The Competition Commission has referred three companies – Cakaca, Southern Ambition and Zamantlane Construction and Cleaning – to the Competition Tribunal for prosecution over alleged price fixing and collusive tendering in relation to a tender issued by the City of Cape Town.
The companies compete in the supply and delivery of padlocks for high-, medium- and low-voltage electrical equipment and access.
In August 2014, the city issued invitations to tender to various companies for the supply and delivery of padlocks for equipment and access.
The city approached the commission over its suspicions that the respondents may have exchanged documents in the process of preparing their respective tender documents.
The commission’s investigation found that the respondents allegedly colluded by discussing and coordinating the preparation of their respective bids.
In referring the matter to the tribunal for adjudication, the commission seeks an order declaring that the respondents contravened the Competition Act and that they are liable for payment of a fine equal to 10% of their respective annual turnover.