Portfolio Committee on Economic Development

1. Portfolio Committee on Economic Development 14 October 2010

2. Annual Report of the Competition Tribunal 2009/2010

3. Norman ManoimChairperson Lerato Motaung Registrar Janeen de Klerk Head: Corporate Services Tel: 012 394 3300 Fax: 012 394 0169 Email: ctsa@comptrib.co.za

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. RestrictivePractices • 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

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 R 195 718 614.00

23. Administrative penalties imposed exceeded R 292 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 • MarumoMoerane – Deputy Chairperson • Norman Manoim • Yasmin Carrim • Urmila Bhoola • Merle Holden • MbuyiseliMadlanga • Thandi Orleyn • MediMokuena • Lawrence Reyburn • Nicola Theron

29. Tribunal Members from August 2009 • Norman Manoim - Chairperson • MbuyiseliMadlanga – Deputy Chairperson • Yasmin Carrim • Andreas Wessels • AndiswaNdoni • Merle Holden • Thandi Orleyn • MediMokuena • 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 • Tribunal members’ training • Case document software • Decreased hearing days Under expenditure by 30.11%

36. Hearingdays

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

42. Financial Management

43. Distribution of professional services fees

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