A Gauteng company and supplier to the Department of Correctional Services (“DCS”) has agreed to pay an administrative penalty totalling R30 000, following accusations of collusive tendering. The DCS tenders in question relate to the supply, delivery and offloading of coal peas which are used in correctional facilities for boiling water and cooking.
 
Settlement agreement
 
Payment of the administrative penalty forms part of the terms of a settlement agreement concluded between the Competition Commission (“the Commission”) and QQQ Trading Enterprise (Pty) Ltd (“QQQ”). The agreement has been confirmed as an order by the Tribunal.
 
As a further term of settlement, QQQ undertakes to refrain from engaging in any anti-competitive conduct, in contravention of the Competition Act No 89 of 1998 (“the Act”), in the future. In addition, QQQ will develop, implement and monitor a competition law compliance programme.
 
No admission
 
Although QQQ has agreed to the terms of the settlement agreement, it does not admit that it contravened section 4(1)(b)(i) and (iii) of the Act as alleged by the Commission. The Commission, in turn, did not insist on an admission of liability based on the following factors, read with the remedies contained in the settlement agreement:

Background
 
Following a complaint lodged by the DCS, the Commission’s investigation found that during or around November 2017, QQQ and another competing firm assisted each other when completing tender documents for the DCS tenders. The Commission alleged that the directors of the two firms submitted bids with a similar price in respect of the Kgosi Mampuru correctional facility and also submitted bids with prices which varied with consistent small margins in respect of other correctional facilities. The Commission concluded that the conduct between QQQ and the other firm amounted to collusive tendering, in contravention of section 4(1)(b)(i) and (iii) of the Act.