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Johannesburg - The National Treasury is contesting the terms of a settlement between the country's competition watchdog and Pioneer Food Group [JSE:PFG], the Business Day newspaper said on Tuesday.
Pioneer, a maker of bread and other cereal products, agreed this month to pay a R250m fine and another R250m into an agro-business fund to have investigations against it for unfair competitive practices dropped.
But the Treasury said the agreement contravened the constitution and the rules of public finance and believes the payment to the agro-fund should be made to the National Revenue Fund instead, the paper said.
Pioneer Foods has also agreed to a reduction in its gross profit over a defined period for a selection of wheaten flour and bread products.
Pioneer, a maker of bread and other cereal products, agreed this month to pay a R250m fine and another R250m into an agro-business fund to have investigations against it for unfair competitive practices dropped.
But the Treasury said the agreement contravened the constitution and the rules of public finance and believes the payment to the agro-fund should be made to the National Revenue Fund instead, the paper said.
Pioneer Foods has also agreed to a reduction in its gross profit over a defined period for a selection of wheaten flour and bread products.
