Solidarity joins fight against new appointment policy of provisional liquidators

Trade union Solidarity successfully applied to be joined as an applicant in the Concerned Insolvency Practitioners Association (Cipa's) court challenge against the Minister of Justice and Constitutional Development and the Chief Master of the High Court of South Africa. Solidarity is concerned about the effects of the new appointment policy of provisional liquidators (see here - PDF).

Adv. Dirk Groenewald, Solidarity spokesperson, said the union's concern regarding the new appointment policy is about the right of employees to nominate provisional liquidators of their choice. ‘In terms of the new policy employees as creditors would no longer have the right to choose from competent, professional and experienced liquidators. Instead, appointments will be made on the basis of race and in alphabetical order. This could have the effect that the practitioner that is appointed by the Master may be neither suitably qualified for the assignment nor be vested with the appropriate level of trust by the affected employees, given the nature of the relevant fiduciary concerns.'

According to Groenewald, Solidarity is also concerned that this new appointment policy is further evidence of the state's obsession with racial quotas which is a direct contravention of Section 9(3) of the Constitution. "This section prohibits the state from unfairly discriminating directly or indirectly against anyone. In representing our members we will contend that the constitutional recognition of equality is absolutely opposed to the application of quotas. We and our members have an interest in preventing programs that embark upon race-driven decision-making that constitutes nothing but social engineering."  

The policy was published on 7 February 2014 and would go into effect at the end of this month. It is allegedly aimed at promoting the representivity of previously disadvantaged persons in the profession. According to the new policy, 40% of appointments will go to African, Coloured, Indian and Chinese women, 30% to African, Coloured, Indian and Chinese men; 20% to white women; and 10% to white men.

The Western Cape High Court will on Thursday hear an urgent application from the SA Restructuring and Insolvency Practitioners Association (Saripa) regarding the new policy. Saripa will request that the implementation of the policy be stayed pending the outcome of the review applications brought by Cipa and Saripa and in which Solidarity is an applicant.

Extract from the draft regulations:

Statement issued by Adv. Dirk Groenewald, Spokesperson: Solidarity, March 26 2014

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