The Tribunal has confirmed a settlement agreement between the Competition Commission and GWK Farm Foods (Pty) Ltd, in which the company admits to its involvement in a maize milling cartel and agrees to pay an administrative penalty (a fine) of R1 000 000 (one million Rand).

 
The company admits that it agreed with its competitors in the white maize milling market to directly and indirectly fix the selling price of milled white maize products. It also admits that it agreed on dates to implement the prices and that it exchanged information about pricing structures. This occurred during a meeting in February 2004.

 
In addition to paying an administrative penalty, GWK Farm Foods agrees to fully cooperate with the Commission in the prosecution of any remaining respondents (accused companies) implicated in the matter.
 
It will also develop, implement and monitor a competition law compliance programme to ensure that its employees, managers, directors and agents do not contravene the Act in future.

 
In March 2007, the Commission launched an investigation into Tiger Brands, Pioneer Foods, Foodcorp, Pride Milling and Progress Milling. Other maize milling companies were later also investigated. These included Bothaville Milling, Godrich Milling, TWK Milling, Keystone Milling, Westra Milling, Carolina Mills, Brenner Mills, Paramount Mills, NTK Milling, Kalel Mills and Blinkwater Mills.
 
The investigation was launched after the Commission received a corporate leniency application from Premier Foods in 2007, which was corroborated by another corporate leniency application by Tiger Brands in the same year. In terms of the Commission’s Corporate Leniency Policy, a cartel member can disclose information on a cartel in return for immunity from prosecution and fines.
 
The Commission’s investigation revealed that between 1999 and 2007, representatives and employees of the implicated companies discussed pricing, agreed on price increases and the timing of such increases during meetings and telephone calls. The Commission concluded that this conduct amounted to price fixing and fixing of trading conditions in contravention of the Act.
 
The table below lists previous settlements in the maize cartel case and the dates on which the respective settlements were made orders of the Tribunal: