Portfolio Committee on Economic Development 09 March 2010
Mr Norman Manoim Chairperson: Competition Tribunal Tel: Fax: Ms Lerato Motaung Registrar: Competition Tribunal Tel: Fax:
What we do Independent, specialised institution established by statute (Competition Act 89 of 1998) Regulates corporate mergers and adjudicates allegations of anti-competitive practices
Who sets our agenda? Competition Commission (Large mergers, prohibited practices) Private parties (Intermediate mergers, Interim reliefs, Complaint referrals)
Priority Mergers Prohibited practices
Large Merger Trends
Tribunal hearing days for cases taking more than one day
Turnaround times for mergers Mergers Hearings setdown within target79.41% Orders issued within target100% Reasons issued within target52.58%
What are we doing in 2010/2011?
Amendments to the Act? (possible challenges if Act is proclaimed during this period)
Case Document Management and Performance Information Software
Cases on our roll for 2010/2011 ComplainantRespondentAlleged ContraventionsDays Allocated RukananiCoca Cola Sec 5(1) & (2) Minimum resale price 5 CommissionAstral Sec 4(1)(b)(i) and (ii) and Sec 8(c) Price fixing Allocating markets Abuse of dominance 9 CommissionSasol Sec 8(d) (ii) and Sec 9 Price discrimination Refusal to supply 9
Cases on our roll for 2010/2011 continued ComplainantRespondentAlleged ContraventionsDays Allocated CommissionRocla Sec 4(1)(b) Price fixing Allocation of customers Collusive tendering 9 CommissionSAB Sec 4(1)(b)(ii), Sec 5(2), Sec 8(d)(i) Market division Resale price maintenance Inducement not to deal with other competitors 40 CommissionDPI Plastics Sec 4(b)(i) Price fixing 9
How do we fund our activities? Filing Fees Dti grant Accumulated Surpluses?
Why do we get a surplus? GrantFiling feeInterest Received Total Income Total Expenditure Surpluses R’m %32.42%60.47%7.11%100% Tribunal funding over the 10 year period 1 Sep Mar 2009
Why will we need to retain our surplus?
3 Year Funding YearBudget Committed grant Anticipated filing fees and interest income Expected shortfall Anticipated accumulated surplus after shortfall covered (in R’m) Expected opening surplus / / / TOTAL
Budget 2010/2011 Expenditure Category%R’m Capital Administration7.322 Personnel Training Recruitment Professional Services Appeal court Total
Who works for the Tribunal? 3 Full time Tribunal members 7 Part time Tribunal members (remunerated only for cases they hear) Staff complement of 13 in 3 divisions