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Johannesburg - Pioneer Food Group [JSE:PFG], recently fined by the Competition Tribunal for price fixing, has responded to Fin24.com articles about a Deloitte study into its practices.
The articles, authored by Sikonathi Mantshantsha, reported that the study, commissioned by Pioneer, had identified an employee as implicit in price fixing ahead of submissions he subsequently made to the Competition Commission.
In the interests of right of reply, Fin24.com has agreed to publish the following letter from André Hanekom, MD of Pioneer Food Group.
- David McKay, Fin24.com editor
"Dear Editor
"In the interests of accurate and fair reporting and to set the record straight, I wish to draw attention to the erroneous reporting in the reports 'Pioneer knew of price-fixing' and 'Pioneer buried damning report', published recently on Fin24 and other inaccuracies in the Companies & Markets section on page 28 of the 11 March 2010 edition of Finweek.
"Contrary to what is stated in these reports, I place the following on record:
"The General Manager of Sasko Bakeries, Charl Goosen has not resigned. Mr Goosen was not 'fingered' in the forensic report conducted by independent consultants Deloitte into potential anti-competitive behaviour in the bread baking business of Pioneer Foods.
"All relevant information from the Deloitte report was included in the company's submission to the Competition Commission and the Competition Tribunal.
"Pioneer Foods did not appeal the decision of the Competition Tribunal. The company has opposed the appeal of the Competition Commission and will lodge a cross-appeal.
"Mr Goosen's testimony before the Competition Tribunal will be examined as part of the appeal process to be heard by the Competitions Appeal Court.
"The Board of Pioneer Foods will take whatever actions are required to rectify the company's position in response to the matters raised by the Competition Tribunal, including taking disciplinary action where appropriate.
"On-going monitoring with the involvement of independent agencies is in force and is measuring the actions of management and staff to ensure continued compliance with the provisions of the Competition Act.
"Yours sincerely,
André Hanekom
MD Pioneer Foods."
Fin24.com's Sikonathi Mantshantsha responds:
"The Fin24.com articles referred to above by Mr Hanekom are accurate.
"I stand by the facts. It is Mr Hanekom himself that told me on 19 February that the report 'fingered the person mentioned' in the Competition Tribunal's ruling, that being Andries Charl Goosen.
"I quote the tribunal's ruling: 'Up to the date of the hearing no action had been taken against any of the (Pioneer) employees implicated in this conduct. When it eventually did conduct an investigation it concealed the outcome of this by cloaking it in the claim of litigation privilege.'"
- Fin24.com
