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Competition sinners pay R226m

Mar 16 2009 21:36

Cape Town - The Competition Commission has collected R226.3m in fines from companies being punished for breaking the laws on uncompetitive behaviour since June 2007.

This is out of a total of fines imposed amounting to R359.9m . The difference between the two figures represents outstanding instalments yet to be paid over the next two years.

Giving these figures in a written answer to a parliamentary question published on Monday, the Trade and Industry Minister Mandisi Mpahlwa said that under the act, the money has to be paid into the national revenue account, and would not be earmarked for spending on special projects.

The question was asked by the leader of the Independent Democrats, Patricia de Lille.

De Lille was told by the minister that the bulk of the cash received from fines imposed came from Tiger Brands, which has already paid R98 984 869.90, and Adcock Ingram which has paid R53 502 800. New Reclamation were fined R146 972 085 and have so far paid R48 657 355 with the rest to come in June this year and next. Foodcorp were fined R45 506 359.82, of which R15 135 453.27 rand has been paid. The rest is due in January next year and the year after.

- I-Net Bridge

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Dick
Mar 17 2009 20:46 Report this comment

It is astounding to me that the very consumers who were disadvantaged by the conduct of the businesses fined are in fact the persons who are now also expected to carry the effects of the fines imposed, to the extent that the pension savings of many of them are invested in the shares of those very companies. There is only one suitable punishment - and deterrent - for such actinity: mandatory gaol time for company directors and culpable senior management.

Shrek
Mar 17 2009 12:11 Report this comment

I don't agree with the method of penalising these companies. They should not be allowed to increase any prices for the next 12-24 months. This way the consumer also benefits. By imposing the fines, these companies simply increase their prices to make up the money.

JustMe
Mar 17 2009 07:11 Report this comment

What has the commission done about Pioneer Foods who were also suspected of ucompetitive behaviour? The commission need to take a closer look at the pet food industry!

Mike
Mar 17 2009 06:53 Report this comment

Hear hear Shorts, Its most probably run in the same efficient manner as the old RAF.

Shorts
Mar 16 2009 18:18 Report this comment

So fine, but what now happens to this money ??? Is it ploughed back on a fair and equitable basis into the development and funding assistance of financially viable, worthy small businesses, or is it soaked up in salaries and bonuses for ANC party comrades, previously disadvantaged freedom fighters who need their turn with their snouts in the trough, BBEEE handouts, equity employment priviledges, Zuma legal costs, Shaik's terminal illness retirement for the next 40 years or the like. Please tell.


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