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Johannesburg - The Competition Commission on Wednesday called on firms involved in milling white maize and wheat to approach it within 30 days for possible settlement of their cartel cases.
The commission has given the companies involved until 30 June 2010, after which the offer will lapse and the commission will seek maximum penalties from the tribunal for firms that did not come forward.
"This is a once-off offer for firms that may have been involved in cartel activity in the milling sector to come clean and cooperate with the commission," it said. In return, firms that cooperate fully with the commission will receive favourable settlement terms.
The commission stated that cooperation means full disclosure of information, facts, communication and/or data relating to the company's participation in or information about cartel activity in the milling of white maize and wheat.
Since the commission's referral of the two cartel cases against millers of flour and white maize to the Competition Tribunal, it has reported receiving numerous approaches from firms involved in what seems like endemic cartel arrangements at many regions in the country.
"These regional arrangements apparently involved a lot of new players that were not cited in the cases referred to the tribunal. It appears that the regional arrangements reinforced, overlapped and completed the national cartel arrangements. As such the milling cartel is far wider and involves many firms that were previously uncovered," the commission said.
The commission said it has already concluded settlement terms with some of the firms that have approached it, and is in settlement discussions with others.
"This communiqué is targeted at firms that were part of the cartel, especially at regional level, whether or not they are cited as respondents in the current cases before the tribunal," it concluded.
- I-Net Bridge
The commission has given the companies involved until 30 June 2010, after which the offer will lapse and the commission will seek maximum penalties from the tribunal for firms that did not come forward.
"This is a once-off offer for firms that may have been involved in cartel activity in the milling sector to come clean and cooperate with the commission," it said. In return, firms that cooperate fully with the commission will receive favourable settlement terms.
The commission stated that cooperation means full disclosure of information, facts, communication and/or data relating to the company's participation in or information about cartel activity in the milling of white maize and wheat.
Since the commission's referral of the two cartel cases against millers of flour and white maize to the Competition Tribunal, it has reported receiving numerous approaches from firms involved in what seems like endemic cartel arrangements at many regions in the country.
"These regional arrangements apparently involved a lot of new players that were not cited in the cases referred to the tribunal. It appears that the regional arrangements reinforced, overlapped and completed the national cartel arrangements. As such the milling cartel is far wider and involves many firms that were previously uncovered," the commission said.
The commission said it has already concluded settlement terms with some of the firms that have approached it, and is in settlement discussions with others.
"This communiqué is targeted at firms that were part of the cartel, especially at regional level, whether or not they are cited as respondents in the current cases before the tribunal," it concluded.
- I-Net Bridge
