Concrete cartel company to pay hefty fine

Johannesburg -Cape Concrete has agreed to pay a penalty of R4m following the confirmation of a settlement agreement between itself and the Competition Commission.
  
In a statement on Thursday, the Competition Tribunal said that it had confirmed the agreement between the parties.
  
The negotiated settlement agreement related to cartel conduct in the precast concrete market within South Africa.
  
"Cape Concrete has admitted that it has contravened the Competition Act through a series of meetings with its competitors
by fixing prices, price increases and discounts, allocatingcustomers, territories and specific goods amongst themselves and engaging in collusive tendering during the relevant period in the markets for pipes," the Tribunal said.
  
As well as agreeing to pay the R4 million fine, Cape Concrete would also co-operate fully with the Competition Commission in relation to the prosecution of any other firm arising from the Commission's investigation of the complaint.
  
The company had also agreed to testify in support of the Commission's case regarding contraventions in the settlement agreement.
  
Cape Concrete would also provide evidence written or otherwise concerning the contraventions contained in the settlement
agreement.
  
It further agreed to develop and implement a compliance programme incorporating corporate governance, designed to ensure that employees, management and directors did not engage in any contraventions of section 4(1)(b) of the Competition Act.
  
During December 2007, the Commission received an application for leniency under its corporate leniency programme from Rocla
regarding its involvement in a cartel in the precast concrete market within South Africa.
  
The Commission initiated an investigation and found that Rocla, together with Southern Pipeline Contractors, Concrete Units, Infraset, Grallio, Cobro, Cape Concrete, Conrite Walls, Craig Concrete and D&D had engaged in cartel activity in contravention of the Competition Act.
  
Three settlement agreements have previously been confirmed by the Tribunal in relation to the precast concrete cartel.
  
Aveng paid an administrative penalty of R46m (8% of its turnover attributable to Infraset less the turnover for paving products).
  
Concrete Units paid R5.8m or 7% of its turnover for 2008 and Cobro Concrete paid R4 million being 6.5% of Cobro's turnover for the financial year ending 2008.

- Sapa