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Mother and son to pay penalties for alleged collusion for National Treasury tender

Two local businesses run by a mother and son have agreed to pay penalties for allegedly colluding with each other in relation to a National Treasury tender for the supply, delivery and offloading of animal feed between October 2016 and September 2019.

A Competition Commission investigation had found that around April 2016, Aludar Holdings and Ikemele Egg Production, being competitors, assisted each other when completing their tender documents.

“The investigation revealed that the sole member of Aludar is the son of the sole member of Ikemele and that the two co-ordinated their bids when tendering, as evidenced by various similarities in their bid documents. The commission concluded that the conduct between Aludar and Ikemele amounts to collusive tendering in contravention of section 4(1)(b)(iii) of the Act,” the commission said.

The two firms both deny contravening the Competition Act but have concluded separate consent agreements with the commission, wherein Aludar agrees to pay a penalty of R30 000 and Ikemele agrees to pay a R50 000 penalty.

The commission agreed to enter into the two consent agreements without admissions of liability, based on several factors, read with the remedies contained in the two consent agreements, it said. The agreements were on Thursday confirmed as orders by the Competition Tribunal.

“In addition to agreeing to pay the penalties, both Aludar and Ikemele undertake, among others, to refrain from engaging in any anti-competitive conduct, in contravention of the Act, in future. Both will also develop, implement and monitor competition law compliance programmes as part of their respective corporate governance policies,” the commission said.

Source: www.iol.co.za

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Mother and son to pay penalties for alleged collusion for National Treasury tender

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