Windhoek
The Namibian Competition Commission (NaCC) on September 16 raided the offices of Puma Energy in Windhoek to search for and seize documents as part of investigations into Puma’s alleged market manipulation practices.
This transpired after the Aircraft Owners and Pilots Association of Namibia lodged complaints against Puma Energy with the NaCC.
Puma Energy is alleged to have contravened specific sections of the Competition Act by charging excessive prices, given that they are the dominant player in the aviation fuel supply market at Eros and Ondangwa airports.
The NaCC, in a statement issued yesterday, said the raid was aimed at obtaining documentary and electronic evidence in respect of Puma’s pricing to enable the Commission to determine whether Puma’s pricing for the supply of aviation fuel at Eros and Ondangwa airports amounts to excessive pricing, in contravention of the Competition Act.
The Commission says it presented Puma with a notice of its proposed investigation and asked Puma to make written representations to the NaCC on the matter.
Puma Energy’s regional aviation sales manager for Africa, Josh Cohen, told New Era that, “Puma Energy has a strict policy of complying with the requirements set by national regulatory authorities. Namibia is no exception. Puma Energy is fully co-operating with the authorities with regard to their official investigation.”
NaCC spokesperson Dina-Tina Gowases, in the statement, said: “Excessive pricing is a concern, especially in this case due to the fact that when charged to aircraft operators and owners at airports it will ultimately be passed on to consumers in the form of higher ticket prices.”
“Excessive pricing could also undermine the ability of aircraft owners and operators to have free capital, which could otherwise be invested in helping create and explore opportunities, that could derive benefits for the economy, such as the creation of additional employment opportunities and the procuring of better quality products,” said Gowases.
The NaCC, nevertheless, insists the investigation and the conducting of the dawn raid does not mean Puma is guilty of anti-competitive behaviour, nor does it prejudice the outcome of the investigation itself.
A dawn raid is only a preliminary investigative step undertaken into suspected anti-competitive practices.
“The Commission respects the right of defence, in particular Puma’s right to be heard in terms of the procedure set out in the Competition Act,” Gowases explained.
She said the investigation is ongoing and the NaCC would assess the evidence obtained during the dawn raid and any other evidence that may be obtained in due course would be used to make a final determination on the case.
“There are no prescribed statutory deadlines in terms of which to finalise the investigation. The duration of the investigation will, therefore, depend on factors such as the complexity of the case, the extent to which the undertakings concerned cooperate with the Commission and the procedure prescribed by sections 36, 37 and 38 of the Competition Act,” she noted.
“The Commission can, in terms of section 34 of the Competition Act of 2003, conduct a dawn raid to ascertain or establish whether a party has engaged in or is engaging or is about to engage in conduct that constitutes or may constitute an infringement of the Competition Act,” Gowases pointed out.