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Fair Trading Commission Annual Report | 2010

The Fair Trading Commission

Seychelles

Annual Report 2010


Seychelles

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Fair Trading Commission

Annual Report 2010

Presented to the Minister and the National Assembly

Pursuant to section 29 of the Fair Trading Commission Act

© Fair Trading Commission 2010

The text of this document may be reproduced free of charge in any format or medium providing that

it is reproduced accurately and not in a misleading context.

The material must be acknowledged as Fair Trading Commission of Seychelles copyright and the

document title specified.

Any enquiries regarding this publication should be sent to us at [email protected].

This publication is available for download on our website at www.ftc.sc

mailto:[email protected]

http://www.ftc.sc/

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…to safeguard the interest of consumers,

to monitor and investigate the conduct of business enterprises,

to promote and maintain effective competition in the

economy….

(Fair Trading Commission Act, 2009)


Seychelles

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Content Forward by the CEO ............................................................................................... 5

The Functions and Powers of FTC .......................................................................... 6

The Board of Commissioners ................................................................................. 7

FTC Management ................................................................................................. 10

FTC Major Accomplishment ................................................................................. 13

Department Report .............................................................................................. 15

Communications ............................................................................................... 16

Competition ...................................................................................................... 18

Consumer ......................................................................................................... 20

Research & Policy ............................................................................................. 21

Legal ................................................................................................................. 22

Staffing and Administration ................................................................................. 24

Training and Development ................................................................................... 27

Financial Statement ............................................................................................. 28

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Forward by the CEO

Mr. Daniel Gappy,

Chief Executive Officer of FTC

The Fair Trading Commission (the FTC) was

established in 2009 as an enforcement

agency; its main role is to safeguard the

Competition process and to promote

Consumer Welfare. FTC is the custodian of

the Fair Competition Act 2009 (FCA) as well

as the Consumer Protection Act 2010 (CPA).

With both these Acts focusing on the supply

and demand sides of the economy, the

Commission’s initial work focused on an

awareness programme with the business

communities, to familiarize them on the role

and function of the commission, to explain

business conduct that were henceforth illegal

under the Acts and to engage all parties in

complying with the requirements of the Acts,

through non- punitive measures.


Seychelles

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The Functions and Powers of FTC

The FTC is mandated to carry out, investigations

in relation to the conduct of business in

Seychelles in connection with matters falling

within the provisions of the Fair Competition Act

and the Consumer Protection Act and to monitor

commercial activities and consumer market(s) to

ensure that business practices are not affecting

the interest of consumers.

Under the FCA, the FTC is also mandated to take

action so as to prevent the abuse of dominant

enterprises, to eliminate anti-competitive

practices and to prevent or control anti-

competitive mergers.

In addition the FTC functions under the CPA are

to educate and assist consumers in resolving

complaints and to monitor standard of services

supplied by service providers.

Furthermore the FTC has the mandate to advise

the government on matters relating to the Fair

Competition Act and the Consumer Protection

Act, to make available to businesses and

consumers, general information with respect to

their rights and obligations and to undertake

studies and publish reports and information

regarding matters affecting the interests of

consumers and enterprises.

“The Commission has exclusive jurisdiction

to hear and determine matters under any

written law relating to consumer protection

and fair competition.”

The FTC has the power to carry out

investigations in relation to the conduct of

business in Seychelles to determine if any

enterprise is engaging in practices that are in

contravention of the FTCA, FCA, CPA. Such

investigations may be self-initiated by the FTC or

be carried out following a complaint. All

investigations are carried out by the staff of the

FTC.

The FTC has the power:

To hold inquiries

To administer oaths

To summon and examine witnesses

To compel the production of such books,

records, papers and documents necessary

for the purpose of the investigation

To seize documents

To make test purchases

To inspect goods

To conduct hearings

To impose remedies or financial penalties

To conduct searches and seize documents or

articles

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The Board of Commissioners

The board of Commissioners constitutes five

commissioners, headed by a Chairman, together

with the Chief Executive Officer as an ex officio

member as established by the Fair Trading

Commission Act 2009. The Commissioners,

meeting together, act as the strategic decision-

making body for the Fair Trading Commission as

an institution. They also make the decisions on all

investigations of restrictive practices under the

Fair Competition Act and the Consumer

Protection Act conducting hearings with the

parties concerned and, where necessary,

imposing directions or agreeing to undertakings.

Dr. Shelton Jolicoeur

The Chairman of FTC Board of

Commissioners

Dr Shelton Jolicoeur attended the University of

East London in the UK where he obtained his

Bachelor of Law Degree (LLB Hons) in 1985 and

the University of Warwick, UK where he obtained

a Masters Degree in Law (LLM) in 1986. In 1987

he pursued the vocational course for the Bar

Finals at the Holborn Law Tutors in London.

Dr. Jolicoeur has occupied several key posts in

government and has been extremely active in

the academic front, writing many papers which

culminated with his Doctors of Laws Thesis ‘An

Examination of the Legal Forms, Legal Status and

the Managerial Mechanisms of Public Enterprises

in Developing Countries.’ He is an Associate

Fellow of the Society for Advanced Legal Studies

(UK).

Dr. Jolicoeur is a prominent International Legal

Practitioner based in Seychelles with wide

experience in practice areas of this firm. He is

also the legal consultant to International Law and

Corporate Services LTD and Trust & Fiduciary

Services LTD both being Corporate and

International Trust Service Providers in

Seychelles. He is a regular contributor to the

Doing Business in Seychelles.


Seychelles

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Mrs. Annie Vidot

Mrs. Vidot completed her BA (Hons) in

Accounting and Finance at the London

Metropolitan University, UK in 2004, as well as

several courses in related fields: Banking &

Development, International Ireland Ltd,

Dublin/London, 2007; Compliance & Risk

Management Programme, Bakerplatt, Jersey,

2006; Anti-Money Laundering Refresher Training,

Bakerplatt, Jersey, 2006, SME Financing and

Development, Malaysia, 2010.

She has been the Loans Manager at the

Development Bank of Seychelles since 2007 and

has held several posts in the banking sector. For

instance Internal Auditor, Development Bank of

Seychelles (2005 – 2006) Project Officer/ Senior

Project Officer, Development Bank of Seychelles (

1995 -2005), Audit Assistant/ Audit Supervisor,

Ministry of Finance, 1993 – 1995.

Mrs. Dolly Tirant

Mrs. Dolly Tirant is a Chevening Scholar with an

MSc in International Banking & Finance from

Heriot Watt University, Edinburgh, Scotland. Her

first degree was a Bachelor of Commerce with a

major in Banking and Finance from the SNDT

Women’s University, Bombay, India.

For the last 9 years she has been working with

The Mauritius Commercial Bank (Seychelles) Ltd.

She is presently the Corporate Manager. Prior to

this she worked for 15 years with the Ministry of

Finance, Seychelles, in Financial Planning and

Control, Investment and Trade. Her last position

with the Ministry was Director of Financial

Services.

Mrs. Tirant is a member of the Soroptimist Club

of Victoria, an international women’s service

club recognized by the UN that promotes the

rights and welfare of women and children.

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Mrs. Jenna Thelermont

Mrs. Thelermont has been the Assistant General

Manager of Seychelles Savings Bank since 2007,

after occupying the post of Finance Manager at

the same bank for 11 years.

She has completed several studies in finance and

accounting, from AAT at the Seychelles Institute

of Management (in 1991) to ACCA at the Financial

Training Company, UK (1999). She has also

followed short courses in the subject, for

instance, Certificate in Bank Card Management,

Institute of Financial Services (2004) and Strategy

& Management in Banking Programme,

International

Mr. Phillipe Chong Seng

Mr. Chong Seng is a Chartered electrical engineer

presently engaged in electrical consultancy work.

He has extensive experience in operations and

management of utilities at government,

parastatal and private company levels.

He is presently interested in energy savings and

alternate energy issues with a view to reducing

the country’s total dependence on fossil fuels for

its energy needs.


Seychelles

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FTC Management

FTC started its operations on 1st December 2009

only with the Chief Executive Officer and the

Director for Communications and Corporate

Services. The recruitment of the director of the

Legal Department and the director for Market

Research and Policy were recruited in February

and July 2010 respectively. This was followed by

the recruitment of the Senior Competition

Analyst and the Office manager in 2010.

Other posts, for instance, those of a) Senior Legal

Officer, b) Enforcement Officers and c) one

Complaints Officer have been advertised. Short

listed candidates have been interviewed and

letters of offer have been issued. The

Commission awaits completion of formalities for

employing one Consumer Analyst and one

Complaints Officer by the end of March 2011.

Only one candidate responded to the advert for”

Senior Legal” but has not been deemed suitable.

The post will be re-advertised.

Mr. Daniel Gappy

Chief Executive officer

Mr. Daniel Gappy was appointed Chief Executive

Officer (CEO) of the Fair Trading Commission in

December 2009.

He holds a BSc in Finance and Accounting from

the Kansas State University. Later pursued a MSc

in Applied Finance at the University of

Melbourne, Australia. He has held post of

Principal Lecturer at Seychelles Institute of

Management (SIM) and Managing Director of the

Seychelles Public Transport Corporation (SPTC)

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Mrs. Luciana Lagrenade

Director of Communication and Corporate

services

Mrs. Lagrenade graduated with a Bachelor of

Education from what is now called Edith Cowan

University (1987) in Australia. In 1992, she

completed her Masters degree in English from

the University of Warwick (UK). From June to

September 1993, Mrs. Lagrenade completed a

Certificate in Measurement and Evaluation from

the University of Cambridge Local Examination

Syndicate, Cambridge, UK.

She has worked as a teacher of English and

Literature, Curriculum Development Officer,

Teacher Trainer and from 2005 – 2009, as a

Quality Assurance Officer, Ministry of Education.

Mrs. Lagrenade is also a part time Lecturer at the

Seychelles Institute of Management, specifically

for report writing, communication and

presentation skills.

Mrs. Lagrenade joined the Commission in

November 2010 as the director for

Communication and Corporate Services.

Mrs. Ellen Carolus

Director of Legal Department

Mrs. Carolus is an experienced lawyer and legal

draftsperson. She undertook her legal studies in

Mauritius where in 1997 she graduated with her

LLB (Hons) degree from the University of

Mauritius and in 2002, a Barrister’s Vocational

Course at the Council of Legal Education, from

the country’s Council of Legal Education.

She has extensive experience, both as a

practising lawyer and in drafting of laws and,

until she joined the Commission, was working in

the Attorney General’s Chambers.


Seychelles

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Ms. Juliette Dorizo

Director of Research & Policy

Ms Dorizo is a statistician who graduated with a

first Class Honors BSc in Mathematics and Applied

Statistics at the University of Plymouth's Faculty

of Technology. She won an IMA (Institute of

Mathematics and its Applications, UK) award for

outstanding performance upon completion of her

degree and received an award for best returned

graduate for the year 2001 from the Government

of the Seychelles.

Ms Dorizo started working as a statistician in the

field of Consumer Price Index and Labor at the

Seychelles National Statistics Office in 2001. In

2003 she was transferred to the Seychelles

Fishing Authority, where she worked as a

Fisheries Statistician and later on as a Senior

Fisheries Statistician until she joins the Fair

Trading Commission in July 2010.

As a statistician her expertise is in data and

database management, data processing and

analysis in addition to research.

Mr. Francis Lebon

Senior Competition Analyst

Mr. Lebon graduated with a BSc (Hons) in

Economics, Finance & Banking at the University

of Portsmouth in 2007.

Mr. Lebon started his career at the Central Bank

of Seychelles and held the post of Senior

Domestic Debt Officer in the Public Debt Unit.

Mr. Lebon was the Trade and Sales manager at

Barclays Bank of Seychelles before joining the

Fair Trading Commission in December 2010 as

Senior Competition Analyst and promoted to

Director of competition in January 2012.

Mr. Lebon also holds a Diploma in Accounting

from the Association of Accounting Technicians

(AAT) in the UK and successfully completed ACCA

Part 1. During his time at the Central Bank, Mr.

Lebon attended numerous short term courses in

Public Debt Management and in securities.

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FTC Major Accomplishment

The Commission’s moved from its temporary

location (Room 206 AARTI Chambers) to its

present location: Rooms 206, 213 and 214, on

second floor of Orion Mall, Victoria in August

2010.

Between August and December 2010, it

completed the setting up its offices and engaged

actively in staff recruitment . This resulted in the

key personnel (outlined above) being recruited.

Staff Empowerment

SADC Stakeholders Meeting

In April 2010 Mr. George Lipimile from SADC

conducted a 2 week consultancy with the

Commission where members of the

Commissioners and staff of the Commission were

empowered about the Fair Competition act

through various workshops held with various

stakeholders.

Among various topic covered, Mr. Lipimile

explained the reason for competitive market, the

benefits of competition, the objectives of the fair

competition act, and the purpose of advocacy

programs.

• Economic reforms in November 2008

• Liberalisation of the economy

• The need for a level playing field for all businesses:

• The Fair Competition Act

• The need for a system to monitor fair business practices

• The Fair Trading Commission

Figure1. Some topics covered by Mr. Lipimile

during advocacy with stakeholders

Technical Assistance from TradeCom

In September and December 2010, the

knowledge of members of the board of

Commissioners and the staff of the Commission

on the Fair Competition Act was further

enhanced through the attachment of an Expert

from the TradeCom at the Commission.

Mr. Massimiliano Gangi, an EU Consultant was

contracted to provide Technical Assistance to the

Seychelles Ministry of Finance in implementing

the Fair Trading Commission of Seychelles within

the framework of the EDF-funded ACP TradeCom

Facility.

The project aimed at strengthening the human

and institutional capabilities of the Fair Trading

Commission (FTC) of Seychelles to enforce the

recently enacted competition legislation (Fair

Competition Act and Fair Trading Commission


Seychelles

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Act). Another stated project aim was to promote

a better understanding of the existing laws and

regulations on competition and the functioning

of the FTC among all concerned stakeholders.

Overseas Seminar

The Commission’s staffs were further empowered

through attendance at various overseas

workshops to better understand the Fair

Competition Act and its implementation.

ICN Workshop

In July 2010, the CEO attended the International

Competition Network (ICN) workshop on Agency

effectiveness in the United Kingdom. The aim of

the workshop was to discuss people and

knowledge management issues within

competition authorities. These issues are central

to the development of talent and capability

within competition authorities and to the

sustained effectiveness of competition

authorities.

The discussions covered various topics such as

the culture within the agency in guiding its

mission, structure and processes, ethics and

relations with third parties, recruitment and

retention, attracting new talent, people and

career development skills building, staff

secondments/ movement of people between

competition agencies; how to capture and

disseminate learning, how to keep up with new

business practices and leadership and succession

planning.

SSNED workshop

In November 2010, the Director of Legal and the

Director of Research and Policy attended a

workshop on competitiveness strategies with

special reference to the African and Indian Ocean

small states in Mauritius. The workshop was

organized by the Small States Network for

Economic Development (SSNED) in collaboration

with the Regional Multicultural Centre for

Excellence (RMCE) and the Commonwealth

Secretariat.

The aim of the workshop was to offer high level

training on competitiveness issues to officials in

Ministries dealing with competitiveness or

related portfolios in African and Indian Ocean

small states

Participants at the SSNED workshop

SADC workshop

In December 2010, the Director of

Communications and Corporate Services and

one member of the board of Commissioners

attended the SADC workshop on competition

and consumer policy in Johannesburg, South

Africa.

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Department Report


Seychelles

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Communications

Advocacy is one of the tools of Competition authorities like FTC, to encourage compliance

with the law. Advocacy can also be explained as the bridge between ignorance of the law

and law enforcement. It means lobbying against an illegal business conduct that is either

being deliberated practiced or that businesses are engaged in out of ignorance. It is about

stressing on the need for redress until the said illegal business practice is either minimized or

eliminated.

Advocacy sessions aim to sensitize, educate and foster positive behaviour changes in the

above mentioned types of business practices, seek compliance with the law through Non

punitive measures and an understanding of how negative business practices are detrimental

to the national economy and consumer welfare.

FTC conducted several advocacy sessions between February 2010 and March 2010, to educate

the business community on the Fair Competition Act (Table1).

Advocacy session with stakeholders, April 2010. Figure 2. Topics covered in advocacy sessions,

Year 2010

Whilst not all enterprises who were invited, actually attended the sessions, those who made it their

duty to do so, commented about finding the sessions very useful to the way business enterprises

must henceforth tailor their practices, to be able to operate within the requirements of the law.

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Table 1. List of Advocacy Sessions conducted with stakeholders on FCA, year 2010

Enterprises Date Venue

Regulators

4th February ICCS

The media houses

12th February

ICCS

The media houses

10th March

ICCS

Tourism related ( car hire)

16th February

ICCS

Tourism related( Taxi Association 19th February ICCS

SPTC, PUC, Air Seychelles, Land Marine, Hunt

Deltel, Seychelles Breweries, STC, UCPS, CCCL

23rd February ICCS

Bankers 2nd March

CARE HOUSE

Association of Retailers 4th March Maison de Football,

Roche Caiman

Contractors Grade1 5th March

ICCS

Information Technology 9th March

CARE HOUSE

Contractors Grade 2 11th March Maison de Football,

Roche Caiman

Importers and wholesalers 12th March ICCS

Contractors Grade3 18th March Maison de Football,

Roche Caiman

Hotel /tourism/airlines, DMC’s 19th March CARE HOUSE

Praslin 26th March

GAP Community

Centre

La Digue 26th March

Community Centre

Praslin ( BSA) 27th March

BSA Community

Centre


Seychelles

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Competition

The FTC is the custodian of the Fair Competition Act (2009). Although not new for the rest of

the world (since the dawn of this third millennium, competition laws which were first enacted

in North America in 1890 as the Sherman Act , have been enacted and are being fully

implemented around the globe ) – the concept of competition Law is still very new to our

shores and to other countries within our region.

It is a concept that allows for competitive markets, that in turn promotes economic efficiency

and ensures that goods that the consumer wants are produced in the quantities they want,

using the most efficient production methods and are marketed and distributed to the

consumers who wish to purchase them , using the most efficient means possible.

The benefits of competitive markets favour the

economic development of the country because

they

lower consumer prices;

create greater consumer choice and

convenience;

spur innovation;

improve efficiency;

improve global competitiveness.

Since December 2010, the Commission has started conducting investigations into four alleged

infringement of the Fair Competition Act (table2). Since the Competition department only became

operational in mid December 2010, the Legal department assisted by the research department

assumed responsibilities for the competition department.

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Table 2. List of Competition Cases for year 2010

Type Received Date Status

Abuse of Dominance

Port Services Apr-10 Ongoing

Tourism Sector Aug-10 Ongoing

Restrictive Agreements

Retail Sector Oct-10 Ongoing

Merger Inquiry

Helicopter Services Aug-10 ongoing


Seychelles

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Consumer

FTC is also the custodian of the Consumer Protection Act (2010). This Act seeks to protect

Consumers’ rights, impose duties on producers and suppliers of goods and services and to

repeal the Consumer Protection Act (1997). The CPA was enacted on 29th November 2010 and

repealed the Consumer Protection Act 1997. The Act aimed at protecting consumer’s rights,

imposing duties on producers and suppliers of goods and services in the Seychelles.

The CPA aim to promote and advance the economic welfare of consumers by –

the achievement and maintenance of a consumer market that is fair, accessible,

efficient, sustainable and responsible for the benefit of consumers;

reducing any disadvantages experienced by consumers;

promoting fair business practices;

promoting fair contract terms;

protecting consumers from misleading, deceptive or fraudulent conduct;

improving consumer awareness and information.

The Act applies to any goods and services promoted or supplied in Seychelles in the ordinary course

of the suppliers business. The Act provides for a system of enforcement through compliance notices.

The Commission may:

initiate or receive complaints concerning alleged prohibited conduct;

investigate and evaluate complaints or alleged contravention of the Act;

conduct hearing and issue notices, give orders and directions

impose remedies or financial penalties

Even before the enactment of the CPA, the FTC received consumer complaints amounting to a total

of 9 complaints received in 2010. The Commission has initiated the process for staff recruitment for

the Consumer department. The director for the department and one investigation officer will

assume duty beginning of the year 2011

.

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Research & Policy

Market studies are widely used as a tool to address Competition and Consumer Protection

problems beside advocacy and enforcement. The aim of market studies is to examine how

markets are working resulting in proposals of how to make the markets work better.

Market studies are research projects conducted to gain an in-depth understanding of markets

and business practices, to better understand the consumer market and to assess consumer

experience. It involves examination of various aspects of markets that may be detrimental to

consumers, of restrictions on competition by business conducts and those that can arise from

Government regulation or public policy.

Possible outcomes of market studies include:

improvement in quality and accessibility of information to consumers,

encouraging businesses in the market to self-regulate,

making recommendations to Government to review regulations or public policy,

commitment of FTC to take advocacy and /or enforcement actions.

The studies may also conclude that the market is working well.

The Research and Policy department started operation in July 2010 and drafted three research notes

for competition cases (table 3). In addition due to exigencies of the Commission’s other priorities,

the Research department had to assume administrative and information technology related duties.

Table 3. List of Research Notes drafted, year 2010

Figure 3. Topics covered under Market Studies

Research Topic Date Started Status

Competition Law in

Port Services

July 2010 Completed

Resale price

maintenance &

franchising

October

2010

Completed

Guideline on

relevant Market

December

2010

Ongoing


Seychelles

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Legal

As per section 41 of the Fair Trading Commission Act, the legal department had the mandate to

Issue procedural rules that shall govern the conduct of hearings before the Commission to

ensure the principles of natural justice is abide to, the need for fairness to both parties and the

need for expeditious determination of any matter before the Commission.

The rules hearing rules drafted by the Legal department apply to any hearing proceedings held

–

(a) at the stage of investigation by the Chief Executive Officer and members of staff of the

Commission; and

(b) before the Board, after investigation has been carried out,

by virtue of sections 33 and 39 of the Act, section 37(1) and 47(3)of the Fair Competition Act,

2009, rule 4(6) of these Rules and section 9(1) of the Consumer Protection Act, 2010.

The procedural rules for hearing includes but not limited to the following sections:

Requirement for hearing

Summons and attendance

Conduct of hearing

Evidence on oath

Public access to hearing

Permitting other persons to take part in proceedings

Submissions or arguments before the Commission

Proceedings in absence of party

Final directions

In addition the legal department with assistance from the TradeCom Consultant drafted the Fair

Trading Commission Procedure for the conduct of investigations pursuant to Section 57 of the Fair

Trading Commission Act, 2009. These Regulations apply to proceedings relating to the conduct of

investigations of restrictive business practices falling under Part III of the Fair Competition Act. The

sections of the regulations includes but not limiting to:

Complaints and evaluation of complaints

Start of Investigations

Participation in the Investigation

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Powers of Investigation

Request for Information and Disclosure of Documents

Inspections of Enterprise Premises

Expert Reports, Statistical and Economic Analyses, and Expert Testimony

Confidentiality

Access to documents and the confidentiality of information acquired

Undertakings

Notification of the Investigation Report and the Final Hearing with the Concerned

Enterprises

Application for permission to effect Mergers Between Enterprises

Investigation of Mergers

Temporary Suspension of a Merger

Conclusion of Investigations of Merger

Request for Authorisation


Seychelles

Page | 24

Staffing and Administration

FTC Structure FTC has design its operational structure which will comprised of five department being the

Competition, Consumer, Legal, Research & Policy and Communications and Corporate services

as shown in figure 1 below.

Figure 4. FTC proposed operational structure

Communication/ corporate Services Department

Advocacy

o Promote competition and protecting the competition process through advocacy, advising

Government/other bodies and the private sector.

o Promote consumer welfare through a robust sensitisation of consumers’ rights and

responsibilities that target consumers as well as suppliers

Corporate Service

o Manage the Commission’s premises ;

o Provide logistical support to the work of the Commission

o Ensure employee safety at work;

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o Oversee emergency evacuation plans and exercises and salvage operations

o Advise on matters relating to personnel.

o Advise the Commission on all financial matters.

o Design and/or develop of specific internal applications;

Competition Department

o Conduct thorough economic and financial impact analysis in market segments and

businesses in respect of competition law.

o Investigating anti-trust behaviours, structures, and practices and handling the competition

side in cases.

o The focal contact with regulators.

o Liaising with the Consumer Department as an additional means of monitoring to ensure

that markets are working well.

o Provide economic advice to the commission and assist businesses to comply with the

Competition law.

Consumer Protection Department

o Receive and assess complaints lodged at the FTC

o Conduct hearing when evaluating complaints

o Investigate and evaluate complaints and alleged contraventions of the Consumer

Protection Act 2010

o Inspect wholesalers and retailers outlets

o Issue and enforce compliance notices

o Accept and enforce undertaking under section 76 of the Consumer Protection Act

o Monitor the consumer market to ensure that prohibited conducts are prevented


Seychelles

Page | 26

Research and Policy Department

o Provide Competition policy advise to the Commission

o Carry out in-depth analysis of competition policy issues

o Maintains relations with government departments and international bodies in relation to

competition and consumer policies

o Design databases, manage statistical data and conduct statistical data analysis

o Assist with economic and financial analysis

o Carry out Market studies

o Carry out research in competition and consumer related issues

Legal Department

o Advise the Commission on all legal matters including those pertaining to staff employment, the

Commission’s liability with respect to any of its acts including communications to the media

o Draft and vet contracts and other agreements which the Commission wishes to enter into

o Vet documents produced by the Commission and clear all communications to the media

o Assist with drafting of any subsidiary legislation required under the FTCA, FCA and CPA

o Assist in training other members of staff in understanding and knowing relevant laws

o Assist in the investigation of cases under the FCA and CPA and the drafting of any relevant

documentation

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Training and Development

Being a newly establish commission and the custodian of the Fair Competition Act which is new

to Seychelles, FTC main objective during the year 2010 was Staff development through training.

In 2010 four recruited staffs of the Commission and the members of the board of

Commissioners attended various workshops conducted locally by invited competition law

experts to enhance their knowledge on competition Law. The staffs were also trained in house

by a consultant from Tradecom on how to investigate Competition cases.

In addition four staffs of the Commission in addition to one member of the board of

Commissioners attended overseas workshop as shown in table 4 below.

Table 4. Overseas Duty Trip

Name of

Participants Post Workshop/ Conference

Date & Place of

Mission

Daniel Gappy CEO International Competition

Network (ICN) workshop on

Agency effectiveness

United Kingdom,

July 2010

Ellen Carolus

&

Juliette Dorizo

Director Legal

Director Research

and Policy

Small States Network for Economic

Development (SSNED) on

competitiveness strategies

Mauritius,

November

2010

Luciana Lagrenade

&

Annie Vidot

Director

Communication &

Corporate Services

Board Member

SADC competition and

consumer policy workshop

South Africa,

December

2010


Seychelles

Page | 28

Financial Statement

OFFICE OF THE AUDITOR GENERAL

P.O. Box 49 - Victoria, Mahe, Republic of Seychelles Telephone: (248) 4672500 Fax: (248) 4610365 E-mail: [email protected] Website: www.oag.sc

Please address all correspondence to the Auditor General

Opinion of the Auditor General on the accounts of Fair Trading Commission

for the year ended 31 December 2010 Scope

I have audited the financial statements of the Fair Trading Commission for the year ended 31 December 2010, as set out on pages 1 to 10, in terms of Section 28 (3) of the Fair Trading Commission Act, 2009 .

The management of the Commission is responsible for keeping proper books of accounts, preparation of the statement of accounts and the information they contain. It is my responsibility to form an independent opinion, based on my audit, on those statements and to report it to the Board.

The audit was conducted in accordance with the International Organization of the Supreme Audit Institutions (INTOSAI) auditing standards. Audit procedures included examination, on a test basis, of evidence supporting the amounts and other disclosures in the statement of accounts as well as an evaluation of accounting policies and significant estimates.

The audit was planned and conducted so as to obtain all information and explanations considered necessary to provide me with sufficient evidence to give a reasonable assurance that the statement of accounts are free from material misstatement, whether caused by fraud or other irregularity or error. The overall adequacy of the presentation of information in the statement of accounts was also evaluated in forming my opinion.

The audit opinion expressed has been formed on the above basis.

Opinion

In my opinion, the financial statements fairly present the financial position of the Commission as at 31 December 2010 and the results of its operations and cash flows for the year then ended.

Marc Benstrong Victoria, Seychelles Auditor General 15 April 2013


Financial Statements Fair Trading Commission Seychelles For the year ended December 2010

Fair Trading Commission Annual Report 2010

Fair Trad ing Commlaalon So y c h ol/o .

Fair Trading 'Commission

Balance Sheet

As at 31 December 2010

Notes SR SR

Fixed Assets

Office Equipment 5 249,654

Furniture 332,630

Vehicles 370,775

Computers-Hardware & Software 126,869

1,079,928

Total Assets 1,079,928

Represented by:

Transfer to Consolidated Fund 3 (100,369)

Excess Funds 1,180,297 -----1,079,928

Accompanying notes 1 to 6 form part of the financial statements

1

Fair Trading Commission Soych ollo s

Income

GaS Budget Allocation


Statement of Income and Expenses for the

Year ending 31 December 2010

Notes

2(c)

SR SR

Expenses

Wages and Salaries

Office Running Costs

Repairs & Maintenance

Transportation Costs

Other Costs

Specific Costs

Total Expenses

Excess funds before minor capital outlay

6 (a)

6 (b)

6 (c)

6 (d)

6 (e)

6 (f)

1,819,268

838,562

12,526

125,894

65,012

539,994

(3A01,256)

1,180,297

2

Fair Trad ing Commissio n Saye/lOllo s

Fair Trading Commission Statement of Cash Flow

Year ended 31 December 2010

Cash Flow from operating activities

Operating activities

Adjustment: Depreciation

Net cash used in operating activities

Cash Flow from investing activities Office Equipment Furniture Vehicles Computers (Hardware & Software)

Net cash flow from (used in investing activities)

Cash - end of year (Transfer to Consolidation Fund)

SR

1,180,297

51,557

1,231,854

(264,405) (353,473) (377,059) (136,548)

(1,131,485)

100,369

3

Fair Trading Commission Sey c h e ll e s

Total Furniture - 353,473 - - 353,473 - 20,843 - 20,843 332,630

Office Equipment

9001 Aircon - 36,295 Jul-lO - 36,295 20% 3,630 - - 3,630 32,666 Photocopier

9001 (canon) - 33,100 Aug-10 - 33,100 20% 2,758 - - 2,758 30,342

9001 Aircon - 99,132 Oct-10 - 99,132 20% 4,957 - - 4,957 94,175

9001 Aircon - Spendid - 49,925 Nov-10 - 49,925 20% 1 ~664 - - 1,664 48,261

9001 Aircon - 31,303 Dec-10 - 31,303 20% 522 - - 522 30,781

9001 HPColour Laser - 14,650 Aug-10 - 14,650 20% 1,221 - - 1,221 13,429

Total Office Equipment - 264,405 - - 264,405 - 14,751 - - 14,751 249,653

Vehicles

9004 KIA PICANTO 5 7784 - 230,642 Dec-10 - 230,642 20% 3,844 - - 3,844 226,798 KIA SPORTAGE 5

9004 7488 - 146,417 Jan-ll - 146,417 20% 2,440 - - 2,440 143,977

Total Vehicle - 377,059 - - 377,059 - 6,284 - - 6,284 370,775

Computer Hard/Soft Ware Dell Optiplex/18.5

9005 WS/Laptop bag - 13,190 Feb-10 - 13,190 20% 2,418 - - 2,418 10,772

9005 Laptop - 12,675 May-10 - 12,675 20% 1,690 - - 1,690 10,985

9005 Computers - 13,500 Jul-10 - 13,500 20% 1,350 - - 1,350 12,150

9005 Computers - 25,300 Aug-10 - 25,300 20% 2,108 - - 2,108 23,192

Computers 9005 (desktop) - 9,990 Aug-10 - 9,990 20% 833 - - 833 9,158

9005 Printer - 5,850 Aug-10 - 5,850 20% 488 - - 488 5,363

5

Fa ir Trad ing Commission S e ych elle s

9005 Website - 24,700 Dec-l0 - 24,700 20% 412 - - 412 24,288

9005 Laptop - 16,850 Dec-l0 - 16,850 20% 281 - - 281 16,569

9005 Fax Machine - 2,768 Dec-l0 - 2,768 20% 46 - - 46 2,722

9001 Computer Network - 11,725 Aug-10 - 11,725 20% 54 - - 54 11,671

Total Computer Hard/Soft Ware - 136,548 - - 136,548 - 9,679 - - 9,679 126,869

TOTAL 1,131,485 1,131,485 51,557 51,557 1,079 ,928

6

Fair Trading Commlsalon Soyc h o ll o s


Notes to the Financial Statements for the year ended 31 December 2010

1. Establishment, principal activity and registered office

The Fair Trading Commission (the "Commission") was established in Seychelles under the provisions of The Fair Trading Commission Act 2009.

The principal activities under the Act are "to safeguard the interests of consumers, to monitor and investigate the conduct of business enterprises, to promote and maintain effective competition in the economy".

The Commission's principal place of business is situated at Orion Mall, Victoria, Mahe, Seychelles.

2. Significant accounting policies The financial statements, expressed in Seychelles rupees, have been prepared under the current cash basis except for the provision for depreciation which is in accordance with Governmental Financial Reporting.

a. Receivable The Commission's accounting policy does not make provision for receivable as all transaction is on cash basis.

b. Minor Capital Outlays Non-Current Assets are stated at book value with depreciation calculated on reducing balance method.

The useful lives of the assets are estimated as follows:

Office equipment 1- 5 years Furniture 5 years Vehicles 5 years Computer Hard/Soft ware 1-5 years

c. Income recognition Income is recognised on the following bases:

i. Funds voted for its use by the Government of Seychelles

ii. Funds received for the purchase of assets are capitalised as income in the year of

acquisition and recognised over the useful lives of the assets.

iii. The budget allocation of SR3.58M was granted and additional funds of SR1M were

granted for the year 2010.

7

Fair Trading CommIssion Soychollos

d. Taxation The Commission has not yet been exempted from tax; however, we have a letter from the Ministry of Finance and Trade that the Commission does not qualify for payment of Business Tax.

3. Treasury Account and Petty Cash The surplus of SR 100,369 from operation is transferred to the Treasury Consolidated fund at

the end of the financial year 2010.

4. Accounts Receivable In accordance with governmental accounting all transactions are based on cash basis. No

accounts receivable are recorded .

5. Refurbishment of office and equipment With the establishment of the Commission in January 2010, it was temporarily based at Aarti

Chambers sharing office space with Energy Commission until July 2010. The Commission moved

into its premises at Orion Mall in August 2010. Prior to moving, works carried out to partition

rooms 206/213/214, install air conditioning and electrical works were conducted which has

been adjusted as expenses. Costs of Non Current Assets items related to functioning of the

Commission:

Office Equipment

Furniture

Vehicles

Computers-Hardware & Softwares

Total

6. Operating expenses

a) Salaries and Wages

Personnel Emoluments Board of Commissioners' Allowance Total

SR

249,654

332,630

370,775 126,869

1,079,928

SR

1,395,268 424,000

1,819,268

8

Fair Trading Commission So ych o ll o .

b) Office Running Costs

Electricity Water Telephone/Fax/Internet Postage Insurance Printing & Stationery Rent Cleaning Expenses Consumables

Total

c) Repairs and Maintenance

Repairs & Maintenance Office Equipment Repairs & Maintenance Others

Total

d) Transportation Costs

Fuel Domestic Airfare Bus/Taxi/Ferry Fares Overseas Airfares Overseas & Other Subsistence Allowance Hire Charges for Vehicles Transportation Costs

Total

e) Other Costs

Entertainment Newspaper, Magazines & Periodicals Advertisements & Donations Staff Welfare Training Expense

Total

SR

21,137 1,096

69,022 3,051

21,000 26,390

666,350 13,877 16,639

838,562

SR

9,052 3A74

12,526

SR

45,360 lA85

200 6A74

59,525 10,340

2,510 125,894

SR

18,928 6,160

18A50 5J94

15,680

65,012

9

Fair Trading CommIssion Se ych e ll e s

f) Specific Costs

Others Literature Supplies Workshop/Seminars Internet Consumer Protection Unit Depreciation Charges Refurbishment Costs

Total

SR

5,325 24,904 27,699 13,723

292,757 51,557

124,029

The budget allocation for the Consumer Protection Unit was incorporated together with the Commission's budget and following the establishment of the Fair Trading Commission, the Consumer Protection Unit discontinued mid-year 2010.

10


Seychelles

Page | 30


Room 206, 213, 214

2nd Floor Orion Mall

Victoria, Mahe, Seychelles

Tel: (+248) 325250

Fax: (+248) 325239/ 325240

Email: [email protected]

The Fair Trading Commission Seychelles
