Investigative powers in practice – BOTSWANA – November 2018 OECD GFC

This presentation by the Botswanan Delegation was made during Break-out session 2: Requests for Information – Limits and Effectiveness, of the discussion on “Investigative Powers in Practice” held at the 17th meeting of the OECD Global Forum on Competition on 29 November 2018. More documents and presentations on this topic can be found at oe.cd/invpw.

1. 29
TH
NOVEMBER 2018
Investigative Powers in Practice.
Request for Information –Limits and
Effectiveness
Presentation to OECD
By Ernest Bagopi

2. •BackgroundonRFIandevidencecollection;
•TheeffectiveuseofRFI;
•RFIlimitations;
•Handlinglargeamountsofcomplexinformation;
•PreparingRFI;
•Detectingfalseormisleading/irrelevantinformation
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INDEX

3. •RequestsforInformation(RFI)isoneofthewidelyused
investigativepowers.
•TheAuthoritymayonitsowninitiative,oruponreceiptof
informationoracomplaintfromthepublicstartaninvestigation.
•Inordertogetrelevantinformation,theAuthorityinvitesthe
partiesconcernedtosubmitinformation(hardorsoftcopies)
whichmayassistthedeterminationoftheinvestigation.i.e.,prove
ordisproveconduct.
•Thisisstoredinasecurestrongroom.
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Background on RFI and evidence
collection

4. •InmostifnotallUnilateralconductcases,though
therearelegislationchallengesforcollecting
informationfromthirdparties,inpracticethishasnot
beenfeltthatmuchaspartiescomplyandcooperate
tosubmitinformationrequestedfortheinvestigation.
Thesamecannotbesaidformergertransactions.
•E.g.,recentcaseofResalePriceMaintenance,
whereby,theAuthoritywasinvestigatingfourmajor
wholesalersallegedtodictateretailsellingpricesto
theirbannergroupmembers(smallgeneraldealers).
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The effective use of RFI

5. •Theconcernedpartiestogetherwithmajorityof
bannergroupmembersnationwidecooperated,to
theextentofsecuringhundredsofswornwitness
statements.Analysisofinformationrequestedpointed
totheexistenceofRPMconduct.
•Forcartelcases,informationisnormallycollected
throughdawnraidsaftersecuringasearchwarrant
fromthemagistratecourt.
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The effective use of RFI….

6. •TheAuthorityusestheActtorequestforinformationfrom
thepartiesinvestigated,butinformationfromthethird
partiesisvoluntary(evenwithmergertransactions).
•Howeverwhenthethirdpartyisfoundtobedistractingthe
investigationbyrefusingtosubmitrelevantinformation
needed,suchcanbereportedtotheBotswanaPoliceto
dealwith.
•Anexampleisacasewhereamedicalaidcompany(third
party)wasrequestedtoprovidesomeinformationthatwas
relevanttoaninvestigationanditrefusedtogivesuch
information.
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RFI limitations;

7. •TheAuthorityapproachedtheBotswanaPolice,and
thisledtothethirdpartycooperatingandsubmitting
informationasrequested.ThishelpedtheAuthority
finalisethecasethereafter.
•Alotofmergercaseshavebeenassessedand
decidedonaftergivingupfromreceivinginformation
fromthirdparties.Theynormallyciteconfidentialityas
thereasonfornotsubmitting.
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RFI limitations…..

8. •Datamanagement isalsoachallenge,someofthe
informationthatisreceivedmaybevoluminousand
needssorting;somewouldnotbereliableor
outdated.
•Swornwitnessstatementscollectedaredonemanual
andoftenwitnesseshavetobetransportedto
BotswanaPolicestationfortakingoath.Timeand
distanceisachallenge.
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RFI limitations…..

9. •Thelargevolumesofdataiscategorisedinorderof
importanceaswellasdatesandprocessedinthe
followingstages:
a)ValidationorInitialDataAnalysis:Wesatisfyourselvesthat
dataisself-consistent,thatthedatawascollectedcorrectly,
andthatdatarepresentsatruereflectionofevents;
b)Description:Theobjectiveinterpretationofthisdata;and
c)Evaluation:Giventhedescription,doesthedatatellusthat
thereisaconductworthinvestigating.
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Handling large amounts of
complex information

10. Incartelcases,documentsrequestedrelateto:
–InvitationtoTender(ITT)document;
–Directorshipandshareholding;thetotalnumberandlistofthe
companiesthathadsubmittedbids;
–thebidsforallthetenderers;evaluationreport;and
–thecompanythatawardedthebidetc.
Inviewofthenatureoftendering,thevolumeofinformationand
documentsisveryhuge.
Forotherconducts,informationrequestedisrelatedto:ascertaining
marketdefinition;shareholdingrespondents;andanyother
informationthatcouldassistinestablishingtheexistenceofthe
conductinquestion.
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Preparing RFI

11. Forotherconducts,informationrequestedisrelated
to:
–ascertainingmarketdefinition;
–shareholdingrespondents;and
–anyotherinformationthatcouldassistin
establishingtheexistenceoftheconductin
question.
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Preparing RFI…..

12. •TheAuthorityhasinplace,Memoranda of
Understandingwithotherregulatorybodiese.g.,
PPADB,GA,NBFIRA,BoB,BURS,CIPA,CAAB,and
DCEC.ThisassiststheAuthoritytoverifyinformation
submittedbyenterprisesafterarequest.
•Thisinformationcouldbetaxreturns;sales;production;
companyregistrationdetail,shareholdingetc.Ina
numberofcasesithasbeendetectedthatthe
directors'detailsthatweresubmitted,didnotreflect
theonesshowingattheregulatoryorganisation.
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Detecting false or misleading/irrelevant
information

13. Remercierles bonnes
personnes
Thank you good people
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