IT is a victory for media freedom following the withdrawal of an interdict, which a Durban company that earned R90 million in government funding through allegedly falsely claiming to manufacture solar panels, had obtained against whistle-blowers.

Artsolar had, earlier this year, obtained an interdict against the Independent Media Group at the Durban High Court, which, as a result, could not report on the matter. 

After Artsolar obtained the interdict, other media houses, such as Ground Up, which were not gagged, reported extensively about the details of the misrepresentation and gagging of the media.

The court officially withdrew the interdict against Independent Media and Oxford Supermarkets, which was a whistle-blower in the matter, on Tuesday, following Artsolar informing the court that it was no longer proceeding with its action.

Hence, Artsolar incurred legal costs “on party and party scale C”. 

The company obtained the interim interdict in March at the same court, with Independent Media being informed about the hearing of the application at the last hour. 

When asked if Independent Media can now freely write about the allegations that Artsolar imported the panels from China without fear of legal reprisal, their lawyer, Advocate Carina Jacob, said “Yes”.

Artsolar’s contract manager, Yaadhna Harilal, said the interdict was to prevent the publication of defamatory allegations arising from a private commercial dispute.

Harilal said Artsolar withdrew the interdict as it had already entered the public domain, “and little purpose remained in pursuing the matter”.

“The broader context meant the matter no longer aligned with our original legal objectives, and continued litigation would not advance the company’s strategic interest or benefit our stakeholders.

“We are engaging directly with the relevant parties, and any substantive regulatory queries will be addressed with the appropriate authorities through the proper channels,” said Harilal.

She could not say whether the company was continuing to import solar panels.

Independent Media and the Amabhungane Centre for Investigative Journalism, which joined the matter as a friend of the court for media freedom, had come down heavily against the interdict.

“On a collective basis, it is a good thing because journalists stuck up for a journalist when you were let down. 

“It shows that the industry (media) is a force to be reckoned with, and you will continue to do it,” said Jacob.

Oxford was prohibited from disclosing details about the importation of solar panels. It had raised the matter with various organisations, including the Industrial Development Corporation (IDC), which was also prevented from investigating the allegations.       

Artsolar, which operates a factory at the New Germany Industrial Park outside Pinetown, had claimed to be a 100% manufacturer of solar panels. 

However, it emerged that Artsolar had misled its potential clients and IDC, which had invested R90 million in the company on the basis that it was a 100% proudly South African manufacturer.

Oxford’s managing director, Brett Latimer, had purchased panels to install on the rooftops of his shopping centre in Hillcrest. 

On the completion of the installation, Latimer discovered empty boxes of the panels, which indicated that the panels were produced by Chinese company  Einnova Solarline Energy Corporation Limited. 

Artsolar ordered the panels, which were shipped to the country via the Durban Port. 

Artsolar’s former employees, Kandace Singh and Shalendra Hansraj, who had since gained employment with Oxford, backed Latimer’s finding with more evidence. 

Latimer filed complaints against Artsolar with the IDC and also laid a criminal charge at the Hilcrest police station. 

He also complained to the Department of Trade, Industry and Competition (DTIC), the International Trade Administration Commission of SA (ITAC), Proudly South African, and the Independent Power Producer Office (IPPO).

Latimer later alerted this Independent Media reporter to expose what he viewed as corruption. 

However, as Independent Media was working on the story after completing its investigation, Artsolar obtained an interdict against the story. 

Singh, Hansraj, and Latimer were gagged from talking about the matter, which Artsolar considered defamatory.

This forced Independent Media to abandon this story while its lawyers were in the process of overturning the interdict. 

Jacob said that by taking the matter to court, Artsolar shot itself in the foot because it attracted the attention of other media houses.

She said the gagging of the media and Oxford seemed to have been used to prevent the IDC from investigating the matter. 

“They used an order to stop a journalist for an ulterior purpose, and that’s what we said in the affidavit that they used you to stop an investigation, because the reality is they knew that if they brought an interdict against that (IDC investigation), no one could get it,” said Jacobs.

Oxford’s lawyer, Mahomed Shoaib Omar, said the case against Artsolar was strengthened by his clients’ successful subpoena of a Durban Port’s clearing agency to produce bills of lading.

“The bill of lading disclosed that 99% of the solar panels were imported from China and not locally manufactured,” said Omar.

Omar said IDC’s forensic auditor, Charl Naude, had completed the forensic investigation, which was now being reviewed by the IDC. 

“When the IDC joined the court process as the respondent, the court granted an order, and then the forensic auditor interviewed Latimer, Singh, and Hansraj and obtained the relevant information.

“The current situation is that the IDC, based on the internal forensic report, will have to consider what to do in this matter,” said Omar. 

Omar said the withdrawal of the interdict meant that Oxford had been vindicated.

“Artsolar represented that the solar panels that were sold to Oxford were manufactured at the Artsolar factory, whereas they were imported from China, and this is substantiated by the bills of lading that were produced,” said Omar.

He said Oxford could lodge a civil action by bringing forward a summons to set aside the R5 million panel purchase transactions.

“The DTIC also advanced R28 million to Artsolar, which is separate from R90 million that the IDC had advanced,” said Omar.

When contacted for comment, IDC corporate affairs head Tshepo Ramodibe said Artsolar’s withdrawal of the interdict against his entity cleared the way for it to proceed with its investigation into the allegations. 

“In line with policy, the IDC does not publicly disclose investigation outcomes. Any decisions regarding funding will be guided by governance protocols once the investigation is concluded,” said Ramodibe.

The DTIC has not responded to confirm the R28 million, which Omar said was advanced to Artsolar.

bongani.hans@inl.co.za

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