JOHANNESBURG, South Africa, May 6 /PRNewswire-FirstCall/ -- Sasol (NYSE: SSL) announced in January 2009 that as part of the Group's ongoing legal compliance programme Sasol Limited had initiated a comprehensive competition law compliance review of all Sasol businesses in July 2008.
As previously announced Sasol will, in the course of conducting the competition law compliance review, adopt appropriate remedial steps and make disclosures on material findings and developments as and when appropriate. These activities are still in progress across all of Sasol's businesses. Although it was envisaged in January 2009 that the review process would be completed during the first half of 2009 current progress indicates that the review should be completed in the second half of 2009.
Although the competition law compliance review of Sasol Nitro has not been completed in all respects, Sasol is now in a position to disclose the following material developments in respect of the phosphoric acid and fertiliser businesses of Sasol Nitro.
As indicated in our announcement made in January 2009, additional information has been revealed by the competition law compliance review process relevant to previously disclosed competition law legal proceedings in respect of the Nutri-Flo matter and the phosphoric acid investigation (See pages 179 - 181 of the 2008 Annual Financial Statements and pages 75 - 77 of the 2008 Annual Report submitted on Form 20-F to the United States Securities and Exchange Commission for the previous public disclosures in these matters) and that settlement discussions had commenced with the South African Competition Commission.
These discussions with the Competition Commission have progressed to the extent that a settlement agreement has been concluded with the Competition Commission. Subject to confirmation by the Competition Tribunal, the agreement will have the effect of a full and final settlement and conclusion of all proceedings between the Commission and Sasol Chemical Industries Limited relating to any alleged contraventions by Sasol Chemical Industries Limited (Sasol Nitro division) of section 4(1)(b) (prohibiting collusive conduct) of the South African Competition Act that were the subject of the Commission's investigations in respect of the Nutri-Flo matter (under case numbers 31/CR/May05) and the phosphoric acid investigation (under 2007Aug3147 and 2007Dec3382). In terms of the agreement Sasol Chemical Industries Limited will pay an administrative penalty of R188, 01 million. Provisions raised this financial year are sufficient to cover this administrative penalty.
Steps have been taken by Sasol Nitro to address these areas of non-compliance.
