Offices of five LPG firms are raided

COMPETITION Commission investigators yesterday raided the offices of five liquefied petroleum gas (LPG) suppliers, including listed African Oxygen (Afrox), in a co-ordinated search and seizure exercise linked to a new investigation into the alleged fixing of the price or deposit fee for gas cylinders.

The offices of the Liquefied Petroleum Gas Safety Association of Southern Africa (LPGSASA) were also included in the raid.

Themba Mathebula, a spokesperson for the commission, said yesterday that the search and seizure raids took place on the premises of Afrox, Oryx Oil South Africa, EasiGas and the LPGSASA in Gauteng, and KayaGas and Totalgaz Southern Africa in the Western Cape.

Oryx Oil South Africa is a part of Oryx Energies, a Swiss company wholly owned by the private group AOG that has been in South Africa since 2002. KayaGas is a black-owned LPG bulk and cylinder distribution company. Totalgaz Southern Africa was re-baptised in 2003 as TotalFinaElf but is now called Total.

Mathebula said the five firms were competitors in the market for the supply of LPG and gas cylinders, while the LPG Association was an association of firms that were active at various levels of the LPG sector.

“During the search, the commission will seize documents and electronic data, which will be analysed together with other information gathered to determine whether a contravention of the Competition Act has taken place.

Warrants

“In terms of section 48 of the Competition Act, the commission is authorised to enter and search premises and seize documents which have a bearing on an investigation,” he said.

Mathebula said the commission had obtained warrants authorising it to search the offices of the firms at the applicable high courts. He confirmed the investigation was initiated in August and the commission had not previously announced that it had initiated such an investigation.

But Mathebula said the commission was not at liberty to disclose the reason for it initiating the investigation, but confirmed that it did not emanate from the LPG market inquiry by the commission that was underway.

Tembinkosi Bonakele, the commissioner, said the commission believed the information that would be obtained from the search and seizure operation would enable the commission to determine whether or not the firms had engaged in collusive conduct.

However, Bonakele urged anyone, including business or individuals with further information, to come forward and assist the commission in concluding the investigation.

Kevin Robertson, the executive director of the LPGSASA, said late yesterday afternoon that the raid had commenced at about 10am and commission investigators were “finishing up now”.

“They took a couple of documents but nothing major from what I can gather,” he said. Robertson believed the commission had received a complaint, which had to be investigated. He added that it was difficult for the association to comment on whether the investigation had merit because it did not get involved in the commercial side of the industry.