CTC underfunded Sibanda

The Competition and Tariffs Commission (CTC) is experiencing operational challenges due to serious underfunding and high labour turnover suffered during the countrys decade-long economic meltdown.

CTC chairperson Dumisani Sibanda told the Parliamentary Portfolio Committee on Industry and Commerce recently the commission was training personnel to boost their staff.

Funding is a problem. We are getting funding through the Ministry of Finance in terms of grants. We charge mergers and we also get a portion on levy exports (that) we share with Zimtrade, he said.

Managing director Alexander Kububa said there had been a marked increase in merger control activities as reflected in the number of partnerships referred to the commission for examination.

There are, however, signs of resurgence in the commissions merger control activities, Kububa said.
He said CTC had so far approved a merger involving the acquisition of Kingdom Financial Holding Limited by AfriAsia Bank Limited of Mauritius.

Since 1999, CTC has approved 136 mergers. About 71 of them were approved between 1999 and 2005, 49 between 2006 and 2009 and 16 between 2010 and 2011.

Sibanda said there was need for amendments to the Mergers Act as the definition of a merger is too limited under the current legislation.

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