1. 2012 ICN Cartel Workshop Panama City, Panama 2 – 4 October 2012
Plenary I: Overview of Anti-Cartel Enforcement Manual Chapters – Best Practices Drafting and Implementing a Leniency Programme A South African perspective
2012 ICN Cartel Workshop Panama City, Panama 2 – 4 October 2012
Bongani Ngema
Competition Commission of
South Africa

2. OUTLINE Background Effect of CLP on Anti-Cartel enforcement
Major investigations
Challenges
Recommendations

3. BACKGROUND Introduced in 2004
Based on US,EU,UK,Canada and Australia Programmes
Revised in 2008 to incorporate best practices
Markers
Wording amended to clarify that immunity will be granted where the applicant meets all then conditions
Instigators
Discretion for the Commission to consider reduced fines for subsequent applicants
Oral submissions
Contact person

4. EFFECT OF CLP ON ANTI-CARTEL ENFORCEMENT
CLP Introduced

5. MAJOR CARTEL INVESTIGATIONS
Bread cartel
Involved 4 biggest bakeries (60% of the market)
Fixed prices and allocated markets
Leniency applicant provided information
Part of the investigation completed and referred for adjudication in 2 months!
Highest fine ever imposed in SA (R340million: US$41million)!
Led to investigations into milling

6. MAJOR CARTEL INVESTIGATIONS
Construction cartel
Started as a market study into the construction of stadia
One of the biggest construction firms applied for leniency
Invitation to settle
21 firms applied (24 implicated)
Investigations and settlements will be completed within 36 months
CLP applications led to investigation into the pilings, reinforcing steel etc.

7. CHALLENGES The legality of CLP has been challenged in court
Leniency applications containing incomplete information or circumstances that do not constitute cartel conduct
Implementing the CLP in the environment of criminalised cartel conduct
Negative public perception due to instigators escaping sanction or enjoying some leniency

8. RECOMMENDATIONS
Consider a move towards a multiple leniency arrangement rather than the “Winner takes all” approach
Awareness programmes to highlight the benefits of CLP
Whistleblowing programmes