2010 / 2011 Competition Commission Annual Report by bheki12

VIEWS: 16 PAGES: 124

									ANNUAL REPORT
          2010/2011
Our purpose and function

The Competition Commission of South Africa was established in terms of the Competition Act No 89 of 1998, as amended (the Act). Its

purpose is to promote and maintain competition in South Africa in order to do the following:
Acronyms and Abbreviations

Act        The Competition Act                      Nehawu

ACF        African Competition Forum                Nersa



CAC        Competition Appeal Court                 Numsa

CC1 form   Competition Commission 1 form                      Organisation for Economic Cooperation

                                                    Palama



CLP

Cosatu     Congress of South African Trade Unions   SAA



Fawu                                                Saccawu

Fedusa     Federation of Unions of South Africa     SACCI

FTC        Federal Trade Commission                 Sactwu

GCR                                                 SACU      Southern African Customs Union



                                                    SAIA

ICN                                                 SAOPA     South African Oil Producers Association

                                                    SAPIA

Icasa

ICREA                                               SCA       Supreme Court of Appeal

IPAP                                                Seta

IT                                                            small and medium enterprises

                                                    SVR

LAN        limestone ammonium nitrate

LNI

LSSA                                                USA       United States of America

           memorandum of understanding              VESA

NaCC       Namibian Competition Commission
Contents
    Part 1:   Prioritisation for impact     12




    Construction and infrastructure         18
    Intermediate industrial products        20




    Part 2:   Divisional reports            23




    Part 3:   Corporate governance          57




    Part 5:   Performance against targets   105
       Commissioner’s Overview




                                Mr Shan Ramburuth




    Competition Commission
8   Annual Report 2010   2011
The Commission prohibited two intermediate mergers, which were



                                                                      Agency of the Year in Africa, Asia and the Middle East




Enforcement




                                                                      In the top 10 for merger control




                                                                      European Law and Economics (see www.mergercontrol.net).




                                                                      www.ethisphere.com.


                                                                      Leading competition economist
sectors. This included food (storage of and trade in grain, and the
                                                                      In its annual publication, International Who’s Who of Competition
                                                                      Lawyers and Economists


                                                                      African competition economists.




                                                                                                                  Competition Commission
                                                                                                                   Annual Report 2010   2011   9
                                                                                  The Commission has also stepped up engagement with organised




                                                                                  International relations

                                                                                  The Commission continues to participate in international organisations,




                                                                                  setting up the African Competition Forum, which was launched in Nairobi,

        Following prioritisation of enforcement in the construction sector, the




                                                                                  People and resources




     Competition Commission
10   Annual Report 2010   2011
recruitment and selection practices.   and maintaining competition in South Africa.




the organisation.
                                       Mr Shan Ramburuth
                                       Commissioner
                                       Competition Commission of South Africa




                                                                                      Competition Commission
                                                                                      Annual Report 2010   2011   11
     Prioritisation
     and Impact
     Competition Commission
12   Annual Report 2010   2011
Prioritisation and Impact




construction and infrastructure.




                                                                       products sector), three related to construction inputs and two related




Figure 1: Referrals of complaints to the Tribunal for adjudication against corresponding sections of the Act




   25                                                                                                               9(1)
                                                                                                                    8(c)
   20                                                                                                               8(a)
                                                                                                                    5(1)
   15
                                                                                                                    8(d)

   10                                                                                                               8(b)
                                                                                                                    5(2)

    5
                                                                                                                    Number of cases

    0

Source: Competition Commission




                                                                                                                       Competition Commission
                                                                                                                       Annual Report 2010   2011   13
                                                                                   The Commission commenced settlement discussions with some
                                                                                   respondents in order to refer the collusion case to the Tribunal.


                                                                                   The terms of the agreement were as follows:




         bread cartel in Tribunal proceedings during 2009, despite the fact that        medium enterprises.




         opted to cooperate with the Commission and to negotiate settlements in         R150 million.
         other cases that were pending.



         Foods for the following:




             and



                                                                                                        announce the settlement with Pioneer




     Competition Commission
14   Annual Report 2010   2011
                                                                        2011. A number of parties sought representation in the Tribunal



products such as groceries, electronics, furniture and clothing in 15




union practices and the effect of its procurement strategies on local




Storage of and trade in grain




and trade in grain. The Commission found that agreements between




                                                                                                                   Competition Commission
                                                                                                                   Annual Report 2010   2011   15
        Maize and wheat milling




                                                                            management (the decision on product placement, promotion and




        The Competition Commission prohibited the intermediate merger


                                                                        introducing new breeding technologies. The Commission was not
                                                                        persuaded that these arguments outweighed the public harm that




        seed.



     Competition Commission
16   Annual Report 2010   2011
                                                                        found through these engagements, the Commission will proceed with
                                                                        prosecuting this matter.


                                                                        Vegetable oils and fats




    Commission was concerned that certain practices, such as the        collusion.



                                                                        South African Oil Producers Association (SAOPA), could be used as a




    Act was found.                                                      unsubstantiated.



    Commission noted that information compiled from scanned data



    disaggregated information to suppliers might chill competition at




chains were anchor tenants.




                                                                                                                      Competition Commission
                                                                                                                      Annual Report 2010   2011   17
        Construction and infrastructure




                                                                                    with the Commission.




        (the steel mills) and manufacturers of rebar and pilings were referred to




     Competition Commission
18   Annual Report 2010   2011
The process was aimed at minimising the associated legal costs and



                                                                     disclosure and cooperation with the Commission, it would be granted


following:




account:




                                                                     The Commission collaborated with the Public Administration Leadership


                                                                     rigging into its curriculum.
Table 1: Calculation of the penalty for fast-track settlement

   Number of non-prescribed             Penalty: percentage of
             contraventions                    turnover


 5 to 12



Source: Competition Commission



                                                                                                                    Competition Commission
                                                                                                                    Annual Report 2010   2011   19
                                           Reinforcing steel bars


                                           bending and sale of reinforcing steel bars (rebar) following a corporate




                                           Rebar is a steel product that is used to reinforce concrete structures.




        Intermediate industrial products



                                           Steeledale) for both the reinforcing steel bars and the reinforcing mesh
                                           cases referred to it in 2009. The Tribunal hearing of these cases was




                                           outstripped domestic demand.




     Competition Commission
20   Annual Report 2010   2011
collusion case between the Commission and both parties, with partial
                                                                       case




Fertilizer
The Commission reached a settlement agreement with Sasol Chemical




                                                                       ·   house the ammonia plants and related business operations in a


                                                                           of account.


                                                                       Sasol would also stop all ammonia imports to South Africa other than


                                                                       logistical disruptions, and plant maintenance shutdowns.




                                                                       agreed in this settlement, together with cartel conduct addressed in the




to a wide range of consumer and competition concerns, including




                                                                       enforcement case.



                                                                                                                        Competition Commission
                                                                                                                        Annual Report 2010   2011   21
                                                                            and to obtain fresh commitments. Absa Group Limited (Absa) and




                                                                            tools for ensuring that debit orders were paid on time.




        education and account switching. These would feature in a Code of




                                                                            Competition Commission might pursue.




     Competition Commission
22   Annual Report 2010   2011
Divisional
 Reports
      Competition Commission
      Annual Report 2010   2011   23
                                 Front row:

                                  Middle row:

                                  Back row:




                                 Front row:



                                 Back row:




     Competition Commission
24   Annual Report 2010   2011
Figure 2: Enforcement cases under investigation, by year




                                                  289

 250                                                         a complaint falls within the ambit of the Competition Act, whether
                               210
 200                                     172
 150        125
                                                             criteria and resource constraints.
 100
       58
  50                                                    22
              10                                             18 of the 21 complaints recommended for prosecution related to
   0

                                                             of fruit, fishing and the processing of pelagic fish, the distribution


                                                             reinforcing steel bars, steel, copper tubes and pilings. The remaining
                  Total

Source: Competition Commission




                                                             Commission to form a specialised unit in the Enforcement and
Figure 3: Cases initiated by the Commission in 2010/11,
classified according to sector




                                                             1 under Construction and infrastructure). There has also been a


            Intermediate Industrial products: 5
            Infrastructure and construction: 2


Source: Competition Commission



                                                                                                             Competition Commission
                                                                                                             Annual Report 2010   2011   25
        Figure 4: Total number of corporate leniency applications received      I
        per year

            90
                                                             79
                                                                                practices
            80
            70


            50



            20
                                           10
            10              2
             0

                                                                                abuse of dominance cases).
                    Construction            Industrial products
                    Other                   Food
                                            Total

        Source: Competition Commission




             transport authorities, and construction companies.
        ·    agricultural lime manufacturers and suppliers for alleged retail




     Competition Commission
26   Annual Report 2010   2011
of abuse of dominance. Recommendations were made that these cases




                                                                    limiting consumer choice.




dealt with the rules for the legal profession.


Professional fees


practitioners are not allowed to discount below the set fees. The



the setting of minimum tariffs restricts price competition.         to restrict competition to maintain professional standards or to protect
                                                                    the public, it is of the opinion that the current rules are too wide and


                                                                    redraft the rules in a manner compatible with competition principles. The




                                                                                                                      Competition Commission
                                                                                                                      Annual Report 2010    2011   27
                                                                                      negotiation with medical schemes, and the South African Petroleum
        rules in terms of Schedule 1 of the Act if those rules restrict competition

        functioning of the profession.




                                                                                      Economic stability


        following grounds:


        Impact on prices
                                                                                      The Commission was also concerned that the proposed scheme could


        as animal feed producers. The Commission was concerned that the




        Promotion of exports




     Competition Commission
28   Annual Report 2010   2011
    Front row:
Middle row:
      Back row:



                  Table 2: Merger threshold from 1 April 2009


                                           Combined turnover/     Target turnover/
                         Threshold
                                               asset value          asset value
                  Lower threshold
                                                                     R80 million
                  (intermediate merger)

                                                                    R190 million
                  (large merger)
                  Source: Competition Commission




                                                                Competition Commission
                                                                Annual Report 2010   2011   29
        the parties can appeal to the Tribunal. In the case of large mergers, the




                                                                                                                     Information




                                                                                                                            Telecommunication:



        last three years


            Category of merger          2008/09        2009/10       2010/11
         Small                              9            10             19
         Intermediate                                                  150
         Large
         Total                            415            190           229
        Source: Competition Commission




                                                                                    Source: Competition Commission




        into transactions that fall below the new thresholds. The Commission
        therefore issued a guideline on small mergers, in terms of which




     Competition Commission
30   Annual Report 2010    2011
                                                                        as follows:




Table 4: Merger review by type in 2010/11


                             Approved without           Approved with
         Merger type                                                         Prohibited             Withdrawn
                                 conditions               conditions
Large                                                                                 0                  0                      55
Intermediate                                                   5                      2
 Small                                                                                0                  0                      19
 Total                               200                      14                      2                  4                     220
Source: Competition Commission


Conditions attached to mergers

to conditions or recommend conditions to the Tribunal in respect of




public interest concerns or a combination of these (see table 5).




                                                                        matter was an intermediate merger that did not go to the Tribunal for
                                                                        consideration.




                                                                                                                       Competition Commission
                                                                                                                       Annual Report 2010   2011   31
        interest considerations and competition issues in their assessment of the   recommended that the Tribunal should impose conditions that would




                                                                                    a moratorium on retrenchments as a result of the merger, with the




                                                                                    manner than has been the case up to now.


        transaction.




     Competition Commission
32   Annual Report 2010   2011
In April 2010, the Competition Commission prohibited the proposed




The Commission was concerned about the potential of coordinated effects,
                                                                           merging parties. The Commission, the merging parties and third parties




                                                                                                                           Competition Commission
                                                                                                                           Annual Report 2010   2011   33
        Table 5: Summary of mergers approved with conditions in 2010/11


                                 Parties                                      Market                  Condition

                                                           Various insurance products


                                                           Various consumer products


                                                           Casino gambling


                                                                                         on pricing

                                                           Chemical distribution


                                                           platforms

                                                           Agricultural retail outlets




                                                                                         paper




                                                                                         software
        Source: Competition Commission



        compliance with the Commission and Competition Tribunal orders.




     Competition Commission
34   Annual Report 2010   2011
In the merger between Tsogo Sun and Gold Reef Resorts, the




                                                                      located in what could be considered the central Gauteng region. These




Gauteng, the issues turned on Gauteng, where the parties had three




casinos competing against all other forms of entertainment) and a


competing against one another, but against entertainment options in
                                                                      reasons were to be issued during the course of 2011.



                                                                      Prior implementation of mergers




                                                                      for the same offence.


                                                                                                                      Competition Commission
                                                                                                                      Annual Report 2010   2011   35
                                 Front row:
                                          Middle row:
                                    Back row:




                                                        Settlement agreements




                                                        conduct and participation in a compliance programme.




     Competition Commission
36   Annual Report 2010   2011
                                                                       referral to the Tribunal.
The following matters were concluded through settlement negotiations




                                                                                                                  Percentage
                                                                                                     Penalty
             Name of company                                      Description of conduct                           of total
                                                                                                    amounts
                                                                                                                  penalties




                                                                                                       R20 000


                                              Collusion
                                                                                                    R21 900 000
                                                                                                     R1 000 000
Safripol


Swan Plastics cc
                                                                                                     R1 100 000




Pioneer Foods                                                                                      R500 000 000
Southern Pipelines Contractors


                                                                                                    R18 811 708


Sasol Chemical Industries Limited
Total                                                                                              R794 190 704     100%
Source: Competition Commission




                                                                                                         Competition Commission
                                                                                                         Annual Report 2010    2011   37
        Prosecution of cases




        Table 7: Cases before appellate courts in 2010/11


                Court            Appellant/Applicant        Respondent(s)                      What is appealed or reviewed


           1     SCA      Senwes                             Commission


           2     SCA                                           Tribunal



                 CAC                                         Commission     complaint referral to include further allegations of collusion against




                 CAC      Competition Commission               Grallio
                                                                            that the alleged agreements were implemented.


           5     CAC                                         Commission
                                                                            respondents.


                 CAC      Pioneer                            Commission


                                                             Commission
           7     CAC
                                                              Tracetec



           8     CAC                                         Commission     respondents in the complaint referral and to allow the amendment of



           9                                                 Commission

        Source: Competition Commission




     Competition Commission
38   Annual Report 2010   2011
following grounds:



    criteria for membership of VESA. It found instead that the South


    setting criteria in order to further its own interest and that the criteria



·   The Commission has not demonstrated that the conduct


                                                                                  was not possible to meet these criteria without being a member of VESA




companies made up the VESA committee charged with setting standards


                                                                                  customer of VESA.




                                                                                  Competition Appeal Court held that the Act did not contemplate the
                                                                                  amendment of a complaint initiation. In the interim, the Commission was


                                                                                  referrals complied with the decisions of the courts.




                                                                                                                                    Competition Commission
                                                                                                                                     Annual Report 2010   2011   39
        The dairy case




                                  the Competition Appeal Court.



                                  directed that all documents obtained as a result of the summons should be




                                  On appeal before the Supreme Court of Appeal, the main argument of




                                  The fertilizer cartel

                                  this case:
                                  ·    members of the public who submit a complaint in terms of section




        in the referral.
                                       complaint in terms of section 50.



     Competition Commission
40   Annual Report 2010    2011
    Sasol.


    the Commission rules according to the Competition Appeal Court,




    be referred in the form in which it was submitted. The court found that




alleging that Sasol Chemical Industries Limited (Sasol) had abused
its dominant position through the high pricing of limestone ammonium
nitrate (LAN) and ammonium nitrate solution, and in acting in its position




Commission concluded a settlement agreement with Sasol, in which Sasol


of R250 million. In the agreement, Sasol admitted to meetings and other




                                                                              Competition Commission
                                                                              Annual Report 2010   2011   41
                                 Row 1:
                                          Row 2:
                             Row 3:
                                                            Row 4:
                                                   Row 5:




                                                                     of competition economics with an increased number of conference
        including settlements.




                                                                     Growth Path.


     Competition Commission
42   Annual Report 2010   2011
                                                                                  and enforcement matters:




                                                                                  ·   the settlement with Pioneer Foods relating to cartel conduct and




number of cases where abuse has been found. Indeed, the Competition



relief and settlements reached with the Commission).
                                                                                  the conduct itself amounts to an abuse.




                                                                                  South African regime is among those allowing for the fullest presentation
of Appeal on procedural grounds.


half of the cases on which the Tribunal had ruled, the other four were referred




                                                                                                                                    Competition Commission
                                                                                                                                    Annual Report 2010    2011   43
        conduct.




                                                                                 the same licence conditions that were in place to encourage wider




        below illustrate.



                                                                                 accounts and operations.



        section 8(c) and price discrimination under section 9. The focus here
        was on the price discrimination case in which there were hearings of


                                                                                 was treated as a retail customer, while it ran a wholesale business.




        The price discrimination part of the case was about the discounts that




        wholesale of beer.



     Competition Commission
44   Annual Report 2010     2011
                                                                       dominant position and its actions while being dominant.



as the entrants could not attract customers and growth to the scale


                                                                       substantial foreclosure. The Commission also interrogated the manner




                                                                       enable a determination to be made.



                                                                       Conferences, publications and economic briefs




                                                                       prepared for internal use in the Commission while a series of seminars




dominance and on the relationship between competition and industrial




                                                                                                                       Competition Commission
                                                                                                                        Annual Report 2010   2011   45
        Table 8: Conference papers and publications


                 Author                                                                   Publication
                                                                                                                                               African Journal
               N Ngepah
                                   of Agricultural and Resource Economics

               N Ngepah
                                                 Assessing the sustainability of bioenergy projects in developing countries: A framework for policy evaluation.
                                                                                                                                  Journal of Development and
               N Ngepah
                                   Agricultural Economics
               N Ngepah                                                                            Economic Research Southern Africa (ERSA) working paper.
               C Corbett,




               C Corbett



               C Corbett,


               S Roberts




                 Lesofe


                Ngobese

        Source: Competition Commission


        at seminars




     Competition Commission
46   Annual Report 2010     2011
Annual competition conference                                           Information resource centre




                                                                        resource centre trained 27 staff members on the LNI database. The




under the following themes: cartels, abuse of dominance, penalties,




continued on a regular basis to empower people and support the growth




                                                                                                                    Competition Commission
                                                                                                                     Annual Report 2010   2011   47
                            Front row:
                                         Back row:




                                                     Government and Parliament
                                                     The Commission is accountable to Parliament for its programme and




             of competition law.



     Competition Commission
48   Annual Report 2010   2011
The Commission entered into negotiations on memoranda of understanding



                                                                             times to manage the relationship between the Commission and the labour




on meeting with big business, including a bilateral meeting with the South




Table 9: Report on engagement with stakeholders


  Name of stakeholder                              Nature of engagement                                              Outcome
                                                                                                  Consideration of competition concerns


                                                                                                  Consideration of competition concerns
                            Act
                                                                                                  Consideration of competition concerns


 Trade unions


                                                                                                  relationship between labour and competition
                                                                                                  law


                                                                                                  monitoring of conditions attached to mergers




                                                                                                                             Competition Commission
                                                                                                                             Annual Report 2010   2011   49
           Name of stakeholder                          Nature of engagement                                               Outcome


                                                                                                        road shows on competition law compliance in


                                  Engagement with or presentations to the Fuel Retailers Association,   Increase in compliance with the Competition
                                                                                                        Act




                                  South Africa
                                                                                                        Awareness about the Competition Act and its


                                  Limpopo
         Legal practitioners


        Source: Competition Commission




                                                                                  Communications

                                                                                  Media relations


             to academic attire and other goods. In addition, the Commission




                                                                                  Pannar transactions were some of the cases that generated public debate.


                                                                                  broadcast media.




     Competition Commission
50   Annual Report 2010   2011
two successful media conferences to announce the settlement reached with



Table 10: Media coverage from 2008/09 to 2010/11


                                                                                                 2008/09           2009/10            2010/11
 Commission media releases                                                                                  28               19




                                                                           Table 11: Commission publications and website hits between 2008/09
                                                                           and 2010/11
                        Competition News
                                                                                                             2008/09     2009/10        2010/11
                                                                           Number of times the
Commission increased the number of issues printed and distributed


The number of annual reports printed and distributed was reduced from


number of reports needed for tabling.                                      Copies of Competition News
                                                                                                                 8 000        8 000       10 000
                                                                           printed

                                                                                                                 1 800        2 000        1 500
                                                                           printed
                                                                           Source: Competition Commission
the basic principles of the law.




                                                                                                                             Competition Commission
                                                                                                                             Annual Report 2010    2011   51
        electronic newsletters (
        opportunities for information sharing through 11 Kom Praat Saam




        International relations



        Commission increasing its international participation through bilateral




                                                                                  The Commission contributed to the 2010 edition of the Global Competition




        competition agencies from across Africa, regional and international
        organisations, such as the United Nations Conference on Trade and




        competition authorities in Africa, including through sharing lessons


        the steering committee.


        Joint food project
                                                                                  States Federal Trade Commission (FTC) hosted a staff member from




        the informal sector. The Commission researched and wrote papers
                                                                                  Conference in September 2010.




     Competition Commission
52   Annual Report 2010   2011
Competition Tribunal.




Staff of the Commission participated as resource persons at the
competition training course for the Namibian Competition Commission



The Commission hosted the head of The Netherlands Competition


                                                                      border merger control and crisis cartels. It also participated in meetings
cases in the construction sector.



                                                                      The Commission participated in the negotiations on the drafting of an


                                                                      African Customs Union (SACU) agreement.



Participation in international organisations




                                                                                                                        Competition Commission
                                                                                                                         Annual Report 2010    2011   53
        People and Resources




                                 Front row:

                           Back row:




        measures and enhanced recruitment and selection practices.




     Competition Commission
54   Annual Report 2010   2011
Table 11: Turnover rate of Commission staff


                Year                        Percentage turnover


                                                                      Management development programme
                                                                      The Commission aims to establish a senior management team to
                                                                      assist with distributed management. The second group of 12 senior
Source: Competition Commission




catered for in the current organisational structure.




included on the database for future consideration. This database is



Learning and development




                                                                                                                  Competition Commission
                                                                                                                   Annual Report 2010   2011   55
        Table 12: Employment equity in terms of gender


                                 Percentage of         Percentage of
                 Year
                                   females                 males




        Source: Competition Commission
        Table 13: Employment equity in terms of race


                                 Percentage of         Percentage of
                 Year
                                  black staff            white staff




                                                                       this period. All software licences were renewed during the period under
        Source: Competition Commission




                                                                       resulting from the establishment of the Cartels Unit places pressure




     Competition Commission
56   Annual Report 2010   2011
 Corporate
Governance
       Competition Commission
       Annual Report 2010   2011   57
                                                                                Its functions are as follows:




        Commission meeting




        Its functions are as follows:




                                                                                performance plan and to compile the annual performance plan for




        reprioritise cases and allocate resources as appropriate. The meeting




        Relations.


     Competition Commission
58   Annual Report 2010   2011
Management committee




                                        The internal audit function for the Commission is outsourced, and in the




compliance with laws and regulations.
                                        ·
                                            resources are unable to cope with the case load, this will impact




                                            control.
                                        ·                         The reputation of the organisation might
                                            be damaged because of the manner in which the Commission




                                        ·




                                            parameters of the Competition Act. It also engages in continuous
Committee and the Commissioner.


                                                                                         Competition Commission
                                                                                          Annual Report 2010   2011   59
        ·                                                          Possible   Compliance with legislation




                                                                              Regulations, the Commission submitted the following documents to the

        ·




               procedures, while appeals on a number of these decisions are
               being prepared.



        structures will enable the Commission to build on its strengths and




                                                                              The Commission submitted the Annual Training Report and the Annual




                                                                              sectoral education and training authorities (Setas), which promote

        Table 8: Risk committee members


                           Name                     Designation
                                           Chairperson
            Victor Nondabula


            Sathi Gouden
                                                                              October 2010.
            Rentia Solomon
        Source: Competition Commission




     Competition Commission
60   Annual Report 2010      2011
estimated cost of possible claims that can be lodged against the
Compensation Fund in terms of this Act.                            Levies and taxes
                                                                   The Commission has registered for and met its obligations in relation to




                                                                                                                    Competition Commission
                                                                                                                     Annual Report 2010   2011   61
     Annual Financial
     Statements
                                 Report of the Auditor-General               70 - 71

                                 Statement of Financial Position                 72

                                 Statement of Financial Performance              73

                                 Statement of Changes in Net Assets              74

                                 Cash Flow Statement                             75




                                 Notes to the Annual Financial Statements   85 - 104




     Competition Commission
62   Annual Report 2010   2011
Competition Commission
Annual Report 2010   2011   63
        Audit committee members and attendance




                                                                                                                        Number of             Number of
                                              Name of member
                                                                                                                   meetings attended        meetings held

                                                                                                                             2                     5
                                                                                                                             2                     5
                                                                                                                             5                     5
                                                                                                                             5                     5
                                                                                                                             2                     5
         member in October 2010)
                                                                                                                             2                     5
                                                                                                                             2                     5
                                                                                                                             0                     5
                                                                                                                             5                     5
                                                                                                                             1                     5




        The Audit Committee also reports that it has adopted appropriate formal terms of reference as its audit committee charter, has regulated its affairs in
        compliance with this charter and has discharged all its responsibilities as contained in it.



        compliance with it.




     Competition Commission
64   Annual Report 2010   2011
The Audit Committee has:




V Nondabula (Chairperson of the Audit Committee)
10 August 2011




                                                   Competition Commission
                                                   Annual Report 2010   2011   65
        Africa.

        1. Nature of business


        Act, are to do the following:




         2.1. Financial highlights        2011      2010
                                         R‘000     R‘000




                                        162 870   113 292
                                        141 104   128 673

                                         21 766

         Total assets                    50 990    26 509

         Total liabilities               23 773    21 058

                                           210       181




     Competition Commission
66   Annual Report 2010      2011
sectors.




2.4. Financial performance




surplus the Commission is allowed to retain will ensure that the Commission is able to continue as a going concern.




The Commission carries forward an accumulated surplus of R27,2 million (cash surplus of R18,8 million after deducting current liabilities and




              Name                                                                      Title
                                    Commissioner




                                                                                                                       Competition Commission
                                                                                                                        Annual Report 2010   2011   67
        operational functions of the Commission changes, is disclosed.




         Items purchased:                                                           2011
                                                                         Quantity   R‘000
                                                                             150
                                                                             150       5
                                                                             150       8
                                                                             150      15
                                                                             150      11
                                                                                       2
                                                                                      20
                                                                             750      65




     Competition Commission
68   Annual Report 2010   2011
The dti campus



                       Tshwane
Tshwane




10. Address

The dti campus



                       Tshwane
Tshwane




Mr. M. Ramburuth
Accounting Authority
28 July 2011




                                 Competition Commission
                                 Annual Report 2010   2011   69
        Competition Commission

        Report on the Financial Statements



                                                                                       in order to design audit procedures that are appropriate in the




        statements


                                                                                   Opinion




             are free from material misstatement, whether due to fraud or error.

                                                                                   Emphasis of matter

                                                                                       respect of this matter:




             statements are free from material misstatement.                       10. In accordance with the PAA and in terms of General Notice 1111 of




     Competition Commission
70   Annual Report 2010   2011
Predetermined objectives
                                                                            and regulations included in this report.


                                                                       Leadership

                                                                            in ensuring compliance with applicable laws and regulations as


   that were not prepared in all material aspects in accordance with
                                                                       Financial and performance management




                                                                            submitted for audit purposes.




                                                                       Pretoria




Internal control




                                                                                                                       Competition Commission
                                                                                                                       Annual Report 2010   2011   71
                                                              Restated
                                                      2011       2010
                                           Note(s)   R‘000      R‘000

         Assets

                                      2


                                                     43 472     19 672




         Intangible assets            5

                                                      7 518      6 837

         Total assets                                50 990     26 509


         Liabilities
         Finance lease obligation                                 880
                                      7
         Unspent conditional grants   8
                                       9               127
         Unspent donor funds          10                20          5

                                                     23 257     19 902



                                      11               287
         Finance lease obligation                      229

                                                       516       1 156

         Total liabilities                           23 773     21 058


         Net assets                                  27 217      5 451


         Net Assets
         Accumulated surplus




     Competition Commission
72   Annual Report 2010   2011
                                                            Restated
                                         2011                  2010
                             Note(s)    R‘000                 R‘000




                               12



Fee income
Other income

                                       161 447               111 305




Personnel                      15


Finance costs                  17        (155)                  (228)
                               18




Loss on disposal of assets                (10)

                               19

                                        21 766




                                             Competition Commission
                                                 Annual Report 2010    2011   73
                                 Accumulated        Total
                                     surplus   net assets
                                       R‘000        R‘000


         Changes in net assets


         Total changes




                                       5 451       5 451
         Changes in net assets


         Total changes

                                      27 217      27 217




     Competition Commission
74   Annual Report 2010   2011
                                                       2011                   2010
                                           Note(s)    R‘000                  R‘000




Receipts

Grants
Interest income
Other receipts                                                                 295


                                                     163 199               113 401


Payments

Suppliers
Finance costs                                          (155)                 (228)




                                      20              28 090




Addition of other intangible assets   5




                                                         287
                                                          15                        5
                                                       (797)


                                                                             2 020


                                                      24 018



                                                      42 873                18 855




                                                               Competition Commission
                                                               Annual Report 2010       2011   75
        ACCOUNTING POLICIES


                                 Government grant

                                 once reasonable assurance has been obtained that all conditions of the



                                 Interest income

                                 rate.


                                 Other income
                                 Other income is recognised on an accrual basis.




        is recognised:


        Fee income




     Competition Commission
76   Annual Report 2010   2011
              as a result of past performance.




              asset when:




determined.   basis at rates considered appropriate to reduce the cost of the assets




discounted.




                                                              Competition Commission
                                                              Annual Report 2010   2011   77
        ACCOUNTING POLICIES


        detailed below:                                                       cost less accumulated amortisation and impairment losses. Computer

         ITEM                              AVERAGE USEFUL LIFE                intangible assets. These assets are amortised from the date the asset




         Cellphones
                                                                              the software is not resaleable.
         Leased assets                     Period of the lease




        The depreciation charge for each period is recognised in surplus or




        derecognised. The gain or loss arising from the derecognition of an



        the item.


        1.7 Intangible assets

        An intangible asset is recognised when:




                                                                              The amortisation period and the amortisation method for intangible




     Competition Commission
78   Annual Report 2010   2011
be impaired. As a result, the asset is tested for impairment and the



                                                                           Operating leases



ITEM                                 USEFUL LIFE
Computer software


1.8 Leases
                                                                           incurred.


                                                                           1.9 Inventory

rewards incidental to ownership.


Leased assets
Finance leases are recognised as assets and liabilities in the statement




                                                                           of business less the estimated costs of completion and the estimated



the lessee                                                                 The cost of reporting date comprises of all costs of purchase, costs of


                                                                           present location and condition.




                                                                                                                           Competition Commission
                                                                                                                            Annual Report 2010   2011   79
        ACCOUNTING POLICIES


        1.10 Provisions and contingencies


                                                                              Contingent assets and contingent liabilities are not recognised.
                                                                              Contingencies are disclosed in note 28.



             and




        date.




        reimbursement is treated as a separate asset. The amount recognised   accounting method.




     Competition Commission
80   Annual Report 2010   2011
                                                                         as well as through the amortisation process.




had the impairment not been recognised.




Asset carried at amortised cost




assessed as uncollectible.


Loans and other receivables




derecognised or impaired, as well as through the amortisation process.


                                                                         depreciation (amortisation).


Payables

                                                                         depreciation and accumulated impairment losses thereon.




                                                                                                                        Competition Commission
                                                                                                                        Annual Report 2010   2011   81
        ACCOUNTING POLICIES



                                                       internal transfer pricing.




                                               unit is determined.




        parties, less the costs of disposal.




        is either:


                                               amount of an asset below the highest of:




        Impairment of cash-generating assets



                                               assets of the unit.




                                               unit.




     Competition Commission
82   Annual Report 2010   2011
1.13 Related parties


between related parties, regardless of whether a price is charged.




Related parties include:




(b) associates (International Public Sector Accounting Standard



                                                                              Recognition




The following are deemed not to be related parties:




    (ii)   Trade unions in the course of their normal dealings with an

                                                                              capital or current.




increase in net assets, other than increases relating to contributions from
owners.




                                                                                                    Competition Commission
                                                                                                    Annual Report 2010   2011   83
        ACCOUNTING POLICIES


                                                                                   Changes in accounting estimates result from new information or new



                                                                                   The effect of a change in an accounting estimate, other than a change to




        1.17 Commitments                                                           (b) the period of the change and future periods, if the change affects
                                                                                       both.




        an asset, that results from the assessment of the present status of, and


        liabilities.




     Competition Commission
84   Annual Report 2010   2011
                2011                   2010
               R‘000                  R‘000
                 100                    190

                 323                    652




Cash on hand

                   10
               42 873                18 855




                    Competition Commission
                        Annual Report 2010   2011   85
                                                 2011                                        2010
                                                Accumulated                                 Accumulated
                                             depreciation and                            depreciation and
                                    Cost /      accumulated     Carrying       Cost /       accumulated     Carrying
                                 Valuation        impairment       value    Valuation         impairment       value
                                    R‘000              R‘000      R‘000        R‘000               R‘000      R‘000

                                                        (200)                                       (129)
                                      791

         Cellphones                                       (2)
                                                                                                    (750)

         Total                     12 066                          5 120      10 012                           4 987



                                                    Opening
                                                     balance    Additions    Disposals     Depreciation        Total
                                                       R‘000       R‘000         R‘000            R‘000       R‘000
                                                                                                  (112)
                                                                                                   (71)
                                                                    252                            (22)
                                                                                  (10)
         Cellphones                                                                                 (2)
                                                                      92                          (910)

                                                       4 987       2 183                                      5 120



                                                                 Opening
                                                                 balance     Additions     Depreciation        Total
                                                                   R‘000         R‘000            R‘000       R‘000
                                                                                  299

                                                                    227
                                                                                                  (708)
                                                                      29                          (779)
                                                                   3 461         3 315                        4 987




     Competition Commission
86   Annual Report 2010   2011
5. Intangible assets

                                                             2011                                            2010
                                                            Accumulated                                     Accumulated
                                                         amortisation and                                amortisation and
                                                Cost /      accumulated     Carrying       Cost /           accumulated        Carrying
                                             Valuation        impairment       value    Valuation             impairment           value
                                                R‘000              R‘000      R‘000            R‘000                  R‘000       R‘000
Computer software

                                                         Opening balance         Additions             Amortisation                Total
Reconciliation of intangible assets - 2011                          R‘000              R‘000                 R‘000                R‘000
Computer software

                                                         Opening balance         Additions             Amortisation                Total
Reconciliation of intangible assets - 2010                          R‘000              R‘000                 R‘000                R‘000
Computer software



not to be resaleable.




                                                                                                             2011                   2010
                                                                                                            R‘000                  R‘000




                                                                                                              (95)

                                                                                                             1 239                 2 036


                                                                                                                                     880
                                                                                                              229

                                                                                                             1 239                 2 036

                                                                                                              229
Current liabilities                                                                                                                  880

                                                                                                             1 239                 2 036




                                                                                                                     Competition Commission
                                                                                                                     Annual Report 2010    2011   87
                                         2011     2010
                                        R‘000    R‘000


         Accrued performance bonus

                                        21 970   18 863




        8. Unspent conditional grants




     Competition Commission
88   Annual Report 2010   2011
Food and agro-processing




                                                                            2011                   2010
                                                                           R‘000                  R‘000




Utilised

                                                                              130                        -




                                                                    Utilised during
                                      Opening balance   Additions         the year                 Total
Reconciliation of provisions - 2011             R‘000      R‘000             R‘000                R‘000
                                                             127                                    127




                                                                    Utilised during
                                      Opening balance   Additions         the year                 Total
Reconciliation of provisions - 2010             R‘000      R‘000             R‘000                R‘000




                                                                                 Competition Commission
                                                                                    Annual Report 2010   2011   89
        10. Unspent donor funds




                                    2011      2010
                                   R‘000     R‘000


         Software license            287



        2012.



                                     287




         US dollar




         Filing fees

                                   37 955   30 380




         Fee income

                                  155 616   111 119



     Competition Commission
90   Annual Report 2010   2011
                                          2011                  2010
                                         R‘000                 R‘000
                                             1

                                                                  91
Other (SASSETA refunds, photocopies)       901                    92


                                         5 831                   186




Performance bonus
Cellphone allowance                       785                   715
Group life and pension administration
Other
                                        82 496               71 557



Annual remuneration                      1 057
Performance bonus                          92
Group life and pension admin cost
Cellphone allowance                        28                    22
                                         1 200



Annual remuneration
Performance bonus                         955                   900
Group life and pension admin costs
Cellphone allowance                        80                    77




                                                 Competition Commission
                                                 Annual Report 2010   2011   91
                                                   2011     2010

         Other employees                          R‘000    R‘000
         Annual remuneration
         Performance bonus                        8 090
         Group life an pension admin coss         1 159    1 000
         Cellphone allowance
         Other staff related costs



                                            UIF




                                                   3 303    3 263



        17. Finance costs

         Leased assets (photocopiers)               155      228




         Audit committee fees
         Internal audit fees                        899
         Consulting and professional fees


                                                     20      185

         Education and awareness

         Fees paid to Tribunal

                                                  52 193   51 194




     Competition Commission
92   Annual Report 2010   2011
                              2011                   2010
                             R‘000                  R‘000
                              1 423                 1 987




                               (27)
                                 10

                              (111)                  (110)


Unspent conditional grants
                             28 090




                                  Competition Commission
                                      Annual Report 2010   2011   93
                                 2011    2010
                                 R’000   R’000




                                          (22)

                                  210    (108)


                                 (125)    211




                                 (252)



                                         (911)


                                     -       -




     Competition Commission
94   Annual Report 2010   2011
                                                                                          2011                  2010
                                                                                         R’000                 R’000


Total                                                                                   43 196                19 507




                                                                                      AAA and
                                                                                   government               Unrated
                                                                                         R’000                 R’000
2011



2010




                                                             Past due but not   Past due but not
                                          Neither past due    impaired - less   impaired - more
                                             nor impaired      than 2 months      than 2 months       Carrying value
                                                    R’000              R’000              R’000                R’000
2011



2010




leases contracted with outside parties.




                                                                                              Competition Commission
                                                                                                 Annual Report 2010   2011   95
         Sensitivity analysis                                                              Increase/(decrease) in net surplus for the
                                                                                                           year
         2011                                                                                  Upward change    Downward change
                                                                Change in interest rates                 R’000                  R’000

         Finance lease                                                                                     (12)                    12

         2010
                                                                                                           189                  (189)
         Finance lease                                                                                     (20)                    20




        of the surplus.




                                                                                                                    Contractual cash
                                                                                              Contractual cash
                                                   Carrying amount                                                            5 years
                                                            R’000                 R’000                  R’000                  R’000
         2011

         Lease liabilities                                                                                                        229
                                                              287                                                                 287

         2010

         Lease liabilities                                                                                 880




                                                                                                Carrying amount     Carrying amount
                                                                                                            2011                 2010
         Financial instrument       Categories                                                             R’000                R’000


                                    Financial liabilities
         Finance leases             Financial liabilities
                                    Financial liabilities                                                    287




     Competition Commission
96   Annual Report 2010      2011
2011                   2010
R’000                 R’000
  287




    Competition Commission
        Annual Report 2010   2011   97
         Photocopiers                   2011    2010
                                        R’000   R’000
                                                  880
                                         229




        28. Contingencies liabilities




        Litigations and claims




     Competition Commission
98   Annual Report 2010   2011
29. Related parties

Relationships

The Competition Tribunal
                                                         National department in national sphere
                                                         National department in national sphere




Related party balances

                                                                                                  2011               2010
                                                                                                  R’000             R’000
The Competition Tribunal                                                                            895               721
                                                                                                     89                85



Related party transactions



Rent paid
Telephone and Internet costs paid



Filing fees refunded

                                                                                                   501




Penalties collected on behalf of related parties and transferred to related parties




                                                                                                      Competition Commission
                                                                                                      Annual Report 2010   2011   99
                                  2011    2010
                                  R’000   R’000


                                    92


                                   200     177

                                           827




                                   202     172

                                   212
                                           128

                                   985     900




                                   978     878
                                           117

                                   999




                                  8 703   9 387




      Competition Commission
100   Annual Report 2010   2011
                                       2011                   2010
                                       R’000                 R’000
                                         798




accounting surplus of R21,8 million.




Less: Amounts condoned

                                           -                75 719




                                           Competition Commission
                                               Annual Report 2010   2011   101
         Comment




         counsel is transparent, in that the appointed legal counsel appears in public representing the Commission at the Competition Tribunal and in the
         courts. The choice of legal counsel is made with regard to the following factors:




              competition law.




      Competition Commission
102   Annual Report 2010   2011
                                                                                                                                            2011
                                                                                                                 Quantity                  R‘000
                                                                                                                     150
                                                                                                                     150                       5
                                                                                                                     150                       8
                                                                                                                     150                      15
                                                                                                                     150                      11
                                                                                                                                               2
                                                                                                                                              20
                                                                                                                      750                     65




                                                                                                                     2011                   2010
                                                                                                                    R’000                  R’000



                                                                                                                                                  2


                                                                                                                                              10

                                                                                                                                              12
                                                                                                                        11                    33




Certain legal fees for 2010 were paid for in 2011. It was noticed that there was no accrual raised in 2010. It was therefore recommended that an




                                                                                                                          Competition Commission
                                                                                                                             Annual Report 2010   2011   103
                                                                                                                              2011             2010
                                                                                                                              R’000            R’000
          Retained earnings
          Accruals



          Legal fees




         37.1 Standards and interpretations not yet effective


         accounting periods beginning on or after 1 April 2011 or later periods:


                   Standard                                       Summary and impact                                          Effective date

          Reporting                  segments.




          Assets                     losses are recognised.




                                     transfers and foreign aid assistance.

                                                                                                                       2007
          the Financial Statements




                                     This standard prescribes the procedures to determine whether a cash
                                     generating asset is impaired and to ensure that impairment losses are
                                     recognised.

                                     This standard establishes principles for recognising, measuring, presenting and
          Instruments




      Competition Commission
104   Annual Report 2010   2011
  Performance
against Targets
           Competition Commission
           Annual Report 2010   2011   105
                                                        Key Performance
                        Goal                Output                               Targets         Performance Results         Reasons for Variance
                                                            Indicators
          Core Programme 1: Mergers and Acquisitions
          1      To ensure                              Number of mergers                  200
                 that merger
                 transactions                           conditions
                 do not lead to
                 a substantial
                 lessening of
          2      competition to                         Number of mergers 2                2
                 the detriment of                       prohibited
                 consumers and the
                 public interest


                                                        Number of mergers 9
                                      with conditions
                                                        conditions




                                      applications



                                                                            for Phase

                                                                            cases.
          5                                             Amount of merger
                                      earned            fee income earned
          Core Programme 2: Enforcement and Exemptions
                                      Cartel            Number of cases     20             19 recommended referred for
                 and prosecute                          referred for
                                      completed:
                 conduct, including

          7      practices,           Abuse and         Number of cases     10                                           Case load reduced in line with
                                                        referred for
                 practices, and the
                 abuse of dominant    completed:                                                                         with poor prospect of success
                 position.                                                                                               so as to free resources to focus




      Competition Commission
106   Annual Report 2010      2011
                                            Key Performance
             Goal                 Output                          Targets        Performance Results       Reasons for Variance
                                                Indicators
9                                           Number of         2

                             completed




10                                          Number of         1             0




11                                          Number of         2




12                                          Number of
                             applications   applications
                             completed
                                            conditional                     12 under consideration
                                                                                                       are being dealt under the


                                            Number of         2                                        Applicants met conditions for
                                            applications

Core Programme 3: Legal Services Division
      To manage              Prosecutions   Number of
      litigation of cases                   prosecutions
      before the Tribunal,
      Competition
      Appeals Court,

      Supreme Court
      of Appeal as well

      Commission on

      of mergers and                                                                      1

      complaints.




                                                                                                               Competition Commission
                                                                                                               Annual Report 2010      2011   107
                                                    Key Performance
                       Goal             Output                             Targets           Performance Results               Reasons for Variance
                                                        Indicators
          15                                        Number of           The            2 Prosecutions were ruled in        The outcome of each case is
                                                    prosecutions        Commission                                         dependent on the facts of the
                                                                        aims to
                                                    Commission
                                                                                         line Contractors and Conrite
                                                                        successful               2
                                                                        prosecution                                        Competition Act.
                                                                        rate.
                                                                                                                           considering appealing some

                                                    Number of           The                                                decisions was handed down,
                                                    prosecutions        Commission     issued:
                                                    found against the
                                                                                       The Competition Tribunal found
                                                    Commission          allowance
                                                                                       of Gralio Precast.
                                                                        unsuccessful                                       Competition Act.
                                                                        prosecution
                                                                        rate.




                                                                                       Competition Commission and
                                                                                       Others.



                                                                                       Court of Appeals in the matter of

                                                                                       Commission.
          17                      Settlement        Number of                          22 settlement agreements with
                                  agreements        settlement
                                  concluded         agreements
                                                    concluded
          18                                        Number of                          55
                                  issued to legal
                                                    issued
                                  public




      Competition Commission
108   Annual Report 2010   2011
                                              Key Performance
            Goal               Output                                     Targets          Performance Results            Reasons for Variance
                                                  Indicators
19                        Guidelines issued   Number of               2             0                                 The following two Guidelines
                                              guidelines issued                                                       will be issued in 2nd Quarter of



                                                                                                                      drafted, but due to the high


                                                                                                                      issued.
                                                                                                                      These draft Guidelines are:




                                                                                                                      These draft guidelines are

                                                                                                                      process and it is anticipated
                                                                                                                      that the Guidelines will be
                                                                                                                      issued in the 2nd Quarter of the

Core Programme 4: Policy and Research
20                                            Number of               8             11
      economic research                       economic briefs
                                              published
21    in merger and       published           Number of               8             8
      enforcement cases                       (newsletter) articles
                                              published
22                                            Number of papers
                                              published




                                                                                        biofuels: methodologies and




                                                                                        biofuel crops in SA.
                                              Number of papers                      10 Papers were presented at
                                              presented at
                                              conferences
                                                                                    from conferences to submit

                                                                                    anticipated.



                                                                                                                                Competition Commission
                                                                                                                                Annual Report 2010       2011   109
                                                        Key Performance
                        Goal             Output                                 Targets         Performance Results            Reasons for Variance
                                                            Indicators
                                                        Number of          1              0                                Enabling legislation not
                                   conducted                                                                               promulgated.
                                                        conducted
          25                       Case reports         Number of case     2
                                   produced
                                                        produced




                                                                                          others (Profert).
                                                        Number of case     8              5                                Resources were reallocated to
                                                        referral reports
                                                        produced
          27                       Impact               Number of Impact   1              1
                                   Assessment           Assessment

                                   produced             Produced
          Core Programme: Advocacy and Stakeholder Relations
          28     To ensure sound   Changes to           Number of
                 corporate         policies and         changes effected
                                   regulations
                                   effected to ensure
                 international
                 relations and
                 compliance to     the Competition                                        General Conditions of Contract
                 the Act through   Act

                 education.


          29                       Engagement with      Number of          17
                                                                                          8 Presentations,




                                                        Number of          90             99
                                   issued to

                                                                           1              1
                                   Report Produced      Report




      Competition Commission
110   Annual Report 2010   2011
                                               Key Performance
             Goal               Output                               Targets         Performance Results       Reasons for Variance
                                                   Indicators
Support Programme: Human Resources, IT and Financial Management
                                                                 1             1
      Information         Plan Submitted
                                               Plan
                                                                 1             1
      Financial           Plan Submitted
                                               Plan
                          Staff learning and   Number of staff                 112
      to the Commission                        learning and                                                all important and prioritised
                                                                                                           training was done.




                                                                                                                   Competition Commission
                                                                                                                    Annual Report 2010     2011   111
         Performance against Strategic Implementation Plan

                                                                                              Targets
                                   Measurable             Key performance
                 Goal                                                                        Achievements               Notes for variance
                                   Objectives            indicators/Outputs
                                                                                      Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

           demonstrable        prioritise sectors
                               in response                                                                      Committee in August 2010 and
           outcomes in         to a changing
                                                                                                                September 2010.
           through
           prioritisation
           of sectors and                           Performance assessment
           cases                                    measures, monitoring and
                                                    reporting mechanisms to                                     2012.




                                                                                                                Intermediate Industrial products,




                               and implement                                                                    selection of cases adopted and
                               guidelines for
                               prioritisation of
                                                    guidelines for the selection
                               cases
                                                    and prioritisation of cases



                                                    Implementation of guidelines
                                                    for the prioritisation of cases



                                                    implemented guidelines
                                                    Guidelines with criteria and                                Guidelines with the criteria and
                                                    procedures (based on best                                   procedures for the selection of
                               in selected          practice) for the selection



                                                                                                                once the Competition Amendment
                                                                                                                Act, 2010 comes into effect.




                                                    implemented




      Competition Commission
112   Annual Report 2010    2011
                                                              Targets
         Measurable             Key performance
Goal                                                         Achievements              Notes for variance
         Objectives            indicators/Outputs
                                                      Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

                           established


                           communication plan




                           and outcomes monitored




                           formulated
                                                                                Guideline on assessing the impact

       methodologies                                                            drafted.
       and capacities      methodologies and tools
                           conducted

       assessments of
                           proposals and options in
       the impact of the
                           approach to impact
                           assessment prepared

       sectors
                           on impact assessment for
                           competition authorities
                           hosted
                           Impact assessment




                           impact assessment



                           the impact assessment




                                                                                             Competition Commission
                                                                                             Annual Report 2010     2011   113
                                                                                       Targets
                                  Measurable          Key performance
                 Goal                                                                 Achievements              Notes for variance
                                  Objectives         indicators/Outputs
                                                                               Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
                                                 Continuous impact



           2. Enhance
                               engage with the

                                                 implementation in the
                                                                                                         themes.
           through strategic
           partnership,
                                                 Established communication
           engagement,         formulation and                                                           Public sector
                                                 and consultation fora and
           dialogue and

                                                 Strategic themes based
                                                 on the priorities of the
                                                 Commission as the basis for
                                                 the strategic engagements
                                                 formulated
                                                 Strategic engagement                                      (NPA and SAPS).

                                                 monitored


                                                 to the organisation on the
                                                 discussions and outcomes
                                                 of the strategic engagement
                                                 processes



                                                 engagement




      Competition Commission
114   Annual Report 2010   2011
                                                                Targets
         Measurable             Key performance
Goal                                                           Achievements              Notes for variance
         Objectives            indicators/Outputs
                                                        Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
       2.2 Strengthen                                                             Comments and submissions made
       dialogue and
                          laws and regulations for
       at ensuring




       with competition
                          regulations consistent with
       principles
                          competition principles




                          departments and agencies
                                                                                    Fisheries Sector in South Africa,
                          to adopt proposed changes
                                                                                    2010.

                          competition principles
                                                                                  on the incorporation of the



                          Consultations with the
       communication
       and consultation
       with sector        initiated



       agencies
                                                                                  NERSA and ICASA both
                          established
                          Consultations held with



                          competition principles in




                                                                                                Competition Commission
                                                                                                Annual Report 2010      2011   115
                                                                                         Targets
                                  Measurable           Key performance
                 Goal                                                                   Achievements               Notes for variance
                                  Objectives          indicators/Outputs
                                                                                 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
                                                  Proposals on the protocols
                                                  and procedures related                                   SAPS.
                              partnerships with   to the prosecution of
                                                                                                           Not concluded because
                              law enforcement
                                                                                                           amendments to Competition
                              agencies in         Competition Amendment Act
                              preparation for
                                                                                                           come into effect.
                              criminalisation
                                                  Protocols and procedures

                                                  enforcement agencies


                                                  Concluded partnership

                                                  enforcement agencies
                                                  Partnership agreements
                                                  implemented and monitored


           a high             and strengthen
           performance        distributed         organisation in consultation
           competition        management
                                                                                                           coaches.
                              and leadership

                              the Commission
                                                  with curriculum that
                                                  supports the leadership and

                                                  implemented


                                                  mentorship for managers
                                                  and leaders in the
                                                  Commission established and
                                                  implemented
                                                  Implementation of
                                                  management and leadership

                                                  monitored




      Competition Commission
116   Annual Report 2010   2011
                                                             Targets
         Measurable        Key performance
Goal                                                        Achievements              Notes for variance
         Objectives       indicators/Outputs
                                                     Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4



       management
                                                                               Technical problems and

                                                                               implementation.

       management
                      implemented
       culture and                                                             Policies and protocols
       practices      Change management
                                                                               communicated during training.
                      processes implemented in
                      line with the implementation
                                                                               included as a performance
                                                                               indicator in staff performance
                      on training                                              contracts.


                      communicated




                      practices implemented




                      contracts, and recognise
                      strong performers




                                                                                             Competition Commission
                                                                                             Annual Report 2010   2011   117
                                                                                      Targets
                                  Measurable          Key performance
                 Goal                                                                Achievements                Notes for variance
                                  Objectives         indicators/Outputs
                                                                              Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
                                                 Career and career                                      Formal retention and succession
                              staff retention    pathing opportunities
                              and put in place
                              succession         appropriateness of
                              planning           introducing dual career
                              measures
                                                 Career and career pathing
                                                                                                        April 2011.
                                                 opportunities incorporated

                                                 the commission                                         mentoring has been established.


                                                 implemented, monitored and

                                                                                                        staff.
                                                 Succession planning
                                                 implementation plan
                                                                                                        place for graduate trainees.
                                                 Succession planning                                    12 senior managers attended

                                                                                                        programme


                                                                                                        addresses career pathing and



                                                                                                        decreased:




      Competition Commission
118   Annual Report 2010   2011
                                                              Targets
         Measurable        Key performance
Goal                                                         Achievements               Notes for variance
         Objectives       indicators/Outputs
                                                      Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
                                                                                Case pipeline management
                      management information
                                                                                Case management meetings

       Commission
                      Timing and format of



                      agreed
                                                                                held.

                      sources and appropriate
                                                                                were held.




                      implemented




                      of all the current cases to
                      establish the status of each


                      Recommendations made on

                      streamlining the current case
                      load


                      management methods,
                      processes and supporting




                                                                                             Competition Commission
                                                                                              Annual Report 2010   2011   119
                                                                                Targets
                                  Measurable        Key performance
                 Goal                                                          Achievements         Notes for variance
                                  Objectives       indicators/Outputs
                                                                        Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4



                                               documented in the




                                               Case management

                                               formalised


                                                                                     Commences in



                                               performance standards




      Competition Commission
120   Annual Report 2010   2011
Notes




        Competition Commission
        Annual Report 2010   2011   121
          Notes




      Competition Commission
122   Annual Report 2010   2011
Notes




        Competition Commission
        Annual Report 2010   2011   123
                                      www.compcom.co.za

                                  Address:


                                    No. 77 Meintjies Street


                                                   Pretoria
                                                      0002


                                      Tel:
                                     Fax:
                            Email: ccsa@compcom.co.za


                                              RP: 60/2011
                                  ISBN: 978-0-621-40036-6
      Competition Commission
124   Annual Report 2010   2011

								
To top