Competition Commission charges Vodacom Official

The Competition Commission said it filed a perjury charge against one of Vodacom Group Ltd.’s executives for intentionally providing it with false information about a proposed merger.

The offense carries a maximum prison sentence of six months, a fine of 2,000 rand ($264) or both, the regulator said in an e- mailed statement today. It did not identify the official. The case relates to the 2007 acquisition of Global Telematics SA (Pty) Ltd. and Glocell Service Provider Company (Pty) Ltd. by one of Johannesburg-based Vodacom’s units.

An investigation found “the rationale for the transaction was to eliminate Glocell because it was providing discounts to customers in competition with Vodacom,” the regulator said. This was contrary to the reason the Vodacom executive gave, namely that the deal “was primarily driven by the declining growth of the service provider market and the desire by Vodacom to consolidate its service delivery chains.”

Vodacom has referred the issue to its lawyers and cannot comment further, company spokeswoman Dot Fields said in an e- mailed statement.

Vodafone Group Plc and Telkom South Africa Ltd. each have a 50 percent stake in Vodacom, South Africa’s biggest mobile-phone company by subscribers.