Watchdog lines up heavyweights

Johannesburg - The Competition Commission has lined up individuals with inside knowledge of alleged price-fixing activities in the bread industry for its hearing at the Competition Tribunal against producer Pioneer Foods.

Four of Tiger Brands' senior employees at Albany Bakery will testify against Pioneer.

Albany Bakery's Western Cape bakery manager Abraham Fourie, Albany national manufacturing executive William Marais and the company's former national sales manager William Francis are among these.

Five witnesses from Premier Foods will also testify.

It is alleged that the management of Blue Ribbon (Premier Foods), Sunbake (Foodcorp), Albany Bakery (Tiger Brands), Duens and Blue Ribbon (both Pioneer Foods) met every three months at Western Cape venues to discuss pricing, price alignment and the timing of price increases between 2002 to 2006.

They were caught out when a Western Cape businessman approached the commission and asked it to investigate bread price trends.

The commission has asked the tribunal to fine Pioneer Foods the maximum administrative penalty - 10% of its bread division's annual revenue for the year to end-September 2007.

Pioneer did not disclose Sasko's revenue as a separate item in its results for the year. However, for the year to end-September 2006, Sasko revenue was R3.4bn. This included other product ranges in the baking and milling operations.

Both Tiger Brands and Pamodzi-owned Foodcorp admitted to their part in the practice and were fined about R99m and R45m respectively. Premier Foods was granted exemption from prosecution under the commission's leniency policy in exchange for its full cooperation in the investigation.

- Fin24.com