Swakopmund municipality and Rent-A-Drum slammed for anti-competitive behaviour

Swakopumd mayor Dina Namubes

The Namibia Competition Commission (NaCC), the Swakopmund municipality, Rent-A-Drum and a Finnish company, Molok Oy, are set to reach a settlement after findings of anti-competitive behavour in the deep waste collection business.

NaCC spokesperson Dina Gowases says accusations are that as part of its long term relationship with Rent-A-Drum, the municipality exclusively makes use of the Molok deep waste collection system which is not compatible with other deep waste collection systems in the market.

“In procuring of deep collection bags, the municipality specifically supplies the Molok Oy bags, which can only be sourced from Rent-A-Drum. As such, the municipality has introduced a product which is only supplied by a single company which is also solely responsible for its maintenance,” Gowases says.

She says the Finnish company appointed Rent-A-Drum as their sole distributor in the Namibian market.

Based on these findings, the commission concluded that the conduct of the parties had adverse effects on competition.

They have contravened section 26 (1) read with section 25 (2a) of the Competition Act, Gowases says.

The parties have so far been afforded a chance to make written submissions or oral representations to defend themselves as per section 36 and 37 of the act.

“While emphasising that a final decision has not been made in this matter, the commission notes the provisions of section 40 of the Competition Act and confirms its willingness to engage the respondents to settle this matter and to have proceedings under section 38 of the Competition Act, should that be an option they wish to pursue,” she says

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