The Competition Commission on Thursday conducted a search and seizure operation at the premises of five South African companies involved in the manufacture and distribution of refined edible oils, baking fats and margarine, operating in Gauteng and KwaZulu-Natal.
The commission noted that it had reasonable grounds to suspect that Wilmar Continental Edible Oils and Fats, DH Brothers Industries, Willowton Oil and Cake Mills, FR Waring Holdings, Africa Sun Oil Refineries and Epic Foods have been engaging in cartel conduct, including price fixing in the market for the manufacture and distribution of refined edible oils, including baking fats and margarine.
The alleged conduct is believed to have started before 2007 and is still ongoing.
The search and seizure operation was conducted as part of an ongoing investigation initiated by competition commissioner Tembinkosi Bonakele. During the search, the commission seized documents, records and electronic data, which would be analysed, together with other information gathered, to determine whether these companies were in contravention of the Competition Act.
The commission obtained search and seizure warrants from the High Courts in Gauteng and KwaZulu-Natal, respectively, in terms of the Competition Act. The operation was conducted with due regard for the rights of all the affected persons.
“Food and agroprocessing is an important focus area for the Competition Commission and we are determined to root out exploitation of consumers by cartels that are so prevalent in this sector. We have, in particular, been monitoring developments in the fats and oils markets and what we see is worrisome,” said Bonakele.