After hearing arguments from counsel on 7 May 2015, I granted the provisional order and said the reasons would follow. These are they.
This matter has got a chequered history indeed.
The applicant is an incorporation which provides national cellular telecommunications service in Zimbabwe, among other services, by virtue of a licence issued in terms of the Postal and Telecommunications Act [Chapter 12:05] (the Act) by the first respondent (the Postal and Telecommunications Regulatory Authority), which is the statutory authority established in terms of the Postal and Telecommunications Act to superintend the licencing and regulation of telecommunication service in this country under the watchful eye of the second respondent (the Minister of Information, Technology, Postal and Courier Services), the Minister charged with the administration of the Postal and Telecommunications Act.
The applicant was initially issued with a national cellular telecommunications licence in May 1998. It was issued with a revised licence on 26 June 2002, a licence which, in terms of its clause 4 was, valid for 15 years from the date of its signing. That licence contains the terms and conditions under which the applicant is required to provide the service.
I have said that the relationship between the parties has had its fair share of problems.
At some point, because of the squabbles relating to the applicant's shareholding, which the regulatory authority insisted did not comply with the country's indigenisation laws, and, more importantly, with the terms of the licence, the authority cancelled the licence on 9 August 2007.
The applicant appealed that cancellation to the responsible Minister, in terms of section 96 of the Postal and Telecommunications Act, on 10 August 2007, and approached this court by urgent application in HC4301/07 for interim relief. This court, per MUSAKWA J, issued a consent order on 15 August 2007 to wit:
“It is hereby ordered that:
1. Pending the determination of the appeal by the second respondent, the order cancelling the licence and directing the applicant to switch off its telecommunications issued by the first respondent be and is hereby suspended.
2. There is no order as to costs.”
Just as well the applicant had the presence of mind to seek the suspension of the cancellation order, because it was not until 29 April 2010 that the Minister finalised the appeal - almost three (3) years later.
The Minister's decision, communicated by the Secretary for Transport, Communications and Infrastructural Development, on that date, is helpful:
“RE: TELECEL ZIMBABWE LICENCE
Your minute AM/mn/342/10 dated 28 April 2010 refers. The Ministry holds the view, that, cancelling Telecel Zimbabwe's licence is not tenable vis-a-vis the thousands of subscribers the mobile operator now has and the many negative messages such action would convey to potential investors, both in the sector and across the whole economy.
Thus, at a meeting between Honourable Minister N T Goche (MP) and Telecel's chief, Mr Kia Uebech, on 1 April 2010, Government's requirement that Telecel Zimbabwe reverts back to its original 60:40 position in respect of its local: foreign shareholding was stated/indicated.
Telecel undertook to address this challenge.
Clearly, it will be difficult for the Government to support the renewal of the licence come 2013 should Telecel fail to comply with Government's pre-condition. In our view, the ball is now in Telecel Zimbabwe's court.”
That way, the licence was reinstated on the understanding, that, the shareholding would be regularised to meet Government requirements.
Since 2010, the parties have been engaged in dialogue over the shareholding which went on and on with no end in sight. A lot has happened, including an agreement signed by the parties on 6 August 2013.
However, not happy with what the applicant had done, the first respondent, again, cancelled the applicant's licence, on 28 April 2015, on the basis that the applicant had failed to comply with the Postal and Telecommunications Act.
It then set about issuing a raft of provisions in its final regulatory order which reads:
“11. REGULATORY ORDER
HAVING REGARD to the provisions of the Act, Telecel licence conditions, persistent compliance default, all relevant evidence, and the submissions made by Telecel Zimbabwe Limited, POTRAZ hereby makes the following order in the exercise of its power under the Act.
11.1 Telecel's licence to provide National Cellular Telecommunications Service is hereby cancelled with effect from the date of this order.
11.2 Telecel immediately notifies its subscribers and relevant stakeholders of the termination of its licence upon receipt of this order.
11.3 Telecel ceases to operate its cellular telecommunications network and ceases to offer any communication service upon receipt of this order.
The effect of the cancellation is as follows:
(a) Radio frequency spectrum allocated to Telecel for the provision of cellular telecommunication services are hereby withdrawn with effect from the date of receipt of this order (see Annex 01 for the detailed spectrum information).
(b) Radio frequency spectrum allocated to Telecel for the establishment of Microwave Fixed Links in 7, 8, 13, 18, 22 and 23 GHz bands are hereby withdrawn with effect from the date of receipt of this order.
(c) Radio frequency spectrum allocated to Telecel for the establishment of a C-band VSAT Earth Station are hereby withdrawn with effect from the date of receipt of this order.
(d) The number resources used by Telecel Zimbabwe Limited to offer telecommunication services are hereby withdrawn with effect from the date of this order.
12. SPECIAL DISPENSATION TO TELECEL
NOTWITHSTANDING the provisions of subparagraphs 11.2 and 11.3 above, however, and being mindful of the disruptive effect of an immediate cessation of operations upon the subscribers and other stakeholders of Telecel, POTRAZ hereby grants a special dispensation to Telecel for it to continue with its operations for a period of thirty (30) days from the date of receipt of this order. The purpose of the dispensation will be to afford Telecel an opportunity, among other things, to:
12.1 Facilitate the migration of subscribers from Telecel to other licenced telecommunications operators.
12.2 Notify its employees and agents of the cancellation of its operating licence.
12.3 Notify its stakeholders in the mobile financial services sector of the cancellation of its licence.
12.4 Notify the general public of the cancellation of its licence.
12.5 Begin the process of decommissioning its telecommunications equipment, which process has to be completed within ninety (90) days calculated from the date of receipt of this order.”
Hence, on the stroke of the pen, and by Regulatory decree, scores of employees had lost employment and a number of subscribers had lost a service, never mind other stakeholders and never mind the labour laws of this country dealing with notice of termination of employment.
The applicant has now come to court, on an urgent basis, seeking the following relief:
“TERMS OF FINAL ORDER SOUGHT
That you shall show cause to this Honourable Court why a final order should not be made in the following terms:
1. That, pending determination of the finalisation of the appeal by the applicant pursuant to the provisions of section 96 of the Posts and Telecommunications Act [Chapter 12:05] that Regulatory Order No.1 of 2015 and special licence and concomitant dispensations imposed by the Postal and Telecommunications Regulatory Authority of Zimbabwe (POTRAZ) be and are hereby suspended.
2. That, pending finality to the appeal process, as provided by the Posts and Telecommunications Act [Chapter 12:05] applicant shall not dispose of any movable assets or infrastructure without notice to the 1st, second, and third respondents.
3. That, there be no order as to costs.
INTERIM RELIEF (GRANTED)
Pending determination of this matter, the applicant is granted the following relief:
(a) That, first to third respondents be and are hereby interdicted from in any way of (sic) interfering with the normal business activities of the applicant pursuant to the provision of its telecommunication services and related business activities to the public and its subscribers in Zimbabwe.
(b) The dispensation time periods mentioned in Regulatory Order No.1 of 2015 and the cancellation of applicant's licence be and are hereby suspended until such time as there has been a final determination of (sic) a final order sought in terms of this application.”
In its founding affidavit, deposed to by Angeline Vere, its General Manager, the applicant states, that, after all its attempts to reduce its foreign shareholding to a level acceptable to the first respondent were rejected by the latter, which retains the exclusive right of approval in terms of clause 12 of the licence, the first respondent resorted to the drastic action of cancelling the licence on terms set out in the Regulatory Order aforesaid.
Clause 12 of the licence provides:
“12.1 Ownership
12.1.1 Foreign Investment and Shareholding Structure
1. The holder of this licence must be incorporated in Zimbabwe. The licencee shall ensure that the foreign ownership shall be limited to forty-nine percent (49%).
2. Changes in the shareholding structure, at any stage, must be approved by the Authority before it is effected.
3. In the event that the licencee's initial shareholding structure does not conform to the provisions of clause 12.1.1.1 the licencee shall, within five (5) years from date of signing of the licence, ensures (sic) that the foreign ownership is reduced to forty nine percent (49%.).”…,.
Over the years, the applicant has tried to comply by introducing a new partner to assume ownership of the 11 per cent balance of the 60 per cent shareholding held by the foreign partner, Telecel International Limited (TIL), but, the first respondent either rejected the proposed partner or insisted it had to be approved by the Minister.
At one stage, the applicant was told the 11 per cent shareholding could only be sold to the fourth respondent (Empowerment Corporation (Pvt) Ltd) which holds the other 40 percent stake.
The applicant introduced an Employees Share Ownership Scheme (ESOP) in terms of which its employees would own the 11 per cent shares currently in the hands of Telecel International Limited (TIL) in order to move the shareholding to indigenous people.
This was rejected.
It proposed listing on the Zimbabwe Stock Exchange as another option which was also rebuffed.
Instead, the first respondent cancelled the licence.
The reason given for the cancellation appears in paragraph 1 of the first respondent's “judgment” of 28 April 2015 which reads:
“1. INTRODUCTION
This case concerns Telecel Zimbabwe Limited (hereinafter referred to as 'Telecel') non-compliance with licence conditions, provisions of the Postal Telecommunications Act [Chapter 12:05] (hereinafter referred to as 'the Act') as read with Indigenisation and Economic Empowerment laws. The Postal Telecommunications Regulatory Authority of Zimbabwe (hereinafter referred to as 'POTRAZ') has to determine whether the licence issued to Telecel to provide National Cellular Telecommunication Services should be cancelled or not and issue an appropriate order.”
The applicant stated, that, following the cancellation and the “appropriate order” it has appealed to the second respondent (the Minister of Information, Technology, Postal and Courier Services), the responsible Minister, but, meanwhile, the Regulatory Order remains extant as the appeal does not have the effect of suspending the order appealed against.
Whichever way, it is unlikely that the Minister will dispose of the appeal before the expiration of the period of 30 days it has been given to close shop; a period which is unreasonable in the circumstances given that it employs more than 700 direct employees (at the hearing, counsel for the employees corrected that figure, there are 820 direct employees) whose employment contracts would have to be terminated.
In addition, in terms of the Postal and Telecommunications Act, they are entitled to 28 days during which to lodge an appeal.
The applicant therefore craves the interim relief aforesaid.
While the other respondents did not oppose the application; in fact, counsel for the fourth respondent (Empowerment Corporation (Pvt) Ltd) supported it, and counsel for the second and third respondents (Minister of Information, Technology, Postal and Courier Services N.O. and Chief Secretary in the Office of the President and Cabinet N.O.) had no submissions to make except that the Minister would await the appeal, the first respondent surprisingly opposed the application, vehemently, as if everything depended on the cancellation of the licence and the closure of the applicant.
Counsel for the first respondent contested the validity and urgency of the application....,.
He submitted, that, the applicant should not be entertained on an urgent basis because the matter is simply not urgent; in fact, this is self-created urgency.
The applicant was aware of the intention to cancel its licence as at 5 March 2015 when the first respondent advised it of that intention by letter of that date. It should have taken remedial action then, instead of waiting until 30 April 2015 to file this application. For that reason, the matter is not urgent and the applicant should be turned away for that reason alone.
In my view, there is no merit whatsoever in that point in limine.
I find myself having to repeat what I stated in The National Prosecuting Authority v Busangabanye & Anor HH427-15…,:
“In my view, this issue of self-created urgency has been blown out of proportion. Surely, a delay of 22 days cannot be said to be inordinate as to constitute self created urgency. Quite often, in recent history, we are subjected to endless points in limine centered on urgency which should not be made at all. Courts appreciate that litigants do not eat, move, and have their being in filing court process. There are other issues they attend to, and, where they have managed to bring their matters within a reasonable time they should be accorded audience. It is no good to expect a litigant to drop everything and rush to court even when the subject matter is clearly not a holocaust.”
I agree with counsel for the applicant, that, raising the issue of urgency by respondents finding themselves faced with an urgent application is now a matter of routine.
Invariably, when one opens a notice of opposition these days, he is confronted by a point in limine challenging the urgency of the application, which should not be made at all. We are spending a lot of time determining points in limine which do not have the remotest chance of success at the expense of the substance of a dispute.
Legal practitioners should be reminded, that, it is an exercise in futility to raise points in limine simply as a matter of fashion.
A preliminary point should only be taken where:
(i) Firstly, it is meritable; and
(ii) Secondly, it is likely to dispose of the matter.
The time has come to discourage such waste of the court's time by the making of endless points in limine by litigants afraid of the merits of the matter, or legal practitioners who have no confidence in their client's defence viz-a-viz the substance of the dispute, in the hope that, by chance, the court may find in their favour.
If an opposition has no merit it should not be made at all.
As points in limine are usually raised on points of law and procedure, they are the product of the ingenuity of legal practitioners.
In future, it may be necessary to reign in the legal practitioners who abuse the court in that way, by ordering them to pay costs de bonis propiis.
A matter is urgent, if, when the need to act arises, the matter cannot wait. That is the simple test for urgency.
While there is a catena of authorities pronouncing on urgency, it all boils down to the remarks of MAKARAU JP…, in Document Support Centre (Pvt) Ltd v Mapuvire 2006 (1) ZLR 232 (H)…, where the learned judge pronounced:
“Some actions, by their very nature, demand urgent attention and the law appears to have recognized that position. Thus, actions to protect life and liberty of individuals, or where the interests of minor children are at risk, demand that the courts drop everything else, and, in appropriate cases, grant interim relief protecting the affected rights. The rationale of the courts acting swiftly where such interests are concerned is, in my view, clear….,. It is now accepted, that, in some cases, even purely commercial interests can be protected urgently in appropriate cases.
In Silvers Trucks (Pvt) Ltd & Anor v Director of Customs & Excise 1999 (1) ZLR 490 (H), SMITH J considered the matter of the release of certain attached imports on the basis that the applicant would face bankruptcy and its 67 employees would lose their jobs as a result.
In my view, the reasoning adopted by SMITH J in this regard is still in line with the objective test, that, had the courts waited, there would have been no need for the court to act subsequently. The applicant would have been liquidated and the return to it of the attached imports would not have reversed the effect of non-timeous action by the court. It would be of no further benefit to the applicant to pursue the legal interest.
In my view, urgent applications are those where, if the courts fail to act, the applicants may well be within their rights to dismissively suggest to the court, that, it should not bother to act subsequently as the position would have become irreversible, and irreversibly so, to the prejudice of the applicant.”…,.
See also Triple C Pigs & Anor v Commissioner General, Zimbabwe Revenue Authority 2007 (1) ZLR 27 (H)…,.
It is not factually correct for counsel for the first respondent to suggest, that, the applicant did not do anything from 5 March 2015.
On that date, the first respondent gave notice of an intent to cancel the licence and invited the applicant to make representations as to why such cancellation should not be effected.
This was as it should have been in terms of the procedure set out in section 43(2) of the Postal and Telecommunications Act.
The applicant made those representations, which did not find favour with the first respondent, and, it duly cancelled the licence, on 28 April 2015, issuing an order which ignored, completely, the applicant's right of appeal to the Minister.
In my view, the need to act arose when the applicant received the notice of cancellation dated 28 April 2015.
It obliged by filing this application on 30 April 2015 – two (2) days later.
There can be no possibility of self-created urgency. For that reason, I dismissed the point in limine as being fanciful and without merit.
This is a matter which cannot wait at all because the operation of the Regulatory Order started immediately, and, in 30 days, the applicants would have to close with all the attendant consequences.