PAC REBUKES COMPETITION AUTHORITY
Public Accounts Committee has raised concerns about the slackness of the Competition and Consumer Authority (CCA), stating that the authority is not fully executing its mandate.
Questioning the Ministry of Trade and Industry on Monday, Member of Parliament for Jwaneng Mabutsane, Mephato Reatile said there are inappropriate practices conducted by the retailers but the CCA has never taken any action against these companies. “I do not see the relevance of CCA because we are still experiencing same problems whereby the large retailers are fixing prices and this results in SMMEs getting low profits.”
He suggested that the CAA should discontinue operations or be advised to do their work well because currently all that it has reported is the investigations and no actions were taken against companies which conduct unfair business practices. “I think the CCA should be closed because it is not helping Batswana. It seems like we have officers doing nothing because unfair business practices are still continuing and chain stores are still setting prices when they buy goods from SMMEs.”
In his response, Deputy Permanent Secretary for the Ministry of Trade and Industry, Gideon Mmolawa explained that he believes the CCA is doing the work but the ministry will follow up with the organization to check the loopholes.
“We will engage the authority further on these issues of concern. However, with chain stores buying goods, the law allows chain stores to choose where they want to buy goods.”
In its 2020/21 annual report, the CCA revealed that it registered 1158 complaints during the year with most complaints rising from the motor industry. The authority also indicated that a total of 245 complaints were brought forward from the previous year, bringing the total cases investigated to 1403. “Out of these, 1267 complaints were resolved or 90.3 percent of cases resolved and 136 complaints were still pending at the end of the financial year.”
The Authority refers cases and prosecutes entities that infringe on the provisions of the Competition Act and the Consumer Protection Act before the Competition and Consumer tribunal. It also appeals and defends appeals against it at the high Court and Court of Appeal.
Among the companies which have been brought before the Competition and Consumer Tribunal last year includes Gabcon which was said to have been abusing its dominance in the market, Cotton fields versus Total Botswana in which Cotton Fields (Pty) Ltd had lodged a complaint with the Authority, alleging abuse of dominance by Total Botswana (Pty) Ltd.
The third case is the CCA versus New African Properties in which NAP appealed the decision of the CCA to reject a merger of NAP and El Alamein (Pty) Ltd on the basis that the Authority had erred in reaching its decision. The Authority opposed the appeal. The appeal is still pending before the Tribunal.
Cases which have been brought before the High Court include CCA Vs Mmegi Investment Holdings in which the Authority rejected a merger for the proposed acquisition of 28.73 percent shareholding in Mmegi Investment Holdings (Pty) Ltd by Universal House (Pty) Ltd. The matter is still pending before the High Court.
The second case is the CCA versus BOMAID in which the Authority has instigated an investigation against numerous medical aids in Botswana, based on allegations of abuse of dominance. BOMAID made an application to the High Court on 21st January 2021 for an order declaring that it be exempted from the application of the Competition Act and that section 31 of the Competition Act does not apply to its conduct. The Authority opposed the application on the basis that BOMAID is a profit making entity.