Displaying items by tag: Investigation
South Africa: The Competition Tribunal has resumed hearings into allegations of cartel-like behaviour by Natal Portland Cement (NPC), Pretoria Portland Cement Company (PPC), Lafarge Industries South Africa (Lafarge) and AfriSam Consortium (AfriSam). It follows a referral by the Competition Commission following an investigation in 2015 that examined collusive conduct between the cement companies between 2008 and 2012. At the time PPC was granted conditional leniency and AfriSam and Lafarge settled with the Commission.
Ministry finds irregularities in accounts of Burnpur Cement
04 January 2019India: A probe by the Ministry of Corporate Affairs (MCA) has found ‘serious’ financial irregularities in the accounts of Burnpur Cement. The regional director of the MCA has recommended an investigation of the company, according to the Business Standard newspaper. The MCA has also recommended that the cement producer be barred from making interest payments without government permissions in the interest of its shareholders. The company was reported as a non-performing asset in 2016 and its repayment schedule to lenders has been monitored in the media. It made a loss of around US$15m in the financial year that ended in March 2018.
Philippine Cement Importers Association says prices may rise if tariffs are introduced
03 January 2019Philippines: Napoleon Co, the president of the Philippine Cement Importers Association (PCIA), says that the introduction of tariffs on cement imports may lead to higher prices. He said that if new tariffs were started some importers would cease operating, according to the Manila Standard newspaper. He then argued that local producers might raise their prices to match the higher cost of imported cement. Co made the comment in response to an on-going investigation into tariffs being run by the Department of Trade and Industry (DTI). Several importers allegedly stopped imported cement after the DTI launched the investigation in September 2018.
Consumer group asks Philippine trade ministry to delay investigation into duties on imported cement
19 December 2018Philippines: Laban Konsyumer (LK), a consumer group, has asked the Department of Trade and Industry (DTI) to delay an investigation into whether tariffs should be imposed on imported cement. It says that any potential duties are bad for consumers as it will decrease imports and create shortages, according to the Manila Bulletin newspaper. Instead the LK argues that the DTI should allow the expansion of local production capacity to finish before investigating imports. The DTI started an investigation into cement imports in September 2018 amid reports of declining revenue from local producers.
Competition Council starts investigation in Romania
21 November 2018Romania: The Competition Council has launched an investigation into an alleged anti-competitive agreement between Holcim, CRH and HeidelbergCement in early November 2018. It is concerned that there has been possible coordination of prices between the companies since 2010. As part of the probe, it conducted raids at the headquarters of the three companies and seized documentation. It has warned that fines of up to 10% of company turnover are applicable should it find any evidence of collusion. However, it also mentioned that companies that cooperated with the competition authority could expect leniency in the form of immunity to or reduced fines.
Pakistan: The Supreme Court has appointed a special committee to visit the DG Khan’s cement plant in Chakwal to investigate how it stores water. The committee will report back to the court about the capacity of the reservoirs built by the plant as well as whether they were filled by extracting water from the aquifer or from rainwater, according to the Dawn newspaper. The committee will also take samples of water from the reservoirs.
The court has been looking into how DG Khan and Bestway Cement set up cement plants in the Potohar region related to water issues at the nearby Katas Raj Temples. Previously, the court was told that the DG Khan Cement was only operating tube-wells for domestic use by its workers but a witness alleged that the plants were extracting water for industrial use from the water table.
Anti-corruption investigation restrained from taking criminal action against heads of DG Khan and Bestway Cement
13 November 2018Pakistan: The Supreme Court has restrained the Punjab Anti-Corruption Department from launching criminal proceedings against the heads of DG Khan and Bestway Cement. The decision was made following a review petition filed by DG Khan Cement, according to the Statesman newspaper. It follows an investigation initiated by the Supreme Court to look into the setting up of cement plants in the Potohar region. The probe alleges government and corporate corruption.
Cement Manufacturers Association of Ghana calls for investigation into Chinese cement imports
19 October 2018Ghana: The Cement Manufacturers Association of Ghana (CMAG) has appealed to the Ghana Standards Authority (GSA) to investigate the quality of Chinese cement imports. In a letter of the GSA George Dawson-Ahmoah cited two companies in Tema and Ejisu that allegedly sell cement products of ‘questionable’ quality, according to the Business and Financial Times newspaper. He also posited that samples of cement from these companies were ‘alarming’ and that this explained why their prices were ‘ridiculously’ low.
CMAG consists of Ghacem Limited, Diamond Cement group, CIMAF Ghana and CBI Ghana Limited. However, when asked by the local media why Chinese companies supplying Ghana were not part of the association, Dawson-Ahmoah said that they had been invited.
France/Syria: A judicial investigation has seized Euro4m from former Lafarge executives, including former chief executive officer (CEO) Bruno Lafont, as part of a probe into the company’s conduct in Syria. Sources quoted by the Agence France Presse said that Euro2.5m was confiscated from Lafont’s leaving package of Euro8.4m as Lafarge merged with Holcim to form LafargeHolcim. Funds were also taken from Bruno Pescheux and Frédéric Jolibois, the former directors of Lafarge Cement Syria, and from Christian Herrault, a dormer deputy general regional manager with overview of Syria.
Lafarge SA, a subsidiary of LafargeHolcim, has been placed under judicial investigation over its actions in Syria between 2011 and 2014. It has been accused of complicity in crimes against humanity and financing terrorism. A panel of three judges in Paris has ordered Lafarge to pay over Euro30m as a security deposit ahead of the trial. Eight former executives, including Lafont, have been charged in connection to the investigation.
Government irregularities reported into setting up of plants by DG Khan and Bestway Cement in Chakwal
16 October 2018Pakistan: A report issued by the Punjab Anti-Corruption Establishment Lahore (ACE) to the Supreme Court has found irregularities committed by government departments in connection to the setting up of cement plants by DG Khan and Bestway Cement in Chakwal. The investigation followed a probe by the Supreme Court into water usage by cement companies near the Katas Raj Temples, according to the Dawn newspaper. The allegations include a delay by the district government of Chakwal, industries, environment, mine and mineral departments into declaring so-called ‘negative’ areas that would have otherwise prevented the plants being built between 2003 and 2008. Other findings of the report include irregularities into how both companies acquired land and a disregard for environmental protocol.