Competition Commission raids suppliers of meat
The Competition Commission raided meat-supplying companies in three provinces on Wednesday on suspicion of price fixing.
The commission conducted simultaneous search and seizure operations at 13 premises of seven companies as part of a continuing investigation into the alleged fixing of prices and trading conditions.
The companies whose premises were raided are Karan Beef, Sparta, Chalmar, Beefmaster, Morgan, Beefcor and Fabvleis. The companies operate in Gauteng, the Free State and Northern Cape.
Nortons director Anthony Norton said the raid indicated a robust stance the commission had taken on cartel behaviour. “There [has been] a significant uptick in raids in the last few months and these raids have taken place since cartel conduct became criminal in May [2016].”
According to the Competition Amendment Act, price fixing, market allocation and collusive tendering between actual and potential competitors could result in criminal liability for directors or managers.
Apart from facing criminal charges, Norton said that, depending on the Competition Tribunal, meat suppliers might also be fined if found guilty.
The meat suppliers are also known as feedlots.
They buy weaner calves from farmers to bulk-feed them in preparation for slaughtering in the production of beef, which is then sold to wholesale and retail customers.
Karan Beef CEO Arnold Pretorius denied the allegations against his company and said he welcomed the probe.
“They have got a job to do and they are welcome to do it.
“We will co-operate and give them whatever they need,” Pretorius said.
Although he could not comment on behalf of the industry, “there is not the slightest hint of price fixing from our company”, he said. “We are all in fierce competition with each other. It would not make sense [to fix prices],” Pretorius said.
The commission said the food sector was one of its priority industries.
“The commission remains committed in its quest to fight collusion in the food sector as a whole as higher prices of food affect the most vulnerable and poor households who spend a disproportionately high percentage of their income on food,” the commission said.
Competition Commission head of communications Sipho Ngwema said the next step was to interview people, subpoena documents and use other legal tools to get to the bottom of the suspicions in the matter.
If the meat suppliers were found guilty of price fixing, the law allowed the commission to seek up to 10% of the company’s turnover as an administrative penalty and other appropriate remedies available to the Competition Tribunal.
THEY’VE GOT A JOB TO DO AND THEY’RE WELCOME TO DO IT. WE WILL CO-OPERATE AND GIVE THEM WHAT THEY NEED