Price-fixing suspected
THE Competition Commission yesterday carried out a search and seizure operation at five companies involved in the manufacture and distribution of refined edible oils‚ baking fats and margarine.
The companies operate in Gauteng and KwaZulu-Natal.
The commission says it has reasonable grounds to suspect that Wilmar Continental Edible Oils and Fats‚ D H Brothers Industries (trading as Willowton Oil and Cake Mills)‚ F R Waring Holdings‚ Africa Sun Oil Refineries and Epic Foods have all engaged in cartel conduct which includes price-fixing in the market for the manufacture and distribution of refined edible oils including baking fats and margarine.
The alleged conduct is believed to have started before 2007 and to be ongoing.
“The search and seizure operation is conducted as part of an ongoing investigation which was initiated by the commissioner.
“During the search, the commission will seize documents‚ records and electronic data which will be analysed‚ together with other information‚ to determine whether these companies have contravened the Competition Act‚” the commission said.
It obtained search and seizure warrants from high courts in Gauteng and KwaZulu- Natal.
“Food and agroprocessing is an important focus area for the Competition Commission‚ and we are determined to root out exploitation of consumers by cartels, which are so prevalent in this sector.
“We have‚ in particular‚ been monitoring developments in the fats and oils markets and what we see is worrisome‚” commissioner Tembinkosi Bonakele said. — TMG Digital