Uniform supplier gets light slap on the wrist for collusion
A supplier of army and other uniforms charged with collusion has agreed to pay a R200,000 penalty, the Competition Tribunal said on Wednesday.
The tribunal said it had been lenient to Motseng Trading because it was a small company without manufacturing capability.
"It was also taken into consideration that Motseng Trading had ceased operating from March 2015," the statement said.
An investigation by the Competition Commission found that Da Gama’s parent company, Good Hope Textile Corporation, along with Monoge Mining Contractors and Motseng had colluded in supplying uniforms to the government.
"Da Gama, Motseng Trading and Monoge Mining exchanged information with regards to their bids and agreed on prices they would quote in their bid submissions," the tribunal said.
Motseng had sourced its fabrics from Da Gama Textiles, which was fined R2m in January 2017.
The matter involving Monoge Mining has yet to be concluded.
Wednesday’s statement said the R200,000 fine was equivalent to 3.2% of Motseng’s annual turnover in its 2015 financial year.
"The commission said Motseng Trading had co-operated with the investigation and had ceased any relationship with Da Gama as soon as they realised they were under investigation."