Trans-Africa, Sefalana to face competition inquiry
Isaac Pinielo | Friday December 5, 2014 12:24
This was revealed this week during a hearing held before a Competition Commission in which the competition enforcement agency, Competition Authority (CA), had applied for an extension of time to carry out investigations.
The two wholesalers are being investigated for allegedly refusing to purchase and stock in their wholesale outlets Pure Sugar, a brand of Bokomo Botswana, and Selati Sugar of DCS Tropicana.
According to CA’s director of legal and enforcement, Duncan Morotsi, such a boycott is considered an anti-competitive practice forbidden by the authority.
Also known as a group boycott, refusal to deal is defined as a practice in which firms conspire to isolate and eventually eliminate a current or potential competitor by refusing to buy from or sell to it.
Applying for the extension, Morotsi stated that since commencement of the investigations on December 16, 2013 the authority has managed to gather information from Trans-Africa and Sefalana Cash & Carry.
He also noted that a series of meetings were held with DCS Tropicana, the last one being September this year to gather information that was critical to progress in the investigations.
“Despite the progress, we faced challenges with regard to consultations with other wholesalers and suppliers of sugar in Botswana,” he said.
In particular, Morotsi pointed out that some major enterprises, including Bokomo Botswana, Tsetseng Retail group, Trident Holdings, Pick ‘n Pay, Shoprite, Trade World and CA Sales and Distribution, are yet to respond to the authority’s requests for information that were sent sometime in August.
“The information sought from these enterprises was about their sales figures for sugar in the period of 2009 up to 2013. This information is crucial as it would assist the authority in calculating the market shares of the enterprises in the wholesaling and supply of sugar in Botswana,” he explained.
As a result, Morotsi said the authority has found it necessity to bring the application for an extension before the Competition Commission since the initial date for completion of investigations lapses on December 16 this year.
He told a panel of commissioners that the investigative process would not yet be complete as the said enterprises have not yet responded to the authority’s enquiries.
As such, commission, chaired by Dr Zein Kebonang, granted the authority an extension of nine months to carry out the investigations, despite the authority’s earlier request for a six-month extension period.
The commission also advised the authority to involve all the other players in the wholesaling and supply of sugar in Botswana.