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Competition Commission goes after companies who won Free State Treasury tenders

Thembinkosi Bonakele, the head of the Competition Commission. Photo: Brett Eloff
Thembinkosi Bonakele, the head of the Competition Commission. Photo: Brett Eloff

The Competition Commission has formally charged seven Bloemfontein-based companies with price fixing and collusion.

The charges relate to Free State Treasury tenders to supply stationery to provincial government departments in 2014.

The companies that have been charged are: Catha Silkscreen Printers CC (Catha)‚ Molemo Trading CC (Molemo)‚ Lounge 848 CC‚ Nakanyane Business Solutions CC‚ Litabe & Seema Trading CC‚ Mo Mollo Records (Pty) Ltd t/a Mo-Faya Inc (Mo-Faya) and Kgomo Ya Maphura General Trading CC (KYM).

“These companies‚ which are competitors in the market‚ entered into an agreement and/or engaged in a concerted price fixing and collusive tendering in relation to the tender‚” the commission said in a statement.

“The companies‚ amongst other things‚ quoted the same prices for various stationery items in their bills of quantities. In addition‚ they received confirmation letters from the same wholesaler from which they intended to source the stationery if they were awarded the tender.”

Catha and Molemo have also been charged with price fixing and collusion for another tender to supply provincial government departments in the Free State with computer cartridges in 2015.

 The matters have been referred as four separate cases.

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