THE HAGUE, 17/01/07 - The Netherlands Mergers and Monopolies Authority (NMa) should be allowed to raid homes of company executives, according to the Council of State. It has given a positive advice on adding this power to the Competition Act.

Economic Affairs Minister Joop Wijn was originally against giving the NMa more authority under the Competition Act to allow it to raid homes. But when the Lower House adopted this amendment in October, it was decided to present this to the Council of State for its advice. In its capacity as advisor on planned legislation, the council has now given a positive judgement, Wijn said in a letter to parliament.

During the 2002 parliamentary inquiry into building industry fraud, it emerged that so-called shadow (double) accounting was kept outside companies, because the NMa did not have the authority to raid homes. Cartel agreements were recorded and settled in the shadow accounting.

The amendment was proposed in October by the then Labour (PvdA) MP Frank Heemskerk. The amendment and the Competition Bill itself still have to go through the Upper House.