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Da Gama Textiles fined R2m for ‘collusive trading’

Published: 30th Jan 2017
Author: Tony Dickson - S&V Editor
Pretoria (SA) – The Competition Tribunal has fined The Good Hope Textile Corporation (Pty) Ltd, t/a Da Gama Textiles, over R2m for a case involving a State tender dating back to 2013. The case was heard on January 25.
        In its investigation and findings, the commission wrote: “On 16 September 2013, the Commissioner initiated a complaint in terms of section 49B(1) of the Act against Da Gama Textiles, Monoge Mining Contractors & Supply Services cc and Motseng Trading (Pty) Ltd for allegedly colluding when bidding for tender RT60-2012T issued by the National Treasury in contravention of section 4(1)(b)(iii) of the Act.
        “The tender was for the supply of fabric used in the manufacture of uniforms to the Department of Correctional Services, the SA Air Force and the SA Military Health Services.
        “The Commission’s investigation…revealed that: Da Gama Textiles concluded bilateral agreements with Monoge Mining and Motseng Trading in terms of which they agreed that Da Gama Textiles would determine the prices at which both Monoge Mining and Motseng Trading would quote when submitting…their respective bids in response to the tender number RT60-2012T. The bilateral agreements…constitute collusive tendering in contravention…of the Act.”
        Da Gama admitted its guilt and confirmed it had “ceased engaging in the conduct set out…above”.
        It was fined R R2 113 335.45, payable in 2 instalments, “the first payment being made 12 months from the confirmation of the Consent Agreement...the second...6 months after the first payment.”
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