South Africa: Allocation of water use entitlements – ecological versus empowerment considerations

On 19 May 2023, the Department of Water and Sanitation (DWS) published Draft Regulations which have generated significant comment and controversy and the DWS has already walked back on some of the more controversial proposals. The Regulations Regarding the Procedural Requirements for water use license applications and amendments (Draft Regulations) were published for public comment for a period of 60 days (to 18 July 2023). If the final version is published in the current form, the Draft Regulations would have far-reaching consequences for all industries and not only the agricultural sector which has strongly objected to the Draft Regulations.

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Africa: Private Equity takeaways from the recent AVCA and SAVCA Conferences

During May 2023, members of our Bowmans’ Private Equity Practice attended the annual African Private Equity and Venture Capital Association (AVCA) Conference held in Cairo, Egypt, and the annual Southern African Venture Capital and Private Equity Association (SAVCA) Conference held in Stellenbosch, South Africa. The AVCA conference delved into the challenges and success of investing in Africa. The SAVCA conference highlighted the resilience of the South African private equity landscape.

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South Africa: Positive or negative, the challenge with breathalyser tests

In a recent decision by the Labour Court, the reliability of breathalyser testing to prove the contravention an employer’s zero tolerance alcohol and drugs policy was called into question. In the matter of Samancor Chrome Ltd (Western Chrome Mines) v Willemse and Others, the court found that the arbitrator did not reach an unreasonable decision in finding the employee’s dismissal to be substantively unfair. The employee had tested positive for alcohol on three breathalyser tests on two different machines, but a blood test yielded a negative result.

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South Africa: No good grant goes unpunished

TAX abstract

A recent judgment of the Supreme Court of Appeal has highlighted the Value Added Tax risks for grant recipients, especially in the context of ‘conduit’ payments to be distributed to third parties. Although the judgment deals with procedural issues only, it demonstrates that one cannot assume that grants will always be VAT neutral.

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South Africa: SCA overturns mandatory audit firm rotation rule for public interest entities

The Supreme Court of Appeal recently handed down judgment in the judicial review of the Mandatory Audit Firm Rotation Rule promulgated by the Independent Regulatory Board for Auditors in June 2017. The impact of this judgment in the short term is expected to be relatively minimal, given that many public interest entities would have already taken steps to comply with the MAFRR in advance of 1 April 2023.

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