Johannesburg
– The Competition Commission said on Thursday it was conducting a search and
seizure raid at 5 companies.
These
companies are all involved in the manufacture and distribution of refined
edible oils, baking fats and margarine in South Africa. The companies operate
in Gauteng and Kwazulu-Natal provinces.
In a
statement, it said it had “reasonable grounds” to suspect that Wilmar
Continental Edible Oils and Fats, Willowton Oil and Cake Mills,FR Waring
Holdings, Africa Sun Oil Refineries and Epic Foods “have engaged in cartel
conduct which includes price-fixing in the market for the manufacture and
distribution of refined edible oils including baking fats and margarine”.
The alleged
conduct is believed to have started before 2007 and is still on-going.
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“Food and
agro-processing is an important focus area for the Competition Commission, and
we are determined to root out exploitation of consumers by cartels that are so
prevalent in this sector. We have, in particular, been monitoring developments
in the fats and oils markets and what we see is worrisome,” says Commissioner
Tembinkosi Bonakele.
The
Competition Commission operation says the raid is part of an ongoing investigation
initiated by the Commissioner.
During the
search the commission will seize documents, records and electronic data which
will be analysed, together with other information gathered, to determine
whether these companies have contravened the Competition Act.
The
Commission obtained search and seizure warrants from the High Courts in Gauteng
and KwaZulu-Natal, respectively, in terms of section 46 of the Competition Act.
The operation is being conducted with due regard to the rights of all the
affected persons.