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Johannesburg - Food producer Pioneer Foods [JSE:PFG] not only deliberately presented false evidence to the Competition Tribunal during hearings about fixing bread prices last year, it also concealed the existence of a damning forensic report.
Deputy competition commissioner Thembinkosi Bonakele told Fin24.com that the commission was not aware that Pioneer had conducted any forensic investigation into price fixing.
"Until now we were not aware of any internal investigation by Pioneer," said Bonakele.
Pioneer managing director Andre Hanekom told Fin24.com last week that his company had hired consultancy Deloitte to conduct a forensic investigation, and the results of that probe were released to Pioneer before the hearings. The company was found guilty of colluding to fix bread prices in 2006.
Deloitte's investigation had found Western Cape Sasko Bakeries general manager Andries Goosen guilty of colluding to fix bread prices, but Pioneer withheld that information and continued to plead its innocence at the Competition Tribunal hearing.
Goosen was its main witness, but later admitted to having lied under oath during the hearing - according to the tribunal's judgement.
Pioneer has since been fined R196m. The group has launched an appeal, while at the same time the commission has appealed for a substantially higher fine.
The company's non-disclosure of the forensic report and its findings means it deliberately presented evidence and a witness who had already been condemned by its own investigation.
Bonakele said the company has always treated the commission's investigation with complete disdain.
"This is the worst any competition transgression can be, I can't find any logical explanation for Pioneer's behaviour. But I am not surprised at all by their behaviour."
In its ruling last week, the tribunal found that Pioneer "demonstrated its willingness to construct a case based on falsehoods and misleading tactics".
The tribunal did not mince its words and stated categorically that Goosen not only lied under oath, but also that he admitted to having done so.
The tribunal went on to say that Pioneer has "to date not taken disciplinary action against a single person involved in these contraventions".
- Fin24.com
