wrong to read into this section an attempt to  
abolish the distinction between review and appeal.  According  
to   The   New   Oxford   Dictionary   ‘justifiable’   means   ‘able   to   be  
legally   or   morally   justified,   able   to   be   shown   to   be   just,  
reasonable,   or   correct;   defensible’.     It   does   not   mean   ‘just’,  
‘justified’ or ‘correct’.  On its plain meaning the use of the word  
‘justifiable’ does not ask for the obliteration of the difference  
between   review   and   appeal.     Neither   does   the   LRA   itself:   it  
makes a very clear distinction between reviews and appeals.”
9. Further at paragraph 35 and 36 the court said:
“When   the   Constitution   requires   administrative   action   to   be  
justifiable in relation to the reasons given for it, it thus seeks to  
give   expression   to   the   fundamental   values   of   accountability,  
responsiveness   and   openness.     It   does   not   purport   to   give  
courts   the   power   to   perform   the   administrative   function  
themselves,   which   would   be   the   effect   if   justifiability   in   the  
review process is equated to justness or correctness.
In   determining   whether   administrative   action   is   justifiable   in  
terms of the reasons given for it, value judgments will have to  
be   made   which   will,   almost   inevitably,   involve   the  
consideration   of   the   ‘merits’   of   the   matter   in   some   way   or  
another.  As long as the judge determining this issue is aware

another.  As long as the judge determining this issue is aware  
that he or she enters the merits not in order to substitute his or

her own opinion on the correctness thereof, but to determine  
whether the outcome is rationally justifiable, the process will  
be in order.”
10. The notion of review of the awards of the Commission by this  
court   as   restated   and   settled   by   the   Labour   appeal   Court   in   the  
Carephone judgment means that this court cannot and should not  
attempt to determine the correctness of an award.  Rather the court  
should  be  pre­occupied  with  the  task  of  determining  whether   the  
award is rationally justifiable in relation to the reasons given for it. 
11. It is trite that a decision maker such as a commissioner must  
consider the   evidence placed at his disposal and must base his  
award   thereon.     In   Standard   Bank   of   Bophuthatswana   Ltd   v  
Reynolds NO 1995 (3) SA 74(B) at 89F­G  Friedman JP said:
“Our   courts   have   held   that   where   a   decision­maker   takes   a  
decision unsupported by any evidence, or by some evidence  
which is insufficient reasonably to justify the decision arrived  
at,   or   where   the   decision­maker   ignores   uncontroverted  
evidence   which   he   was   obliged   to   reflect   on,   the   decision  
arrived at will be null and void.”
A commissioner considering the evidence placed at his disposal is,

under   normal   circumstances,   expected   to   properly   evaluate   and  
assess the evidence in order to make his award. 
Credibility of witnesses
12. Lebea made it clear in the award that he would not deal at all  
with  the  credibility of  any  of  the  witnesses  but  would  look at the  
evidence as a whole with due regard to the balance of probabilities.  
The   Applicant   is   critical   of   this   approach   on   the   basis   that  
probabilities   cannot   be   properly   assessed   without   making   any  
credibility findings.
13. The demeanor of witnesses is the primary basis upon which  
credibility  is  assessed.    Hoffman &  Zeffert:  South African Law of  
Evidence   4th   edition   at   page   610   the   leaned   authors   say   the  
following:
“Demeanour should be allowed only to reinforce a conclusion reached by an  
objective assessment of the probabilities, or possibly to turn the scale when the  
probabilities are evenly balanced.”

14. In  S v Kelly 1980 (3) SA 301  at 308B ­ C Diemont JA said:
“There   can   be   little   profit   in   comparing   the   demeanour   only   of   one  
witness with that of another in seeking the truth.  In any event, as counsel  
conceded in a homely metaphor, demeanour is, at best, a tricky horse to  
ride.”
And at E ­F:
“Nevertheless,   while   demeanour   can   never   serve   as   a   substitute   for  
evidence, it can, and often does, “reflect on and enhance the credibility of  
oral testimony”.  The experienced trial officer is well aware of this fact; it  
is   a   matter   of   common   sense.     He   observes   the   witness   closely   ­­ 
evasions, hesitations and reactions to awkward questions.  He will note,  
if he is alert, “all the incidental elements so difficult to describe which  
make up the atmosphere of an actual trial”.
15. As   Diemont   JA   said   S   v   Kelly   above   the   demeanour   of  
witnesses   and   their   credibility   is   not   a   substitute   for   evidence.  
Reliance   on   the   demeanour   and   credibility   of   witnesses   is   a  
subjective   issue.     It   is   “tricky   horse   to   ride”   which   can   sometimes  
mislead.   Where the demeanour and credibility of witnesses is relied on full  
reasons for doing so must be set out.  A decision not to rely on the demeanor  
and   credibility   of   witnesses   is   under   normal   circumstances   not   open   to  
criticism.  After all it is up to the decision maker who has the benefit of listening  
to the witnesses and observing their behaviour to decide which witnesses to  
believe and why.

16. It must be accepted that when the Commission’s arbitral function  
was conceived the object was to introduce a process that is free  
from   legal   formalities   free   from   legal   technicalities   and   free   from  
legal representatives (to a large extent).   The process is meant to  
be simple so as to enable employers and em ployees, on their own, to  
easily ventilate their differences.   Though the process is essentially judicial in  
nature it does not transform the Commission into a court of law.
“The constitutional answer to this submission is that although the Commission  
or other organs of state may perform functions of a judicial nature they are not  
courts   of   law   and   thus   have   no   judicial   authority  under   the   Constitution  
(sections 165, 166 and 239 of the Constitution).   Their judicial functions  
do not transform them into part of the judicial arm of the state, nor does it  
make them part of the judicial process (cf Bernstein and Others v Bester  
and Others NNO 1996 (2) SA (CC); 1996 (4) BCLR 449 (CC) paragraph 95 o  
97).”
Carephone (Pty) Ltd v Marcus NO &Others Supra  at paragraph 18.
17. It is correct that public institutions such as the Commission are  
subject to the same values of accountability, responsiveness and  
openness which apply and have always applied to courts of law.  
This   however   does   not   mean   that   the   formalities,   practices   and  
rules   applicable   to   courts   of   law   are   also   applicable   to   public

institutions such as the Commission. Confirmation of this is found in  
section 138 of the LRA which provides for   an arbitration process with  
minimum legal formalities.   This means that under normal circumstances if a  
court   of   law   should,   in   assessing   evidence,   consider   the   credibility   of  
witnesses, the same cannot be said to be also applicable to public institutions  
such as the Commission.  This obviously does not mean that a lesser or lower  
standard of accountability and responsiveness applies to public institutions.  It  
simply means that the actions and conduct of public institutions are measured  
differently   in   terms   of   their   nature.     The   cornerstone   of   the   Commission’s  
arbitral function is equity and fairness whilst courts of law dispense with law  
and   justice.   This   should   not   be   interpreted   to   mean   that   the   credibility   of  
witnesses,   as   a   way   of   assessing   evidence   has   no   place   in   the   arbitration  
process   of   the   Commission.     In   appropriate   cases   commissioners   will   be  
expected   to   make   reference   to   and   place   reliance   on   the   credibility   and  
demeanour of witnesses in their awards.   They should however be vigilant to  
the dangers inherent in this approach.
18. One   should   be   careful   not   to   burden   commissioners   with   the   added  
responsibility of also basing their awards on the demeanour and credibility of  
witnesses.   Section 138 of the LRA advocates an arbitration process that is  
simple, less formalistic and less legalistic with curtailed legal representation.  
With   this   setting   in   mind   it   would   be   improper   to   expect   demeanour   and

credibility,   issues   rightly   at   home   in   proper   judicial   processes   to   feature  
prominently in the Commission’s arbitration function.  In the final analysis what  
the   court   has   to   determine   in   a   review   of   an   award   of   the   Commission   is  
whether   it   was   arrived   at   arbitrarily,     capriciously   or   malafide,   or   that   the  
commissioner took into account irrelevant considerations or ignored relevant  
ones   or   that   the   award   is   so   grossly   unreasonable   so   as   to   warrant   an  
inference that he had failed to apply his mind to the matter.  Once this is shown  
it will have been demonstrated that no fair hearing took place meaning that the  
award   cannot   be   justified   in   relation   to   the   reasons   given   for   it.     See   Pep 
Stores (Pty) Ltd v Laka NO & Others (1998) 9 BLLR 952 (LC)  at page 960A  
­C. Unless a commissioner is enjoined by the Act or any relevant statute itself  
to take certain matters into account or to exclude them from consideration, it is  
primarily   his   task   to   decide   what   is   relevant   and   what   is   not   and   also   to  
determine the weight to be attached to each relevant factor.    
The award
19. Regarding   the   matter   in   casu   the   court   proceeds   to   consider   whether  
Lebea’s award is reviewable due to his decision to overlook the credibility of  
the witnesses who testified before him.  It is therefore a worthwhile exercise to  
consider Lebea’s analysis of the evidence before him.
20. The Applicant through, Pretorius, led evidence that Shablala was seen

in an area called the bunded area, at a time when he was not supposed to be  
there and without having obtained the key to that area from him.  Lebea views  
the evidence as follows:
“I   must   also   add   that   the   evidence   of   the   company   about   the   above  
incident   at   times   seemed   to   me   to   be   inconsistent   and   unclear   in   the  
following respects:
. Pretorius saw Tshabalala ( Shabalala) in the place in which he was  
not supposed to be and asked him what he was doing there.  Tshabalala  
gave   unintelligible   answer   and   said   “hello”.   Pretorius   chose   to   ignore  
Tshabalala and proceeded to have a shower.
. When he came back to the office he told Enslin  about what had  
happened.
They   then   decided   to   phone   Smith   at   his   house.       Nobody   bothered  
himself   to  alert  the   corporal   officer  on  duty   during   the  theft   about   the  
incident.  In fact Mohulatsi was kept in the dark through out.
. Nobody   from   the   company   knew   who   was   at   the   gate   when  
Cashibe left the plant on 8 October 19996.   The version of the company  
became   somewhat   self­contradictory   in   that   both   Enslin   and  
Raubenheimer   suggested   theirs   suffered   (sic)   in   that   evidence   that  
Cashibe left the plant between 6h55 and 7h05.   In fact, Enslin testified  
that he actually saw him at the gate and was there for about two minutes.  
The documentary evidence produced by the company, however suffered  
(sic) that Cashibe only left the premises at least at 7h30 on  8 October  
1996.  Mr Olivier during cross examination and during argument seemed  
to   put   a   version   that   the   sample   bags   were   disposed   of   during   the  
unaccounted period reflected by the blank space in the logsheet.

21. Pretorius   on   behalf   of   the   Applicant   further   testified   that   Shabalala  
removed sample bags from the bunded area and placed them at the pavement  
in front of the laboratory.  Lebea commented, in this regard, as follows:
“ Did Shabalala act in this manner or did he act with such an intention? My  
answer is in the negative for the reason that even if I were to assume that   he  
removed the samples from the bunded area (which) I still have to determine)  
and put them in the pavement in  front of the laboratory, that would not in my  
view per se be an act of appropriation.  The pavement in front of the laboratory  
is   a   very   conspicuous   place,   it   is   within   the   view   of   people   from   many  
directions,   including   people   driving   or   walking   towards   the   main   gate.     The  
alleged removal of samples took place in broad day light, viz at about 5h00 in  
summer!     From   this   action   I   cannot   infer   furtive   intention   (animus   furandi).  
Furthermore, no casual connection was drawn between the action of Shabalala  
and   Cashibe   it   may   well   have   happened   that   Cashibe’s   action   was   a  
completely independent action ( novus actus interveniens)  not connected to  
Shabalala previous action knows (acts intervenes).     I, therefore, arrive at  
the conclusion that the evidence has not established theft on the part of  
Shabalala.”
22. In the award Lebea states that he was urged to guard against piecemeal  
reasoning and consider the evidence as a whole.  He says:
“ I fully agree with this proposition.  The logical result of this process of  
evaluation   of   evidence   in   relation   to   this   matter   is   that   I   should   not  
consider evidence relating to Shabalala in isolation from the evidence in  
respect   of   Cashibe.     There   was   no   evidence   to   the   effect   that   when  
Cashibe   left   the   premises   the   vehicle   was   either   negligently   or

Cashibe   left   the   premises   the   vehicle   was   either   negligently   or  
intentionally not searched by the security guard who was manning the  
gate.   Instead Enslin stated that the kombi stopped at a gate for about  
two minutes (which was a normal time).   The only inference I can draw  
from   this   is   that   the   kombi   was   properly   searched   and   if   there   was  
anything unlawful in the (sic) the security guard could have detected it  
and   taken   appropriate   action.     This   conclusion   is   strengthened   by   the  
fact   (sic)   if   the   samples   had   left   the   premises   without   having   been  
searched, the company could have investigated about the security guard  
who   was   at   the   gate   (just   as   it   did   in   respect   of   Msibi)   and   taken  
appropriate  action   against such  security official.    I’  therefore, find   that

Cashibe   did   not   remove   the   sample   bags   or   did   not   in   any   manner  
facilitate the theft of the sample bags.”
23. As regards the events of 9 October 1996 Lebea comments  
that some aspects of the Applicant’s case left him perplexed and  
these are: 
“Shabalala on this day, i.e. 09 October 1996, was said  to be  
fully prepared for his activities in that he was now having a 25  
litre   bucket,   house   (sic)   pie   and   empty   sample   bags.       He  
remained in the bunded area from about 1h00 to 5h00 and at  
about 6h45 he was loading samples onto Dube’s bakkie.   Did  
Shabalala ever work during this shift?
Mohulatsi who was in charge of the security department during  
the   entire   shift   was   again   kept   in   the   dark   about   the  
developments.  Pretorius spoke to Mohulatsi but chose to keep  
quite about Shabalala’s activities.  Would a reasonable person  
in Pretorius, Enslin or Raubenheimer’s position had behaved  
in the manner they did?
Pretorius   saw   Dube   removing   company   goods   out   of   the  
premises of the company.  He did nothing to get Mohulatsi or  
anybody to pursue Dube and recover company goods.   What  
else did he want to prove?
The company witnesses had sought to place Tshabalala out of  
the scene at the gate, Mr Olivier even suggested to Tshabalala  
that   he   did   not   see   Dube   when   the   latter   was   at   the   gate  
because he was sitting down at the gate house because his leg  
was aching.   This was the versions of the company.   At the  
same time Tshabalala was dismissed for gross negligence in  
not searching the vehicle or allowing the vehicle to leave with

company   property.     This   raised   a   question   whether   was  
Tshabalala dismissed for gross negligence or for testifying in  
favour   of   Msibi   which   testimony   had   an   effect   of   absolving  
Dube, Msibi and Shabalala.”
Lebea further says elsewhere in the award:
“Let   us   now   consider   the   case   of   Tshabalala.     As   already  
pointed   out   above   that   the   company’s   stance   in   relation   to  
Tshabalala was rather ambivalent.  The company’s version was  
essentially   that   he   was   not   present   or   did   not   witness   the  
incident.   Why then punish him?   It is either that Tshabalala  
was   present   when   the   search   was   conducted   or   was   telling  
lies.     If   it   was   the   latter   the   company   should   have   simply  
dismissed his evidence as lies and upheld the truth.”
24. Lebea also rejected Enslin’s version that there were sample  
bags at the back of the bakkie and that it is likely that Enslin saw a  
spare wheel and mistook it for ample bags.  In this regard he says:
“Only Enslin saw the samples at the back of the bakkie. He was observing the  
samples from the vantage point in the 6 th floor of the elution building.  
The   evidence   of   Dube,   Tshabalala   and   Msibi   was   that   there  
was only a spare wheel at the back of the bakkie.  The question  
which  then  arises is could  Enslin  have been  able to identify  
and distinguish between darkish samples and the sparewheel?  
It  is, therefore, more probable to me what  Enslin  saw at  the  
back of the bakkie was, in fact a black sparewheel.”
25. As to the confessions alluded to by Pienaar and Enslin Lebea

stated  that  he  was  confronted  with   uncorroborated  versions   from  
both sides.  He says:
“The circumstances under which the said confessions were made  
do not make me to believe that they were indeed made.  I start with  
the discussion of 11 July 1997.  The alleged confession only came  
to   light   when   the   union   made   allegations   about   racism   or   racial  
conspiracy.   If a confession had indeed been made Enslin would  
immediately have apprised Mr Olivier of it.  This is to me improbable  
especially having regard to the adversarial nature of the relationship  
of the parties during the proceedings.  Regarding the discussion of  
18 October 1996, I am quite prepared to accept that incentives to  
make a confession were put to Shabalala.   But I cannot say on a  
balance of probabilities that as  the  result of such inducement by  
Pienaar, Shabalala did make oral confession, judging from Pienaar,  
did make oral confession.  Judging from Pienaar’s methodology he  
at least would have drafted some statement albeit not signed by  
Shabalala.”
 
26. Lebea then made the following findings: 
26.1 The evidence of Enslin and Pretorius about seeing Shabalala  
in the bunded area was suspect.
26.2 Shabalala did not have a spare key to enter the bunded area  
and   open   the   valves.     The   key   was,   at   all   material   times   in   the  
possession   of   Enslin   and/or   Pretorius   at   the   time   Shabalala   was  
allegedly seen in the bunded area.

26.3 Shabalala was never in the bunded area. Shabalala gave a  
detailed account of what he did during the time he was alleged to  
be in the bunded area.
26.4 Shabalala did not remove any sample bags from the bunded  
area as alleged.
26.5 There were no sample bags at the back of the bakkie driven  
by Dube when it exited the Applicant’s premises.
26.6 Msibi conducted a proper search of the bakkie driven by Dube  
when he was at the gate.
26.7 The   was   no   case   whatsoever   against   Tshabalala   as   the  
company’s case was that he did not see the bakkie and its driver  
(Dube). 
27. It should be apparent from the portions of the award cited that  
not only did Lebea consider the evidence placed before him, but

also   that   he   evaluated   the   evidence   and   on   a   balance   of  
probabilities   chose   the   version   of   the   individual   respondents.  
Considering Lebea’s findings it cannot be argued that he ignored  
uncontroverted evidence or that his findings cannot be supported by  
the evidence before him.   A careful reading of the award reveals  
that   not   only   did   he   consider   the   evidence   before   him,   it   also  
demonstrates that in assessing the evidence he applied his mind to  
all of it.
28. Mr   Pauw   also   submitted   that   Lebea’s   assessment   of   the  
evidence on a balance of probabilities was also incorrect.   Lebea  
found   ,   as   regards   to   Shabalala,   that   even   if   he   had   removed  
samples from the bunded area and put them on the pavement in  
front   of   the   laboratory   that   this   would   not   amount   to   an   act   of  
appropriation.  I need not consider this line of thinking in any great  
detail simply because Lebea found in any way that Shabalala was  
never in the bunded area (to remove the samples).  This reasoning  
would have been very relevant had Lebea found that Shabalala was  
in the bunded area and had removed sample bags.

29. Lebea’s finding that Shabalala was never in the bunded area  
is also attacked on a different basis. Mr Pauw criticizes this finding  
on the basis that Lebea failed to consider the evidence of Enslin  
and Pretorius, who corroborated each   other. Mr Pauw stated that  
Shabalala’s version was uncorroborated and this meant that on a  
balance of probabilities Lebea had to accept the Applicant’s version  
in the absence of a credibility finding.  It is notable that Lebea is not  
criticised on the basis that he ignored the evidence of Enslin and  
Pretorius.  Indeed he cannot be criticised of this because he did not  
ignore their evidence, but considered all the evidence before him.  
What influenced Lebea not to accept the evidence of Enslin and  
Pretorius about the presence of Shabalala in the bunded area is the  
fact that it was common cause that there was only one key to the  
bunded area and at the time of the alleged incident that key was in  
the   possession   of   Pretorius.     In   fact   Lebea   found   that   the  
Applicant’s version that Shabalala gained access into the bunded  
area because he had a key was sheer speculation.  He stated that  
he would not make a decision based on conjecture.   Furthermore

there   can   be   no   question   of   corroboration   between   Enslin   and  
Pretorius because only one of them says he saw Shabalala in the  
bunded area. 
30.  Lebea is also critisized for his finding that on 9 October 1996  
Pretorius   did   not   see   if   samples   were   at   the   back   of   the   bakkie  
driven by Dube.  To resolve the issue the court referred to annexure  
X.3  the a record of the proceedings before Lebea.  It is correct that  
under   cross examination  Pretorius was asked the question:   “Did 
you see samples inside the bakkie?”    His answer was a simple  
“No.”.     It   is   also   correct   however   that   he   testified   that   he   saw  
Shabalala load samples in the bakkie before was driven it to the  
security gate where it stopped for 30 ­ 60 seconds and left. Dube  
denied that he transported samples out of Applicant’s premises on  
9   October   1996.   It   appears   that   Lebea   was   influenced   by   the  
answer Pretorius gave under cross­ examination for his finding that  
Pretorius did not see if sample bags were at the back of the bakkie.  
To say Lebea was incorrect is not entirely correct.  If Pretorius was  
certain that there were sample bags at the back of the bakkie he

could easily have said so.
31. Lebea was also criticised for his finding that Enslin must have  
seen a spare wheel at the back of the bakkie and not 12 sample  
bags.   Also challenged is Lebea’s finding that Msibi searched the  
bakkie and that the factual dispute   as to where the sample bags  
were normally placed was not material to the determination whether  
theft was committed or not.   It is not clear why Lebea found that  
Enslin must have seen a spare wheel rather than 12 sample bags.  
He says it was more probable that Enslin saw a spare wheel.  What  
is   clear   is     that   Lebea   applied   his   mind   directly   to   the   issue  
regarding   the   spare   wheel   and   sample   bags   and   found   on   a  
balance of probabilities that Enslin must have seen a spare wheel.  
If one considers that Enslin never saw sample bags being loaded  
on the bakkie and that it was Pretorius who told him of this it is safe  
to conclude that when he saw something at the back of the bakkie  
he simply assumed it to be sample bags.
32. As to the security search Lebea’s reasoning was that Enslin

did not remain at his observation point the whole period the bakkie  
was travelling to the gate or was at the gate.  It is correct that Enslin  
left the area to look for Pretorius and it is possible that it is at that  
time the search was conducted.   The court cannot find scope to  
criticise Lebea for finding that the dispute as to where sample bags  
were normally placed was not material to the determination whether  
theft   was   committed.     The   court   could   also   find   no   merit   in   the  
Applicant’s criticism of Lebea on the basis that he did not rely on  
certain   evidence   by   Enslin,   Pretorius   and   Ngomane   which   was  
relevant to the probabilities.   What is clear from Lebea’s award is  
that   he   considered   all   the   evidence   before   him   and   made   his  
findings based thereon.
33. Lebea’s comments about Shabalala being seen in the cynade  
area are irrelevant as far as the issues in this matter are concerned.  
It   is   correct   that   these   observations   are   not   borne   out   by   the  
evidence and as such are meaningless.  On their own however they  
are not sufficient to have the award set aside.

34. Another   aspect   which   has   attracted   criticism   from   the   Applicant   is  
Lebea’s   finding   that   Peacy’s   involvement   in   the   pre­hearing   investigation  
involving Shabalala, Cashibe, Msibi and Dube had resulted in him not entering  
the internal disciplinary proceedings with an open mind.   It is common cause  
that on hearing of the incidents allegedly involving the individual    respondents,  
Peacy requested some samples to be taken and after receiving the results he  
formed the view that gold was probably stolen. This was before the individual  
responsible   were   charged.     Describing   his   involvement   in   such   pre­hearing  
investigations, Lebea stated:
  “His involvement is more than what one would call an institutional bias but  
goes  to   the   root   of  the   principle   that   nobody  should   be  a   judge  in  his   own  
case.”
35. Mr Pauw made the submission that Lebea had no basis for  
this finding in that though Peacey had to an extent, participated in  
the pre­hearing investigations and had independently deduced that  
gold  was  probably  stolen  there  was  no  evidence  suggesting  that  
Peacey   came   to   his   conclusion   (as   chairperson   of   the   hearings)  
other   than   by   way   of   reference   to   the   evidence   adduced   at   the  
respective internal hearings and on a balance of probabilities.   It  
was   further   submitted   that   the   mere   fact   that   Peacey   had  
established that theft had been committed at some stage was not

indicative of his having established prior to the hearings who exactly  
committed   such   offences   and   on   what   particular   date.     This  
contention   is   integral   to   the   charge   against   the   individual  
respondents in that in any investigation of a charge of theft against  
the individual respondents it would be required of the Applicant to  
establish that gold bearing material had indeed been stolen.
36. The  involvement of Peacey  in the investigations that led  to  
that conclusion, which investigations were conducted outside of and  
beyond the ambit of the disciplinary hearings, meant that   at least  
that aspect of the charges against the individual respondents had  
been pre­judged by Peacey by the time the hearings against them  
commenced before him.  Notwithstanding the fact that Peacey may  
not have reached the conclusion as to who had stolen the material,  
the issue of whether or not the material had in fact been stolen was  
at issue in the disciplinary hearings and the fact that Peacey had  
reached   a   view   thereon   precluded   him   from   presiding   over   the  
hearings in an unbiased and objective manner.

38. The Applicant’s other challenge to Lebea’s finding regarding  
Peacey is that he did not  apply his mind to the provisions of Item 4  
of schedule 8 to the Act.  Item 4(1) provides that:
“(1) Normally, the employer should conduct an investigation  
to   determine   whether   there   are   grounds   for   dismissal.     This  
does not need to be a formal enquiry.   The employer should  
notify   the   employee   of   the   allegations   using   a   form   and  
language that the employee can reasonably understand.   The  
employee should be allowed the opportunity to state a case in  
response to the allegations.  The employee should be entitled  
to   a   reasonable   time   to   prepare   the   response   and   to   the  
assistance of a trade union representative or fellow employee.  
After   the   enquiry,   the   employer   should   communicate   the  
decision   taken,   and   preferably   furnish   the   employee   with  
written notification of that decision.”
38. It   is   clear   that   Item   4  provides   for   a  process   where   the   employee   is  
confronted with the allegations against him and he is given an opportunity to  
respond   thereto   or   even   defend   himself.     What   is   clear   is   that   the   process  
through which the Applicant subjected the individual respondents is much more  
than what schedule 8 provides for.   The process followed by the applicant is  
what is provided for in the disciplinary code and procedure applicable to the  
parties.   There is no doubt in the court’s mind that the Applicant had in mind  
the provisions of  the  disciplinary  code when  it initiated hearings  against  the  
individual respondents.

39. The   fact   that   item   provides   for   a   certain   type   of   standard   in   the  
investigation   of   alleged   misconduct   does   not   mean   that   what   the   parties  
themselves  have agreed as to  the standard in such investigations does not  
apply.  The Act promotes and encourages parties to regulate their relationships  
through privately agreed procedures and processes.   Where parties have an  
agreed disciplinary code and procedure that is the process through which they  
have agreed to resolve  disciplinary issues.   The provisions of Item 4 would  
therefore apply where parties do not have an agreed disciplinary process.   In  
the   court’s   view   once   parties   have   agreed   to   a   disciplinary   process   that  
encourages a liberal standard one of them cannot be heard to argue that a  
conservative standard contained elsewhere should have been applied.
40. With this in mind it is clear that Lebea though aware and mindful of the  
provisions   of   Item   4   applied   the   standard   implicit   in   the   parties’   agreed  
disciplinary code and procedure.  Lebea’s conclusion regarding Peacey’s state  
of mind should therefore be understood in this light.  In Lebea’s mind Peacey’s
  involvement in the pre­hearing investigations regarding Shabalala, Cashibe,  
Dube   and   Msibi   disqualified   him   to   sit   as   chairperson   in   disciplinary  
enquiries involving these persons.  In a situation where no agreed disciplinary  
code and procedure was in place Lebea’ conclusions could be adjudged to be  
out of place.   In the court’s view there is no merit in the criticism levelled at  
Lebea in this regard.

41. A reading of the award reveals that in relation to each of the conclusions  
reached by Lebea in the award he has pointed to specific deficiencies in the  
evidence   of   the   Applicant’s   witnesses.     These   deficiencies   are   not   fanciful.  
Whether  the weight afforded to each of these  deficiencies  is that which  the  
Applicant, this court or another arbitrator would have attributed is not the issue.  
That exercise lies in the discretion of the arbitrator, and the fact that he has  
done so in a manner that differs from that which the Applicant would have liked  
to see does not render his decision reviewable.  It must, at all times, be borne  
in mind that what this court is engaged with is a process of review, not appeal. 
42. In   Carephone (Pty) Ltd NO and others (supra)   the Labour  
Appeal Court per Froneman DJP stated that an award should be  
justified in relation to the reasons given for it.  The reasons given by  
Lebea on their own can be defended.  The test here is not whether  
another   person   or   arbitrator   would   have   arrived   at   a   different  
finding.     The   court   is   not   persuaded   that   Lebea   committed   any  
irregularity warranting interference by this court.   As argued by Mr  
Jammy, counsel for the individual respondents, the Applicant’s case  
against   the   individual   respondents   was   based   on   circumstantial

evidence.  On this basis the aspects of the evidence on which the  
applicant relied must be beyond reproach.   It is in this regard that  
Lebea   found   deficiencies   in   the   Applicant’s   case   against   each  
individual respondent.  On that basis therefore the reasons he gives  
against   the   Applicant   are   above   reproach.     It   appears   justified  
therefore that the application for review should fail.
43. The order of this court is therefore:
1. The application for review is dismissed.
2. The Applicant is ordered to pay the legal costs of the third  
to seventh respondents.
                                  
Mlambo J
Date of Judgment: 7 May 1999
For the Applicant:   Mr P. Pauw instructed by Brink  
Cohen Le Roux & Roodt Inc.

For the 3 rd to 7 th respondent: Mr   P   Jammy   instructed   by  
Nomali Tshabalala Attorneys.
Reportable and interest to other judges