/ 27 October 1998

Sections of Act ruled unconstitutional

OWN CORRESPONDENT, Johannesburg | Tuesday 9.15pm.

TWO sections of the Harmful Business Practices Act have been declared unconstitutional by Pretoria High Court Judge K van Dijkhorst, who refused to declare the entire Act to unconstitutional.

Judge van Dijkhorst ruled that section 7(3) of the Act, which allows officers investigating in terms of the act automatic access to business premises, and the right to search and confiscate items without a warrant, contradicts the constitutional right to privacy.

Section 8(5)(a) allows the Minister of Trade and Industry to suspend business activities and confiscate business assets before full investigation, and the judge also deemed this to be unfair and unconstitutional.

Van Dijkhorst’s ruling is a response to an application by Omega Trust, which is attempting to block an investigation by the Minister and the Business Practices Committee. They claim Omega is a so-called pyramid scheme.