High Court grants Minister of Environmental Affairs Dr Edna Molewa order to wind down and liquidate REDISA
The Minister of Environmental Affairs, Dr Edna Molewa became aware of the Recycling and Economic Development Initiative of South Africa’s (REDISA) 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 court order was made which has been served on REDISA. The appointed liquidator is Darusha Moodliar from Sanek Trust Services.
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 approved by Cabinet. The policy review justified the changes intended to align the funding model with the scope and ambit of the existing Public Finance Management System as provided for by the Constitution of the Republic. The decision then 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.
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, Small Medium and Micro-enterprises (SMMEs), and the public, as such will endeavor to manage the process in the best manner possible.
To access the Court order, click on the link: https://www.environment.gov.za/sites/default/files/docs/highcourtdecisi…
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Albi Modise
Cell: 083 490 2871
About REDISA
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.
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