Quarterly Report April-June 2010: Promoting Fair & Efficient Economy

1. Quarterly report 1 April to 30 June 2010 Presentation to Parliament’s Portfolio Committee on Economic Development Commissioner Shan Ramburuth 31 August 2010 Towards a fair and efficient economy for all

2. The work of the Commission • Mandate: Competition Act • Prevent concentration through merger control • Prosecution of anti-competitive behaviour • Advocacy for pro-competitive conduct and regulations • Strategic priorities • Demonstrable outcomes in the economy • Competitive environment for economic activity • High performance competition agency • Operational support • HR, Finance, IT, Security • Governance: • PFMA, Treasury regulations and other legislation Towards a fair and efficient economy for all

3. Mergers 1 April 2009 to 30 June 2010 Towards a fair and efficient economy for all

4. Merger control Towards a fair and efficient economy for all

5. The Global Merger Control Index 2010 by Centre for European law and economics Towards a fair and efficient economy for all

6. Enforcement1 April 2009 to 30 June 2010 Towards a fair and efficient economy for all

7. Cases under investigation Towards a fair and efficient economy for all

8. Prosecutions and litigation Towards a fair and efficient economy for all

9. Prosecution of cases • Referrals: • Computicket – exclusionary conduct relating to the provision of outsourced ticket distribution services • Fritz Pienaar Cycling-collusion in setting the wholesale and retail prices of cycles and accessories • Consent agreements: • Keystone Milling – cartel conduct fixing the selling price of white maize. Administrative penalty of R6,7mill. • Masana Petroleum Solutions -cartel conduct involving directly or indirectly fixing the purchase or selling price of bitumen and bituminous products in South Africa. Administrative penalty of R13 mill. Towards a fair and efficient economy for all

10. Cases in food and agro-processing Towards a fair and efficient economy for all

11. Cases in construction and infrastructure Towards a fair and efficient economy for all

12. Cases in intermediate industrial products Towards a fair and efficient economy for all

13. Advocacy and stakeholder relations • Advisory opinions: 13 • Clarifications: 31 • Bid-rigging in public procurement • Introducing a Certificate of Independent Bid Determination with National Treasury in terms of the PFMA • 2 training workshops on how to identify, detect and report bid-rigging attended by 63 procurement officials from Department of Health and Cape Town Metro Towards a fair and efficient economy for all

14. Influencing policy and legislation • Meetings with key stakeholders • Economic Development Department, Treasury, National Energy Regulator of South Africa, Industrial Development Corporation, National Agricultural Marketing Council, South African National Consumer Union, Department of Agriculture and South African Reserve Bank • Comments on the Post Office Bill to the Department of Communications. • Amendments to the Competition Act • Discussions with EDD on implications of criminalization • Meetings with the NPA and SAPS Commercial Crimes Unit Towards a fair and efficient economy for all

15. International relations • Participation in international forums: • Competition Committee of OECD (papers on bid-rigging in public procurement, procedural fairness and standard setting) • Annual Conference of International Competition Network • Collaboration with African agencies • Joint Food Project with Zambia and Egypt on edible oils, milling and fertiliser • Mauritian competition official seconded for 3 months • Shared experiences with visiting competition officials from Namibia Towards a fair and efficient economy for all

16. Communications • Internal communications • 8 news updates • 3 newsflashes • 3 staff meetings • External communications • Media releases: 6 • 1 Competition News publication • Total media coverage: 671 print and 553 broadcast media • Website visits: 67503 times by 17 455 visitors Towards a fair and efficient economy for all

17. High performance competition authority • Knowledge management: • Incorporated into performance contracts • Testing of new case management system • Early change management initiatives • Learning and development: • Coaching and mentoring for both middle and senior management • 7 internal training (capacity building) sessions • Corporate governance structures • 11 Commission meetings • 4 Executive Committee meetings • 1 Mancom workshop • 1 Audit Committee meeting Towards a fair and efficient economy for all

18. Human resources • Performance assessments conducted and performance bonuses paid out • 12 graduate trainees are part of the Commission’s graduate trainee programme • Total staff complement including graduate trainees: 136 • Appointments: 5 • Resignations: 6 Towards a fair and efficient economy for all

19. Planning and reporting • External audit conducted • Internal audits conducted on Registry, Legal Services and Office of the Commissioner • Alignment with EDD • Motivation for additional funding Towards a fair and efficient economy for all

20. Implementation challenges • Capacity and resources are strained • Uncertainty on budget • Implementation on hold: • Training • Market enquiries • Organisational structure • Formation of a cartels unit • Raids • Litigation costs are increasing • Measuring impact Towards a fair and efficient economy for all

21. Thank you! Tel: 0123943332 Fax:0123944332 email: shanr@compcom.co.za Towards a fair and efficient economy for all