The debate on the efficacy of criminal sanctions for cartel participants continues following the conclusion of the construction cartel fast-track settlement process.
Further to our previous updates on the construction cartel (available here, here and here), the labour federation Cosatu president, at a Black Business Council meeting, recently called for criminal charges to be laid against individuals engaged in cartel conduct. Many opposing commentators argue that imposing criminal sanctions on individuals will only:
- result in a skills shortage in an important industry;
- jeopardise South Africa's infrastructure programme; and
- have a chilling effect on the Competition Commission’s corporate leniency policy.
However, at the annual Competition Law Committee breakfast this month Deputy Commissioner Trudi Makhaya, discarded some of these concerns referring to the USA where the corporate leniency programme and a criminal sanction regime successfully co-exist.
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