NEWSFLASH FOR WEEK 1 (28 February – 04 March 2022)

AGRICULTURAL

Publication of the Amendments to the Regulations – The Plant Improvement Act

The amendments to the Regulations, as issued in terms of the Plant Improvement Act No. 53 of 1976, were Gazetted.

https://www.golegal.co.za/amendments-plant-improvement-act/

Hemp declared an agricultural product

The amendments to the Regulations, as issued in terms of the Plant Improvement Act No. 53 of 1976, were Gazetted on 8 October 2021. The authority for such being seen in the auspices of the Department of Agriculture, Land Reform and Rural Development.

The amended regulations declare that Cannabis Sativa L, also known as hemp, as an agricultural product. Thus, in the wake of the publication of these amendments to the Regulations, as of 29 October 2021, and subject to acquiring a Hemp Permit from the Department of Agriculture, Land Reform and Rural Development (the Registrar of Plant Improvement), hemp may be imported, exported, cultivated and sold. Thus, whilst such is to be seen as an agricultural product, its growth and harvest depends on a valid licence.

It has been stressed that these amendments do not extend to that of dagga/marijuana. Thus, the commercial use of dagga/marijuana is still governed and regulated by the 2018 Constitutional Court decision handed down by Justice Zondo. It remains that hemp and dagga/marijuana are not to be equated. The commercial use of the latter is criminalised.

It would seem as if the cannabis industry is making certain moves towards development. Much is to be said about the anticipated Cannabis for Private Purposes Bill to be released.

COMPETITION

Competition Commission charges Wesbank and Toyota financial services for collusion

https://www.golegal.co.za/competition-commission-wesbank-tfs/

FirstRand Bank Limited, Wesbank, and Toyota Financial Services South Africa Limited (TFS) have been reported and taken to the Competition Tribunal for possible prosecution. These being on allegations of dividing the market by allocating customers or suppliers. The report compiled by the Commissioner reveals that Wesbank and TFS agreed to divide markets by allocating customers or suppliers in the market for the provision of vehicle finance. This being in contravention of section 4 of the Competition Act 89 of 1998.

Whilst these two entities are to be in competition, a shareholder agreement was concluded whereby clauses were evident that prevented them from competing. FirstRand, TSA Investment Holdings Limited and Toyota Motor Finance (UK) PLC have 33.3% share each in TSA. They concluded shareholder agreement which include clauses that prohibit WesBank from offering vehicle finance to customers seeking to purchase vehicles at authorised Toyota dealerships.

The agreement in question alludes to market division by allocating customers or suppliers in violation of section 4(1)(b)(ii) of the Act.

This conduct is harmful to the consumers as it deprives them of the benefits which arise from competition. The Commissioner has requested the Tribunal to fine the company 10% of their annual turnover.

CYBERCRIMES

Welcomed new legislation to protect victims of cyber abuse.

https://www.golegal.co.za/legislation-cyber-abuse/

The conduct of cyber abuse, in which harm and abuse occurs through the medium of the internet, is now being criminalised and sanctioned though the ambit of the Cybercrimes Act no. 19 of 2020. The Cybercrimes Act came into operation on 1 December 2021.

The main aim of the Act is “inter-alia, criminalise the disclosure of data messages which are harmful and to provide for interim protection orders to be granted pending the outcome of criminal prosecutions”. Such offence can be seen in the auspices of Section 16 of the Cybercrimes Act and thus, such section 16 provisions should be read so as to understand the full

It is advised that victims of a cyber-crime report the incident and lay a criminal charge with SAPS. Moreover, an ex parte, interim protection order may be granted by the court within the jurisdiction. As such, the victim in the matter is seen to be protected to a large extent.

ENERGY

Comment sought on Electricity Regulation Amendment Bill

https://www.golegal.co.za/comment-electricity-regulation/

The Mineral Resources and Energy Department have published the Draft Electricity Regulation Amendment Bill in Government Gazette 45898 for comment. This Bill has been drawn up for the setting up of the Transmission System Operator. The publication of the draft bill for comment occurred on the 9^th of February 2022.

According to Cabinet, the draft amendments seek to “align the country with the international best practice in energy and provide for the functions of a Transmission System Operator, and for a licensing framework for power generation, transmission, distribution and trading”. Amongst others, aims such as;

• establishing a national regulatory framework for the electricity supply industry;
• make the National Energy Regulator of South Africa the custodian and enforcer of the national electricity regulatory framework;
• provide for licences and registration as the manner in which generation, transmission, distribution, system operation, reticulation, trading and the import and export of electricity are regulated and;
• provide for the establishment of the Transmission System Operator, to provide a competitive multi market structure for the electricity industry, to regulate the reticulation of electricity by municipalities.

INFORMATION TECHNOLOGY

Taking a look at blockchain and how it can be used against counterfeits

https://www.golegal.co.za/blockchain-technology-counterfeiters/

Blockchain, a system of technology that records and processes information in a way that makes it virtually impossible to alter, has the potential to curb the consequences of counterfeits. In this, blockchain is able to track the origins of a particular product within its systems. Whilst counterfeits have the ability to produce and sell replicated products containing the same security features and information at face value, blockchain offers a solution to identify the unauthorised and/or offending products.

In this, due to Blockchains ability to meticulously record transaction history and information through Artificial Intelligence, the counterfeit or unauthorised product will not have the same information that is evident on the Blockchain system. As such, an irregularity will be evident and this will provide an opportunity to take action in such an event.

The advantages of blockchain outweigh its disadvantages. For instance, all altered information within a contract or transaction will be recorded within real time and thus, allows for all parties to the contract/transaction to be aware of conduct that pertains to the agreement in which the Blockchain is utilised. Another advantage is that Blockchain is decentralised and as such, there are no overarching institutions or organisations controlling it. This allows for a global perspective to be taken in that it may be used worldwide and as such, no additional fees are paid, unlike the  centralised bank system which we have today.

LEGAL

Check before you ACT- Salient topics covered in the 2022 State of the Nation Address (SONA)

https://www.golegal.co.za/sona-government-legislation/

President Cyril Ramaphosa delivered the annual The State of the Nation Address on 10 February 2022. In this, there are important aspects which have been highlighted in analysing the address. The most notable issues raised by President Ramaphosa are that of the undertakings to address and eradicate “red tape” constraints that pose restrictions on business, to develop infrastructure investment and to continue to implement reform.

As summarised, here are the more salient topics covered in the recent SONA;

•  National State of Disaster: President Ramaphosa stated that the intention lies in ending the national state of disaster, however, only once the measures under the National Health Act and other legislation to contain the pandemic have been finalised
• Critical Skills: The revised Critical Skills List has been published for the first time since 2014. In this, the list identified and highlighted areas which are in short and are needed by the South African economy. Furthermore, the list contains aspects in which South Africa’s immigration Policy could utilised in a manner that would benefit the economy. The Critical Skills List is being aided by a review of the current work visa system. It is said that new categories of work visa’s will be developed so as to allow for economic growth.
• Water: A revised plan to stream line the process for water use licence applications has been undertaken. The aim of such is to remedy the backlog in the current water system. Moreover, Legislation is in the pipeline for the establishment of the National Water Resources Infrastructure Agency. It will be published for public comment within a month.
• Cannabis: Regulations pertaining to the South African cannabis industry are said to have been catalysed. Governmental review of policy, regulations and frameworks pertaining to the cannabis industry are underway so as to realise the economic success  that the Hemp and Cannabis industry can bring. In this, it is said that job creation and industry will benefit whilst providing for economic growth within domestic and international markets. A total of 130 000 jobs could be created as a result. This statement comes whilst the Cannabis for Private Purposes Bill is yet to come into operation.
• Business Act 71 of 1991: Governmental review of the Business Act as well as a broad review of legislation that affects SMME’s is underway. The aim in this is to eradicate “red tape” that is constraining business in South Africa. Moreover, to remove constraints on the informal sector. Thus, the burdensome aspects of cost, complication and compliance will be attempted to be removed so as to improve growth and job creation.
• Climate Change: In line with the deal, in which South Africa secured a R131 billion loan from the European Union, France, Germany, United Kingdom and the United States, a Presidential Climate Finance Task Team will lead the mobilisation of the funds which were received for the transition agreed upon. This deal was struck in November 2021 at the International Climate Conference in Glasgow.

PROPERTY

New rules for the property sector

https://www.golegal.co.za/rules-property-practitioners-act/

President Cyril Ramaphosa has signed the Property Practitioners Act 22 of 2019 (“PPA”) into law. The PPA commenced its application from 1 February 2021.

The PPA brings an end to the Estate Agencies Affairs Act 112 of 1976 (“EAAA”) and thus, has created new formed protections for property consumers. Furthermore, the PPA has included various other parties in the definition of a “Property Practitioner” expanding applicability, whereas the EAAA only applied to estate agents.

Moreover, the PPA expands the statutory mandate of the Estate Agencies Affairs Board (“EAAB”) and brings about important changes for the property sector.

The PPA is aimed at:

• Transforming and developing South Africa’s property market to ensure that it is reflective of its demographics,
• Aligning property legislation with other existing and applicable legislation in South Africa,
• To professionalise the property sector, and
• Improving efficiency.

It is important for members of the property market to make themselves aware of this new piece of legislation as new obligations and rights have been formed as a result. Moreover, the range in which the PPA extends to, allows for new parties to be identified in the obligations that have been imposed. As such, the extent to which this piece of legislation extends