PRICE FIXING: DA worries whistle-blower is being victimised

2007-11-15 00:00

The Democratic Alliance has welcomed the R99 million fine meted out by the Competition Commission to Tiger Consumer Brands for colluding with rivals Pioneer Foods and Premier Foods to fix the price of bread.

DA parliamentary leader Sandra Botha yesterday praised Cape Town bread distributor Imraahn Mukaddam for blowing the whistle on the cartel - and voiced concern that Mukaddam is reportedly being victimised for speaking out.

“In a country where 4,2 million people are estimated to live below the bread line, the price fixing of a staple food such as bread must be condemned in the strongest terms. This kind of uncompetitive behaviour pushes prices up and it is the consumer who - literally and figuratively - ends up paying for it,” Botha said in a statement yesterday.

Botha said while there have been calls from some quarters for price-fixing in the bread sector, it is “precisely this kind of knee-jerk response” that must be avoided.

“Price fixing leads to inefficiencies and is ultimately to the detriment of the consumer. One only has to look at what is happening in Zimbabwe at present to understand just how much damage such measures can do. The desire to further regulate the bread and other industries must also be resisted, as this is not the solution.”

The DA parliamentary leader said consideration needs to be given to making it possible (as it is in other countries) to hold senior management members of companies implicated in anti-competitive behaviour personally liable for their conduct.

“The need for an urgent review of the measures that will strengthen competition is underlined by the fact that this collusion between the three companies had already been in effect for the past 12 years. Situations like these occur because the government turns a blind eye to such practices, allowing companies like Telkom, Eskom and Spoornet to unilaterally hike prices in the absence of any proper competition,” she said.

Join the conversation!

24.com encourages commentary submitted via MyNews24. Contributions of 200 words or more will be considered for publication.

We reserve editorial discretion to decide what will be published.
Read our comments policy for guidelines on contributions.

24.com publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
0 comments
Comments have been closed for this article.

Inside News24

 
/Sport

Book flights

Compare, Book, Fly

Traffic Alerts
Traffic
There are new stories on the homepage. Click here to see them.
 
English
Afrikaans
isiZulu

Hello 

Create Profile

Creating your profile will enable you to submit photos and stories to get published on News24.


Please provide a username for your profile page:

This username must be unique, cannot be edited and will be used in the URL to your profile page across the entire 24.com network.

Settings

Location Settings

News24 allows you to edit the display of certain components based on a location. If you wish to personalise the page based on your preferences, please select a location for each component and click "Submit" in order for the changes to take affect.




Facebook Sign-In

Hi News addict,

Join the News24 Community to be involved in breaking the news.

Log in with Facebook to comment and personalise news, weather and listings.