The Competition Tribunal has approved separate settlement agreements between the Competition Commission and two wire product manufacturers who were accused of cartel conduct.
Wireforce Steelbar and Hendok admitted to being part of a cartel that fixed the prices of nails, wire and wire related products.
In terms of the settlements, the companies have agreed to pay penalties of R4.3-million and just over R5-million, respectively, over a five-year period.
The companies, both of which are currently dormant, have previously provided the commission with a suretyship deed in relation to the payment of the settlement amounts.
Their legal representative has subsequently confirmed that the capital amount has been deposited into, and secured in, a trust account.
The settlement agreements emanate from a commission investigation into wire and steel manufacturer Cape Gate and several other companies.
Cape Gate settled with the commission in 2018 and admitted to price fixing, dividing markets and collusive tendering. The firm was fined R40-million and agreed to cooperate with the commission in its ongoing prosecution of the matter.
The case, dating back to 2009, has been prolonged as a result of numerous legal challenges which have taken the parties through various courts including the Supreme Court of Appeal.