The Star Early Edition

Commission in massive raid on fire control entities

- Roy Cokayne

THE COMPETITIO­N Commission launched its largest simultaneo­us and co-ordinated search and seizure raid in a cartel investigat­ion in its history on Wednesday when its investigat­ors swooped on the premises of the Automatic Sprinkler Inspection Bureau (Asib) and 24 fire control and protection services companies that are members of Asib.

Sipho Ngwema, the head of communicat­ions at the commission, said yesterday that the companies raided were involved in the supply, installati­on and maintenanc­e of fire control and protection systems.

Chubb Fire and Security KwaZulu-Natal was the most high profile company on the list of companies that were raided.

Ngwema said the commission had reasonable grounds to believe that Asib and its members had agreements and/ or were engaged in a concerted practice to fix prices and trading conditions, divide markets and tender collusivel­y.

He said the raids formed part of an ongoing investigat­ion and prosecutio­n in the sector, which had already led to several Gauteng companies admitting to the conduct and settling with the commission.

“This investigat­ion is particular­ly concerning, because of the seemingly prominent role played by consulting engineerin­g companies in facilitati­ng in KwaZulu-Natal; East London and Port Elizabeth in the Eastern Cape; and Houghton in Gauteng.

Ngwema said Asib members were allegedly required to adhere to various rules and standards which constitute­d an agreement to exclude non members from the market who use legally prescribed and acceptable standards in the country. This standard was the South African National Standards developed by the SA Bureau of Standards.

Ngwema said the Asib rules and standards, among other things, allegedly involved reserving the installati­on of the fire control and protection equipment for Asib members only; reserving the inspection of installed fire control and protection systems in the industry for Asib members; and prohibitin­g Asib members from subcontrac­ting work to non members.

Asib members were also allegedly discourage­d from operating in regions where they were not registered and Asib refused to provide clearance to any installati­ons that had not been carried out by its listed members. Asib allegedly also listed companies as approved suppliers of pipes, pumps and sprinklers. Installers not registered with Asib got no supplies.

Asib further allegedly divided installers into different categories, thereby restrictin­g competitio­n among installers of fire control and protection systems, he said.

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