| Wed 31 Mar 2010, 16:06 | | THEE - The Competition Commission - White Maize Mi |
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JSE
THEE
THEE - The Competition Commission - White Maize Milling cartel referred for
prosecution
Press Release
31 March 2010
White Maize Milling cartel referred for prosecution
The Competition Commission has today referred its findings of price fixing of
milled white maize to the Competition Tribunal for prosecution.
The Commission has been investigating price fixing in the milling industry since
2007. The investigations led to the referral of two cases to the Tribunal, the
wheat milling referral, which was referred recently as well as today`s white
maize milling referral. The milling investigations were initiated following
Premier Foods` disclosure during the bread cartel investigation that the cartel,
which involved largely the same companies, also covered their wheat and maize
milling operations.
With respect to white maize milling the Commission found evidence of price
fixing by Pioneer Foods, Foodcorp, Godrich Milling, Progress Milling, Pride
Milling, Westra Milling, Brenner Mills, Blinkwater Mills, TWK Milling, NTK
Milling, Carolina Mills, Kalel Foods, Bothaville Milling, Paramount Mills,
Keystone Milling, Premier Foods and Tiger Brands. The maize milling case
involves more firms than the wheat milling case, and the Commission may add more
names to the referral papers as firms come forward to settle and disclose what
they know of the cartel.
In its investigation the Commission found that the respondents discussed
pricing, agreed on price increases and the timing of such increases. This was
facilitated through meetings and telephone calls between the employees and
representatives of these firms. The meetings and telephone calls took place at
both regional and national levels and were mutually reinforcing.
The Commission has asked the Tribunal to impose an administrative penalty of 10
percent of annual turnover for the 2009 financial year on each of the firms
involved, except Premier Foods and Tiger Brands who were granted conditional
immunity from prosecution by the Commission provided that they fully co-operate
in the Commission`s investigation and prosecution of this case.
The Commission is concerned about the prevalence of cartels in staple food
products. This has a huge impact on the prices of these products, and therefore
undermines efforts to fight poverty in the country.
ENDS
Further Info:
Keitumetse Letebele, HOD: Communications
012 394 3183/ 082 783 3397/ keitumetsel@compcom.co.za
Date: 31/03/2010 15:58:02 Produced by the JSE SENS Department.
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