CAPE TOWN, June 28 – The Competition Commission on Wednesday said it had referred six Bloemfontein-based companies for prosecution for price fixing in relation to a Free State Provincial Treasury stationery tender.
“The companies that have been charged are Catha Silkscreen Printers CC (Catha), Molemo Trading CC (Molemo), Lounge 848 CC, Nakanyane Business Solutions CC, Litabe & Seema Trading CC, Mo Mollo Records (Pty) Ltd t/a Mo-Faya Inc (Mo-Faya) and Kgomo Ya Maphura General Trading CC (KYM),” the Competition Commission said in a statement.
“These companies, which are competitors in the market, entered into an agreement and/or engaged in a concerted price fixing and collusive tendering in relation to the tender.”
According to the commission, the companies contravened the Competition Act by engaging in price fixing and collusive tendering.
“The companies, among other things, quoted the same prices for various stationery items in their bills of quantities. In addition, they received confirmation letters from the same wholesaler from which they intended to source the stationery if they were awarded the tender.”
Two of the companies, Catha and Molemo, were also referred for prosecution in a separate case of price fixing and collusive tendering. This related to a contract to supply the provincial government with computer cartridges in 2015.