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Watchdog ramps up cartel investigations

Oct 15 2010 10:55 I-Net Bridge

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Johannesburg - Of the 13 cases referred to the Competition Tribunal for adjudication during the 2009/10 period, 12 included findings of cartel activity, according to the Competition Commissions' annual report.

The 31 investigations initiated this year are still under investigation with 26 out of the 31 involving cartel behaviour.

The Commission received 79 applications for leniency in 2009/10, a sharp increase from the previous year's 13 applications.

"Fifty-three of the 79 leniency applications came from the infrastructure and construction sector suggesting significant cartel behaviour in that broad sector," said Shan Ramburuth, commissioner to the Competition Commission.

The success of the leniency policy has created a backlog of applications putting a strain on the resources of the cartel division and the Commission, forcing the Commission to set up a special investigation unit dedicated to cartel investigations.

The Commission's priority sectors are infrastructure, construction, food and agro-processing, intermediate industrial products and financial services.

In the food sector, the commission completed its prosecutions with all the members of the bread cartel. Pioneer Foods, the last member of the cartel was fined R195m. Sasol agreed to pay R250m for its role in the fertiliser cartel.

 
 
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