PIONEER FOODS has appeared before the Competition Tribunal to defend itself against complaint referrals in terms of allegations of anti-competitive behaviour in the Western Cape and allegations of participating in a national bread cartel.
In the company’s response to the Western Cape complaint referral, it has been confirmed that during 2007 the company admitted to certain facts relating to collusion in the Western Cape.
The relief sought, in this instance, by the Competition Commission, was for the imposition of an administrative penalty of 10% of the 2006 revenue from the production and sale of bread in the Western Cape.
Revenue of the Western Cape baking division of the Group amounted to R384 million for the year ending 30 September 2006.
At present, the Company continues to defend itself against all other allegations including participation in a national bread cartel.
In terms of the legal proceedings, both parties have delivered their evidence and have closed their cases. Final legal arguments will be delivered in September. The Competition Tribunal will make its decision thereafter.
According to a press release, Pioneer Foods “remains committed to the principles of good corporate governance and further entrenching its Legal Compliance Programme”.
