Auditor-General of South Africa v The Accounting Officer of Gateway Airports Authority (Ltd) and Another

• Jurisdiction: http://justis.com/jurisdiction/166,South Africa
• Judge: GC Muller J
• Judgment Date: 26 May 2022
• Court: Limpopo Division, Polokwane
• Hearing Date: 26 May 2022
• Docket Number: 124/2022

Muller J:

[1]

The plaintiff is the Auditor-General of South Africa. The defendants are the accounting officer of the Gateways Airports Authority (Ltd) as the first defendant

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and Gateways Airports Authority (Ltd) as the second defendant. The summons was served on 14 January 2022. No notice of intention to defendant was filed by the defendants.

[2]

The plaintiff applied for default judgment. When the application was called counsel for the applicant was asked if the application should not have been referred to the Registrar to consider the application. Applicant's counsel informed the court that it was not, because the claim is for audit fees which is not a debt or liquidated demand as required by Rule 31(5)(a). Judgment was reserved.

[3]

Rule 31(5)(a) provides that:

"Whenever a defendant is in default of delivery of notice of intention to defend or of a plea, the plaintiff, if he or she wishes to obtain judgment by default, shall where each of the claims is for a debt or liquidated demand, file with the registrar a written application for judgment against such defendant..."

[4]

The question to be determined is whether the claim is "a debt" or a "liquidated demand." The term can be equated with a claim for a fixed, certain or ascertained amount. [1]

[5]

The plaintiff, in the particulars of claim, states that it conducted an audit at the second defendant and rendered invoices for the work performed. No payment was forthcoming with the result that the plaintiff instituted action for the recovery of R1062 192-65 together with interest.

[6]

The Public Audit Act [2] gives effect to the provisions of the Constitution establishing and assigning functions to the Auditor-General and to provide for

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auditing institutions in the public sector. Section 23 of the Act, makes provision for audit fees which the plaintiff may charge. In terms of section 23(1) the plaintiff determines the basis for the calculations of audit fees to be recovered from auditees referred to in section 1, [3] after having consulted the "Oversight Mechanism" [4] and the National Treasury. Section 23(2) provides that an auditee shall settle the account for audit fees within 30 days, failing which the plaintiff must promptly take legal steps to recover the amount. Interest may be charged in terms of section 23(3) on any audit account at the prescribed rate in terms of section 1(2) of the Prescribed...