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: 020735
In the matter between:
The Competition Commission.......................................................................................................Applicant
And
Del Transport CC t/a De Langes Transport................................................................................Respondent
Panel: A Wessels (Presiding Member)
M M.azwai (Tribunal Member)
M Mokuena (Tribunal Member)
Heard on: 25 February 2015
Addendum received on: 02 March 2015
Decided on: 02 March 2015
Order
The Tribunal hereby confirms the consent agreement as agreed to and proposed by the Competition
Commission and Del Transport CC t/a De Langes Transport, annexed hereto marked “A” and addendum
marked “B”.
02 March 2015
Date
Presiding Member
Mr. A Wessels
Concurring: Ms. M Mazwai and Ms. M Mokuena
THE COMPETITION TRIBUNAL OF SOUTH AFRICA
(HELD IN PRETORIA)
CT Case No.
CC Case No: 2011Jun0069
In the matter between
COMPETITION COMMISSION........................................................................................Applicant
and
DEL TRANSPORT CC t/a OE LANGES TRANSPORT..............................................Respondent
CONSENT AGREEMENT IN TERMS OF SECTION 490 AS READ WITH SECTIONS 58(1)(a)(iii)
and 58(1) (b) OF TH E COMPETITION ACT, NO, 89 Of 1998, AS AMENDED, BETWEEN THE
COMPETITION COMMISSION AHD DEL TRANSPORT CC, IN RESPECT OF
CONTRAVENTION OF SECTION 4(1)(b)(iii) OF THE COMPETITION ACT, 1998.
Preamble
The Competition Commission and DEL. Transport CC tfa De Lange s Tran$pOit hereby agree that
application be made to the Competition Tribunal for the confirmation of t í>ís Consen} Agreement as sn
order of the Tribunal in terms of section 490 read with saction 5S{1} ía){iiï) and $5{1){b) of the Competition
Act 1988 Act No. 89 of 1098, as amended (the Act), in respect ol contraventions of section 4(t}0>} 0) of the
Act, on ihs-terms set out fellow,
1. Definitions
For the purposes of this Conse nl Agreement the following definitions shaií apply:
1.1 "Act” means the Competition Act, 1998 (Act No. 83 of 1998), as amended;
1.2 “De Langes Transport ” means DEL Transport CC, a company incorporated under the laws of
the Republic of South Africa with its principal place of business s ítuated at 17 Stellenbosch,
Hargreaves Avenue, King William's Town;
1.3 “CLP" means the Commission's Corporate Leniency Policy (Government Gazette Notice no. 628
of 23 May 2008) published in Government: Gazette no. 31064 of 23 May 2008:
1.4 "Commission” means the Competition Commission of South Africa, a s tatutory body established
in terms of section 19 of the Act, with its principal place of business at Mulayo Building (Block C),
the DTI Campus, 77 Meintjies Street, Sunnyside Pretoria, Gauteng;
1.5 “Commissioner” means the Commissioner of the Competition C ommission, 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
the Act under case number 2011Jun0069;
1.7 鼎 onsent Agreement ・ means this agreement duly signed and concluded between the
Commission and De Langes Transport;
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 De Langes Transport; 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 Mulayo building (Block C), the
DTI Campus, 77 Meintjies Street, Sunnyside, Pretoria, Gauteng.
2 THE COMMISSION 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.H. Retief Transport CC, Patrick Removals (Pty)
Ltd, Cape Express Removals (Pty) Ltd, Sifikile Transport CC, Gloway Transpost CC, De Wet Human
CC t/a Viking Furniture,Stuttafort 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 Transport (Pty) Ltd, African Palletized
Storage; Afriworld 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. Pickfords Removals (Pty) Ltd, Pulse Internalional Removals, Stanley’s Removals CC,
Transfreight International CC, Western Transport Services CC, JNK Transport Services, Trapezium
Removals, Elite International, City to City Transport, Wiets Removals, H&M Removals, AGS
Frasers International (Pty) Ltd, and all present members of the Professional Movers Association
2.3 On 13 June 2013, the Commission further amended the complaint to i nclude other furniture
removal firms as respondents in the complaint on the basis of further information obtained in the
investigation of the cornplaint. These firms are Easy Moves CC , Reliable Removals CC, Deon Nel
Sole Proprietorship t/a AD Transport, Be ar Transport (Pty) Ltd, J&H Removais (Pty) Ltd, Mini Maxi
Movers CC, Baxter International Movers CC, Louis do Preez Sole Proprietorship t/a Removal 4 Les,
A to Z Relocation Services t/a The Moving Company and AKA Loading & Transport CC.
2.4 The firms liste d to 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
paragraphs 2.1, 2.2 and 2.3 above, being competitors in the market for the provision of
furniture removal services agreed to tender collusively in relation to the provision of furniture
removal services.
2.5.2 In terms of ths agreement a firm that was contacted first regarding 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 prices 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 limited 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 (PPG),
2.5.5 The Commission further found that, pursuant to the arrange ment set out above, De
Langes Transport had engaged in 22 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
De Langes Transport 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
De Langes Transport 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
it 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
De Langes Transport 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) 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 io ensure that its employees, management, directors
and agents do not engage in future contraventions of the Act. In particular, such comliance
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 program me 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 for the provisions of sections 58(l)(a)(iii) as read with sections 59(1) (a), 59(2) and 59(3).
of the Act, De Langes Transport. is liable to pay an administrative penally.
6.2. De Langes Transport agrees and undertakes to pay an administrative penalty in the amount of R210
4l5.45(two h undred and ten thousand ninety four hundred and fifteen rand and forty -five cents). This
administrative penalty represents 5% of its annual turnover for the financial year ended February 2013.
6.3. De Langes Transport pay the amount set out in paragraph 6. 2 above to the Commission in eight equal
quarterly instalments over a period of 24 months. The first payment shall be made within 30 (thirty) days of
the confirmation of this Consent Agreement as an order of the Tribunal.
6.4. De Langes Transport will ther eafter pay the balances of the amount above in seven equal quarterly
instalments.
6.5. De Langes Transport will also pay an interest of 9.25% p/a on the outstanding balance from the 13 th
months ín terms of Public Finance Management Act on interest to be levied on debts owing to the State.
6.8. The administrative penalty must be paid into the Commission's bank account which is as follows:
Name:. The Competition Commission Fee Account
Bank: Absa Bank, Pretoria
Account Number: 4[...]
Branch Code: 323345
Ref: 2011Jun0069/De Langes Transport
6.7. The administrative penalty will be paid over by the Commission to the National Revenue Fund in
accordance with the provisions of section 59(4) of the Act
7. Full and Final Settlement
This agreement upon confirmation a s an order by the 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 De
Langes Transport in respect af this conduct only.
Dated and signed at King William's Town on the 3rd day of February 2015
For DEL Transport CC
Member
Name in Full: J.S.L. De Lange
Dated and signed at Pretoria on the 10th day of February 2015
For the Commission
Tembinkosi Bonakele
Competition Commissioner
IN THE COMPETITION TRIBUNAL OF SOUTH AFRICA
(HELD IN PRETORIA)
CC CASE NO: 2011Jun0069
CT CASE NO: 020735
In the matter between
THE COMPETITION COMMISSION.........................................................................Applicant
And
DEL TRANSPORT CC t/a DE LANGES TRANSPORT...........................................Respondent
ADDENDUM TO THE CONSENT AGREEMENT
The parties to the consent agreement hereby agree to the deletion in clause 6.2 of the words “ninety”, so that
the final reading of the amount in words is “Two Hundred and Ten Thousand, Four Hundred and Fifteen
Rands and Forty Five Cents” (R210 415.45).
Dated and signed at Pretoria on the 25 day of February 2015.
For DEL Transport CC
Member
Name in Full: JSL De Lange
Dated and signed at Pretoria on the 27th day of Feb 2015.
For the Commission
Tembinkosi Bonakele
Competition Commissioner