On 13 February 2026, the Competition Commission (Commission) executed search and seizure operations at the premises of four scrap metal purchasing companies located in Germiston, Nigel, Vanderbijlpark, and Hammanskraal.
This serves as an important reminder to all companies operating in South Africa that it is crucial to implement a comprehensive dawn raid response plan.
This plan should identify a core on-site response team for dealing with a search, including senior management, in-house legal counsel and the IT and security managers responsible for each site. Ideally, this core team of employees should receive in-depth training to ensure that they understand the crucial role they will play, both during and after the dawn raid. An external support team, including the company’s lawyers and investor relations/ communication advisors, should also be identified. Well‑prepared teams are essential to avoiding missteps, protecting the company’s rights, and minimising business disruption.
Key priorities during the raid include protecting the company’s confidential information and data, and ensuring that the Commission does not gain access to legally privileged materials such as legal opinions provided by the company’s internal and external lawyers.
Following a search, the companies involved will have to conduct a thorough internal investigation to determine whether any contravention of the Competition Act has occurred. Depending on the findings, it may be possible to qualify for immunity from prosecution in terms of the Commission’s Corporate Leniency Policy. This could either be in relation to the complaint identified in the search warrant, or other potential contraventions of the Competition Act of which the Commission is not yet aware (for example, involving other time periods, service or product lines, or different prohibited practices). Companies who offer substantial co-operation at an early stage after a dawn raid may in due course be able to negotiate reduced administrative penalties.Â
Whilst search and seizure operations have been less frequent since the Covid-19 lockdown, this dawn raid may signal that the Commission intends to use this tool more extensively in future.
