The South African Competition Commission (Commission) has extensive powers to conduct unannounced search and seizure operations, commonly known as "dawn raids", when investigating suspected anti-competitive conduct.
The latest of these raids was carried out in February 2026, at the premises of four scrap metal purchasing companies located in Gauteng. Prior to that, in August 2022, the Commission conducted dawn raids at the premises of eight insurance companies in Gauteng, KwaZulu-Natal and the Western Cape.
If the Commission suspects that an infringement of the Competition Act, 1998 has occurred, and that there is a real risk of the relevant evidence being concealed, altered or destroyed - it may raid the premises of the suspect firm.
The Commission may also raid the premises of a firm's customers, competitors, and all group companies, if it believes that they have information connected with the Commission’s investigation (ie. the firm being visited may not be the subject of the investigation). These raids may occur simultaneously.
Speed is of the essence for the Commission when conducting a dawn raid. These raids can be invasive, disruptive and fast-moving as the purpose is to gather evidence before it can be destroyed or concealed.
There is also no fixed pattern in the sectors where dawn raids have been conducted.
To date, dawn raids in South Africa have taken place in diverse sectors, including: fire control protection systems, recruitment advertising, financial services, liquid and petroleum gas companies, furniture removal businesses, wooden products manufacturers, cargo shipping companies, fresh produce market agencies and meat suppliers.
No one knows when the next dawn raid will be conducted because such raids are largely intelligence led, whether resulting from information from a whistleblower, leniency applicant or members of the public, or from intelligence gathered by the Commission itself.
For all the reasons above, all businesses should have a clear dawn raid response plan in place.
Clare-Alice Vertue, Karl Blom, Siya Ngcamu, and Sidrah Suliman 9 Oct 2024 Preparing for a dawn raid: practical steps
Preparing for a dawn raid requires establishing a dawn raid plan or policy ensuring that staff are familiar with it and trained to comply with it. This policy should clearly address conduct:
(i) ahead of the dawn raid;
(ii) during the dawn raid; and
(iii) after the dawn raid.
Ahead of the dawn raid
- Companies should establish an internal response team comprising senior management, legal counsel, IT personnel and designated employees responsible for assisting investigators during a raid.
- Reception and security personnel should receive specific training, as they are often the first point of contact with investigators and play a critical role in initiating the company's response procedures.
During the dawn raid
- When a dawn raid occurs, the business is required to cooperate with investigators.
- The employees should be trained to verify the investigators' credentials, review the search warrant and understand the scope of the investigation.
- Legal advisers should be contacted immediately and, where possible, be present during the search.
- One of the most important aspects of a dawn raid is managing access to information. Investigators are typically entitled to review and seize both physical and electronic records relevant to the investigation.
At the same time, companies are entitled to protect legally privileged communications and should ensure that procedures are in place to identify and preserve privileged material.
Good data governance puts companies in a much stronger position to manage the scope and impact of a dawn raid.
- With increasing reliance on electronic evidence, businesses should also understand how corporate devices, servers and mobile phones may be searched and imaged during an investigation.
- Employee conduct is equally important. Staff should be instructed to remain professional, not destroy or conceal documents, and avoid speculating when answering questions.Responses should be accurate, factual and limited to matters within the employee's knowledge. Employees should also know when to seek legal assistance before responding to investigators.
After the dawn raid
- The work does not end when the investigators leave.
- Following the Commission’s departure, a debrief must be conducted to take stock of the documents seized, assess potential legal exposure and develop a strategy for managing communications with employees, customers, shareholders and the media.
Amid all the unpredictability that goes with dawn raids, there is one certainty: the most effective way to manage a dawn raid is through preparation.
Businesses that invest in training, establish clear internal procedures and understand their rights and obligations are far better positioned to navigate the process while protecting their interests.
