ON BEHALF OF ZZ2 (BERTIE VAN ZYL (PTY) LTD), THE TPO (TOMATO PRODUCERS ORGANISATION) AND NUK (NOORDELIKE UIE KOMITEE)

PROKON FEES SET ASIDE

This press release relates to the judgment of the Supreme Court of Appeal dated 14 July 2021 under Supreme Court of appeal Case No. 549/2020 in terms of which ZZ2 the TPO and the NUK were the appellants and the Department of Agriculture, Forestry and Fisheries, Prokon, and six others were the respondents.

1. The Supreme Court of Appeal reviewed and set aside the Prokon fee determination as gazetted on 6 January 2017 on the basis that the determination was not only procedurally unfair, but also irrational and accordingly unlawful.
2. The Supreme Court of Appeal found that Section 3(1A)(b)(ii) of the Agricultural Product Standard Act No. 119 of 1990 in terms whereof an Assignee may determine its own fees, is not unconstitutional.
3. Because the Prokon fees were reviewed and set aside, Prokon is not entitled to recover such fees from producers. The press release by Prokon dated 19 July 2021 wherein it stipulated that all fees charged up to date of the judgment of 14 July 2021remain valid and binding, is wrong.
4. Any fees that were paid to Prokon before the judgement date of 14 July 2021 are therefore recoverable.
5. The appellants in the above matter will continue to monitor the actions of Prokon and will ensure that it complies strictly with the prevailing law.
   

Issued by: ZZ2, TPO, NUK
Contact person: BJ van Zyl
Contact detail: 015-395 8453 / e-mail: bj@zz2.co.za
Date: 23 July 2021