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Portfolio Committee on Economic Development 09 March 2010
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Mr Norman Manoim Chairperson: Competition Tribunal Tel: 012 394 3347 Fax: 012 394 0169 Email: normanm@comptrib.co.za Ms Lerato Motaung Registrar: Competition Tribunal Tel: 012 394 3355 Fax: 012 394 0169 Email: leratom@comptrib.co.za
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What we do Independent, specialised institution established by statute (Competition Act 89 of 1998) Regulates corporate mergers and adjudicates allegations of anti-competitive practices
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Who sets our agenda? Competition Commission (Large mergers, prohibited practices) Private parties (Intermediate mergers, Interim reliefs, Complaint referrals)
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Priority Mergers Prohibited practices
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Large Merger Trends
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Tribunal hearing days for cases taking more than one day
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Turnaround times for mergers Mergers Hearings setdown within target79.41% Orders issued within target100% Reasons issued within target52.58%
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What are we doing in 2010/2011?
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Amendments to the Act? (possible challenges if Act is proclaimed during this period)
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Case Document Management and Performance Information Software
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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
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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
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How do we fund our activities? Filing Fees Dti grant Accumulated Surpluses?
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Why do we get a surplus? GrantFiling feeInterest Received Total Income Total Expenditure Surpluses R’m37.9770.838.32117.1397. 7619.37 %32.42%60.47%7.11%100% Tribunal funding over the 10 year period 1 Sep 1999-31 Mar 2009
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Why will we need to retain our surplus?
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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 17.75 2010/201127.2513.046.467.7510 2011/201227.5213.636.707.192.81 2012/2013 27.2615.186.975.11-2.3 TOTAL 82.0341.8520.1320.05
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Budget 2010/2011 Expenditure Category%R’m Capital15.864.32 Administration7.322 Personnel51.6714.08 Training5.771.57 Recruitment0.400.11 Professional Services16.234.42 Appeal court2.750.75 Total10027.25
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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
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