Synopsis:
The Limpopo Provincial Legislature passed the Financial Management of the Limpopo Provincial Legislature Act, 2000 (the Bill) and submitted it to the Premier for his assent and signature. The Premier had reservations concerning the competence of the Legislature to pass the Bill, and, pursuant to section 121 of the Constitution, referred the Bill to the Constitutional Court for adjudication. The majority held that provincial legislatures are not empowered to legislate in respect of their own financial management by Schedule 4 or 5 of the Constitution; nor does section 3 of the Financial Management of Parliament Act read with section 104(1)(b)(iii) of the Constitution, or Chapter 13 read with section 104(1)(b)(iv) of the Constitution assign these powers to the provinces. The minority held that certain provisions of the Constitution empower a provincial legislature to pass legislation in respect of their own financial management as legislation “envisaged” pursuant to section 104(1)(b)(iv). The Court declared the Bill unconstitutional and set down a hearing to determine the constitutional validity of similar provincial statutes.
Majority: Ngcobo CJ (Moseneke DCJ, Froneman J, Jafta J, Khampepe J, Mogoeng J, Mthiyane AJ, Nkabinde J and Van der Westhuizen J concurring).
Separate Concurrence: Froneman J.
Dissents: Yacoob J (Cameron J concurring), Cameron J.