Onkabetse Gwams, Gosego Rockfall Lekgowe, Kabo Motswagole lets interogate this issue from Competition law point of view; Following the decision by Gaborone City Council to incorporate a private company, which will among other things will engage in estate, property development and other commercial arrangements, I am concerned that they are serious competition concerns in this arrangement. State or municipal owned Companies usually have advantages in terms of Concessionary financing and guarantees ( When private Companies are financing their entities with loans and guarantees at commercial market rates, Municipal Company will have access to financing at zero or very low interest from public funds), regulatory neutrality (I wonder if council will impose stringent environmental, planning and buildings standards on its companies when it is not imposing such on itself), and also public procurement (How do you compete with the buyer and bidder at the same time).These advantages have implications on costs of productions or services and ultimately can make municipal company to offer service or products at far cheaper rates than private companies. I think the Competition Authority should look at this arrangement and assess competition concerns and eliminate these advantages.
Posted on: Fri, 07 Jun 2013 09:29:27 +0000
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