NORTH GAUTENG HIGH COURT, PRETORIA – On Tuesday morning, Judge Francis Legodi granted both Mark Shuttleworth and the South African Reserve Bank (Sarb) leave to appeal his recent judgment regarding the constitutional validity of South Africa’s Exchange Control (Excon) mechanism.
The Minister of Finance, who was the second respondent, had decided to abide the outcome of the two other parties’ simultaneous applications for leave to appeal.
Shuttleworth challenged the Sarb’s Excon mechanism in 2010 as a consequence of his having paid a 10% exit tax of R250m when he took R2.5bn out of South Africa.
Moneyweb reported earlier this month that Shuttleworth had only partially succeeded in his challenge. Only seven of his 22 challenges to the Excon mechanism were successful.
In granting leave to both Shuttleworth and to the Sarb to appeal his judgment to the Supreme Court of Appeal, Judge Legodi observed: “Issues raised in the main application were many and complex. This resulted in one of the longest judgments ever handed down by this court. Several legal and constitutional issues were raised and dealt with in the main judgment.”
The judge noted that that both sides had satisfied him that another court might arrive at a different conclusion to his own, and that this was the test that he had to apply in deciding whether to grant leave to appeal.
Five judges in the Supreme Court of Appeal will hear the matter. The appeal is expected to be heard in the first quarter of 2014.
Read Judge Francis Legodi’s Leave to Appeal judgment here.