Cimas, PSMAS probe dropped

in the ambulance services sector after the principal complainant Netstar withdrew its case.
Cimas and PSMAS were due to appear before the CTC on Thursday last week, but the hearing was cancelled after Netstar Ambulances dropped the case.

CTC assistant director Mr Benjamin Chinhengo said: “The complainant in this matter Netstar Ambulances notified the commission on August 26 that it was unconditionally withdrawing its case against Cimas and PSMAS.”

Mr Chinhengo said Netstar was assured by Cimas and PSMAS that it would be paid for ferrying patients who are on the two medical aid schemes.
The ambulance service provider had lodged a complaint with the CTC that Cimas and PSMAS were refusing to pay for services rendered by Netstar.
It was alleged the medical aid societies preferred to deal with Emras and Mars in which they allegedly hold interests.

PSMAS holds 100 percent in Emras through PSMI Investments and Cimas owns 40 percent of Mars.
CTC undertook to institute investigations – in terms of Section 28 of the Competition Act – into the alleged restrictive practices in the ambulance service sector.
Preliminary investigations by CTC had revealed there were prima facie cases that Cimas and PSMAS were engaging in the alleged restrictive practices. To that end CTC decided to carry out full investigations into the allegations.

But since Netstar, the sole complainant in the case, decided against proceeding with matter, the case was dropped.
Early this year CTC investigated and found Zesa Holdings guilty of demanding that customers settle bills accrued before the switch to the multi-currency system. The power utility was also found guilty of unfairly demanding that customers pay for electricity bills determined through estimated meter readings.

Zesa was ordered to reimburse consumers who had paid the outstanding bills the power utility demanded as directed by Energy Minister Elton Mangoma.
CTC can take action against a culprit in terms of provisions of the Competition Act of 1996 and can order a firm to stop unfair business practices.
The force of the order given by CTC carries the same weight as a court judgment. Soon after passing the order CTC registers it with the High Court.

CTC once investigated Cimas over restrictive and discriminatory practices and ordered the firm not to abuse its dominance in the ambulance sector. The commission was formed by an Act of Parliament and it has since inception conducted investigations of restrictive practice into a number of sectors.