Outcome of cases on Tribunal roll for Wednesday, 22 March 2017

Decision on Citibank settlement agreement postponed

A decision regarding the settlement agreement involving Citibank NA in connection with a forex investigation has been postponed pending a decision by the Tribunal.

The Competition Commission has reached an agreement with Citibank N.A. whereby the bank admits contravening the Competition Act and agrees to pay an administrative penalty of R69 500 860 (Sixty Nine Million Five Hundred Thousand Eight Hundred and Sixty Rands) for its role in an alleged forex cartel.The Commission appeared before the Tribunal today, 22 March, to request an order confirming the agreement.

The Tribunal has asked for additional information from the Commission regarding the percentage of Citibank’s turnover on which the fine is based. This was not contained in settlement agreement documents and will not be released publically.

The Commission in its complaint says that from at least 2007, Citibank N.A. and its competitors had a general agreement to collude on prices for bids, offers and bid-offer spreads for the spot trades in relation to currency trading involving US Dollar/Rand currency pair.

The Commission said its investigation found that Citibank N.A. and its competitors manipulated the price of bids and offers through agreements to refrain from trading and creating fictitious bids and offers at particular times. In terms of the settlement agreement Citibank N.A. will appear as a witness at their competitor’s hearings and, according to the Commission, Citibank has already begun supplying information that is helpful to the Commission’s investigation.

Citibank is the first of the banks to reach a settlement with the Commission in the complaint the Competition Commission v Bank of America Merrill Lynch and Seventeen Others lodged with the Tribunal.

Redefine Properties to gain control of Galleria in Rosebank

The Tribunal has approved the unconditional merger of Redefine Properties Limited and Cirano Investments with regard to the Galleria in Rosebank, a prime redevelopment site.

Redefine is a JSE-listed company, with subsidiaries, while the Galleria is a prime redevelopment site offering with retail and office space.

Issued by:

Chantelle Benjamin

Communications: Competition Tribunal   

Tel (012)394 1383                                     

Cell: +27 (0) 73 007 5603  

Twitter: @comptrib                                       

E-Mail: chantelleb@comptrib.co.za


On Behalf Of:

Lerato Motaung                                                   

Registrar: Competition Tribunal                                        

Tel: (012) 394 3355                                             

Cell: +27 (0) 82 556 3221                                              

E-Mail: LeratoM@comptrib.co.za