This website uses cookies to ensure you have the best experience. Learn more

Longest Running Cartel In South Africa

1759 words - 8 pages

Facts:
On 13 February 2009, the Commission referred a complaint to the Competition Tribunal of South Africa (Tribunal) for contravention of s 4(1)(b) of the Competition Act. The Commission had initiated an investigation after receiving an application from Rocla for leniency in terms of the Commission’s corporate leniency policy on 7 December 2007 in which Rocla alleged that the above-mentioned firms were members of a cartel. On 18 March 2008, the Commission initiated an investigation and found that the cartel operated from 1973 until 2007 in Gauteng, Kwa-Zulu Natal and in the Western Cape.
Shortly after the complaint was filed, 4 of the firms obtained consent orders, D&D and Craig ...view middle of the document...

The cartel members also developed a document called the Modus Operandi, which identified each cartel member, by a number to conceal the identity of the cartel members. The Modus Operandi reflected the agreed percentages for each cartel member; a geographic market allocation arrangement splitting up the production and sales of pipes, culverts
and manholes; as well as a split of the precast concrete products which each firm could produce and sell in each identified market. Furthermore there were sanctions for non-compliance, payments to keep competition out of the market, intent and ability to raise prices and effective monitoring mechanisms.

Southern Pipeline contractors (tribunal)
Facts: Southern Pipeline Contractors and Conrite admitted contravention of s 4(1)(b) of the Act however rejected the penalty imposed and therefore approached the Tribunal.
Argument:
Commission: argued that there was no legislative basis for the Tribunal to limit the imposition of the penalty to affected turnover only and that the firm’s annual total turnover should be subject to sanction. They argued that the affected turnover for SPC should only exclude civil engineering activies.
SPC: SPC argued that the affected turnover should exclude in-out costs, civil engineering activities and concrete products supplied to the Gautrain project. Furthermore they listed a number of factors the tribunal should consider.
Conrite: listed a number of mitigating factors court should consider.
Tribunal decision and reasoning
The Tribunal considered the approach by other jurisdictions in calculating a penalty. Than proceeded look at each parties’ relevant conduct. Looked at the nature, duration and extent of contraventions.
Imposed a penalty of R16 882 597 on SPC (10% of total turnover) and Conrite was fined R 6 192 457 (8% of total turnover).

Analysis
The approach followed by the Tribunal in this case shows that penalties for cartels of long duration will attract maximum penalties.

Appeal
Facts: both SPC and Conrite appealed the Tribunal’s decision.
SPC Argument

In its appeal, first appellant argued against the decision of the Tribunal for mainly 3 reasons (i) that the Tribunal was incorrect in basing its penalty on SPC’s total turnover for the preceding year (ii) the Tribunal erred in accepting the Commission’s calculations of SPC’s net affected turnover and (iii) that the Tribunal unfairly imposed the maximum penalty when there were mitigating factors warranting a reduced percentage in calculating the appropriate penalty.

Conrite Argument

Conrite argued that the tribunal had failed to take into consideration that the second appellant was only part of a smaller cartel which only operates in Durban not nationally or regionally, and that the activities of the regional or national cartel cannot be imputed to them.
It was further argued by Conrite that the tribunal disregarded its evidence and ignored the fact that they did not enjoy...

Other Papers Like Longest Running Cartel in South Africa

Education in South Africa Essay

1152 words - 5 pages balance the situation throughout the period. The scholarship and sponsorships given to young students are great. And here comes a big but, why only to certain ethnic groups? Don’t we all suffer? Our current students did not take part in the historical events that shaped our New South Africa. The foundation of our New South Africa rest squarely on their shoulders and it is their responsibility to maintain and ensure prosperity for one and all. By

Street Children in South Africa Essay

2069 words - 9 pages During September 1993 an investigation was launched on the lifestyle, activities, experiences, and background of street children in Pretoria, South Africa. Qualitative rather than quantitative interviews were conducted to gather as much information as possible on the total life situation and subjective experiences of these children. This article focuses specifically on their background. The responses to each interview are discussed and compared

Quarry Equipment in South Africa

771 words - 4 pages as farm gate and driveways, thereby contributing to landfill reduction. We equips the quarry plant with distinct crushing machine to crush medium challenging and tough elements. Complete stationary, Silica Quartz Crusher South Africa, mobile and transportable crushing plant is accessible for your contractors and quarry owners. South Africa is rich in natural assets, which is a single of your five big mining countries within the globe. Hence

The Zulues in South-Africa

1928 words - 8 pages Nobody knows how long there have been people living in the southern part of the African mainland. Experts dates foundings of irontools in the Swaziland to the 4th century. Sailors who were shipwrecked outside the coast of South-Africa had contact with people who earned their living by farming and cattlebreeding. Later on when the Europeans arrived to South-Africa, they found a people on the east coast of Natal who called themselves" A ma

Cone Crusher for Sale in South Africa

609 words - 3 pages africa used cone instruments, ultra pro, power exam table for sale 672159646 are you the seller of this medical device/part. united stes, south cone crushers for sale south africa crusher south mobile cone crushers for sale south africa. mobile cone crushers for sale in south africa mobile cone crushers for sale in south africa mobile cone crusher mobile cone crusher for sale in south africa brics mobile cone crusher for sale in south

Second Hand Mobile Crushers in South Africa

589 words - 3 pages secondhand mobile crushers in south africa jun 05,second hand mobile crushers in south africa. second hand mfl mobile impact crusher hybrid crushers adsa complete list of second hand mfl mobile mobile crusher jaw crusher second hand in south jun 06,posts reled to mobile crusher jaw crusher second hand in south africa secondhand mobile crushers in south africa second hand crushers south africa crusher south africa second hand crusher

South Africas Role in Southern Africa

1530 words - 7 pages South Africa’s role in Southern Africa after 1994 will be discussed by involving themes such as the prospects for external capital flows to Southern Africa and there are three categories of external resources, namely, direct investments, long term non-concessional loans and development assistance (ODA). Anti-apartheid will also be looked at as well as South Africa’s regional policy since 1994. As a starting point, some brief facts will be

Quality Of Education In South Africa

1364 words - 6 pages The World Economic Forum ranked South Africa’s quality of education 140th out of 144 which is lower than Lesotho and Swaziland. This causes us to think whether the state has or has not failed to provide quality education for its citizens. After the apartheid era South Africa had become a democracy. With the start of this democracy and the new Constitution of the Republic of South Africa 1996 there had been a transformation in South Africa’s

Mahindra & Mahindra (M&M) in South Africa

2739 words - 11 pages Mahindra & Mahindra in South Africa Evelyn Eugenio AMBA 660 9044 Dr. Lorna Wallace Executive Summary In 1945, Mahindra & Mahindra Ltd. (M&M) functioned as a steal trading entity established by two brother located in India. During 1947, they decided to join the automobile industry and created the UV and tractor vehicle which become the core competency. Even though the strategic method was effective domestically in

Mac's Convienience Operating In South Africa

4215 words - 17 pages | International Business Strategy Report | Mac’s in South Africa | | 4/2/2012 | | Introduction Mac’s Convenience Store Inc. is the largest operator in all of Canada. They offer popular food products and are operated by Couche-Tard.  After dominating the Canadian market, Couche-Tard decided to further their market expansion into the United States market and became the second largest convenience chain in North America. Mac’s is

Screening Machines Process Equipment in South Africa

1169 words - 5 pages 20mm. If a particle with bigger size enters the machine it might probably jam it, hence creating harm for that machine. The Mobile screening plant rate India Sand screening equipment in South Africa Glass Crushing Equipment Supplier Stone Crushing Plant In UK Used Rock Jaw Crusher Stone Quarry Crusher In Nigeria Rock Crusher Supplier In Malaysia is actually a patented aggregate screening plant made to screen rock, soils, sand & gravel and c

Related Essays

Racism In South Africa Essay

952 words - 4 pages fear of losing identity, suspicion of its activities, aggression, and desire to eliminate its presence to secure a presumed purity. Yes, racism is a present reality in South Africa. A decade and half after the end of apartheid, South Africans are beginning to face up to the fact that they have a present problem with racism in the country. Former president Nelson Mandela dedicated most of his vigor to drawing up and putting into effect the new

Healthcare In South Africa Essay

3493 words - 14 pages levels of negative health outcomes, how well they are being addressed, and what social, political, and economic factors contribute to such health disparities. South Africa is a nation that has complex health care needs and shortcomings even though it is the second wealthiest nation in Africa. Similar to the United States, with a health care system favoring those of certain ethnicities and social status, many others are left with healthcare

Apartheid In South Africa Essay

1294 words - 6 pages , has left animprint on the thoughts and actions of society in South Africa today.Dutch farmers known as the Boers settled the African lands. Eventually, a rising greatBritain noted the rich resources and strategic location of the country. Britain imposed it's rule onrebellious Boers, pushing the Boers off their land and eventually sparking the Boer war. Britainemployed an overwhelming force to subdue the Boers. Ironically the Boers, now

Unemployment In South Africa Essay

424 words - 2 pages MDEV GROUP 1: Sovereign Debt Management Mini Test: Date: 28 Feb 2013 |Questions |Marks | |In sequential order, which of the following combination applies in the development of government debt management in South Africa |5 | |Government started developing the macroeconomic framework which laid the basis for