CCA settles with Hollard; case proceeds vs BIC, Old Mutual
Mbongeni Mguni | Thursday April 30, 2026 09:40
The case is being heard at the Competition and Consumer Tribunal.
Yesterday, another participant in the alleged scheme, Hollard Insurance, reached a settlement with the fair-play watchdog, agreeing to pay P4.8 million for its role in the scheme.
The CCA hailed the agreement endorsed by the Tribunal as “the first cartel settlement” in the country’s history.
Today’s case follows a referral to the Tribunal by the CCA in November 2023 for a decision on the case.
“This referral emanated from an investigation undertaken by the Authority against the Respondents which revealed that the Respondents were engaged in anti-competitive conduct, including direct or indirect fixing of prices and terms of trade to car repairers, abuse of dominance and entering into horizontal and/or vertical agreements in the form of active cooperation and sharing of trade secrets which had the effect of substantially lessening competition in the market,” the CCA said in a statement.
The CCA’s case against BIC and Old Mutual also involves Autoboys Evolve, an auto-parts company that was allegedly involved in the anti-competitive activities. According to CIPA records, BIC is indirectly a shareholder in Autoboys Evolve. BIC is the sole shareholder of a company called Claims Assessing Bureau, which in turn holds 30 percent equity in Parts Portal Pty Ltd, which in turn is the owner of Autoboys Evolve.
The latest developments before the Competition Tribunal trace back to March 12, 2019, when a group of local panel beaters lodged a complaint with the CCA alleging that Hollard Insurance Botswana, Old Mutual Financial Services Botswana and BIC were abusing their dominance.
Mmegi reported on the case at the time.
“The respondents’ conduct signals coordinated behaviour through the respondents’ common terms of trade that impose a cap on labour costs and predetermined mark-up,” read a letter from CCA to one panel beating company seeking consent to an extension of an investigation into this matter. “The respondents in union also force auto repair specialists (panel beaters) to disclose the costs of parts bought for the authorised repairs. “The circumstances of the case further imply possible market allocation and constructive refusal to deal through stringent terms of trade.”
Meanwhile, the CCA shared details of its settlement with Hollard, indicating that the agreement ended all enquiries or dispute with the short-term insurer.
Under the settlement, Hollard has:
- Acknowledged that certain of its past conduct was in contravention of the relevant provisions of the Competition Act; - Confirmed that it has ceased such conduct; - Undertaken to develop, implement and monitor a competition law compliance program as a part of its ongoing business assurance activities and to submit a copy of this program to the Authority within 90 days; - Agreed to fully cooperate with the Authority in its prosecution of the remaining respondents in the referral; and - Agreed to pay a financial penalty of BWP 4, 828, 510.08