• Hundreds of homeowners-to-be across Germany have been left in the lurch as builders go out of business.

• A jump in interest rates and material costs has seen twice as many developers file for insolvency over the last year than during the previous 12 months.

• The German  government on Monday offered a new package of measures to help ease the pressure.

Valeriy Shevchenko felt like he made the purchase of his lifetime when he beat a queue of prospective buyers to secure a two-bedroom apartment in one of Berlin`s most popular districts.

Two years on, the 33-year-old`s housing dreams have come crashing down after the developer of his new home, Project Immobilien, went bankrupt.

Hit by a sudden jump in interest rates and raw material costs, twice as many developers have filed for insolvency over the last year than during the previous 12 months.

Like hundreds of homeowners-to-be across the country, Shevchenko found construction of his new home suddenly halted, as workers cleared out of the site where the concrete skeleton of the building stands with no windows.

`From the middle of August, the construction was frozen. The cabinets for the workers here, the crane in the middle, everything moved away,` said Shevchenko at the site, shellshocked by the setback.

With such scenes multiplying across the country, Chancellor Olaf Scholz`s government on Monday offered a new package of measures to help ease the pressure on builders and homebuyers. 

They include a pledge to not toughen up energy standards that could prove costly for developers, while extending mortgage help to families and financing for renovation.

The construction sector voiced satisfaction with the package, with Tim-Oliver Mueller, president of German building lobby group HDB, saying that the measures were `more comprehensive than expected`. 

For years, record-low interest rates and strong demand had spurred new projects and investment in Germany`s property market.

But a sharp rise in consumer prices as a consequence of Russia`s invasion of Ukraine has forced the European Central Bank to aggressively raise interest rates to curb inflation, drastically pushing up mortgage costs and in turn bringing down property prices as well as profit margins of building projects.

Builders are also suffering from higher raw material costs, a problem that had already begun during the pandemic but which has been accentuated by the Ukraine war.

`Investors no longer know how to make certain projects profitable,` said Mueller.

In a sign of the crisis, developer giant Vonovia recently decided to put 60 000 projects on hold. 

One in five property companies has reported cancelling building projects in August, while 11.9 percent face financing difficulties, according to a recent survey by economic research institute Ifo, which described the figures as unprecedented in 30 years.

Many of the halted projects are also well advanced, pushing buyers into dire financial straits.

In Berlin, investors of the Project Immobilien`s construction had already paid half of what is due.

`I`m not a rich person. My money is the fruit of my labour,` said Shevchenko, who had already paid up 250 000 euros (~R4.98 million) for the apartment he bought for half a million euros. 

With no insurance purchased by the building company or the future homeowners, there is no financial protection against the sudden bankruptcy.

Their only hope now is to find someone else to take over the construction, or to finish it themselves.

`I never thought that something like that could happen in Germany,` said Marina Prakharchuk, 39, with tears in her eyes. 

The Belarusian had paid up 175 000 euros for her 45-metre square apartment.

`All my savings are in there,` said the employee of a logistics company.

Beyond the investors left roofless by insolvent developers, the property crisis risks spiralling into a giant social crisis as the knock-on effects from the building slowdown crash into the rental market.

Scholz`s government had promised to build 400 000 homes a year to alleviate an endemic housing shortage made worse by burgeoning demand from an inflow of refugees and foreign workers.

But building permits have nose-dived 25 percent between January and June compared to a year ago. 

Experts believe the sector will struggle to even hit 250 000 in new build approvals this year, while next year bodes no better with a forecast of under 200 000.

With fewer new housing stock coming on the market, rents are rising unabated, further eroding households` purchasing power.

`More affordable housing must be built in Germany so that young families and those who are looking for apartments can have a good chance of finding one,` said Scholz, after the crisis talks

In the modern world of employment in which South Africa is fast being recognised as a destination of choice for remote workers, foreign employers must take care to align the employment contract to the appropriate system of law, says Bradley Workman-Davies. 

The Labour Relations Act (LRA), among other important functions, regulates the rights of employees whose contract of employment has been terminated, and affords the employee the right to refer a dispute to the Commission for Conciliation, Mediation and Arbitration (CCMA) upon receipt of such notice.

However, the position of an employee who needs to rely on legal protection in terms of labour law within the framework of diplomatic immunity remains vulnerable in view of the limitation of their employment rights, and a recent case in the CCMA demonstrates that the mere fact that the employee works in South Africa, does not always mean that the employee can appeal to the LRA or other South African labour laws, if there is an employment dispute.

This is seen in the case of Pitya v United States of America [2023] (`Pitya`), where the court had to determine whether an employee employed by a diplomatic or consular employer was entitled to refer a claim in damages for an unfair dismissal to the CCMA. In this case, Pitya was employed as a visa assistant by a consulate which is part of the US Diplomatic mission to South Africa and component of the US Department of State.

The consulate assists US citizens with documentation related to their status and issuing of visas to non-US citizens. Pitya’s role involved various duties, such as accepting, reviewing, and processing nonimmigrant and immigrant visa applications, and providing information to applicants, government officials and members of the US mission in regard to data entry and visa printing.

Pitya was dismissed from his position at the United States diplomatic mission to South Africa and dissatisfied with his dismissal, referred a claim for payment of money arising from his dismissal to the CCMA. However, the CCMA ruled that it lacked jurisdiction to arbitrate the unfair dismissal dispute on the basis that the applicant’s employment was directly related to the sovereign powers of foreign state and that the employer enjoyed immunity under the Foreign States Immunities Act 87 of 1981 (“Act“).

On a review before the Labour Court, it found that the CCMA commissioner’s reasons in finding that Act ousted the CCMA’S jurisdiction were correct.

The Labour Court considered the Act and held that it clearly regulated legal immunity that is afforded to foreign states to include `government of foreign states` and `any departments of the government` in terms of Section 1 (2) (b) and (c) of the Act. Critically, the Labour Court recognised that the Act provides that `a foreign state shall be immune from the jurisdiction of the courts of the Republic except as provided in this Act or any proclamation issued thereunder` and that courts are required to `give effect to the immunity conferred by the Act even though the foreign state does not appear in the proceedings under question.`

Notably however, there are exceptions to the above rule which apply to contracts of employment, so that if �`

• the contract of employment was entered into in the Republic, or the work is to be performed wholly or partly in the Republic;

• at the time when the contract was entered into the individual was a South African citizen or was ordinarily resident in the Republic; and

• at the time when the proceedings are brought the individual is not a citizen of the foreign state,

• then the laws of South Africa will in fact apply.  

However, this exception does not apply if the parties to the contract have agreed in writing that the dispute or any dispute relating to the contract is subject to the courts of a foreign state, or the proceedings relate to the employment of the head of a diplomatic mission or any member of the diplomatic, administrative, technical or service staff of the mission or to the employment of the head of a consular post or any member of the consular, labour, trade, administrative, technical or service staff of the post.

In light of the above, the Court found that Pitya in his capacity as a visa assistant was a `consular, labour, trade, administrative, technical or service staff of the post` which fell within the bounds of the exemption and that the CCMA, and the Labour Court lacked jurisdiction to entertain a referral on account that the employer enjoyed immunity.

This case is important in confirming the principal that mere physical presence of an employee in South Africa does not always subject them to South African labour laws. In the Pitya case, this was due to the fact that the employee fell within the bounds of the diplomatic exemption.

However, the case points to and recognises a more general principal, which is also accepted in South African law and which is not dependant on one of the parties being a diplomatic or consular staff member. And that is if the parties to the employment contract agree on the application of a foreign legal system, and submit to the jurisdiction of the foreign legal system, and there are sufficient other factors pointing the foreign legal system, rather than South Africa, as having the stronger or better nexus to the employment relationship, then South African laws may not apply even if the place of work is South Africa.

Especially in the modern world of employment in which South Africa is fast being recognised as a destination of choice for remote workers, it is important for foreign employers that may seek to engage with or deploy a workforce to South Africa that, provided that the relevant contractual care is taken to align the employment relationship to the correct foreign system of law, South African labour laws do not always have to apply to the relationship.

Professor Mark Smith is leaving the Stellenbosch Business School. 

Supplied

• Stellenbosch Business School director Professor Mark Smith has had to resign from the position he held since 2020.

• News24 understands this development is related to challenges with securing appropriate visas for his family.

• The university says it continues to support ongoing discussions with Universities South Africa and the Home Affairs Department to `smooth out visa processes`.

Stellenbosch Business School director Professor Mark Smith has resigned from his position, which he has held since 2020. News24 understands this development was a result of his family not being able to secure appropriate visas to reside in South Africa.

Stellenbosch University on Friday issued a statement indicating that Smith had made the `difficult decision` to resign.

`The decision was not taken lightly as professor Smith deeply values his role at the business school and the progress made during his tenure. However, in consideration of his family, who are residing in France, he believes it is now the right time to embark on a new chapter in his life,` the statement reads.

Said Professor Ingrid Woolard, Stellenbosch University`s dean of economic and management sciences: `The university is indeed losing a valuable contributor, but we wish professor Smith all the best as he reunites with his family…`

Woolard added that the university was committed to creating a `welcoming environment for prospective national and international staff`.

`As such, it will continue to support Universities South Africa in ongoing discussions with the Department of Home Affairs to smooth out visa processes,` Woolard added.

Smith will continue in his role until the end of October 2023 to ensure a smooth transition for the institution. He will be leaving for Europe at the end of the year to join his family in France.

`I am personally and professionally sad about leaving Stellenbosch University and South Africa before the end of my mandate. The challenges of international relocation affect many families in South Africa and beyond, but this is ultimately a personal story.

`While my personal circumstances led us as a family to make our decision for me to return to Europe, some families do not have this choice or allow more time to continue seeking the required documentation,` Smith said.

He will be exploring new opportunities in management education in Europe and will continue to contribute to the four-day workweek trial, which he helped run in South Africa and has since expanded to numerous countries in Europe, said the university.

`I will remain proudly attached to Stellenbosch University as an extraordinary professor,` he said.

Professor Charles Adjasi has been appointed acting director of the business school.

In the short time Smith led the business school, it underwent a rebranding and renaming, and obtained full five-year accreditations from globally recognised accreditation organisations in the UK and US. He has also led preparations to obtain upcoming accreditations in 2024 from EQUIS, another international school accreditation system, and the Association of African Business Schools.

During his tenure, the school was also invited to join the Council on Business in Society, which focuses on responsible leadership. The business school`s international reputation also rose, having been recognised as the best business school in South Africa in 2022 by EdUniversal.

Furthermore, the academic faculty also grew with nearly a quarter of the academics joining since 2020.

The university also noted Smith`s work in strengthening the business school`s capabilities in digital education and artificial intelligence by forming partnerships with leading institutions worldwide.

Find out the process of applying for a police clearance (SAPS365) and how Sa migration can help you get yours in as little as 7 days.

Efficient ways to get your police clearance certificate quickly: 

Many South Africans know it can take a long time sometimes weeks or even months to get a police clearance certificate from the South African Police Service (SAPS). During the first half of 2022, SAPS had even more delays because their main office was closed. This made it take even longer to process these certificates at the Criminal Records Centre in Pretoria.

This article will look at the best way to get a police clearance from SAPS as fast as possible. You don’t need to use expensive fingerprint services to get them done.

Getting a SAPS police clearance certificate

Anyone, even if they are not a South African citizen, can ask for a South African police clearance (PCC). When you apply for a SAPS365 (another name for the Police Clearance Certificate), officials check their database to see if you have a criminal record. They do this by looking at your information and fingerprints. They do these checks at the Criminal Records Centre (CRC) in Pretoria. All Police Clearances for South Africa are issued by the CRC.

Getting an urgent police clearance certificate

If you really need to get a SAPS365 as quickly as possible, you must fill out an application form and prove who you are. You also need to give a set of ink fingerprints. If you go to a Police Station to get the certificate, a police officer will help you with your fingerprints. But you can also get your fingerprints taken somewhere else. A lawyer or a commissioner of oaths has to stamp and sign the form to say that your fingerprints are real.

So there’s no need to submit yourself to any expensive fingerprint process. Also, note that you can ONLY submit ink fingerprints. The CRC does not accept digital prints as the ink prints are digitised as part of the police clearance application process.You can also get a fast PCC by using Samigration.com. They are allowed to work with the SAPS CRC and get your documents straight from them. This makes it much quicker to get a police clearance certificate.

How long it takes for urgent police clearance certificates?

If you go in person to get a police clearance, it might take up to three months if you’re in South Africa. People from other countries might have to wait even longer sometimes three to six months.

If you use Samigration.com, getting a PCC usually takes 5 to 7 business days. Sometimes, it might be even faster just three working days. This is called an “extreme urgent police clearance.” But even though Samigration.com tries to be fast, there can still be delays because of things like power cuts and office closures due to routine maintenance. If you have a criminal record, it could take up to a month longer.

Final thoughts

You can get an expedited police clearance certificate from SAPS in just 7 days if you work with Samigration.com. Anyone who wants a South African Police Clearance Certificate needs to submit the following documents in order to apply for the certificate:

• Your fingerprints on the SAPS 91(a) Form

• A completed application form for an expedited SAPS Police Clearance Certificate

• Clear copies of your South African ID or Passport

• Clear copies of your marriage certificate if you’re married

• A written reason for why you need to get the certificate quickly

There are no prospects of success for Home Affairs` appeal application, according to the respondents.

The Helen Suzman Foundation has insisted that Home Affairs Minister Aaron Motsoaledi’s decision to terminate the Zimbabwean Exemption Permit (ZEP) programme without formal consultation was not in line with the law.

The full bench of the Gauteng High Court in Pretoria heard the Department of Home Affairs’ leave to appeal application on Monday.

Motsoaledi and Home Affairs director-general Tommy Makhode, who are the applicants in the litigation, are seeking an order to argue its case before the Supreme Court of Appeal (SCA).

This follows the high court’s 28 June ruling which declared the termination of the ZEP unlawful and set it aside.

In their judgment, Judges Colleen Collis, Mandlenkosi Motha and Gcina Malindi ruled the matter go back to Motsoaledi for reconsideration due to the minister’s failure to conduct a proper public participation process.

The court also declared, pending the process, the ZEP would remain valid for the next 12 months.

‘Zero prospects of success’

Advocate Carol Steinberg, counsel for the Helen Suzman Foundation, argued during court proceedings that Motsoaledi failed in his duty to open formal discussions with permit holders before making a decision on the non-renewal of the ZEP in November 2021.

“It is common cause that this decision impacted on the lives of 178 000 people and their children and of course, all the South Africans whose lives are inextricably bound up with the 178 000 and in law there is a watertight obligation to hear what affected people have to say before a decision impacting on their lives is made. 

“It is the first principle of natural justice. It’s common cause that the minister did not in fact hear from the affected people before making the decision {to terminate the ZEP] … he called for representations later,” she told the same full bench on Monday.

Steinberg said it did not matter whether the Promotion of Administrative Justice Act (PAJA) or the principle of legality was at play in the case.

“There is no court in South Africa that would ever say the minister would make a decision which profoundly impacts on the lives of many people without hearing from them first. This affects people’s whole lives, where they live, where their children go to school [and] how they earn a living,” the advocate said.

Earlier, Advocate William Mokhare had argued the court erred in its ruling by relying on the PAJA in determining that Motsoaledi did not afford ZEP holders a reasonable opportunity to make representations.

Watch proceedings below:

Steinberg, however, said there were no “realistic” prospect of success regardless of Home Affairs’ arguments.

“A mere possibility of success, an arguable case, or one that is not hopeless is not enough. In short, our argument is that there are actually zero prospects of success in this case,” she continued.

“The SCA, on repeated occasions, has frowned upon high courts granting leave to appeal where there is just no prospect of success and our submission is that there really can’t be.”

She said there was “no evidence” Motsoaledi applied his mind to this case and asked a punitive costs order against the minister.

“If there should be a genuine, non-frivolous challenge to the constitutionality of a law or state conduct, it is appropriate the state bear the costs if the challenge is good. 

“So … there can never be a chilling affect on government in defending its conduct or a law because the state has a budget and needs to have a budget to defend its conduct or laws,” Steinberg said.

‘Minister has made up his mind’

Advocate David Simonsz, representing the Consortium for Refugees and Migrants in South Africa (Cormsa), supported Steinberg’s submissions, saying there were no compelling grounds to grant the appeal.

“Even on the principle of rationality, which is a common cause, there needs to be a fair opportunity to affect the mind of the decision-maker. 

“The minister has been quoted on record as indicating that he has made up his mind on this issue,” the advocate told the court.

Simonsz argued the court’s judgment was not intended to allow the ZEP to continue indefinitely.

“The court sent this decision back to the minister,” he said, adding Home Affairs should reconsider the matter within the 12 months period afforded by the court in its initial ruling.

“The path is a clear one… what the minister should do is take the opportunity afforded to him by this court to follow a lawful process and make whatever decision he chooses to make once he takes into account the just and proper submissions and representations of those affected. That is the proper way forward.”

Judgment reserved

Meanwhile, Collis said the court’s judgment would be reserved and handed down after recess period.

“We are going to reserve our judgment on those two applications for leave to appeal, and then we will hand it down as soon as it is ready. 

“Parties must bear in mind that the court is now on recess, so we accommodated the hearing of this application because you had set through the request during term already, but we will only hand down the judgment once the new term commences. We will advise the parties, and it will be uploaded onto case lines,” she said.