High court finds CIPC essential service certificates for companies lawful

The department of trade and industry and competition (DTIC)  has welcomed the Gauteng High Court decision not to grant Sakeliga the relief it sought in a matter involving the lawfulness of the Companies and Intellectual Property Commission’s Issuance (CIPC) of certificates for companies to render service in the first phase of the Covid-19 lockdown.

During Level 5 lockdown, the CIPC started an online registration platform for companies, which were permitted to operate as essential service businesses in terms of the regulations published by the minister for cooperative governance and traditional affairs (Cogta), the department said in a statement on Wednesday.

The service was voluntary for companies who wished to log their details with the government over the period.

Sakeliga, a nonprofit organisation, approached the court seeking an order declaring that the CIPC had no authority to issue the essential services certificate to businesses and close corporations permitted to operate during the lockdown.

The department said: “The DTIC has welcomed a decision by the Gauteng High Court, which declined to give Sakeliga the relief it sought on the lawfulness of the CIPC certificates issued to companies which were permitted to render essential services during the first phase of the lockdown.”

In the judgment, the court found that giving such relief would be “inappropriate”. The department said their lawyers pointed out prior to the matter being heard that the service was voluntary but Sakeliga persisted with its application.

The court, therefore, declined to make an order in favour of Sakeliga, ruling that it would be inappropriate to make any finding in respect of the declaratory relief directed at the CIPC issue.

During the hearing, which took place on the same day as Level 3 regulations were published, government’s legal representatives pointed out that the issuance of certificates would not continue under alert Level 3, as the concept of essential services would no longer apply.

“Given that it was a voluntary, self-certification service to build a database of companies, the minister of trade, industry, and competition, Ebrahim Patel, decided not to issue a direction that would have required companies to register,” the department said.

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