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AFR - AFGRI Limited - AFGRI settles with Competition Commission regarding Grain Silo Industry investigation. AFGRI Limited (Incorporated in the Republic of South Africa) Registration number: 1995/004030/06 ISIN: ZAE000040549 Share Code: AFR ("AFGRI") AFGRI settles with Competition Commission regarding Grain Silo Industry investigation. AFGRI Operations Limited ("AFGRI") is pleased to confirm that it has reached a settlement with the Competition Commission ("the Commission") on Friday regarding a complaint initiated by the Commission that AFGRI, as one of the members of Grain Silo Industry (Proprietary) Limited ("GSI"), had contravened section 4(1) (b) (i) of the Competition Act, 1998 by collectively participating in the determination of the South African Futures Exchange`s ("SAFEX`s") daily grain storage tariffs ("SAFEX tariffs") via its membership of GSI. The Commission`s investigation focused on the historic recommendation by members of the GSI to SAFEX of a uniform daily grain storage tariff at the request of SAFEX. AFGRI cooperated fully and voluntarily with the Commission during the Commission`s investigation. The Commission also investigated an alleged contravention of section 8(a) of the Competition Act, 1998 and found that AFGRI had not excessively priced any grain storage tariff or any other related products or services which were under investigation by the Commission. In terms of the settlement, AFGRI agreed to pay an administrative penalty of R15.6 million. The terms of the settlement are subject to confirmation by the Competition Tribunal. The amount of the penalty has been fully provided for by AFGRI. Reacting to the settlement, AFGRI CEO Chris Venter said, "We are satisfied with the outcome of the settlement negotiations which have brought finality to the Commission`s investigation. The investigation relates to historic conduct which ceased some time ago. AFGRI had stopped recommending SAFEX tariffs through the GSI before the Commission`s investigation had commenced. AFGRI conducted its own internal investigation which confirmed that at no time did AFGRI act with knowledge of unlawfulness." Venter went on to say, "We respect the Commission`s finding that the recommendation of the SAFEX tariffs technically constituted a contravention of the Competition Act. The recommendation of the SAFEX tariffs was done at the request of SAFEX and on the bona fide understanding that it was crucial for the proper functioning of SAFEX that there were uniform daily grain storage tariffs. The SAFEX tariffs enable traders to calculate the maximum amount of storage charges applicable on a particular SAFEX transaction". The AFGRI Board remains committed to complying with all applicable laws including the Competition Act, 1998 and does not condone any anti-competitive behaviour. AFGRI has a formal Competition law compliance programme in place which is implemented throughout the Group. AFGRI`s existing compliance programme will be enhanced with a formal compliance programme as prescribed by the Commission as part of the settlement with the Commission. 6 June 2011 Sponsor: Investec Bank Limited Date: 06/06/2011 07:30:00 Supplied by www.sharenet.co.za Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited (`JSE`). The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct, indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on, information disseminated through SENS.
