The Competition Commission has referred six complaints against 13 firms to the Competition Tribunal for various contraventions of the Competition Act.
This follows investigations uncovering evidence implicating the respondent firms in collusive practices.
RAIL MAINTENANCE
A referral was made against machining manufacturer Plasser Railway Machinery South Africa, Railway Mechanised Maintenance Company (RMMC) and rail contract services providerLennings Dec Rail for alleged colllusion when the companies bid for rail maintenance tenders issued by State-owned Transnet.
The commission found that between 1997 and 2013, Plasser, RMMC and Lennings agreed to allocate rail maintenance tenders issued by Transnet among each other when bidding.
This conduct constitutes collusive tendering in contravention of the Competition Act.
TEXTILES
A complaint was made against clothing manufacturer Seardel Group, trading as Berg River Textiles, and State contracts manager Eye Way Trading for alleged collusion when the companies bid for two tenders issued by the National Treasury for the supply of fabric used to manufacture uniforms for the then Department of Correctional Services, the South African Air Force and the South African Military Health Services.
The Commission found that Seardel Group and Eye Way agreed on prices they would use when bidding for these tenders.
This conduct also constitutes collusive tendering in contravention of the act.
GEAR PUMPS SUPPLY
The commission also found that branded automotive, industrial and electrical consumable products distributer Hudaco Trading colluded with machine manufacturer Fermel when supplying Casappa branded gear pumps to customers in the after-sales market.
Hudaco and Fermel agreed to divide markets by allocating customers among themselves.
This conduct constitutes market division by allocating customers, which is also in contravention of the Competition Act.
Complaints against other companies referred to the Competition Tribunal for colluding include Global Coffee Exports and Secret River Trading, Today’s Destiny and Project 81, and Caxton and the Natal Witness Printing Company.