Johannesburg — PETROCHEMICALS group Sasol was bracing itself for claims arising from its contraventions of competition laws, CE Pat Davies said on Friday.

Competition-related fines at Sasol Wax and Sasol Nitro have put Sasol in the spotlight and the possibility of civil claims will be a financial setback for the group.

The European Commission (EC) has slapped a €318,2m fine on Sasol for its role as a leader of a price-fixing cartel that operated in the European paraffin wax market for 13 years.

The South African Competition Tribunal earlier this year confirmed a R251m settlement between Sasol Nitro and the Competition Commission relating to violations of competition law in the fertiliser and phosphoric acid businesses.

South African farmers argued that they paid inflated fertiliser prices as a result of the collusion. Transvaal Agricultural Union (TAU) GM Benny van Zyl said on Friday farmers paid as much as 35% more than they should have for fertiliser between 1998 and 2004.

Speaking at Sasol's annual general meeting on Friday, Davies said: "We fully intend to consider valid and properly quantified claims by our customers."

In anticipation of further questions from shareholders, Davies said he might not be in a position to answer all the questions on the matter.

As happened at last year's annual general meeting, the competition law violations took centre stage as some of the group's shareholders expressed their unhappiness with the effect of these on Sasol's financials.

"As a company, we take full accountability of what happened," Davies said. He said the anti-competition law activities came as a shock to the company, and they were surprised that senior employees were also involved. "We are as shocked and outraged as our stakeholders."

He said Sasol had taken disciplinary measures against employees implicated in the transgressions. These, he said, included dismissals, suspensions and "financial penalties".

Van Zyl said the TAU was going ahead with its facilitation of a class action against Sasol. "As an organisation, we cannot bring the action against Sasol because we did not buy fertiliser. But farmers did. Ours is to co-ordinate their claim against Sasol. This is a matter between Sasol and the farmers."

In a letter dated November 19, the farmers' body informed farmers about the possibility that Sasol overcharged them for fertiliser in the period between 1998 and 2004. It said the Competition Tribunal's decision confirmed that farmers suffered a loss because of Sasol's actions. The next step for the farmers was to determine the extent of the loss. "This boils down to a calculation of the quantum of loss incurred by each disadvantaged buyer of a certain product bought during the period concerned," it said .

TAU said despite the looming action, the organisation was not keen on a confrontation with Sasol. "The union will not allow, or be part of, any unfounded actions against Sasol," it said.

The TAU said it was "tragic" that some farmers were forced to leave the agricultural sector during the period because of the high prices of fertiliser, a major input for them. He said the TAU expected to receive the list of farmers who wanted to be part of the action by February 19 . "Thereafter, a legal team will advise them on how to proceed with a valid claim against Sasol," Van Zyl said.

Sasol

Annual 2009 2008

Sales (Rbn) 137,8 129,9

Pretax (Rbn) 24,2 33,6

Net Income (Rbn)13,723,5

Headline EPS (c) 22803678

Dividend PS (c) 850 1300