The Federal Competition and Consumer Protection Commission (FCCPC) was on surveillance and enforcement visits to three steel manufacturing companies in Ogun State at the weekend. The acting Executive Vice Chairman (AEVC) of the commission, Dr Adamu Abdulahi, in this interview, explains the imperative of the visit. AKIN ADEWAKUN brings details.
Why the swoop on these three steel manufacturing companies?
Essentially, we got intelligence that some companies are involved in some anti-competitive behaviour and we decided to come to three, Monarch Steel, African Foundries, and Kam Steel, out of the many companies, so that we can take a sample and see what is it that they do through the records we get from them.
We also intend to look at the end products that come out of their systems here. There are false, misleading and unfair market practices. You go into the market to buy a 12mm rod, for instance, and what you get is 10mm. This is one of the reasons for the various cases of collapsed buildings in the country. So we are talking here about the safety of our people.
What has been happening around buildings and collapses is something that is worrisome to government, and indeed to all well-meaning citizens of this country. That is why we are looking at their processes to check if they are cutting any corners and if we are able to establish any of these, we apply the full wrath of the law.
And so far, how has the exercise been?
So far the companies have been cooperating, we’ve not had any issue. Normally we expect their lawyers to advise them first, that’s why we gave them some time to talk to their lawyers, and their lawyers said they should cooperate with us and give us the information that we required.
Who are your collaborators in this, because you need some expertise from professionals to really carry out this investigation, and how long should we be looking at before the outcome of the investigation is made known?
There is a Steel Manufacturing Association, there is Manufacturers Association of Nigeria (MAN), we have Standards Organisation of Nigeria (SON), the core regulator of this industry. COREN has been giving us technical advice on what we should look out for and that is exactly what we are doing. We are being guided by such advice.
You said you came based on intelligence and now that the investigation has been done, what is next?
No, investigation is not concluded yet. We are still on information gathering. It is when this is done that we now have to go back to the office, then it will be the work of the forensic experts. They look at the information that we have brought and whatever they can find out from all the materials, is now what will guide our findings.
Some are actually confused about the FCCPC’s role and that of Standards Organisation of Nigeria (SON), arguing that this particular assignment should have been done by SON?
The names are different. Standards Organisation of Nigeria (SON) is after standards, we at FCCPC are protecting the interests of consumers. Our worry is the fact that buildings collapse, and Nigerians die, essentially what we are looking for is if there any issues, if they are cutting corners.
We work with SON of course, standards also matter. But the issue is, how did the market play out? What do they do in the market that is right or wrong? Of course, we are working with the market associations, the sellers of the rods. We have their contacts, we’ve been holding meetings with them. They also give us the information that we need so that the whole process gets the results that we desire.
Is there any sanction at the end of the day if they are found guilty?
I will direct you to our Act. It is very clear about sanctions. If you withhold information, the sanction is different from if we find you liable for a different offence and the sanctions are listed out. If I start listing all the sanctions, we may not leave here today.
What are those things that you usually look out for while carrying out this type of assignment?
The intricate ones I cannot divulge. That is why I called it intelligence and surveillance. We go on surveillance exercises, we look at how industry operates, and how market operates and if we see any distortions, we go into the root of it to establish what is going on in that market.
If you go into a market to buy a 12mm rod for instance, and they have sold 10mm on the pretence that it is 12mm, that is misleading and deceptive and an unfair market practice. So these are the things that we always look out for.
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