Jul 04, 2012
Tribunal hands down penalties in plastic cartel caseBack
Engineering|Africa|Marley|Pipe|Pipes|Systems|Africa|Mining|Pipes|Plastic Pipe Products|Products|Systems|Gazelle Plastics|Michelle Harding|Pipe
© Reuse this
Andrag and Petzetakis Africa were also found guilty of engaging in price-fixing, allocation and collusive tendering of their plastic pipe products.
The testimony of Petzetakis MD Michelle Harding resulted in an 80% discount for the company, which was penalised R9.92-million, while Andrag received no penalty, after the Competition Commission found the group’s involvement to be limited in that a representative who attended one meeting, was unaware of the collusive purpose of the meeting.
DPI Plastics received immunity from prosecution in terms of the commission’s corporate leniency policy.
The tribunal dismissed the case against Gazelle Plastics and Gazelle Engineering.
A total of R31-million, R7.6-million and R5-million penalties have been settled by Marley Pipe Systems, Swan Plastics and Flo-Tek Pipes & Irrigation, respectively.
The case was referred to the tribunal in 2009 after the Competition Commission found that DPI Plastics, Marley Pipe Systems, Petzetakis Africa, Swan Plastics, Amitech South Africa, Flo-Tek Pipes & Irrigation, Andrag, Gazelle Plastics, Gazelle Engineering and MacNeil Agencies fixed prices, rigged tenders and divided markets by allocating contracts and customers.
“Enforcement against cartels requires more [Michelle] Hardings who are willing to take a moral stand and, as she put it in her testimony, ‘stop the cancer’,” the Tribunal said in its ruling.
The commission claimed that this cartel activity stretched back from before the Competition Act came into force, until 2007.
The respondents comprised manufacturers and suppliers of pipe products, which collectively enjoyed the major share of the market. The pipe products were used for plumbing and in the civil engineering, mining and agricultural sectors in South Africa.
Edited by: Mariaan Webb© Reuse this Comment Guidelines (150 word limit)
Other Construction News
Updated 2 hours 3 minutes ago JSE-listed openpit mining and materials company Afrimat has reported a 10.5% increase in revenue for the six months to August 31, to R1-billion, while profit after tax jumped 17.9%, to R88.8-million, compared with the same period last year. Full-year revenue for the...
Updated 2 hours 3 minutes ago Technology solutions company Tenova Mining & Minerals South Africa has been awarded a contract by State-owned freight transport utility Transnet to supply three reverse pulse bag filters. Two of the filters are to be installed on multiproduct rail tipplers and one on...
Updated 2 hours 3 minutes ago Precision and hydraulic special service equipment manufacturer Power Team says its SPX bolting system, which it supplies to contracting companies in the South African wind energy sector, enables these companies to significantly increase windmill erection speed,...
Recent Research Reports
Defence 2014: A review of South Africa's defence industry (PDF Report)
Creamer Media’s Defence 2014 report examines South Africa’s defence industry, with particular focus on the key participants in the sector, the innovations that have come out of the sector, local and export demand, South Africa’s controversial multibillion-rand...
Road and Rail 2014: A review of South Africa's road and rail infrastructure (PDF report)
Creamer Media’s Road and Rail 2014 report examines South Africa’s road and rail transport system, with particular focus on the size and state of the country’s road and rail network, the funding and maintenance of these respective networks, and the push to move road...
Real Economy Year Book 2014 (PDF Report)
This edition drills down into the performance and outlook for a variety of sectors, including automotive, construction, electricity, transport, steel, water, coal, gold, iron-ore and platinum.
Real Economy Insight: Automotive 2014 (PDF Report)
This four-page brief covers key developments in the automotive industry over the past 12 months, including an overview of South Africa’s automotive market, trade figures, production and the policies influencing the sector.
Real Economy Insight: Construction 2014 (PDF Report)
This five-page brief covers key developments in the construction industry over the past 12 months. It provides an overview of the sector and includes details of employment in the sector, infrastructure and municipal spending, as well as insight into companies’...
Real Economy Insight: Electricity 2014 (PDF Report)
This five-page brief covers key developments in the electricity industry over the past 12 months, including details of State-owned power utility Eskom’s generation activities, funding and tariffs, independent power producers and prospects for the sector.
This Week's Magazine
Updated 2 hours 13 minutes ago As the City of Ekurhuleni continues its bid to develop the largely industrialised metropole into the continent’s first aerotropolis, executive mayor Mondli Gungubele has committed the city to creating a predictable, stable and enabling business environment in which...
Updated 2 hours 14 minutes ago While Ford Motor Company of Southern Africa (FMCSA) did not have “significant issues” with power supply in Gauteng, it was a different story in the Eastern Cape, said FMCSA and American Chamber of Commerce in South Africa president Jeff Nemeth earlier this month....
Updated 2 hours 14 minutes ago In 2000, exports into Africa from South Africa represented less than 5% of the turnover of Federal Mogul Motorparts Africa, with sales largely centred around Zimbabwe, Zambia, Malawi and Mozambique. Today, African exports represent 30% of sales, with trade expanded...
Updated 2 hours 14 minutes ago The Malawi government has launched a $50-million project to upgrade the Kamuzu barrage, on the Shire river, an outlet of Lake Malawi, which is used to control the flow of water from the lake to the lower Shire area. The project will run from this year to 2017 and...
Updated 2 hours 14 minutes ago Our new Technical and Vocational Education and Training (TVET) Colleges will replace the Further Education and Training (FET) Colleges which have served us for the past twenty years. The buildings will be the same and most of the staff will be the same but as the...