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1 ANNUAL REPORT 2017/18 | COMPETITION AUTHORITY Untitled-2 1 14/09/18 2:22 PM CORPORATE PROFILE The Competition Authority (the Authority) is constituted in terms of the Competition Act (Cap 46:09) and is domiciled in the Republic of Botswana. The Authority is responsible for the prevention of, and redress for, anti-competitive practices in the economy, and the removal of constraints on the free play of competition in the market. The governing body of the Authority is the Competition Commission, which is responsible for the direction of the affairs of the Authority. Chairperson of the Competition Commission CEO and Secretary to the Competition Commission Dr. Onkemetse Tshosa Ms. Tebelelo Pule Registered Office Plot 28, Matsitama Road, Main Mall, Gaborone, Botswana Contact Details Postal Private Bag 00101, Gaborone, Botswana Telephone +267 393 4278 Fax +267 312 1013 Email [email protected] Website www.competitionauthority.co.bw Facebook Competition Authority Botswana Twitter @CompetitionBots Bankers External Auditors Internal Auditors Barclays Bank of Botswana Limited Ernst & Young Deloitte Plot 74358, Building 4, Prime Plaza CBD Chartered Accountants Tax and Advisory Services P.O. Box 478 Gaborone, Botswana 2nd Floor, Plot 22, Khama Crescent Plot 64518 P.O. Box 41015 Fairgrounds Assurance Standard Chartered Bank Gaborone, Botswana P.O. Box 778 Botswana Limited Gaborone, Botswana Plot 1171-3 Botswana Road, Main Mall P.O. Box 469 Gaborone, Botswana To: 4 ANNUAL REPORT 2017/18 Honourable Minister of Investment, Trade and Industry | Pursuant to section 24 of the Competition Act (Cap 46:09), please COMPETITION AUTHORITY find attached a comprehensive report on the operations of the Competition Authority, together with the Auditor’s Report and the Audited Accounts of the Competition Authority for the financial year 2017/18, for you to lay before the National Assembly. Yours Faithfully, ________________________________________ Dr. Onkemetse Tshosa Chairperson of the Competition Commission TABLE OF CONTENTS PAGE 5 ACRONYMS 5 6 CORPORATE GOVERNANCE ANNUAL REPORT 2017/18 | 8 COMPETITION COMMISSION 10 CHAIRPERSON’S STATEMENT 12 CHIEF EXECUTIVE OFFICER’S STATEMENT OFFICE OF THE CEO 14 COMPETITION AUTHORITY 16 EXECUTIVE MANAGEMENT 17 MANAGERS 18 OVERVIEW 20 STAKEHOLDER ENGAGEMENT AND ADVOCACY 32 CORPORATE SOCIAL RESPONSIBILITY 35 RESEARCH AND INVESTIGATIONS 41 ENFORCEMENT AND PROSECUTIONS 44 MERGERS AND ACQUISITIONS 56 CORPORATE SERVICES 62 CORPORATE CHALLLENGES AND OPPORTUNITIES 65 ANNUAL FINANCIAL STATEMENTS ACRONYMS ACF African Competition Forum GA Gambling Authority BCL BCL Limited ICN International Competition Network BDC Botswana Development Corporation ICT Information Communication Technology BITC Botswana Investment and Trade Centre JWC Joint Working Committee BIUST Botswana International University of Science and KBL Kgalagadi Breweries Limited Technology LEA Local Enterprise Authority BNSC Botswana National Sports Commission LPG Liquified Petroleum Gas 7 BOCRA Botswana Communications Regulatory Authority ANNUAL REPORT 2017/18 | MoU Memorandum of Understanding BOBS Botswana Bureau of Standards MITI Ministry of Investment, Trade and Industry BPC Botswana Power Corporation MTC Ministerial Tender Committee BTCL Botswana Telecommunications Corporation Limited MWG Mergers Working Group BTV Botswana Television COMPETITION AUTHORITY NBFIRA Non-Bank Financial Institutions Regulatory Authority BURS Botswana Unified Revenue Service OECD Organisation for Economic Cooperation and Development CA Competition Authority PMIS Post Merger Impact Survey CAAB Civil Aviation Authority of Botswana PPADB Public Procurement and Asset Disposal Board CEDA Citizen Entrepreneurial Development Agency RPM Retail Price Maintenance CEO Chief Executive Officer SADC Southern African Development Community CIPA Companies and Intellectual Property Authority SMMEs Small, Medium and Micro Enterprises CSR Corporate Social Responsibility SPEDU Selebi-Phikwe Economic Diversification Unit CWG Cartel Working Group UNCTAD United Nations Conference on Trade and Development DCEC Directorate on Corruption and Economic Crime DATC District Administration Tender Committee CORPORATE GOVERNANCE 8 ANNUAL REPORT 2017/18 | Competition Commission Commission Charter The Competition Commission is the governing body The Commission has a Commission Charter COMPETITION AUTHORITY of the Competition Authority and is responsible (Board Charter), which states the responsibilities for the direction of the affairs of the Authority. The and duties of the Commission in ensuring high Commission has both corporate governance and standards of corporate governance, professionalism, adjudicative functions under the Competition Act. transparency and separation of powers. Members of the Competition Commission as at 31st March 2018 Member Date of Appointment Term Expiry Date Dr. Onkemetse Tshosa 1st September 2015 5 years 31st August 2020 Chairperson Ms. Thembisile T. Phuthego 1st June 2014 4 years 31st May 2018 Vice Chairperson Mr. Tendekani E. Malebeswa 1st June 2015 5 years 31st May 2020 Member Dr. Selinah Peters 1st December 2016 3 years 30th November 2019 Member Dr. Jay S. Salkin 1st June 2014 4 years 31st May 2018 Member Ms. Nelly W. Senegelo 1st May 2015 2 years 31st July 2017 Member Ms. Seipati G. Olweny 1st August 2017 4 years 31st July 2021 Member Mr. Koonyatse K. Tamasiga 1st June 2016 5 years 31st May 2021 Member Ms. Tebelelo Pule 1st October 2017 Duration of term End of term as CEO CEO and Secretary as CEO to the Commission CORPORATE GOVERNANCE Competition Commission Committees as at 31st March 2018 COMMITTEES MEMBERS RESPONSIBILITIES The Committee assists the Commission in Dr. Jay S. Salkin Chairperson discharging its oversight responsibilities of monitoring and reviewing: financial activities Mr. Koonyatse K. Tamasiga Member of the Authority and the financial reporting process to ensure balance, transparency Ms. Nelly W. Senegelo Member and integrity; the Authority’s compliance Finance and with the legal and regulatory requirements; Audit Committee Ms. Seipati G. Olweny Member the efectiveness of the Authority’s internal 9 controls; and the efectiveness of the ANNUAL REPORT 2017/18 | Authority’s risk management strategies. Ms. Thembisile T. Phuthego Chairperson The Committee assists the Commission in discharging its oversight responsibilities Ms. Nelly W. Senegelo Member of establishing, monitoring and reviewing appropriate human resource and compensation policies and strategies that COMPETITION AUTHORITY Dr. Selinah Peters Member Human Resources provide the Authority with the capability Committee to achieve its short and long term business Ms. Seipati G. Olweny Member objectives. Mr. Tendekani E. Malebeswa Chairperson The Committee assits the Commission in discharging its oversight responsibilities Dr. Jay S. Salkin Member of formulating, monitoring and reviewing appropriate legal and technical policies, rules, guidelines and procedures that enable Technical Mr. Koonyatse K. Tamasiga Member Committee the Authority to undertake its enforcement and advocacy functions. Dr. Selinah Peters Chairperson The Committee assists the Commission in adjudicating tenders, reviewing and monitoring Ms. Thembisile T. Phuthego Member policy and thresholds for tendering, and reports to the Commission accordingly. Commission Tender Mr. Tendekani E. Malebeswa Member Committee COMPETITION COMMISSION Dr. Onkemetse B. Tshosa Ms. Thembisile T. Phuthego Chairperson Vice Chairperson 10 ANNUAL REPORT 2017/18 | COMPETITION AUTHORITY Dr. Selinah Peters Member Ms. Nelly W. Senegelo Mr. Tendekani E. Malebeswa Member Member COMPETITION COMMISSION Dr. Jay S. Salkin Ms. Seipati G. Olweny Member Member 11 ANNUAL REPORT 2017/18 | COMPETITION AUTHORITY Mr. Koonyatse K. Tamasiga Ms. Tebelelo Pule Member CEO and Secretary to the Commission Dr. Onkemetse B. Tshosa Chairperson of the Competition Commission 12 ANNUAL REPORT 2017/18 | CHAIRPERSON’S STATEMENT COMPETITION AUTHORITY I am confident that key stakeholders have been actively engaged even within the well-documented resource constraints. It is that cherished time of the year again when I, on behalf of the team at the Competition Commission and the Competition Authority, get the privilege to account to our principals. Every day, as we pursue our daily routines and activities, we are constantly reminded of the covenant of service that we have to our parent ministry (Ministry of Investment, Trade and Industry), our Government and the people of this country, who entrusted us with the lofy mandate of bringing about market eficiencies and fairness. The Annual Report afords us the opportunity to demonstrate how we have utilised public resources in carrying out our mandate. Throughout the year, the Authority was busy carrying out a number of activities, programmes and projects with the sole aim of promoting free and fair competition in the economy of Botswana. It is my sincere hope that the myriad interventions that have been made in the market have gone a long way in educating businesses about the value of competition, and would have removed the practices and conducts that impede competition in the market. I have no doubt in my mind that the cumulative efects of all these interventions are collectively breaking down the vestiges of anti-competitive practices in the country’s market place. CHAIRPERSON’S STATEMENT During this reporting period, it is evident that a number The Authority is also very active in the regulation of all of key projects were done. Of particular
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