PCC crafts Leniency Program for whistle blowers to speed up probe

The Philippine Competition Commission (PCC) is crafting the rules on Leniency Program to speed up decisions of anti-competition cases, including the test case on alleged cement cartel in the country, filed or under investigation by the agency.

PCC Commissioner Stella Luz A. Quimbo told reporters that crafting of the rules could take some time as this would require the crafting of an incentives program and the implementing rules and regulation (IRR) and its publication.

Leniency program, which functions like a program meant for whistle blowers, can fast-track the gathering of information and evidence because it involves testimony from someone or a corporation’s involvement in an anti-competitive practice.

Sec. 35 of the Competition Act provides that the “Commission shall develop a Leniency Program to be granted to any entity in the form of immunity from suit or reduction of any fine which would otherwise be imposed on a participant in an anti-competitive agreement provided in Section 14(a) and 14(b) of this Act in exchange for the voluntary disclosure of information regarding such an agreement which satisfies specific criteria prior to or during the fact-finding or preliminary inquiry stage of the case.”

Immunity from suit will be granted to an entity reporting illegal anti-competitive activity before a fact-finding or preliminary inquiry has begun based on certain conditions.

Such program shall include the immunity from any suit or charge of affected parties and third parties, exemption, waiver, or gradation of fines and/or penalties giving precedence to the entity submitting such evidence. An entity cooperating or furnishing information, document or data to the Commission in connection to an investigation being conducted shall not be subjected to any form of reprisal or discrimination. Such reprisal or discrimination shall be considered a violation of this Act subject to the sanctions provided in this Act.

Quimbo explained that the Leniency Program is a statute that cannot just be simply adopted from an existing program as it has to be customized. If in the case of the cement cartel case, if one of the parties involved will apply for the Leniency Program, it will own up its share in the cartel. The incentives could also vary if it is just 50 percent or whatever.

“A whistle blower can be a disgruntled player or a disgruntled employee,” said Quimbo.

In the case of the cement cartel, the case has been with PCC for 12 to 13 months already. While the PCC is already in the full administrative investigation stage and this has been undertaken by the Competition Enforcement Office.

Based on rules, the whole PCC process can take two years but that does not factor in yet the technical and field works for evidence and information gathering.

Once the case is already with the enforcement bureau of PCC, the commission can no longer touch on it until the enforcement already issues with the results of the investigation or the socalled Statement of Concerns.

Only when the enforcement bureau has done with its probe and issued a Statement of Concerns that the Commission will come again into the picture. This will be followed by an adjudication process and once the parties have been given their due process, then the PCC will have to issue a decision.

The PCC decision will have to weigh on the recommendations by the enforcement office.