Innscor property attached for violating the Competition Act

Several vehicles belonging to Innscor Africa Limited have been attached by the Sheriff of the High Court of Zimbabwe to enforce the payment of $3.3 million awarded against the multinational corporation for violating the Competition Act.

According to the records, the attachment was made in the presence of the Group's Company Secretary Andrew Larimer.

Among the vehicles attached are a BMWx3, 3 Isuzu twin cab vehicles, several Toyota Salons, a Nissan truck, a Toyota Hilux and a white Isler letter generator.

The latest development is an action prompted by the multinational corporation's liability in violating the merger notification provisions under the Competition Act.

According to the Competition Act, a company should notify the regulator of a merger or acquisition of a controlling stake within a month or face a penalty not exceeding 10 percent of its annual turnover.

Innscor acquired a 36 percent stake in Natfoods in 2003 and increased it to 49, 9 percent in 2011.

It presently holds 37.82 percent but only notified the Competitions and Tarrifs Commission in 2012.

The attachment of the property will be complete when the value of the property attached comes to US$3,3 million as determined by the courts.

The Competition and Tarrif Commission had instituted a probe in terms of Section 14:28 of the Competition Act in which the conglomerate was being investigated for possible restrictive practices and creating unfair trade barriers against potential competition.

Several attempts to get a response from Innscor spokesperson Musekiwa Khumbula were in vain as his mobile phone went unanswered while a visit to his Newlands Office were equally fruitless as his secretary said he would come back to this reporter.