Displaying items by tag: Fine

Namibia: The Namibian Competition Commission (NaCC) has imposed a US$269m fine on two companies for completing a merger without prior approval. The acquisition of Hong Xiang Holdings’ shares by Wang Zhongke from Fan Qingmei led to the companies being fined after an investigation found that the merger would create a monopoly in the cement market. NaCC spokesperson Dina Gowases stated that the merger failed to meet the notification requirements under the Competition Act, aimed at safeguarding competitive markets crucial for the construction industry and the national economy. The settlement also requires the companies to implement a competition law compliance programme in Namibia.

India: The government’s Income Tax Department fined Shree Cement US$481m on 5 January 2024. The fine is for the company’s use of falsified bills in relation to a non-existent waste management plant to claim US$1.02bn-worth of tax deductions between April 2014 and March 2023.

The Economic Times newspaper, breaking the story, reported that neither Shree Cement nor the Income Tax Department has yet issued a statement.

India: UltraTech Cement says that it has received demand orders from two local revenue authorities for issues relating to its past tax payments. The Financial Express Online newspaper has reported that the producer must pay a total of US$86,600, including interest and fines. Office of the Deputy Commissioner of State Tax, Bhavnagar, Gujarat, demanded US$56,400 due to an allegedly ineligible input tax credit. Meanwhile, the Office of the Assistant Commissioner of Central Goods and Service Tax Division II, Punjab, demanded US$30,200 due to input service distributor credit not reflected in its statement for the 2018 financial year.

UltraTech Cement plans to challenge the orders, to wit the company said that it has a ‘good case on merit’ to present before appellate authorities.

Canada: A provincial offences court has fined Heidelberg Materials Canada US$142,000 for ‘failing to take every precaution reasonable in circumstances under which three contractors were injured at its Picton cement plant. The workers were reportedly injured in a flash fire while replacing the plant’s jet air blower, after company engineers mistakenly overrode digital signals on both open valves between the gas supply and the area where the repair was taking place.

Bolivia: The Bolivian Attorney General’s Office says that is open to meeting representatives of Sociedad Boliviana de Cemento (SOBOCE) in order to negotiate a ‘better arrangement’ following Bolivia’s nationalisation of a stake in SOBOCE subsidiary Fábrica Nacional de Cementos (FANCESA) by supreme decree in 2010. SOBOCE owes FANCESA US$108m in damages for unfair competition since that time.

SOBOCE said "SOBOCE, together with its shareholders of Grupo Gloria del Peru, will continue to resort to judicial and/or arbitration channels (national or international) for the recognition of their rights. We believe in justice and in the legitimate right that we have, since the Bolivian Constitution guarantees the payment of compensation in case of expropriation."

Spain: The Supreme Court of Spain ruled in favour of tax authorities in their pursuit of Cemex España for its accounting of reported losses in the 2006 – 2009 financial years on 21 November 2023. The authorities imposed a Euro456m fine on the company following an audit in July 2011.

Mexico-based Cemex said that is has ‘sources of liquidity’ available to pay the fine, which it now anticipates that it will do before the end of June 2024.

Cemex ‘categorically’ disagrees with the imposition of the penalty. The group maintains that the losses Cemex España declared were not used and since 2012 have not been accounted for in its financial statements.

India: The Satna District Office of Collector (Mining) has fined Birla Corporation US$1m for its excess extraction of limestone between 2001 and 2007.

Birla Corporation said “The company did not take environment clearance due to the ambiguity in the provisions of Environmental Impact Assessment Notification 1994, which was only clarified subsequently by the principles laid down in the common cause judgement of the Supreme Court dated 2 August 2017. However, the company had valid consent to operate the mines from State Pollution Control Board. The company remains committed to ensure compliance with all applicable laws. The company is reviewing the order and evaluating the next steps in this matter.”

Australia: Cockburn Cement has mounted a successful appeal against a US$187,000 fine for odourous emissions from its Munster cement plant in Western Australia in 2019. Business News Western Australia has reported that the company had been found guilty of six charges related to emissions violations. In its latest judgment, the court revised the company’s fine to US$159,000. It also granted the company leave to further appeal.

US: Buzzi Unicem USA has challenged penalties worth US$62,500 and denied that it failed in its duty to protect an employee who died after falling into the Mississippi River while working on a barge at the Natchez terminal in Mississippi in February 2023. The Occupational Safety and Health Administration (OSHA) cited multiple alleged safety violations by the Buzzi subsidiary in a report published in mid-August 2023.

Buzzi Unicem USA said “The company strongly contends that it did not violate the regulations set forth in the citations regarding personal floatation devices and guardrails, and therefore timely filed notice with OSHA that it is contesting the alleged violations contained in these citations (as well as certain aspects of the other citations).” It continued “The company objects to any characterisation by OSHA that the citations are a final determination that the company violated any OSHA regulation or caused the death of our valued employee.”

UK: A court has fined CRH subsidiary Tarmac US$516,000 for failing to ensure the provision of moveable guards fitted to an interlocking device connected to a rotary mill at its Dunbar cement plant between January 2019 and April 2021. The East Lothian Courier newspaper has reported that the failure resulted in a worker’s loss of fingers after he came into contact with the unit’s rotary valve on 30 April 2021. The producer has until 20 September 2023 to pay the fine.