Farmers short-changed by plastic pipe suppliers

JOHANNESBURG – A number of plastic pipe manufacture and supply companies had colluded to fix prices, the Competition Tribunal in South Africa ruled recently.

The companies, which provided the pipes for plumbing in the civil engineering, mining and agricultural sectors, held meetings in which they fixed prices, rigged tenders and divided markets, the tribunal found.MacNeil Agencies, Amitech South Africa, Andrag, and Petzetakis Africa acted in contravention of the Competition Act. Amitech SA and Petzetakis Africa had also engaged in market allocation and collusive tendering.The judges of the tribunal commended the managing director of Petzetakis Africa, Michelle Harding, for coming forward about the cartel and giving testimony.Harding organised a breakfast meeting with cartel members and informed them that Petzetakis would not participate in the collusion any longer. She had taken a stand against these activities in her own firm too.Her testimony secured an 80 percent reduction in penalty for Petzetakis, and they were fined R9.9 million.Marley Pipe Systems, Swan Plastics and Flo-Tek Pipes & Irrigation settled with the Competition Commission at R31 million, R7.6 million and R5 million respectively. MacNeil Agencies received a penalty of R2 million and Amitech SA was penalised R11 million.The Commission did not seek any penalty against DPI Plastics. It received immunity because of the commission’s corporate leniency policy. The Tribunal dismissed charges against Gazelle Plastics and Gazelle Engineering.The Competition Commission found that the cartel met over a long period before the introduction of the Competition Act and continued until 2007. One witness testified that the cartel was already in existence when he joined the industry in 1969.- Nampa-Sapa