Leboho v Commission for CCMA and Others (JR689/2004) [2005] ZALC 65; (2005) 26 ILJ 883 (LC); [2005] 8 BLLR 802 (LC) (14 April 2005)

70 Reportability

Brief Summary

Labour Law — Review of arbitration award — Section 145 of the Labour Relations Act — Applicant challenging dismissal by employer as unfair — Arbitrator reopening proceedings and calling new witnesses without consent of parties — Court finding gross irregularity in arbitrator's conduct — Award set aside and matter remitted for fresh arbitration.

IN THE LABOUR COURT OF SOUTH AFRICA
(HELD AT JOHANNESBURG)
Case Nr:  JR689/2004
In the matter between:
PATRICK LEBOHO Applicant
and
CCMA 1st Respondent
NAD MURUGAN    2ND Respondent
SOUTH AFRICAN REVENUE SERVICES   3RD Respondent
JUDGMENT: MUSI J
HEARD ON: 18 FEBRUARY 2005
DELIVERED ON: 14 APRIL 2005
[1] This is an application brought in terms of Section 145 of the  
Labour  Relations Act 66 of 1995 (the Act) for  the review  
and   setting   aside   of   the   arbitration   award   made   by   the  
second respondent under the auspices of the CCMA on 27  
February   2004.     In   terms   thereof   the   second   respondent  
found that the dismissal of the applicant by his employer,

the third respondent, on 25 November 2002 was fair.
[2] In   brief,   the   applicant   had   been   employed   by   the   South  
African   Revenue   Services   as   an   assessment   officer   and  
stationed   at   the   Johannesburg   International   Airport   (the  
airport).     On   30   August   2002   a   passenger   of   Chinese  
decent alighted at the airport on board Singapore Airways.  
As   he   went   through   an   airport   customs   checkpoint   the  
passenger was called to a separate room by the customs  
officials of the SARS and searched.   On him was found a  
number   of   passports   which   he   had   apparently   brought  
along for friends and relatives.   The customs officers told  
the passenger that it was a serious offence to carry other  
people’s passports and that he could be jailed for it.  They  
literally   extorted   money   from   the   passenger   through   the  
threat of incarceration and they were given 600 American  
dollars.  Subsequently the passenger reported the incident  
to the authorities and the Police respondent by visiting the  
airport the following day on 31 August 2002.   The Police  
contacted the SARS manager on site, Helena Tripmaker,  
2

who together with the Police accompanied the passenger  
on a tour of the airport.  The passenger pointed out one of  
the   customs   officers,   Mathonsi,   as   one   of   the   officers  
involved and later the passenger was shown photos of the  
SARS   officers   at   the   airport.     The   passenger   (the  
complainant)   identified   three   of   the   officers   that   extorted  
money from him.  The suspects included Mathonsi and the  
applicant.   The   suspects   were   arrested   and   subsequently  
charged   with   bribery   and/or   fraud   but   the   case   was  
withdrawn because the complainant had in the meantime  
left South Africa and could not attend Court to testify.
[3] The   applicant   was   also   charged   with   misconduct   by   his  
employer   and   was   brought   before   a   disciplinary   enquiry  
wherein he was found guilty and dismissed.   He then took  
the   matter   to   the   CCMA   alleging   unfair   dismissal.     The  
matter ended up in an arbitration hearing which culminated  
in the award now being challenged in this Court.
[4] The   grounds   upon   which   this   Court   can   review   and   set  
3

aside the award are fully set out in Section 145 (2) of the  
Act.  The applicant seems to challenge the award on all the  
grounds set out in subsection 2.   But only two aspects of  
the   arbitration   proceedings   have   been   singled   out   for  
attack.       Firstly   that   the   arbitrator   based   his   decision   on  
hearsay evidence.  Secondly that the arbitrator committed a  
gross irregularity when, the hearing having been concluded  
with   closing   arguments   on   26   November   2003,   he  
reopened it and  mero motu  called further witnesses on the  
26 January 2004.  It is contented that this also showed bias  
on the part of the second respondent.  The argument was  
advanced that on the evidence before him on 26 November  
2003 the second respondent would have been obliged to  
find   in   favour   of   the   applicant.     He   therefore   called   for  
further   evidence   in  order   to  avoid  that  finding.    It   is  also  
contented   that   in   thus   calling   for   further   evidence   the  
second respondent exceeded his powers.  And further that  
the second respondent made himself guilty of misconduct  
in relation to his duties as an arbitrator.  
4

[5] I shall now deal with the above two main points and shall  
start with the second point relating to the calling  mero motu  
of further evidence and witnesses by the arbitrator.     In a  
criminal trial in a Court of Law the presiding officer has the  
power   to   call   witnesses   mero   motu   at   any   stage   of   the  
proceedings before judgement, not only to clarify aspects of  
the evidence but also the help the presiding officer make up  
his/her mind as to what the truth is.   The discretion is not  
limited   to   the   recalling   of   witnesses   who   have   already  
testified but extends to the calling of new witnesses.   This  
common   law   power   is   reinforced   by   Section   186   of   the  
Criminal Procedure Act 51 of 1977.   The presiding officer  
has such a wide discretion because, as it is said, he is not  
like a referee whose only role is to see to it that the rules of  
the   game   are   observed   by   the   participants.     He   is   an  
administrator   of   justice   and   must   see   to   it   that   justice   is  
done.  See  R v HEPWORTH  1928 AD 265.  Of course the  
discretion must be exercised judicially.  For an overview of  
the case law and the factors to be taken into account in the  
use of the discretion, see my judgement in   S v BOSULE  
5

(2000) 3 ALL SA 241 OPD.
[6] The   position   in   civil   procedure   is   different.     A   presiding  
officer has no power to   mero motu   to call witnesses.   He  
can only do so with the consent of the litigants.  However, a  
civil   court   has   the   power   to   recall   witnesses   that   have  
already testify before it for purposes of further examination  
or   cross­examination.    It   can   do  this  at  any  stage  of  the  
proceedings before judgement.   However this is done not  
by the Court  mero motu  but upon application by one of the  
parties.  See  MLAMBO v FOURIE  1964 (3) SA 350 TPD at  
357.     The   reasons   for   this   position   are   set   out   in   full   in  
SIMON alias KWAYIPA v VAN DEN BERG   1954 (2) SA  
612 SR at 613 to 614.  One of the import considerations is  
that a civil contest, unlike a criminal trail, is not a matter for  
the public but one essentially between the parties involved  
and the Court is not expected to help the parties or take  
sides.       If   there   is   inconclusive   evidence   on   the   issues  
involved, the Court merely asks itself whether the party on  
whom the onus rests has discharged it.   It is not for the  
6

Court to get out of its way to establish the truth.   It only  
decides on the truth on the basis of evidence before it.
[7] Now   an   arbitrator   conducting   arbitration   proceedings   is,  
strictly   speaking,   not   obliged   to   follow   the   rules   of  
procedure   applicable   to   Courts   of   Law.     Compare   my  
remarks   in   MHLAMBI   v   MATJABENG   MUNICIPALITY  
AND   ANOTHER   2003   (5)   SA   89   O   at   95   G.     It   is  
noteworthy   that   the   Labour   Relations   Act   does   not  
prescribe   any   definite   procedure   for   the   conduct   of   such  
proceedings.  Significantly section 138 (1) of the Act makes  
it clear that the bottom line is that the arbitrator must:
“determine   the  disputes  fairly  and   quickly  but   must  deal   with  the  
substantial   merits   of   the   dispute   with   the   minimum   of   legal  
formalities”.
    
In   my   view,   this   express   wording   of   the   Act   sounds   a  
warning that Courts of Law and legal practitioners should  
not   impose   their   formalistic   rules   of   procedure   on  
Commissioners   charged   with   resolving   labour   disputes  
7

through conciliation and arbitration.
[8] Having said that, it is a fact that arbitration proceedings are  
generally conducted in line with the rules of civil procedure  
and the standard of proof is the same.  Proof is established  
on a balance of probability.  In this sense, the rules of civil  
procedure are broadly adhered to;   at the very least they  
provide valuable guidelines.   In my view, whereas the Act  
gives   an   arbitrator   a   wide   discretion   on   how   to   conduct  
proceedings, the bottom line is that the procedure followed  
must be fair and should not result in prejudice to any of the  
parties involved.
[9] With that prelude, I look into the conduct of the proceedings  
herein.   If these were civil proceedings before a Court of  
Law, the calling of the witnesses Tycoon Khoza and I. A.  
Sirkhot   mero   motu   by   the   arbitrator   would   be   a   gross  
irregularity.   These two witnesses had not testified before  
and   the   consent   of   the   parties   was   not   obtained.     This  
much is clear from the arbitrator’s opening remarks at page  
8

21 of the pleadings:
“However when writing my award I discovered several parts of the  
evidence  submitted  to be inconclusive  and I therefore  rescheduled  
the meeting for a re­hearing on the 26 January 2004.   I requested  
several documents and certain witnesses to be recalled.  Both parties  
were appropriately represented but elected not to cross­examine the  
witnesses I recalled”.  
Not only was the consent of the parties not sought but they  
were also not consulted on the re­opening of the hearing.  
In say re­opening because that is what it is.   No wonder  
that the representatives of the parties were startled by the  
turn of events and that may explain why they elected not to  
cross­examine.
[10] The   only   witness   who   had   testified   and   was   recalled   is  
Helena Tripmaker.  She was not recalled at the request of  
any of the parties.  Neither was she recalled for purpose of  
further   examination   or   cross­examination.     She   was  
recalled in order to close loopholes or provide missing links  
9

in the evidence before the second respondent.   From the  
summary   of   the   evidence   as   given   by   the   second  
respondent, it is clear that she was not only asked to clarify  
her earlier evidence but new evidence was led.   It is also  
clear that she was patching loopholes in the version of the  
employer, the third respondent.
[11] The   rationale   for   forbidding   a   Court   hearing   a   civil   case  
from   mero motu   calling witnesses is, in my view, equally  
valid in respect of arbitration proceedings.   In the instant  
case   there   was   an   onus   on   the   third   respondent   to  
establish the fairness of the applicant’s dismissal.  As at the  
final hearing on 26 November  2003 the evidence on this  
score was, to use the second respondent’s own language,  
inconclusive.   By   mero motu   not only recalling Tripmaker  
but   also   calling   new   witnesses,   the   second   respondent  
assisted the third respondent to discharge the onus resting  
on it.   By this I am not saying that the second respondent  
deliberately went about to do that;  I am merely saying that  
that is the effect of his conduct aforesaid.     Certainly such  
10

action   created   a   perception   of   bias   in   the   mind   of   the  
applicant.   The perception that the arbitrator was bent on  
finding in favour of the employer is one that ought to have  
been   avoided.     What   complicates   matters   is   that   the  
applicant was not given the opportunity to respond to the  
new evidence of Khoza and Sirkhot.   Khoza, in particular,  
had   featured   prominently   earlier   in   the   proceedings   and  
either of the parties could have called him but they declined  
to   do   so.     It   was   therefore   improper   for   the   second  
respondent to call him under those circumstances.
[12] I conclude that the second respondent committed a gross  
irregularity   in   re­opening   the   hearing   and   calling   and   re­
calling witnesses without the consent of the parties.   The  
award stands to be reviewed on that ground alone.  In view  
of this conclusion, it is unnecessary to deal with the issue of  
hearsay evidence.   I should, however, point out that there  
are other discrepancies in this matter.
[13] Firstly, the record of the disciplinary hearing about which  
11

Sirkhot had been called by the second respondent to testify  
was not furnished to this Court.  When I enquired about it, I  
was   informed   that   it   was   not   available   even   during   the  
arbitration   hearing   but   that   only   the   tapes   thereof   were  
available.   Yet the second respondent made the following  
statement at page 27 of the pleadings:
“6. Having perused the disciplinary records and findings of the  
chairperson of the enquiry, in particular, to his sensitivity to  
all parties concerned, I find no reason to interfere with his  
findings   that   the   applicant   is   guilty   of   the   alleged  
misconduct.”
It was very important to get a transcript of the record of the  
disciplinary enquiry given that the complainant, Mr Chang  
(ineptly and strangely called “the China” by the applicant’s  
representative)   is   said   to   have   therein   identified   the  
applicant as one of the fraudsters and explained his role.  
Secondly,   there   is   no   transcript   of   the   record   of   the  
evidence of the three witnesses called   mero motu   by the  
arbitrator.   Only a summary of their evidence as given by  
12

the second respondent is on record.
[14] Finally   at   the   conclusion   of   the   award   the   second  
respondent said the following and I quote:  
“The   representative   from   the   union   quoted   case   law   in   respect   of  
EARLY BIRD FARMS (PTY) LTD v MLAMBO  (1997) 5 BLLR  
541 LAC.  I find absolutely no connection in this case that is of  
any relevance to this particular dispute.  Is it just a question of  
case law just to impress their members?”
The same representative appeared before me on behalf of  
the applicant, and these remarks make sense to me.  The  
record   of   the   arbitration   proceedings   teems   with   long­
winded,   repetitive   and   irrelevant   arguments.       It   is   an  
unfortunate   situation   which,   unfortunately,   can   only   be  
avoided with the engagement of suitably qualified people in  
these sorts of matters.
[15] In the result, the following order is made:
1. The   arbitration   award   made   by   the   second  
13

respondent   on   27   February   2004   under   number  
GA901/03 is set aside and the matter is remitted to  
the   CCMA   for   arbitration   afresh   before   another  
Commissioner.
2. There shall be no order as to costs. 
___________
H.M MUSI, J
On behalf of Applicant: E Luthuli
Representative of
United Peoples Union of S.A.
PRETORIA
On behalf of Respondents: I Molelekeng
Representaive of
South African Revenue Service
PRETORIA
/em
14