Cape Gate, one of four metal traders raided by the Competition Commission on Friday, has denied any wrongdoing and indicated it will initiate urgent proceedings to set aside the search warrants obtained by the commission.
On Friday, the commission conducted search and seizure operations at the premises of four scrap metal purchasing companies operating in Germiston, Nigel, Vanderbijlpark, and Hammanskraal.
The commission said it had reasonable grounds to suspect that Scaw South Africa, Cape Gate, Shaurya Steel, trading as Force Steels, and Unica Iron and Steel have engaged in fixing the purchase price of shredded or processed scrap metal.
The commission obtained a search warrant from the Pretoria high court authorising it to enter and search the premises of these companies and seize information that had a bearing on the investigation.
Cape Gate confirmed officials from the commission conducted an unannounced visit to the company’s premises as part of a wider industry inquiry that follows unsubstantiated complaints made by a third party to the commission in 2023.
Cape Gate said it had always co-operated and was co-operating fully with the commission. In 2025, it made all requested information and documentation available.
The company said there was no need for a search operation, as Cape Gate has always been open and available to the commission.
“We take compliance with all laws and regulations seriously, including the Competition Act. We are confident that our business practices are fully compliant with competition law. We strongly deny any wrongdoing,” said Dorothea Ziegenhagen, CEO of Cape Gate.
Cape Gate said it believed the search warrant was unlawful, and it intends to initiate urgent proceedings to set it aside.
The company said it had a right to ask for a reconsideration of the warrant, given that the order was granted in its absence. It also said there was a clear obligation on the commission to fully disclose all relevant facts to the court. Cape Gate believed the commission failed to make full disclosure as required.
In relation to the October 2025 Competition Tribunal decision regarding scrap purchasing between 2000 and 2008, Cape Gate maintained its stance that the tribunal’s judgment was incorrect and there had not been a contravention of the Competition Act.
In that judgment, the tribunal found that Cape Gate contravened the act by participating in price-fixing in the market for the purchase of scrap metal in South Africa. The tribunal found that certain large buyers of scrap, including Cape Gate, entered into an agreement to fix the purchase price of scrap metal. The other respondents were ArcelorMittal South Africa, Columbus Stainless and Scaw South Africa.
ArcelorMittal and Columbus both admitted liability and concluded settlement agreements with the commission, which were later confirmed by the tribunal. Scaw was the corporate leniency applicant.
“In this regard, Cape Gate has launched both review and appeal proceedings against the tribunal’s decision, which are currently sub judice and will be heard in the Competition Appeal Court during the first quarter of 2026.”
TimesLIVE
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