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THE Namibia Competition Commission (NaCC) has launched a probe into alleged exclusive dealings in property conveyance between Bank Windhoek and law firm Dr Weder, Kauta and Hoveka Incorporated.
The NaCC suspects an alleged agreement between Bank Windhoek and the law firm creates an unfair advantage over other law firms.
The dealings, involving property conveyancing services, are being investigated under section 33 of the Namibian Competition Act.
NaCC released a statement this week, saying it received a complaint that Bank Windhoek and Dr Weder, Kauta and Hoveka Incorporated entered into an exclusive conveyancing agreement for properties financed by the bank.
It is alleged that the agreement requires Bank Windhoek property financing applicants to only make use of Dr Weder, Kauta and Hoveka Incorporated’s conveyancing services, to the exclusion of other service providers in the market.
“The agreement and its maintained exclusivity is said to limit competition and forecloses other independent service providers in the relevant market, which is provisionally defined as the provision of conveyancing services to Bank Windhoek-financed property transactions,” the NaCC statement read.
Bank Windhoek allegedly contravened section 23 (1), read with section 23 (2) (b) of the Competition Act, the commission said.
In terms of this, the law firm is accused of entering into a partnership that possibly lessens competition.
Bank Windhoek is also alleged to have contravened section 23 as well as section 26 that speaks to abuse of dominance.
As a result, Bank Windhoek is accused of directly or indirectly imposing unfair practices, while limiting or restricting progress.
The bank is also accused of applying dissimilar conditions to equivalent transactions with other trading parties; and making the conclusion of contracts subject to acceptance by other parties of supplementary conditions.
“The commission has engaged all the affected parties and afforded them the opportunity to respond to the allegations. Upon receipt of the responses to the allegations, the commission will conduct an assessment and stemming therefrom, determine the relevant cause of action,” the commission said.
The NaCC enforcement, exemptions and cartels acting director and senior economist Paulus Hangula told The Namibian that the investigation just started and the parties have been given a specified time to respond to the queries.
“They are now busy preparing those responses and once we have those responses, we will determine the way forward. The investigation will take its course but we cannot say how long it will take because it will depend on information provided and verification of such information,” he noted.
Meanwhile, Bank Windhoek’s executive officer of marketing and corporate communication services Jacquiline Pack said it is an ongoing regulatory inquiry in terms of which submissions to the investigation still require to be heard, considered, and assessed by the competition commission in order to make a final determination.
As a result, Pack said the bank reserves its comments until this process has been concluded and finalised in line with all applicable legal and administrative law principles.
“Bank Windhoek subscribes to good corporate governance principles and standards and is lending its full support and cooperation to the commission during this ongoing process,” she said.
She added that it is accepted that a public regulatory institution may publish notices of investigations conducted in terms of the Competition Act, considering public interest in such matters.
Dr Weder, Kauta and Hoveka responds
In his response, Dr Weder, Kauta and Hoveka Incorporated managing director André Swanepoel attached letters written to the NaCC and Jacobs Amupolo Lawyers & Conveyancers.
In the letter to the NaCC, Swanepoel said they were unaware of such an exclusive service level agreement with Bank Windhoek, and requested a copy by close of business on 23 May.
In the letter to Jacobs Amupolo Lawyers & Conveyancers, Swanepoel said: “Reference in the media statement has been made to an exclusive service level agreement entered into between our firm and Bank Windhoek in terms of which ‘other conveyance service providers’ are specifically excluded from providing such services to Bank Windhoek. As a complainant in the matter, we request that you provide a copy of such agreement by 23 May.”
In both the letters rights were reserved, including the right to sue for reputational damage.
Swanepoel told The Namibian they had instructed lawyers in the matter, and since it is sub judice, they have no further comment.
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