Competition Commissioner Doris Tshepe is accused of pushing for the blocking of the Vodacom-Maziv deal, despite a contentious decision within the commission. Sources claim that two commission members supported the deal, considering it beneficial for the country’s economy.
Competition Commissioner Doris Tshepe has been accused of “pushing through” a ruling recommending that Vodacom’s bid to buy a R13-billion stake in Maziv be blocked, Business Times reports.
Sources at the competition watchdog have told the publication that the decision — announced in August 2023 — was a split one, with two commissioners out of the four convinced that the deal should be permitted.
Tshepe and deputy commissioner James Hodge were opposed to the deal, while the other two commissioners believed it would benefit the South African economy.
One senior commission executive, who preferred to remain anonymous, regarded the ruling as “irrational.”
They argued that public policy — and by extension competition policy — should prioritise comprehensive economic and social progress in South Africa.
“Our legislation is forward-thinking, explicitly incorporating considerations of industrial growth, job creation, and transformation into the assessments made by competition authorities regarding specific transactions,”
the executive said.
“This is clearly articulated in the preamble of the Competition Act. It is what makes the Vodacom decision irrational.”
Business Times has also received a letter from disgruntled Commission employees to former trade minister Ebrahim Patel, which contains serious allegations about Tshepe’s conduct and management style.
Staff have accused the commissioner of negligence and underperformance, alleging that new cases were not being initiated and old cases remained stuck at the investigation level.
Pertaining to the Vodacom-Maziv acquisition in particular, it took the commission unusually long — 20 months — to make its recommendation after the companies submitted the proposed transaction.
The firms had also worked with the commission to fine-tune conditions to ensure the deal achieves its purpose of improving broadband connectivity in the country while mitigating competition concerns.
These conditions were sufficient for Vodacom and Maziv owner Community Investment Venture Holdings (CIVH) to secure the support of MTN, Rain, and the Department of Trade, Industry, and Competition.
The employees also accused Tshepe of not spending enough time understanding cases fully.
“She loses the moral high ground with her lavish ways, with international trips, internal staff meetings with catering, conference dinners and year-end functions,”
the letter stated.
“The events are becoming more elaborate, with alcohol purchased at (the commission’s) expense and venues booked for wedding-like events, all in complete disregard of the Public Finance Management Act and National Treasury instructions.”
The Competition Tribunal's decision to block the Vodacom-Maziv deal on October 29, 2024, was influenced by the commission's recommendation. Vodacom and CIVH have filed an appeal and are awaiting the Tribunal’s detailed reasons, which were due within 20 business days but have not yet been provided. The case involved complex competition and public interest issues, with 19 witnesses and a record of over 21,000 pages.
CIVH's largest shareholder, Remgro, expressed shock at the ruling, with its head of strategic investments criticizing the message it sends to global investors. Trade Minister Parks Tau, who is also appealing the decision, called it a rare move for the department. Remgro's chairman, Johann Rupert, supported Tau’s intervention, calling the ruling "absurd" and stressing the importance of infrastructure investment for South Africa.
Sources: Mybroadband, Business Times
