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Tribunal confirms power cable company’s settlement and R1.3 million fine
for price fixing, collusive tendering in Eskom tenders
The Competition Tribunal has confirmed, as an order, a settlement agreement between power cable supplier, Alcon Marepha (Alcon) and the Commission.
Alcon will, among others, pay an administrative penalty of R1 378 107.69 as part of the settlement agreement. The company also agrees to further co-operation with the Commission in respect of ongoing investigations.
Alcon admits to collusive tendering through the submission of cover prices for tenders issued by Eskom. Alcon, in agreement with competitors, allocated specific product lines and agreed on the prices to be charged per product line during the period 1994 – 2008. Prices were maintained through the provision of cover prices.
Alcon also admits to fixing prices of power cables through the Association of Electric Cable Manufacturers South Africa (AECSMA). Under the auspices of the AECMSA, Alcon discussed and agreed to quotation indices with competitors. These indices were used to escalate prices when bidding for short- and long-term tenders to supply electric cabling products between 2001 - 2012.
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