The Competition Tribunal has found that Tsutsumani Business Enterprises charged the South African Police Service (SAPS) excessive prices for the urgent supply of 500 000 face masks during the Covid-19 pandemic, in April 2020, and has ordered the supplier to pay a R3.4-million administrative penalty.
Tsutsumani must pay the administrative penalty within 30 days.
"The tribunal has concluded that Tsutsumani enjoyed market power during the complaint period and was dominant in the market for the emergency procurement of masks by SAPS from suppliers registered on the National Treasury’s Central Supplier Database that were able to satisfy the requirements of SAPS’ request for quotations to supply the masks within a very short time period.
Tsutsumani had denied the Competition Commission's excessive pricing allegations.
This case is the first excessive pricing case referred to the tribunal by the commission in the context of a tender process during the pandemic.
The tribunal’s reasons will be publicly available in due course.