Portfolio Committee on Economic Development

09 March 2010

Mr Norman ManoimChairperson: Competition Tribunal

Tel: 012 394 3347Fax: 012 394 0169

Email: normanm@comptrib.co.za

Ms Lerato MotaungRegistrar: Competition Tribunal

Tel: 012 394 3355Fax: 012 394 0169

Email: leratom@comptrib.co.za

What we do

• Independent, specialised institution established by statute (Competition Act 89 of 1998)

• Regulates corporate mergers and adjudicates allegations of anti-competitive practices

Who sets our agenda?

• Competition Commission(Large mergers, prohibited practices)

• Private parties(Intermediate mergers, Interim reliefs,

Complaint referrals)

Priority

• Mergers

• Prohibited practices

Large Merger Trends

Tribunal hearing days for cases taking more than one day

Turnaround times for mergers

Mergers

Hearings setdown within target 79.41%

Orders issued within target 100%

Reasons issued within target 52.58%

What are we doing in 2010/2011?

Amendments to the Act?

(possible challenges if Act is proclaimed during this period)

Case Document Management and Performance Information

Software

Cases on our roll for 2010/2011

Complainant Respondent Alleged Contraventions Days AllocatedRukanani Coca Cola Sec 5(1) & (2)

Minimum resale price 5

Commission Astral Sec 4(1)(b)(i) and (ii) and Sec 8(c)Price fixingAllocating marketsAbuse of dominance

9

Commission Sasol Sec 8(d) (ii) and Sec 9Price discriminationRefusal to supply

9

Cases on our roll for 2010/2011 continued

Complainant Respondent Alleged Contraventions Days AllocatedCommission Rocla Sec 4(1)(b)

Price fixingAllocation of customersCollusive tendering

9

Commission SAB Sec 4(1)(b)(ii), Sec 5(2), Sec 8(d)(i) Market divisionResale price maintenance Inducement not to deal with other competitors

40

Commission DPI Plastics Sec 4(b)(i) Price fixing

9

How do we fund our activities?

• Filing Fees

• Dti grant

• Accumulated Surpluses?

Why do we get a surplus?

Grant Filing fee Interest Received

Total Income

Total Expenditure

Surpluses

R’m 37.97 70.83 8.32 117.13 97. 76 19.37

% 32.42% 60.47% 7.11% 100%

Tribunal funding over the 10 year period 1 Sep 1999-31 Mar 2009

Why will we need to retain our surplus?

3 Year Funding

Year Budget Committed

grant

Anticipated

filing fees and

interest

income

Expected

shortfall

Anticipated

accumulated

surplus after

shortfall

covered(in R’m) (in R’m) (in R’m) (in R’m) (in R’m) (in R’m)

Expected

opening

surplus

17.75

2010/2011 27.25 13.04 6.46 7.75 10

2011/2012 27.52 13.63 6.70 7.19 2.81

2012/2013 27.26 15.18 6.97 5.11 -2.3

TOTAL 82.03 41.85 20.13 20.05

Budget 2010/2011

Expenditure Category % R’m

Capital 15.86 4.32

Administration 7.32 2

Personnel 51.67 14.08

Training 5.77 1.57

Recruitment 0.40 0.11

Professional Services 16.23 4.42

Appeal court 2.75 0.75

Total 100 27.25

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