Competition Commission launches inquiry into public transport sector

The Competition Commission recently launched a market inquiry into the public passenger transport sector following numerous complaints relating to public transport in the country. CNBC Africa's Fifi Peters spoke to the Commissioner, Thembinkosi Bonakele for more on this as well as an update on the forex collusion case. Bonakele highlighted the importance of rooting out collusion, such as price fixing, tender rigging, and market allocation, which he described as fundamentally bad and criminal conduct. The Commission has been active in uncovering and addressing these issues, with a particular focus on the transport sector. The Commission has started a campaign to address this conduct, including imposing penalties on companies found to have colluded. While some critics argue that the penalties are too lenient to serve as an effective deterrent, Bonakele emphasized the significance of criminalization in deterring such behavior. He stated that firms should consider the risks involved and noted that authorities in South Africa have the power to send individuals to jail for such conduct. Despite the criminalization of collusion since 2013, reported cases of price-fixing behavior have not decreased, although there has been an increase in whistleblowers coming forward with information. These individuals, often former cartel members, play a crucial role in destabilizing cartels and exposing anti-competitive practices in the market. Bonakele stressed the importance of making cartels unstable and encouraging individuals to report such behavior, even if they may not qualify for immunity. The Commission is actively pursuing cases, including the forex collusion case involving banks manipulating the exchange rate between the rand and the dollar. While some banks have raised technicalities and requested more information, Bonakele remains steadfast in pursuing the case and holding the implicated parties accountable. The legal process may be lengthy, but Bonakele reiterated the Commission's commitment to upholding the rule of law and ensuring accountability in such cases. In addition to the forex case, the Commission is also investigating market dynamics in the public transport sector. Bonakele highlighted the complexity of the sector and the need for regulatory oversight to address competition issues. With recent incidents of violence and strikes in the sector, particularly involving metered taxi drivers and Uber, the Commission aims to provide recommendations to promote fair competition and regulation in the industry. By serving as a neutral party and referee, the Commission seeks to bring stakeholders together to develop regulations that foster competition and ensure safety and equality in the public transport sector.