| (1) | If the Director-General is reasonably of the opinion that an applicant may not be appointed as a member or continue as a member without the possibility that such an applicant could be a security risk or could possibly act in any manner prejudicial to the security interests of the Republic of South Africa, he or she may withdraw, downgrade or refuse to grant security clearance. |
| (2) | The applicant whose security clearance has been refused, withdrawn or downgraded must be notified, in writing, of the decision of the Director-General with reasons therefore: Provided that information which may be prejudicial to national security, criminal investigations, identity of sources and members, may not be disclosed to the applicant. |
| (3) | Within 30 consecutive days after having received the notification contemplated in regulation 8(2), the applicant who is adversely affected thereby may lodge a written appeal with the Director-General, together with all such written representations, statements and documents deemed necessary, and a notice of intention to have representation. |
| (4) | The Minister may upon such written appeal by the applicant within the period contemplated in regulation 8(3) and on good reason shown, extend the period. |
| (5) | The Director-General must, upon receipt of any appeal lodged with him or her in terms of regulation 8(3), provide the following information to the Minister within 21 consecutive days— |
| (a) | written representations together with all supporting documents and any representation; |
| (b) | notification to the applicant by the Director-General with the reasons for withdrawal, downgrading or refusal of security clearance; |
| (c) | all documents, information and particulars considered in its evaluation by the Director-General in coming to a decision; |
| (d) | any further reasons which may have influenced the decision: |
Provided that the Director-General must as far as is reasonably practicable, take steps to ensure that national security methods, intelligence collection methods, sources of information and the identity of members of the Agency are protected from unauthorised disclosure.
| (6) | In addition to the information contemplated in regulation 8(5), the Director-General must satisfy the Minister that— |
| (a) | the information or intelligence which forms the basis of the decision contemplated in regulation 8(1) was evaluated by him, according to intelligence methods, and that it was correct and true; |
| (b) | in his or her opinion, the information or intelligence that is withheld from the applicant contemplated in regulations 8(2) and 8(5), if any, is of such a nature that the applicant concerned should not be notified thereof, and or should not even know that the Agency has the ability to obtain that information or intelligence; |
| (c) | he or she personally considered and studied the information or intelligence; and that he or she, acting in good faith and in the interests of national security, in the light of the contents of the information or intelligence received cannot entrust the applicant with the most sensitive secrets of the Republic of South Africa. |
