23 August 2010 by

Anix and Zedek fined for collusive tendering

The Tribunal has confirmed settlement agreements between the Competition Commission and Anix Trading 799 CC (Anix) and Zedek Trading 799 CC (Zedek) respectively. 

The Commission had been investigating Anix and Zedek following a complaint lodged by the National Treasury in March 2009, alleging that Anix and Zedek engaged in collusive tendering in respect of their tender submission for the supply and delivery of animal feed to the state for the period 01 May 2009 to 30 April 2011.

During its investigation, the Commission summoned and interviewed individuals alleged to be involved in collusive tendering. A representative of Anix confirmed that Anix and Zedek discussed the cost price of the goods that were the subject of the tender as well as their respective tender prices. The Commission further established that the conduct had been on-going for a considerable period of time as Anix and Zedek normally discussed their respective tender prices whenever they responded to an invitation to tender.

The Commission referred its findings to the Tribunal on 8 March 2010. Shortly thereafter, Anix and Zedek approached the Commission to settle the matter, stating that they had contravened the Act in ignorance as they did not know that their conduct amounted to a contravention. Anix and Zedek have agreed to refrain from collusive tendering and to pay administrative fines of R20,000 and R40,000 respectively.

Chris Charter, Director, Competition
Scarlate Nkiwane, Associate, Competition

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