The Competition Tribunal has confirmed a settlement agreement between the Competition Commission and GWK Farm Foods, in which the company admits to its involvement in a maize milling cartel and agrees to pay an administrative penalty of R10-million.
This is the fourteenth settlement agreement to be confirmed by the tribunal as part of a maize milling cartel.
In the latest settlement, GWK Farm Foods, formerly known as Westra Industries, admits that it agreed with its competitors in the white maize milling market to directly and indirectly fix the selling price of milled white maize products.
It also admits that it agreed on dates to implement the prices and that it exchanged information about pricing structures. This occurred during a meeting in February 2004.
In addition to paying an administrative penalty, GWK Farm Foods agrees to fully cooperate with the commission in the prosecution of any remaining respondents implicated in the matter.
It will also develop, implement and monitor a competition law compliance programme to ensure that its employees, managers, directors and agents do not contravene the Act in future.