Competition Commission v Basil Read Holdings (Pty) Ltd (016949) [2013] ZACT 69 (22 July 2013)

Competition Commission v Basil Read Holdings (Pty) Ltd (016949) [2013] ZACT 69 (22 July 2013)

The Tribunal found that Basil Read Holdings (Pty) Ltd admitted to engaging in collusive tendering and bid-rigging in contravention of section 4(1)(b)(iii) of the Competition Act, 1998, in respect of several construction projects. Basil Read cooperated with the Commission, provided full disclosure, and undertook to implement a compliance programme to prevent future contraventions. The Tribunal was satisfied that the consent agreement, including the administrative penalty of R94,936,248 payable in two instalments, was appropriate and in accordance with the Act and the Invitation. The Tribunal confirmed the consent agreement and addendum as an order, thereby concluding all proceedings...

Citation
[2013] ZACT 69
Parties
Applicant: Competition Commission; Respondent: Basil Read Holdings (Pty) Ltd
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
22 July 2013
Case Number
016949
Procedural Posture
Consent Order Application / Order Confirming Consent Agreement
Outcome
Consent agreement confirmed as an order of the Tribunal. Administrative penalty imposed and terms of payment set.
Judges
N Manoim, Y Carrim, T Madima
Legal Topics
Collusive Tendering, Bid Rigging, Administrative Penalty, Corporate Leniency Policy, Consent Agreement
Competition Law Commercial and Corporate Collusive Tendering Bid Rigging Administrative Penalty Corporate Leniency Policy Consent Agreement

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Parties

Competition Commission

Applicant

Basil Read Holdings (Pty) Ltd

Respondent

Procedural Posture

Consent Order Application / Order Confirming Consent Agreement

Legal Issues

  1. 1 Whether Basil Read Holdings (Pty) Ltd engaged in collusive tendering and bid-rigging in contravention of section 4(1)(b)(iii) of the Competition Act, 1998.
  2. 2 Whether the consent agreement between the Competition Commission and Basil Read Holdings (Pty) Ltd should be confirmed as an order of the Tribunal.
  3. 3 Whether the administrative penalty imposed is appropriate and in accordance with the Invitation and the Act.

Ratio Decidendi

The Tribunal found that Basil Read Holdings (Pty) Ltd admitted to engaging in collusive tendering and bid-rigging in contravention of section 4(1)(b)(iii) of the Competition Act, 1998, in respect of several construction projects. Basil Read cooperated with the Commission, provided full disclosure, and undertook to implement a compliance programme to prevent future contraventions. The Tribunal was satisfied that the consent agreement, including the administrative penalty of R94,936,248 payable in two instalments, was appropriate and in accordance with the Act and the Invitation. The Tribunal confirmed the consent agreement and addendum as an order, thereby concluding all proceedings...

Court Disposition

Consent agreement confirmed as an order of the Tribunal. Administrative penalty imposed and terms of payment set.

Orders

  • The consent agreement between the Competition Commission and Basil Read Holdings (Pty) Ltd is confirmed as an order of the Tribunal.
  • Basil Read Holdings (Pty) Ltd shall pay an administrative penalty of R94,936,248 in two equal instalments of R47,468,124 each, the first within 30 days of the Tribunal's order and the second on the anniversary of the first payment.