While the amendment of the Competition Act from May 1 allows for directors and managers of businesses to be held criminally liable for a company’s collusive behaviour‚ this appears to be a duplication of enforcement and borders on redundancy. This is the view of Maphanga Maseko‚ associate in competition law at TGR Attorneys‚ who says the amendment may make the task of uncovering cartels much harder in the future.According to the amendment to the Competition Act‚ the directors or managers who are aware of the cartel conduct that their company is involved in‚ could face imprisonment.Cartel conduct is the process by which businesses agree to act together instead of competing against one another.An agreement is designed to drive up profits‚ while maintaining the illusion of competition through practices including price fixing‚ dividing of markets and collusive tendering.Maseko said he believes the Prevention and Combating of Corrupt Activities Act may provide for better remedies against cartel conduct as it imposes harsher sanctions and penalties.“The Prevention and Combating of Corrupt Activities Act appears to treat collusive tendering as corruption and provides for sentences ranging from 5 years to life imprisonment‚ depending on the court that presides over the prosecution."He said in addition‚ a court could make an order that the person or company found guilty of corruption be blacklisted by the National Treasury and thus be prevented from doing business with the state and that the current contracts with the state be terminated.Maseko also expressed concern that the amendment could also scupper the effectiveness of the Compettition Commission’s Corporate Leniency Policy (CLP).The policy offers a cartel member the possibility to disclose information on a cartel to the commission in return for immunity from prosecution and fines.Immunity is only available to the first cartel member to approach the Commission.Maseko described the policy as the cornerstone of competition policy and which assists the commission to uncover cartel conduct that would otherwise have gone unnoticed.“The (policy) has been an overwhelming success and has led to a number of cartels being uncovered and billions of rand in fines being paid by the guilty companies.“Regrettably‚ the effect of the amendment may undermine the success of the CLP as it may lead to the managers or the directors concerned not informing their employers of their involvement in the cartel for fear of criminal liability.”Maseko said this could result in less cartels being uncovered or going underground.“It seems the amendment may make the tasks of uncovering cartels much harder in the future‚” Maseko said.TMG Digital..