1. Portfolio Committee on Economic Development
14 October 2010

2. Annual Report of the Competition Tribunal 2009/2010

3. Norman Manoim Chairperson
Lerato Motaung
Registrar
Janeen de Klerk
Head: Corporate Services
Tel:
Fax:

4. What we do
Independent, specialised institution established by statute (Competition Act 89 of 1998)
Regulates corporate mergers and adjudicates allegations of anti-competitive practices

5. Merger regulation In respect of mergers, the Tribunal
Authorises or prohibits large mergers and
Adjudicates appeals from the Commission’s decisions regarding intermediate mergers

6. Restrictive Practices
In respect of anti-competitive behaviour, the Tribunal
Adjudicates complaint referrals,
Adjudicates interim relief applications, and
Adjudicates appeals from the Competition Commission’s decisions regarding applications for exemptions

7. Highlights on cases 85 cases heard 71 reasons issued
63.46% of hearings in large merger cases took place within 10 days of receipt of case
100% of decisions in large merger cases released within 10 days of hearing
75 days spent in hearings
369 media reports in sources monitored by the Tribunal

8. Tribunal Cases Type of case Number heard Reasons issued Large merger52 60
Procedural 23 7
Intermediate merger
Complaint referral from the Commission
- Consent orders
- Opposed referrals 5 2
Complaint referral from a complainant
Interim relief 1
Total heard 85 71

9. Large Mergers

10. Large Merger Trends

11. Large Merger Trends over 10 years
A total of 712 mergers decided
90.45% approved unconditionally
8.42% approved subject to conditions
1.12% prohibited

12. Large Merger Trend in this financial period
A total of 52 mergers were decided
92.30% approved unconditionally
7.70% approved subject to conditions

13. Mergers where we imposed conditions
Public Interest (Employment)
(Harmony Gold/Pamodzi, Nedbank/Imperial Bank, Bidpaper/Pretoria Wholesalers Stationers, Wispeco/Sheerline)
Competition Issues – securing supply for customers of merged firm
(Chlor-Alkali/Botash)

14. Mergers where we overruled the Commission’s recommendation
Use of complex economic model in merger decisions
(Masscash/Finro)

15. Turnaround times for mergers
33 of 52 mergers were heard within 10 days of referral
52 or 52 mergers decided within 10 days of hearing
20 of 60 mergers had reasons issued within 20 days of decision

16. Restrictive Practices

17. Do we have jurisdiction over government departments?
AEC/Dept of Minerals and Energy

18. Unfinished business in connection with travel agents’ remuneration
SAA Part II

19. No fire despite the smoke!
JTI, Commission case against BAT dismissed
“…not only can we not identify consumer harm or find significant foreclosure arising from BATSA’s promotional activities,, we cannot even ascribe harm to competitors from the allegedly anti-competitive conduct”

20. But where there is a case we will act vigorously
Pioneer found guilty of cartel behaviour in baking industry

21. Highest % of fine imposed in opposed cartel case
9.5% of Pioneer’s Sasko in Western Cape
(R46 million)
10% of Sasko’s national turnover
(R149 million)

22. Total Fine Imposed on Pioneer

23. Administrative penalties imposed exceeded R 292 million
Sasol Chemical Industries Ltd
R250 million
Marley Pipes Systems (Pty) Ltd
R31 million
Concrete Units(Pty) Ltd
R5,7 million
Cobro Concrete (Pty) Ltd
R4 million

24. Turnaround times for restrictive practices
4 of 7 matters heard within 20 days of close of pleadings
6 of 8 matters were decided within the 60 days of the last hearing

25. Tribunal hearing days for cases taking more than one day

26. Participation in international bodies
Continued active participation in the Competition Committee of Organisation for Economic Co-operation and Development (OECD)
Case managers and the Tribunal members attended ICN workshops and conferences

27. Highlights Move to the EDD 10 year anniversary celebrations
Appointment of new tribunal members

28. Tribunal Members until July 2009
David Lewis
Marumo Moerane – Deputy Chairperson
Norman Manoim
Yasmin Carrim
Urmila Bhoola
Merle Holden
Mbuyiseli Madlanga
Thandi Orleyn
Medi Mokuena
Lawrence Reyburn
Nicola Theron

29. Tribunal Members from August 2009
Norman Manoim - Chairperson
Mbuyiseli Madlanga – Deputy Chairperson
Yasmin Carrim
Andreas Wessels
Andiswa Ndoni
Merle Holden
Thandi Orleyn
Medi Mokuena
Lawrence Reyburn
Nicola Theron**
Takalani Madima

30. Tribunal Staff Staff complement of 14 in 3 divisions
Corporate Services headed by Janeen de Klerk
Research Division headed by Rietsie Badenhorst
Registry Division headed by Lerato Motaung

31. Staff Race/Gender Composition

32. Tribunal Members Race/Gender Composition

33. Staff Experience

34. Financial Management

35. Financial Management Under expenditure by 30.11%
Tribunal members’ training
Case document software
Decreased hearing days

36. Hearing days DAYS 2010 % 2009 Hearing days 75 123.5
Person days, full-time members
173
76.89
244
65.86
Person days, part-time members 52
23.11
126.5
34.14
Total person days
225
100
370.5
Per Tribunal member
20.46
37.05

37. Financial Performance
High level of financial control
All financial policies being updated
No balance sheet issues
(accrual basis)

38. Financial performance
Functioning Audit Committee which meets 4 times a year
Unqualified report
No financial misconduct
No significant findings
(24% of targets were not measurable/specific/time bound)

39. Fruitless and Wasteful Expenditure
R3368 for PAYE shortfall

40. Soccer World Cup
Just over R13000 spent on 30 soccer t-shirts for staff and security personnel
R219 used to purchase flags for the office

41. Financial Management Category Amount R million % 2010 % 2009 % 2008
% 2010 %
2009
% 2008
Government grants
13.04
65.76
48.10
44.54
Filing fees
5.20
26.24
42.82
47.70
Other income
1.59
8.00
9.08
7.76
Total income
19.83
100

42. Financial Management Expenditure Category % 2010 % 2009 % change
% 2010
% 2009
% change
Personnel
54.70
53.62
6.11
Administration
17.82
17.76
4.41
Training
7.70
7.42
7.82
** Professional services
16.42
18.99
-10.08
Other operating expenses
3.36
2.21
58.14
Total expenditure
100
4.01

43. Distribution of professional services fees
CATEGORY
Distribution
% change
Consulting
30.00
76.54
Recruitment
1.69
-29.89
Public relations
11.51
-10.45
Part-time members’ fees
28.95
-40.28
Recording fees
7.64
-47.22
Facility fees
20.21
25.86
Total
100
-10.08

44. Financial Challenges Continuous funding from the dept
Developing SMART targets
Aligning budget to targets

45. General Challenges Expedite case resolution Improve access to justice
Widen intern program
Implement case management system

46. Thank You