COMPETITION TRIBUNAL
REPUBLIC OF SOUTH AFRICA

Case No: 15/CR/Feb09

In the matter between:

and

Panel         : Y Carrim (Presiding Member), A Wesseis (Tribunal Member) and M Mokuena (Tribunal Member)

Heard on     : 27 October 2010

Decided on  : 27 October 2010

The Tribunal hereby confirms the order as agreed to and proposed by the Competition Commission and the respondent, annexed hereto marked "A".

Presiding Member 
Y Carrim

IN THE COMPETITION TRIBUNAL OF SOUTH AFRICA 
		(HELD IN PRETORIA)

CCCASENO: 2008MAR3596 
CT CASE NO.: 15/CR/FEB09

In the matter between:
THE COMPETITION COMMISSION 						Applicant
and
FLO-TEK PIPES AND IRRIGATION (PTY) LTD				Respondent

In re:

THE COMPETITION COMMISSION 						Applicant
and
DPI PLASTICS (PTY) LTD 						First Respondent
PETZETAKIS AFRICA (PTY) LTD 					Second Respondent
MARLEY PIPE SYSTEMS (PTY) LTD 				Third Respondent
SWAN PLASTICS CC 						Fourth Respondent
AMITECH SOUTH AFRICA (PTY) LTD 				Fifth Respondent
FLO-TEK PIPES AND IRRIGATION (PTY) LTD 			Sixth Respondent
MACNEIL MOULDING (PTY) LTD 					Seventh Respondent
ANDRAG (PTY) LTD 							Eighth Respondent
GAZELLE PLASTICS (PTY) LTD					Ninth Respondent

SETTLEMENT AGREEMENT BETWEEN THE COMPETITION COMMISSION AND FLO-TEK PIPES AND IRRIGATION (PTY) LTD IN REGARD TO CONTRAVENTIONS OF SECTION 4 (1) (b) OF THE COMPETITION ACT 89 OF 1998

For the purposes of this settlement agreement the following definitions shall apply:
1.1. "Act" means the Competition Act no. 89 of 1998 as amended;

1.7. "Complaint Referral" means the Complaint referred to the Tribunal by the Commission under Tribunal case number 15/CR/Feb09;

2.1. On 12 October 2007, the first respondent filed an intermediate merger notification with the Commission. It intended to merge with Incledon Cape (Pty) Ltd.

2.3.1. Price fixing;
2.3.2. Bid rigging; and
2.3.3. Allocation of markets and/ or customers.

2.4.1. The respondents agreed to fix the discounts that each would give to customers in contravention of section 4(1) (b) (i) of the Act.;
2.4.2. The respondents agreed to submit uniform prices in response to tenders and allocate tenders to one another on rotational basis in contravention of sections 4 (1)(b)(ii) and (Hi) of the Act.;
2.4.3. On 02 February 2009 the Commission referred its findings to the Tribunal under CT case number 15/CR/Feb09.

3.2.1. The Western Cape.
3.3. This Settlement Agreement is the result of the engagement between the Commission and Fio-tek.

FLO-TEK admits that it has contravened section 4 (1)(b) (i) of the Act as detailed in paragraph 3 above.

5.1.1. testify  in support  of the  Commission's  case  regarding the contraventions in this settlement agreement; and
5.1.2. provide   evidence,   written   or   otherwise,    concerning   the contraventions contained in this settlement agreement.

6.1. Having regard to the provisions of section 58(1) (a) (iii), read with sections 59(1) (a), 59(2) and (3) of the Act, FLO-TEK accepts that it is iiabie to pay an administrative penalty.
6.2. The parties have agreed that FLO-TEK will pay an administrative penalty in the sum of R 5 049 433.26 (Five Million and Forty-Nine Thousand Four Hundred and Thirty-Three Rands, Twenty-Six Cents) being 6% of FLO-TEK's total turnover in the 2007 financial year.
6.3. FLO-TEK will pay the penalty amount to the Commission in two equal payments as follows;

6.3.1. FLO-TEK will make the first payment within six (6) months of confirmation of this Settlement Agreement by the Tribunal and;
6.3.2. FLO-TEK will make the second payment within twelve (12) months of payment of the first installment.
6.4 This amount shall be paid into the following bank account;
NAME;	THE COMPETITION COMMISSION FEE ACCOUNT
BANK;	ABSA BANK, PRETORIA
ACCOUNT NO;	4050778576
BRANCH CODE	323 345
6.5.     The Commission will pay these sums to the National Revenue Fund in terms of section 59 (4) of the Act.

This settlement agreement is entered into in full and final settlement and upon confirmation as an order by the Tribunal, concludes all proceedings between the Commission and FLO-TEK relating to any alleged contraventions by FLO-TEK of section 4 (1) (b) of the Act that are the subject of the Commission's investigation under case number 2008Mar3596 and its complaint referral under CT case number 15/CR/Feb09.

Chakrapani Bandaru
Financial Officer: FLO-TEK Pipes And Irrigation (Pty) Ltd

Shan Ramburuth
The Commissioner, Competition Commission