A 74-year-old businessman from Gauteng, South Africa, has been awarded R4.23 million in damages following an unlawful arrest in 2016. The arrest, which took place at his business premises in front of patrons, was linked to allegations of fraud and money laundering. The South Gauteng High Court in Johannesburg ruled in favor of the businessman, ordering the Minister of Police, a warrant officer, and the National Director of Public Prosecutions to pay him R4.14 million for his future loss of earnings.
The businessman, who had worked as a civil engineer and held an MBA from the University of the Witwatersrand, was arrested on February 10, 2016, at his premises where he operated a heritage museum, restaurant, and pub. The arrest was carried out by Warrant Officer Brijlall, who initially did not have a warrant and had to leave the premises to obtain one. The businessman was escorted through the courtyard towards a police vehicle while patrons were present, including members of the Rotary Club and visitors from the United States.
The court heard that the businessman spent the night at the Vanderbijlpark Police Station with seven other people before being taken to the Vanderbijlpark Magistrate's Court. He was released at about 1 pm the following day after R20,000 bail was paid on his behalf. The court found that he had spent approximately 14.5 hours in detention at the police station, followed by several more hours in the court cells. The businessman claimed that the arrest and subsequent prosecution had a devastating impact on his businesses.
The businessman's businesses, including the Heritage Museum, Urban Vibes restaurant, and the Cock & Bull pub, had been financially sound before his arrest. However, patrons stopped attending the businesses, and owners of cultural artefacts housed at the museum began demanding their return. The annual Wheels at the Vaal Motor Show, which had previously generated about R100,000 per year, was also affected and became the last one held at the premises after sponsors and vendors lost interest.
An expert, chartered accountant Paul Koski, gave evidence regarding the businessman's financial losses. Koski examined the available financial records and concluded that the businesses experienced a substantial decline following the arrest before ultimately collapsing. The court accepted that the financial records showed the arrest was a critical turning point for businesses that had previously experienced significant growth.
The court awarded the businessman R40,000 for the indignity, deprivation of freedom and liberty, and discomfort caused by the unlawful arrest and detention. A further R50,000 was awarded for damage to his good name, dignity, and reputation. The judge found that the public nature of the arrest, which took place in front of patrons and community members, together with allegations involving fraud, theft, and money laundering, had harmed the businessman's reputation.
The total award of R4.23 million includes R4.14 million for future loss of earnings, R40,000 for unlawful arrest and detention, and R50,000 for damage to his good name, dignity, and reputation. The amounts carry interest from March 30, 2017, until payment in full. The defendants were also ordered to pay the costs of the litigation, including the costs of counsel.
Key points
- The court ruled that the unlawful arrest and subsequent prosecution had a devastating impact on the businessman's businesses, leading to their collapse.
- The businessman was awarded R4.14 million for his future loss of earnings, R40,000 for unlawful arrest and detention, and R50,000 for damage to his good name, dignity, and reputation.
- The arrest, which took place in front of patrons, was linked to allegations of fraud and money laundering, but the businessman was later found not guilty.
