High Court grants order to liquidate REDISA


High Court grants order to liquidate REDISA
High Court grants order to liquidate REDISA

The Western Cape High Court has ordered the appointment of a liquidator, who will take immediate control of the business of the Recycling and Economic Development Initiative of South Africa (REDISA).

The order was made after Environmental Affairs Minister Edna Molewa filed an urgent liquidation court application on Thursday, 1 June with the court to safeguard the operations and assets associated with the REDISA Integrated Industry Waste Tyre Management Plan (IIWTMP).

The move comes after Minister Molewa became aware of REDISA’s intention to cease the collection of waste tyres with effect from 1 June 2017.

“The application was successful and the court order was made, which has been served on REDISA. The appointed liquidator is Darusha Moodliar from Sanek Trust Services,” the Department of Environmental Affairs said in a statement.

The department explained that a policy decision to change the funding model, which would affect the funding of the REDISA IIWTMP, had been approved by Cabinet.

The policy review was intended to align the funding model with the scope and ambit of the existing Public Finance Management System, as provided for by the Constitution.

“The decision resulted in the NEM: Waste Amendment Act, 2014 passed by Parliament to enable the implementation of both the revenue collection in terms of the Customs and Excise Act, as amended and the National Pricing Strategy.

“REDISA has been aware of the requirements of the new legislation, but failed to comply with such requirements, even after numerous requests by the department,” said the department.

The department has requested all role players to cooperate with the liquidator, Waste Management Bureau and the department as this process unfolds.

The Waste Bureau and the department will soon send 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, Small, Medium and Micro-enterprises (SMMEs), and the public, as such will endeavor to manage the process in the best manner possible,” the department said.

The court order can be accessed on https://www.environment.gov.za/sites/default/files/docs/highcourtdecisiononthe_redisa1june2017.pdf

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