| Fri 13 Feb 2009, 14:48 | | THEE - The Competition Commission - Press Statement From The Competition |
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JSE
THEE
THEE - The Competition Commission - Press Statement From The Competition
Commission
The Competition Commission
13 February 2009
Aveng faces R46m fine for collusion
The Competition Commission today referred the findings of its investigation into
collusion by manufacturers of pipes, culverts and manholes to the Competition
Tribunal for determination. In the same matter, the Commission referred a
consent agreement with Infraset, a division of Aveng Manufacturing, a subsidiary
of listed entity Aveng (Africa) Limited to the Competition Tribunal for
confirmation, in which Aveng admits that Infraset colluded with its competitors
in contravention of the Competition Act.
Aveng has agreed to pay an administrative penalty of R46 277 000.00 which
amounts to 8% of Infraset`s turnover. Aveng has also agreed to develop and
implement a formal compliance programme.
Infraset is involved in the manufacture of precast concrete pipes and culverts
which are used in building and construction.
Aveng has admitted that Infraset was party to price fixing, market allocation
and collusive tendering in the markets for concrete pipes and culverts in
Gauteng, KwaZulu-Natal and the Western Cape.
Background
During December 2007, the Commission received an application for leniency under
its corporate leniency programme from Rocla regarding its involvement in a
cartel in the precast concrete market within South Africa. The Commission
initiated an investigation and found that Rocla, together with Southern Pipeline
Contractors, Concrete Units, Infraset, Grallio, Cobro, Cape Concrete, Concrite
Walls, Craig Concrete and D&D had engaged in the following conduct:
- fixing the selling price of pipes, culverts and manholes
- dividing the markets for the production and distribution of pipes, culverts
and manholes; and
- collusive tendering in respect of the supply of precast concrete sleepers
to certain projects.
The respondents had regular meetings around the country in which they discussed
and agreed to divide contracts amongst each other, divide geographic markets
between the parties, allocate products to one another and implement mechanisms
to monitor any deviations from the agreed upon terms. The arrangements of the
respondents mainly applied in the Gauteng, KwaZulu-Natal and the Western Cape
areas.
In general, pipes, manholes and culverts are sold mainly to building contractors
who are contracted to the government or private enterprises to construct and
erect pipelines and sewerage systems, or sold directly to government departments
and municipalities.
Apart from the consent agreement that the Commission has concluded with Aveng,
and the conditional leniency awarded to Rocla, the Commission is seeking the
maximum allowable penalty of 10% of annual turnover in the preceding financial
year for the remaining respondents in this cartel.
ENDS
Prepared by: FD Beachhead
Jennifer Cohen 011 214 2401/ 082 468 6469/ jennifer.cohen@fd.com
Dani Cohen 021 487 9021 / 082 897 0443 dani.cohen@fd.com
Senzi Dlamini 011 214 2420 / 073 494 0030 senzi.dlamini@fd.com
On behalf of: The Competition Commission
Further info:
Nandi Mokoena, Manager of Strategy and Stakeholder Relations, Competition
Commission
012 394 3286 / 082 399 1328 / nandisilem@compcom.co.za
Date: 13/02/2009 14:48:02 Produced by the JSE SENS Department.
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