High Court grants Minister Edna Molewa Order to wind down and liquidate REDISA
02 June 2017
The Minister of Environmental Affairs, Dr Edna Molewa became aware of REDISA’s intention to cease collection of waste tyres with effect from the 1st June 2017. Following that, the Minister filed an urgent liquidation court application on the 1st June 2017 with the Cape Town High Court to safe guard the operations and assets associated with the REDISA Integrated Industry Waste Tyre Management Plan (IIWTMP). The application was successful and the following court order was made and has been served on REDISA.
The Court ordered the appointment of a liquidator who will take immediate control of the business of REDISA including the implementation of the approved Integrated Industry Waste Tyre Management Plan as published in the government Gazette (Government Notice 988) on 30 November 2012.
A policy decision to change the funding model which would inter alia affect the funding of the REDISA IIWTMP was taken at the level of the Minister with the concurrence of the Finance Minister. This rational, justified and legally authorized change intended to bring this funding model within the scope and ambit of the existing Public Finance Management System and the Exchequer Act as called for by the Constitution. The decision then resulted in the amendment of the Waste Act in 2014 to enable both the revenue collection model and pricing strategy. REDISA has been aware of the requirements of the amendments since then and had failed to comply with such requirements and waited until the very last minute.
All role players are requested to cooperate with the Liquidator, Waste Management Bureau and the Department while this process unfolds. The Waste Bureau and the Department will in the next couple of days be sending further communication with regards to the next steps, to keep all stakeholders abreast of developments.
Minister Molewa would like to assure all stakeholders that the Department is acting in the best interests of the waste tyre management industry, the workers, SMMEs and the public, and will endeavor to manage the process in the best manner possible.
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In February 2009, the Department of Environmental Affairs (DEA) promulgated Waste Tyre Regulations, which came into effect on 30 June 2009. The regulations give effect to the principles of responsible waste management in respect of waste tyres, whereby producers are provided an opportunity to determine the manner in which they would manage and finance the management of tyres once they become waste.
In terms of Regulation 6 of the Waste Tyre Regulations, 2009, tyre producers are required to register with the Minister of Environmental Affairs and thereafter prepare and submit to the Minister an Integrated Industry Waste Tyre Management Plan (IIWTMP) for approval.
In response to this regulation, an IIWTMP was received from REDISA. The REDISA IIWTMP was approved in terms of Regulation 11(4) of the Waste Tyre Regulations, 2009, for the period 29 November 2012 to 30 November 2017.