SAFLII Note: Certain personal/private details of parties or witnesses have been redacted from this
document in compliance with the law and SAFLII Policy
COMPETITION TRIBUNAL
REPUBLIC OF SOUTH AFRICA
Case No: 019810
In the matter between:
The Competition Commission.......................................................................................................Applicant
And
Crown Relocations (Pty) Ltd.......................................................................................................Respondent
Panel: M Mazwai (Presiding Member)
M Mokuena (Tribunal Member)
F Tregenna (Tribunal Member)
Heard on : 19 November 2014
Decided on : 19 November 2014
Order
The Tribunal hereby confirms the order as agreed to and proposed by the Competition Commission and
Crown Relocations (Pty) Ltd, annexed hereto marked “A”.
19 November 2014
Date
Presiding Member
Ms. M Mazwai
Concurring: Ms. M Mokuena and Prof. F Tregenna
ANNEXURE “A”
IN THE COMPETITION TRIBUNAL OF SOUTH AFRICA
(HELD IN PRETORIA)
CT Case No.
CC Case No: 2010Nov5447
In the matter between
COMPETITION COMMISSION...............................................................................................Applicant
and
CROWN RELOCATIONS (PTY) LTD...................................................................................Respondent
CONSENT AGREEMENT IN TERMS OF SECTION 490 AS REA D WITH SECTIONS 58(1 mm and
58(1)(b) OF THE COMPETITION ACT, NO. 89 OF 1998 , AS AMENDED, BETWEEN THE
COMPETITION COMMISSION AND CROWN RELOCATIONS (PTY) LTD, IN RESPECT OF
CONTRAVENTION OF SECTION 4(1 )(b) (lit) OF THE COMPETITION ACT, 1998.
Preamble
The Competition Commission and Crown Relocations (Pty) Ltd hereby agree that application be made to the
Competition Tribunal for the confirmation of this Consent Agreement as an order of the Tribunal in terms of
section 490 read with section 58(1 ){a)p) and 58(1 )(b) of the Competition Act 1998 Act No, 89 of 1998, as
amended (the Act), in respect of contraventions of section 4(1 ){b) (iil) of the Act, on the terms set out
below.
1. Definitions
For the purposes of this Consent Agreement the following definitions shall apply:
1.1 “Act” means the Competition Act, 1998 (Act No. 89 of 1998), as amended;
1.2 “Crown Relocations ” means Crown Relocations (Pty) Ltd.. a company incorporated under the
laws of the Republic of South Africa with its principal place of business at No. 1 Drakensberger
Drive, Longmeadow Business Estate West, Modderfantein, Johannesburg.
1.3 “CLP” means the Commission's Corporate Leniency Policy (Government Gazette Notice no. 828
of 23 May 2008) published in Government Gazette no.31GS4 of 23 May 2008;
1.4 “Commission" means the Competition Commission of South Africa, a statutory body established
in terms of section 19 of the Act, with its principal place of business at IVluiayo Building (Block C),
the DTI Campus, 77 Meintjies Street, Sunnyside, Pretoria, Gauteng;
1.5 “Commissioner” means the Commissioner of the Competition Commission, appointed in terms
of section 22 of the Act;
1.6 “Complaint” means the complaint initiated by the Commissioner in terms of section 49B(1) of tie
Act under case number 2G11Jun0069;
1.7 “Consent Agreement ” means this agreement duly signed and concluded between the
Commission and Crown Relocations (Pty) Ltd;
1.8 “Cover Price” means generally, a price that is provided by a firm that wishes to win a tender to a
firm that does not wish to do so; in order that the firm that does not wish to win the tender may submit
a higher price; or alternatively a price that is provided by a firm that does not wish to win a tender to a
firm that does wish to win that tender in order that the firm that wishes to win the tender may submit a
lower price;
1.9 “Parties"' means the Commission and Crown Relocations (Pty) Ltd; and
1.10 “Tribunal” means the Competition Tribunal of South Africa, a statutory body established in
terms of section 26 of the Act, with its principal place of business at Muiayo building (Block C), the
DTI Campus, 77 Meintjies Street, Sunnysids, Pretoria, Gauteng.
2. THE COMMISSION'S INVESTIGATION AND FINDINGS
2.1 On 3 November 2010, the Commission initiated a complaint in terms of section 49(B)(1) of the Act into
alleged prohibited practices relating to collusive tendering in the market for the provision of furniture
removal services in South Africa against J.B Relief Transport CC, Patrick. Removals (Pty) Ltd, Cape Express
Removals (Pty) Ltd, Sifiktfe Transport CC, Gloway Transport CC, De Wet Human CC t/a Viking Furniture,
Stuttaford Van Lines (Pty) Ltd and Pro-Pack Removals CC.
2.2 On 1 June 2011, the Commission amended the complaint to include other furniture removal firms as
respondents in the complaint on the basis of further information obtained in the investigation of the
complaint. These firms are A&B Movers CC, Advance Tra nsport (Pty) Ltd* African Palletized Storage,
Afriworid Furniture Removals CC, Core Relocations (Pty) Ltd, Crown Relocations (Pty) Ltd, De Lange
Transport (Pty) Ltd, Elliot international CC , Execu-Move CC, Joel Transport (Pty) Ltd; Langs Furniture
Removals, Lowe Lines CC, Majorshelf, Matthee Removals, North Western Transport CC, P ・ kfords
Removals (Pty) Ltd, Pulse international Removals, Stanley's Removals CC, - Transfreight international CC,
Western Transport Services CC, JMK Transport Services, Trapezium Re movals, Elite International City to
City Transport Wlets Removals, H&M Removals, AGS Frasers international (Pty) Ltd, and ali present
members of the Professional Movers Association,
2.3 On 13 June 2013, the Commission further amended the complaint to inclu de other furniture removal
firms as respondents in the complaint on the basis of further information obtained in the investigation of the
complaint These firms are Easy Moves CC, Reliable Removals CC, Deon Net Sole Proprietorship t/a AD
Transport, Bear Transport (Pty) -Ltd, J&H Removals (Pty) Ltd, Mini Maxi Movers CC, Baxfer International
Movers CC, Louis du Preez Sole Proprietorship t/a Removals 4 Less, A to 2 Relocation Services t/a The
Moving Company and AKA Loading & Transport CC,
2.4 The firms fisted in paragraphs 2.1, 2.2 and 2,3 above shall hereinafter be referred to as the Respondents.
2.5 The Commission's investigation revealed the following:
2.5.1 During or about the period 2007 to at least December 2012, the firms identified - in paragraphs
2.1, 2.2 and 2.3 above, being competitors in the market for the provision of furniture removal services
agreed to tender coliusively in relation to the provision of furniture removal services.
agreed to tender coliusively in relation to the provision of furniture removal services.
2.5.2 In terms of the agreement a firm that was contacted first regar ding a request for quotation for
furniture removal services would offer to source two or more quotations on behalf of the customer,
and would then contact two or more of its competitors and request the competitors to submit cover
prices.
2.5.3 The cover pr ices would either be sent directly to the customer or to the competitor wishing to
win the tender for onward submission to the customer.
2.5.4 The Respondents arranged to collude on tenders issued by various government departments,
including but not limite d to, the South African National Defence Force (SANDF), South African
Police Services (SAPS), as well as tenders issued by large corporates such as Eskom and Pretoria
Portland Cement (RFC),
2.5.5 The Commission further found -that, pursuant to the arrangeme nt set out above, Crown
Relocations had engaged in 81 instances of cover pricing.
2.5.6 This conduct constitutes collusive tendering in contravention of section 4{1)(b) (iii) of the Act.
3. ADMISSION
Crown Relocations admits that it engaged in the conduct set out. In paragraph 2.5 above in contravention of
section, 4(1 )(b) (iii) of the Act.
4. CO-OPERATION
Crown; Relocations agrees to fully cooperate with the Commission in its investigation and prosecution of the
remaining respondents in the complaint. This cooperation includes, but is not limited to:
4.1. To the extent that it is in existence, the provision of evidence, written or otherwise, which is in its
possession or under its control, concerning the alleged contraventions contained in this Consent
Agreement.
4.2. Testifying in the complaint referral (if any) in respect of the contraventions set out in this
Consent Agreement.
5. FUTURE CONDUCT
Crown Relocations agrees to:
5.1 prepare and circulate a statement summarising the content of this agreement to its employees, managers
and directors within fourteen (14) days of the date of confirmation of this Consent Agreement as an order of
the Tribunal;
5.2 refrain from engaging in conduct in contravention of section 4 (1 }{b) of the Act in future;
5.3 develop , implement and monitor a competition law compliance programme as part of its corporate
governance policy, which is designed to ensure that its employees, management, directors and agents do not
engage In future contraventions of the Act. In particular, su ch compliance programme should include
mechanisms for the identification, prevention, detection and monitoring of any contravention: of the Act;
5.4. submit a copy of such compliance programme to the Commission within 60 days of the date of
confirmation of the Consent Agreement as an order by the Tribunal; and
5.5 undertakes henceforth to engage in competitive bidding.
6. ADMINISTRATIVE PENALTY
6.1 Having regard to the provisions of sections 58(1)(a)(iii) as read with sections 59{1){a), 59(2) and 59(3)
of the Act, Crown Relocations t$ liable to pay an administrative penalty.
6.2 Crown Relocations agrees and undertakes to pay an administrative penalty in the amount of R849 873,36
(eight hundred and forty nine thousand eight hundred and seventy three rands and thirty six cents). This
administrative penalty represents 7% of its annual turnover for the financial year ended December 2013.
6.3 Crown Relocations will pay 50% of the amount set out in paragraph 6.2 above to the Commission within
7 (seven) days of the confirmation of this Consent Agreement as an order of tie Tribunal.
6.4 Crown Relocations will thereafter pay the balance of the amount above in two equal quarterly instalments
within 8 months from the date of the Tribunal's order.
6.5 The administrative penalty must be paid into the Commission’s bank account which is as follows:
Name; The Competition Commission Fee Account
Bank: Afosa Bank, Pretoria
Account Number: [...]
Branch Code: 323 345
Ref: 2011Jun0069/Crown Relocations
6.6 The administrative penalty will be paid over by the 'Commission to the National Revenue Fund m
accordance with the provisions of section 59(4) of the Act.
7 Full and Final Settlement
This agreement upon confirmation as an order by tie Tribunal, Is entered into in full and final settlement of
the conduct set out in paragraph 2.5 above and concludes all proceedings between the Commission and
Crown Relocations in respect of this conduct only.
Dated and signed at Edenvale on the 16th day of October 2014
For Crown Relocations (Pty) Ltd
Chief Executive Officer
Name in Full: Ian Pettey
Dated and signed at PRETORIA on the 22 day of October 2014
For the Commission
Tembinkosi Bonakele
Competition Commissioner