The Competition Tribunal has confirmed, as an order, a consent agreement between the Competition Commission and Wilmar SA (formerly Wilmar Continental Edible Oils and Fats).

Although it has agreed to enter into a consent agreement and pay a settlement amount of R1-million among other requirements, Wilmar denies having contravened the Competition Act.

In December 2016, the commission initiated a complaint against Wilmar and other firms for alleged price-fixing and/or fixing of trading conditions in contravention of the Competition Act.

The commission later added allegations of market division against Wilmar and another firm under the Act.

The commission and Wilmar have agreed that settlement is a pragmatic resolution to their longstanding disputes.

In addition to paying the settlement amount, Wilmar has undertaken a range of public interest and compliance commitments. These include an investment of R49.5-million over five years in several public interest initiatives, outlined below.

The education initiative will comprise a combination of learnerships, apprenticeships and bursaries to historically disadvantaged persons and/or otherwise underprivileged candidates. Funding under the education initiative shall be limited to post-school education and training and shall not include primary education.

For the school infrastructure development initiative, a specified amount shall be specifically allocated for the eradication of pit latrines at rural schools; and other school infrastructure projects including the construction of new schools and the refurbishment and re-equipment of existing schools.

Another initiative, the enterprise and supplier development fund, will be applied towards business incubation initiatives, including the provision of capital to support the establishment and expansion of small, medium-sized and microenterprises and businesses.

Beneficiaries of this fund shall be integrated into Wilmar's supply chain and shall receive a guaranteed commercial engagement with Wilmar for a certain specified minimum period.

In addition to financial support, the initiative shall provide a comprehensive suite of developmental interventions, including but not limited to structured mentorship, regulatory compliance training and IT enablement.

Wilmar has also committed to foreign direct investment, which includes establishing a new rice packaging plant, among others.

Meanwhile, in terms of the consent agreement, Wilmar agrees and undertakes not to engage in any anti-competitive conduct that is in contravention of the Act.

It will also develop, implement and monitor a competition law compliance programme as part of its corporate governance policy, which is designed to ensure that all employees, management and other functionaries do not engage in conduct that is in contravention of the Act.