B-BBEE And Disaster Relief Funding

In Solidarity v Minister of Small Business Development and Others; Afriforum v Minister of Tourism and Others, the Pretoria High Court held that the state, acting under the regulations published in terms of the Disaster Management Act, 2002 (the "Disaster Management Act"), is entitled to take Broad-based black economic empowerment ("B-BBEE") status into account when deciding whether to award disaster relief funding to businesses in the tourism sector. The finding is of interest for reasons beyond the controversial issues of policy that it raises. In particular, it provides guidance on the appropriate standard of review for regulations and directions issued in terms of the Disaster Management Act, and on the scope of the state's power to issue such regulations and directions.