South Africa’s metal recyclers under scrutinity

Archiv – The Competition Commission in South Africa is pursuing an investigation into Cisko, SA Metal & Machinery Company, and National Scrap Metal for price fixing and collusion in the scrap metal market, following the New Reclamation Group’s agreement to pay a fine of US$ 18.5 million for its part in price fixing.South Africa | The Competition Commission in South Africa is pursuing an investigation into Cisko, SA Metal & Machinery Company, and National Scrap Metal for price fixing and collusion in the scrap metal market, following the New Reclamation Group’s agreement to pay a fine of US$ 18.5 million for its part in price fixing.
Competition Commission general manager of enforcement and exemptions, Thulani Kunene, says that the investigation against the other companies was at an advanced stage and that there would ’definitely’ be further fines.
’We have settled with Reclam, but the other companies decided not to co-operate. Reclam will now assist us with further evidence and will be our witness in a hearing before the tribunal. We have a lot of information already, because the evidence relating to Reclam also relates to the other parties. The matter will be referred to the tribunal in due course,’ Kunene says.
Reclam agreed in April to pay a fine of 146 million South Africa Rand. This is the highest unopposed penalty imposed by the commission, and represents 6% of Reclam’s turnover.
The collusion investigation was prompted by evidence obtained when Reclam and SA Metal and Machinery Company and associated companies filed an application for a merger in 2006. Information provided in the merger application revealed anti-competitive practices and the commission subsequently raided Reclam’s offices.
The Competition Commission yesterday says it had applied for a confirmation of a consent agreement to formalise the fine. The consent agreement will be referred to the Competition Tribunal for a decision on imposition of the fine.