Competition Commission v SAAB Grintek Defence (Pty) Ltd (CR010Apr19; SA138Dec21) [2021] ZACT 104 (8 December 2021)

Competition Commission v SAAB Grintek Defence (Pty) Ltd (CR010Apr19; SA138Dec21) [2021] ZACT 104 (8 December 2021)

The Tribunal confirmed the consent agreement between the Competition Commission and SAAB Grintek Defence (Pty) Ltd. Although SAAB did not admit liability, the Commission found sufficient evidence of collusive tendering in violation of section 4(1)(b)(iii) of the Competition Act. The agreement includes an administrative penalty of R2,000,000, undertakings by SAAB to increase its enterprise and supplier development expenditure by at least R350,000 annually for five years, and the implementation of a compliance programme. The Tribunal found these measures appropriate and sufficient to address the alleged contravention and to promote future compliance with competition law.

Citation
[2021] ZACT 104
Parties
Applicant: Competition Commission; Respondent: SAAB Grintek Defence (Pty) Ltd
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
8 December 2021
Case Number
CR010Apr19/SA138Dec21
Procedural Posture
Settlement Application / Consent Agreement Confirmation
Outcome
Consent agreement confirmed as an order of the Tribunal; administrative penalty imposed; remedial undertakings accepted.
Judges
Y Carrim, E Daniels, I Valodia
Legal Topics
Collusive Tendering, Administrative Penalty, Enterprise Development, Section 4 1 B Iii, Consent Agreement, Compliance Programme
Competition Law Collusive Tendering Administrative Penalty Enterprise Development Section 4 1 B Iii Consent Agreement Compliance Programme

Case Brief

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Downloadable case file Legal principles 3 Authorities cited 1 Party arguments 2 Amounts and remedies 2
Sign in to unlock

Parties

Competition Commission

Applicant

SAAB Grintek Defence (Pty) Ltd

Respondent

Procedural Posture

Settlement Application / Consent Agreement Confirmation

Legal Issues

  1. 1 Whether SAAB Grintek Defence (Pty) Ltd contravened section 4(1)(b)(iii) of the Competition Act by engaging in collusive tendering.
  2. 2 Whether the consent agreement between the Competition Commission and SAAB Grintek Defence (Pty) Ltd should be confirmed as an order of the Tribunal.
  3. 3 What remedial measures and penalties are appropriate under the Competition Act for the alleged conduct.

Ratio Decidendi

The Tribunal confirmed the consent agreement between the Competition Commission and SAAB Grintek Defence (Pty) Ltd. Although SAAB did not admit liability, the Commission found sufficient evidence of collusive tendering in violation of section 4(1)(b)(iii) of the Competition Act. The agreement includes an administrative penalty of R2,000,000, undertakings by SAAB to increase its enterprise and supplier development expenditure by at least R350,000 annually for five years, and the implementation of a compliance programme. The Tribunal found these measures appropriate and sufficient to address the alleged contravention and to promote future compliance with competition law.

Court Disposition

Consent agreement confirmed as an order of the Tribunal; administrative penalty imposed; remedial undertakings accepted.

Orders

  • The settlement agreement between the Competition Commission and SAAB Grintek Defence (Pty) Ltd is confirmed as an order of the Tribunal.
  • SAAB Grintek Defence (Pty) Ltd must pay an administrative penalty of R2,000,000 to the Commission.