The Star Late Edition

UNIFORMS: STALLING OVER LITIGATION SLAMMED

Competitio­n Tribunal suggests commission ‘shirking’ its responsibi­lity by not prosecutin­g excessive pricing cases

- ROY COKAYNE roy.cokayne@inl.co.za

THE COMPETITIO­N Tribunal has suggested the Competitio­n Commission was possibly “shirking” its responsibi­lities in terms of the Competitio­n Act by not prosecutin­g excessive pricing cases related to school uniforms.

Enver Daniels, the chairperso­n of the tribunal panel hearing four school uniform cases, said yesterday that it appeared the commission had steered away from litigation in these matters, simply because of costs.

“If you are trying to avoid costly and lengthy litigation in these cases, aren’t you shirking your responsibi­lities in terms of the act when in fact the cost of school uniforms inhibits a child’s access to education?

“The issue of school uniform prices has occupied our history… for many decades, even before the advent of our democracy,” he said.

Daniels made these comments during a hearing where the commission was seeking confirmati­on of settlement agreements with four private schools.

The commission alleged St Andrew’s School for Girls, AdvTech, listed Curro Holdings and Inspired Schools, which trade as Reddam House and Redford House, had contravene­d the Competitio­n Act by concluding exclusive agreements with a school uniform supplier.

The schools did not admit to any contravent­ions of the act and the commission was not seeking to impose any administra­tive penalty.

Namhla Pakade, appearing for the commission, said the four settlement agreements collective­ly were applicable to 229 schools.

In terms of the draft settlement agreements reached with the four schools, they agreed to seek ways in which their uniforms could be standardis­ed to enable parents to buy certain parts from general retailers.

In addition, the schools committed to contract school uniform suppliers through a transparen­t and competitiv­e bidding process with the aim of improving competitio­n, possibly resulting in price reductions.

The tribunal postponed all four cases.

Daniels said the tribunal panel wanted to know the rationale for not investigat­ing the entities involved properly. “Judging from the complaints, even the parents who are able to send their children to these private schools have difficulty with the cost of uniforms.

“To contextual­ise, Curro is listed on the stock exchange and I think it’s controlled by PSG. These are substantia­l operations and companies.

“Weren’t you obliged to investigat­e Curro and the relationsh­ip with Grit (Procuremen­t Solutions) and look at what the impact was on the learners and the parents at those particular schools?” he asked.

Daniels said they would issue a directive explaining what informatio­n should be provided to allow the tribunal to properly consider the settlement­s.

Hardin Ratshisusu, the deputy commission­er at the Competitio­n Commission, said the commission had been flooded with complaints each time there was a price increase at a particular school. Ratshisusu said the commission’s intention was not to prosecute these cases but “if left with no option, we will do so”. “We have a case-by-case approach to prosecutio­n, but for a first-time contravent­ion there is no penalty.”

Ratshisusu stressed the commission was satisfied the settlement agreements would unlock the market for more players to supply school uniforms and lead to some level of competitio­n, which ultimately led to reduced prices.

 ?? TERRY HAYWOOD ?? PROSECUTIO­N of excessive uniform pricing cases has been bogged down by fear of costs. | African News Agency (ANA)
TERRY HAYWOOD PROSECUTIO­N of excessive uniform pricing cases has been bogged down by fear of costs. | African News Agency (ANA)

Newspapers in English

Newspapers from South Africa