Ram, Kebonang Twins Face Fresh Investigation
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NEWS: NO END IN SIGHT FOR BOTS, INDEPTH: FOREVER AN UNCOM- PAGE 2 SA BILATERAL TENSIONS PAGE 11 MON COMMONER August 30 - 5 September, 2020 EXCELLENCE IS STANDARD PRACTICE PRICE: P12.50 www.sundaystandard.info @SunStd_bw Ram, Kebonang twins face fresh investigation Zein Kebonang suspected of abusing offi ce as Chairperson of Competition Commission Ram accused of fl outing Competition Authority laws Zein, Ram and Sadique suspected to have masterminded shady business cartel SUNDAY STANDARD REPORTER “Our understanding is that Choppies and Payless (and not hoppies Chief Executive Woodblock) were at all relevant Offi cer Ramachandran times, competitors of one another, in Ottapathu, High Court that they operated supermarket retail judge Dr Zein Kebonang stores. The evidence suggests that the Cand former Cabinet buying group agreement essentially Minister Sadique Kebonang face an entailed an agreement in terms of investigation on suspicions that they which Choppies and Payless (i.e. masterminded a corrupt scheme that competitors) would jointly procure enabled Choppies and Payless to their products from suppliers. operate a business cartel. Woodblock, according to the merger A report compiled by Peo Legal, notifi cation relating to the Malique- a law fi rm commissioned by the Payless merger was, at the time, a Botswana Competition Authority wholesaler of fast moving consumer states in part: “needless to say the goods (FMCG) and as such, was evidence set out above is serious seemingly in a vertical relationship to and troubling. We recommend that Choppies and Payless.” the Authority initiate an internal and The buying group agreement external investigation into the parties created the potential, “ for at least that feature in this narrative – namely Choppies and Payless to fi x purchase Dr Kebonang, Sadique Kebonang, prices and trading conditions, Reginald Kebonang, Mr Ottapathu potentially divide markets ( by jointly and Mr Malique – and also into agreeing on the suppliers from whom members of the Authority that were they would jointly purchase their involved in the matter, in order to products); and generally manifested establish the truth.” conduct engaged in by competitors Peo Legal picked a paper trail that potentially had net anti- suggesting that Dr Zein Kebonang, competitive effect.” then Chairperson of the Competition The report suggests that the Commission may have had a fi nancial decision not to notify the merger was interest in the anti-competitive deal a bit to hide this agreement which between Payless and Choppies. was ‘potentially collusive or had and “Whilst we did uncover net anti-competitive effect.” intimations on impropriety on Curiously, the Competition the part of the Authority and/or Authority allowed Choppies, the Commission in relation to the Payless and Woodblock to conduct handling of the” merger “we did not themselves as a “buying group with uncover any fi rm evidence of such Zein Kebonang Ramachandran Ottapathu impunity for a period of three years impropriety,” states the report. from 2014 to 2017. The questionable deal dates back Competition Act, and that it met the Ottapathu buccaneering scheme to Malique, Choppies would come to be does not seem to have interrogated considered.” That decision “came to have to 2013 when businessman Saleem fi nancial thresholds for a notifi able take over Payless. Peo Legal uncovered the de facto controller of Payless.” the merging parties “on this serious “That the Authority apparently unfortunate consequences, certain Malique acquired 90% of the entire merger. The parties to the merger “evidence that the Malique-Payless The Competition Authority contravention of the Competition did not take action against the documents provided to us suggest issued share capital of Payless from (Mr Malique and Hennings and/or merger was likely nothing more however not only condoned the Act”. It further states that “a merging parties is all the more that, during the currency of the three- one William Henning. Payless) however did not notify the than a sham designed to enable failure to notify the merger, it also failure to notify a merger in may curious because when it did come year period, the parties operated as if The Malique Payless merger Competition Authority.” Choppies, a competitor of Payless, allowed the merging parties to notify jurisdictions…. Is often regarded as to know of the merger once it had they were one, particularly Choppies generated controversy from its It emerged recently during an to clandestinely acquire control over the merger retrospectively. a serious oversight on the part of been notifi ed (retrospectively), the and Payless who, signifi cantly were inception. The report by Peo legal assessment by Peo Legal that the Payless. Choppies appears to have This was apparently done without the merging parties…. It follows that Authority discovered that Choppies, competitors of one another. states that, “it is our understanding parties to the merger may have achieved this by secretly fi nancing interrogating the parties for their the reasons behind the Authority’s Payless and Woodblock were parties “Specifi cally, the evidence that the merger constituted a deliberately kept the merger from the Mr Malique’s acquisition of 90% of lapse. The report notes that “it is decision not to take action against to a so called “ buying group merger, as defi ned in terms of the Competition Authority to conceal the shares of Payless and through Mr “passing strange” that the Authority the parties to the merger must be agreement.” CONTINUES ON PG 2 Competition Authority report accuses Choppies & Payless of “sinister” motives SUNDAY STANDARD REPORTER emption as a buying group in 2014 by agree on the parties that will supply group agreements may have been prosecuting Choppies and Payless in general – i.e. over and above those This, says the opinion was a legal ob- the Authority. those products, they effectively agree collusive, and Choppies and payless Botswana. in which Choppies and Payless are ligation on the part of the competi- A law fi rm commissioned to provide In their thick multi-paged opin- to divide the market viz suppliers, in may, for all intents and purposes have “the two authorities may also fi nd involved.” tion Authority. legal advice by the Competition Au- ion, Peo Legal observed that there is accordance with section 25(b) of the merged their operations without the it useful to cooperate in investigat- In the legal assessment even the “It is likely that the Authority thority has recommended that Chop- also a possibility of market division Competition Act. approval of the Authority. The evi- ing other retail buying agreements in Competition Authority does not es- failed to fulfi ll its statutory mandate pies Superstore and Payless be pros- by Choppies and Payless. “On a conspectus of all the evi- dence has revealed that the parties’ which Choppies and Payless are in- cape scot free. by not pursuing the merging parties. ecuted for possible price fi xing that According to Peo Legal, this is dence, it appears to us that an inves- motives are sinister.” volved (if any) both in Botswana and The legal opinion says the Com- The Authority should conduct an in- would have contravened the compe- so because if Choppies and Payless tigation into the conduct of Chop- The Report advises the Compe- South Africa. The authorities might petition Authority should have inves- ternal investigation into this failure tition laws. agree on the prices at which they pies and Payless is indeed warranted. tition Authority to co-operate with also consider co-operating in inves- tigated the merging parties’ failure to The two had been given an ex- will purchase their FMCG, and also On the face of it, the various buying the South African Commission in tigating buying group agreements in notify the Malique-Payless merger. CONTINUES ON PG 4 SUNDAY MONDAY TUESDAY WEATHER WEATHER SUNDAY STANDARD IS A MEMBER OF THE PHYSICAL ADDRESS: PHYSICAL ADDRESS FORECAST Max: 23°C Max: 24°C Max: 23°C BOTSWANA PRESS COUNCIL AND SUBSCRIBES Commerce Park, Plot 104, Rowland, Ngilichi House (Meriting Spar) Unit 6, Francistown & INFO GABORONE Min: 03°C Min: 11°C Min: 13°C TO THE BOTSWANA MEDIA CODE OF ETHICS Unit 21. Gaborone TEL: 3188784 FAX: 3188795 TEL: 2412319 FAX: 2412310 Source: www.weather.com www.mascom.bw Connect to unlimited possibilities with the super-fast MySurf prepaid internet Visit your nearest Mascom Shop or call 13664 for more information. INSTANT ULTRA 30 Mins 30 SMS 110 Mins 110 SMS P375 2Mbps On-net On-net P595 5Mbps On-net On-net SUPER 210 Mins 210 SMS P995 10Mbps On-net On-net 30 Day subscription packages P435 Once-off service fee. Terms and Conditions apply. E&OE. 2 Behind the News August 30 - 5 September, 2020 Finance Ceiling for PS evades No end in sight for Bots, CEDA loans P100 billion should be question SA bilateral tensions THOBO MOTLHOKA States whether solicited or not, raised to KABELO SEITSHIRO since bilateral relations is the exclu- ust as there seemed to be sive preserve of sovereign nations. P100 million Permanent Secretary in the Ministry of progress in talks between “South Africa and Botswana enjoy Finance and Economic Development, Botswana and South Af- strong historical relations, dating With as many zeros as it has, P50 million Dr Wilfred Mandlebe has refused to be rica over the mutual legal back to the days of the struggle sounds like a lot of money but Business drawn into discussing the alleged Bank Jassistance matter, the Di- against apartheid.” Botswana would like to see the Citizen of Botswana (BoB) P100 Billion alleged rectorate of Public Prosecutions AfriForum Advocate Geri Nel Entrepreneurship Development Agency heist. (DPP) has come out to distance has held a couple of press confer- (CEDA) double that amount if its re- Appearing before the Parliamentary themselves from SA’s claims of re- ences accusing the SA government vised guidelines are to have the desired Accounts Committee (PAC) Mandlebe newed request for assistance.