c.16-11 cs renders accounts to citizens

Edificio Madreselva, 1er Nivel, Calzada El Almendro y 1ª Ave. El Espino, Urb. Madreselva, Antiguo Cuscatlán, El Salvador.

“ The CS has used this exercise to make its principal achievements and obstacles known transparently to the public. The final purpose was make the Salvadoran citizens interested in competition issues and in promoting it for their own benefit as consumers”, asserted Francisco Diaz Rodriguez, Competition Superintendent.

Press Release El Salvador, July 18th, 2011.

CS Renders Accounts to Citizens The Competition Superintendence (CS)

2010 until May 2011.

Today the CS publicly rendered its work from June 2010 until May 2011, both on Competition Advocacy and Law Enforcement. Amongst the most relevant information figure: the cases in process with respect to anticompetitive practices in the sugar and pharmaceutical sectors; the announcement of pharmaceuticals; and its possible visiAdministrative Contentious Chambers (SCJ) to talk about the cases where decisions of the SC have been appealed and which need to be resolved in the briefest of terms, confirming the ocease the anticompetitive practices sanctioned, conducts that welfare and economic efficiency. A considerable number of citizens participated in the event.persons expressed their interest in knowing the most relevthe CS andwere interested in the new cases currently being processed and used the forum to comment about various anomalies observed in certain markets. Mr. Marcos

Secretariat for Strategic Affairs, opened the event. The former Competition Superintendents, Mrs. Celina Escolan and Jose Enrique ArgumedoDirectors (BD) of the CS and its officials were part of the audience as well. Preliminary proceedings, investigations of ex-ante analysis of merger/acquisition authorization requests were amongst the law enforcement activities mentioned which include detecting, investigating, and sanctioning conducts or behaviors that limit competiti With respect to Competition Advocacy, the CS informed about the progress in the issuance of opinions on legal framework and on public procurement procedures, and in the issuance of recommendation Additionally, the CS informed about its budgetary execution, public procurement proceedings, personnel, and the main difficulties encountered during the period being reported. out as very important the fact that several of its recommendations have not been considered by the governmental institutions to which they were addressed to.


E-mail: [email protected] - www.sc.gob.sv

CS Renders Accounts to Citizens The Competition Superintendence (CS) publicly rendered accounts regarding

Today the CS publicly rendered accounts to the Salvadoran citizens regarding work from June 2010 until May 2011, both on Competition Advocacy and

Law Enforcement.

Amongst the most relevant information figure: the cases in process with respect to anticompetitive practices in the sugar and pharmaceutical sectors; the announcement of the CS´ future institutional position regarding pharmaceuticals; and its possible visit next week the Constitutional and Administrative Contentious Chambers (ACT) of the Supreme Court of Justice (SCJ) to talk about the cases where decisions of the SC have been appealed and which need to be resolved in the briefest of terms, confirming the ocease the anticompetitive practices sanctioned, conducts that welfare and economic efficiency.

A considerable number of citizens participated in the event.persons expressed their interest in knowing the most relevthe CS and, mainly, the specific benefit for the consumer.were interested in the new cases currently being processed and used the forum to comment about various anomalies observed in certain markets.

Mr. Marcos Rodríguez, the Transparency and Anticorruption Secretary of the Secretariat for Strategic Affairs, opened the event. The former Competition Superintendents, Mrs. Celina Escolan and Jose Enrique Argumedo, Juris Doctor, were also present. Members of the cu

(BD) of the CS and its officials were part of the audience as well.

investigations of anticompetitive practices, defense of legality before the SCJ, and ante analysis of merger/acquisition authorization requests were amongst the law enforcement activities

mentioned which include detecting, investigating, and sanctioning conducts or behaviors that limit competiti

dvocacy, the CS informed about the progress in the issuance of opinions on legal framework and on public procurement procedures, in the execution of studies on competition conditions,

the issuance of recommendations, amongst others, in El Salvador.

Additionally, the CS informed about its budgetary execution, public procurement proceedings, personnel, and the main difficulties encountered during the period being reported. Regarding this last matter, the CS pointedout as very important the fact that several of its recommendations have not been considered by the governmental institutions to which they were addressed to.


C. 16-11

CS Renders Accounts to Citizens publicly rendered accounts regarding its work from June

accounts to the Salvadoran citizens regarding work from June 2010 until May 2011, both on Competition Advocacy and

Amongst the most relevant information figure: the cases in process with respect to anticompetitive practices in the sugar and pharmaceutical sectors; the

he CS´ future institutional position regarding t next week the Constitutional and

of the Supreme Court of Justice (SCJ) to talk about the cases where decisions of the SC have been appealed and which need to be resolved in the briefest of terms, confirming the order to cease the anticompetitive practices sanctioned, conducts that harm consumer

A considerable number of citizens participated in the event. More than 80 persons expressed their interest in knowing the most relevant cases solved by

the specific benefit for the consumer. Furthermore they were interested in the new cases currently being processed and used the forum to comment about various anomalies observed in certain markets.

Rodríguez, the Transparency and Anticorruption Secretary of the Secretariat for Strategic Affairs, opened the event. The former Competition Superintendents, Mrs. Celina

Juris Doctor, were also present. Members of the current Board of

, defense of legality before the SCJ, and ante analysis of merger/acquisition authorization requests were amongst the law enforcement activities

mentioned which include detecting, investigating, and sanctioning conducts or behaviors that limit competition.

dvocacy, the CS informed about the progress in the issuance of opinions on the execution of studies on competition conditions,

Additionally, the CS informed about its budgetary execution, public procurement proceedings, personnel, and Regarding this last matter, the CS pointed

out as very important the fact that several of its recommendations have not been considered by the


The main results of the CS´ work from June 2010 until May 2011 are detailed below:

A. Comp etition Law Enforcement

1. Preliminary proceedingselements of the possible existence of anticompetitive practices in the following markets:TV; supply of toner and ink cartridges to public institutionspetroleum gas (LPG); and, bags of coarse fibers. The last two are currently in process. Three of the six proceedings concluded without any findings in the aforementioned markets. Only one of said proceedings provoked the initiation of an exinvestigation.

2. Administrative sanctioning procedures due to antico mpetitive practices:

out seven (7) administrative sanctioning procedures: five (5) pursuant to complaints and two (2) exofficio proceedings for the possible existence of anticompetitive practices that might significantly limit, restrict, or impede competition in the follotelecommunications (2); public procurement procedures (2); port services; and food. The LPG prprocedure was overruled and the other six (6) are currently in process.

3. Administrative sanctioning proceduconcluded an administrative sanctioning procedurewithin a public procurement proceeding, imposing a fine to the infringer, who paid the fine in due time.

4. Ex-ante analysis of merger/acquisition

the CS received fifteen (15) authorization requests request was authorized; nine (9) requests were overruled, and three The requests involved economic agentsconstruction, finance, pension funds administration, services in general, and telecommunications.

5. Defense of the legality of cas

agent appeals before the Administrative Contentious Chamber of the SCJ a resolution issued by the BD, alleging apparent illegalities. The CS´ work in said case is to prove to the ACT of the need to reestablish the competition conditions that have been limited, restricted, or impeded, harming consumer welfare and which have been declaanticompetitive practices. The aforementiondecisions the CS has issuedcurrently defending eighteen (18) cases before the SCJ.

B. Competition Advocacy

1. Opinions on legal framework:respect to legal framework pursuant to a request of the Civil Authorization Authority (1), of the General Superintendence of Electricity and Telecommunications (3), of the Ministry of Internal Affairs (1), and of the Legislative Assembly (2), on issues related to: aiassociations governmental procurement procedures (amendments to the Public Administration Procurement Processes Law).

2. Opinions on public procurement processes:

five (5) on public procurement processes pursuant to the request of the




etition Law Enforcement

Preliminary proceedings : The CS carried out six (6) preliminary proceedings searching for elements of the possible existence of anticompetitive practices in the following markets:

supply of toner and ink cartridges to public institutions; tourism, hotel, and catering business; liquid petroleum gas (LPG); and, bags of coarse fibers. The last two are currently in process. Three of the six proceedings concluded without any findings of the possible existence of in the aforementioned markets. Only one of said proceedings provoked the initiation of an ex

Administrative sanctioning procedures due to antico mpetitive practices:(7) administrative sanctioning procedures: five (5) pursuant to complaints and two (2) ex

officio proceedings for the possible existence of anticompetitive practices that might significantly limit, restrict, or impede competition in the following markets: pharmaceuticals; sugar; LPG; mobile telecommunications (2); public procurement procedures (2); port services; and food. The LPG pr

ocedure was overruled and the other six (6) are currently in process.

Administrative sanctioning procedu res for lack of collaboraticoncluded an administrative sanctioning procedure due to lack of collaboration in the food sector within a public procurement proceeding, imposing a fine to the infringer, who paid the fine in due time.

ante analysis of merger/acquisition authorization requests: During the reported period, received fifteen (15) authorization requests which were solved as detailed below: one (1)

request was authorized; nine (9) requests were overruled, and three (3) were declared inadmissible. The requests involved economic agents in the following sectors: agricultural industry, trade, construction, finance, pension funds administration, services in general, and telecommunications.

Defense of the legality of cas es: The aforementioned is carried out when a sanctioned appeals before the Administrative Contentious Chamber of the SCJ a resolution issued by the

, alleging apparent illegalities. The CS´ work in said case is to prove to the ACT of the need to reestablish the competition conditions that have been limited, restricted, or impeded, harming consumer welfare and which have been declared by the CS in its resolution

The aforementioned institution defends before the ACT the legality of the decisions the CS has issued and that are being questioned judicially. During the analysis, the CS is currently defending eighteen (18) cases before the SCJ.

legal framework: During the reported period, the CS issued seven (7) opinions with legal framework pursuant to a request of the Civil Authorization Authority (1), of the General

Superintendence of Electricity and Telecommunications (3), of the Ministry of Internal Affairs (1), and of the Legislative Assembly (2), on issues related to: airports, ports, electricity, telecommunications, associations governmental procurement procedures (amendments to the Public Administration Procurement Processes Law).

Opinions on public procurement processes: From May 2010 until June 2011, the CS issued on public procurement processes pursuant to the request of the International Center of



preliminary proceedings searching for elements of the possible existence of anticompetitive practices in the following markets: sugar; cable

el, and catering business; liquid petroleum gas (LPG); and, bags of coarse fibers. The last two are currently in process. Three of the

of the possible existence of anticompetitive practices in the aforementioned markets. Only one of said proceedings provoked the initiation of an ex-officio

Administrative sanctioning procedures due to antico mpetitive practices: The CS carried (7) administrative sanctioning procedures: five (5) pursuant to complaints and two (2) ex-

officio proceedings for the possible existence of anticompetitive practices that might significantly limit, wing markets: pharmaceuticals; sugar; LPG; mobile

telecommunications (2); public procurement procedures (2); port services; and food. The LPG pr

collaborati on: The CS recently due to lack of collaboration in the food sector

within a public procurement proceeding, imposing a fine to the infringer, who paid the fine in due time.

During the reported period, which were solved as detailed below: one (1)

(3) were declared inadmissible. following sectors: agricultural industry, trade,

construction, finance, pension funds administration, services in general, and telecommunications.

when a sanctioned economic appeals before the Administrative Contentious Chamber of the SCJ a resolution issued by the

, alleging apparent illegalities. The CS´ work in said case is to prove to the ACT of the SCJ the need to reestablish the competition conditions that have been limited, restricted, or impeded, harming

declaring the existence of ed institution defends before the ACT the legality of the

and that are being questioned judicially. During the analysis, the CS is

During the reported period, the CS issued seven (7) opinions with legal framework pursuant to a request of the Civil Authorization Authority (1), of the General

Superintendence of Electricity and Telecommunications (3), of the Ministry of Internal Affairs (1), and rports, ports, electricity, telecommunications,

associations governmental procurement procedures (amendments to the Public Administration

until June 2011, the CS issued International Center of Fairs


and Conventions (1), of the Ministry of Agriculture and Livestock (1),and of the General Superintendence of Electricity anand conventions, infrastructure for the mitigation of risks and electricity.

3. Sectors studies on the competition conditions and m onitoring:

period, the CS concluded two (2) studies of the following sectors: cheeses, iron and steel. Said institution began and will soon finalize the studies of the credit and debit cards; insurances; and eatable lards and oils. In a near future the CS will carry out studies othe passenger air transportation services, as well as maritime port services. Fmonitored the prices of fertilizers and of milk.

4. Public policy recommendations:

opinions on legal framework and public procurement processes; practices, or from authorization of mergers/acquisitions. Said recommendations are addressed to public institutions in order to evimpact on the competition conditionsissued fifty five (55) recommendations, addressed to twelve (12) governmental institu

5. Other competition a dvocacy activities:

amongst the most important are the informative presentations on competitionand massive promotional events; production of networks, amongst others. Furthermore, the CS carried put important training events, followlocal and international cooperbeing executed as part of the international work of the CS, specifically those of the Competition Policy Working Group in the Central American Integration.

C. Budgetary information and public procurement proces ses carried out by the CS Budgetary ex ecution pursuant to

Line of

business

Concept

51 Salaries and labor benefits

54 Goods and services

55 Financial expenses and others

61 Investments on fixed assets

Total



and Conventions (1), of the Ministry of Agriculture and Livestock (1),and of the General Superintendence of Electricity and Telecommunications (3) in the markets of leasing facilities for and conventions, infrastructure for the mitigation of risks and electricity.

Sectors studies on the competition conditions and m onitoring: concluded two (2) studies of the following sectors: cheeses, iron and steel. Said

institution began and will soon finalize the studies of the credit and debit cards; insurances; and eatable lards and oils. In a near future the CS will carry out studies on the competition conditions of the passenger air transportation services, as well as maritime port services. Fmonitored the prices of fertilizers and of milk.

Public policy recommendations: These result from sector studies on compopinions on legal framework and public procurement processes; from investigations of anticompetitive

, or from authorization of mergers/acquisitions. Said recommendations are addressed to public institutions in order to evaluate, create, and/or modify public policies or legal framework that impact on the competition conditions of a sector of the economy. During the reported period, the CS issued fifty five (55) recommendations, addressed to twelve (12) governmental institu

dvocacy activities: The CS carried out several promotional activitiesamongst the most important are the informative presentations on competition

assive promotional events; production of informative publications; participation in socialnetworks, amongst others. Furthermore, the CS carried put important training events, follow

cooperation and collaboration agreements, and regional projects currently cuted as part of the international work of the CS, specifically those of the Competition Policy

Working Group in the Central American Integration.

Budgetary information and public procurement proces ses carried out by the CS

ecution pursuant to lines of business:

US$

Available Executed

Salaries and labor 1,394,868.00 1,375,111.00

Goods and services 415,455.00 415,455.00

Financial expenses 116,612.00 116,612.00

Investments on fixed 19,016.00 19,016.00

1,945,951.00 1,926,194.00


and Conventions (1), of the Ministry of Agriculture and Livestock (1),and of the General d Telecommunications (3) in the markets of leasing facilities for fairs

Sectors studies on the competition conditions and m onitoring: During the above cited concluded two (2) studies of the following sectors: cheeses, iron and steel. Said

institution began and will soon finalize the studies of the credit and debit cards; insurances; and n the competition conditions of

the passenger air transportation services, as well as maritime port services. Furthermore, the CS

on competition conditions from investigations of anticompetitive

, or from authorization of mergers/acquisitions. Said recommendations are addressed to aluate, create, and/or modify public policies or legal framework that

a sector of the economy. During the reported period, the CS issued fifty five (55) recommendations, addressed to twelve (12) governmental institutions.

The CS carried out several promotional activities: amongst the most important are the informative presentations on competition; participations in fairs

informative publications; participation in social networks, amongst others. Furthermore, the CS carried put important training events, follow-up of

ation and collaboration agreements, and regional projects currently cuted as part of the international work of the CS, specifically those of the Competition Policy

Budgetary information and public procurement proces ses carried out by the CS

Execution %

1,375,111.00 98.6

415,455.00 100.0

116,612.00 100.0

19,016.00 100.0

1,926,194.00 99.0


Public procurement processes

Quantity

105 Purchases through free management

2 Public tenders

2 International public tenders

1 Direct contract

3 Contract renewals



Public procurement processes carried out by the CS:

Modality Amount

Purchases through free management

International public tenders

s


mount in US$

98,085.89

111,823.97

137,804.00

5,750.00

117,976.82

c.16-11 cs renders accounts to citizens

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