Two companies responsible for supplying the South African Police Service (SAPS) with hand sanitizers have been slapped with a R3.5-million fine by the Competition Tribunal for exorbitant pricing while South Africa was battling to contain the spread of Covid-19.
The tribunal found BlueCollar Occupational Health and Ateltico Investments guilty of excessive pricing of hand sanitizers during the height of the Covid-19 pandemic.
“The tribunal also imposed an administrative penalty of R3 550 000 … on Gauteng-based BlueCollar and KwaZulu-Natal-based Ateltico for overcharging the SAPS to the amount of R9.8-million for the bulk supply of 10 000 25-litre containers of hand sanitizers in 2020,” said the commission in a statement.
Welcoming the order of the tribunal, the Competition Commission said: “The tribunal found that during the hard lockdown, SAPS was in desperate need of hand sanitizers for its members who were at the frontline of efforts aimed at containing the escalation of the pandemic and enforcing the lockdown restrictions nationally.
“Hand sanitizers became crucial in mitigating the spread of Covid-19.
“In the reasons for its decision, the tribunal described BlueCollar’s conduct as shocking considering the social consequences in that it exploited the pandemic by charging excessively for hand sanitizers, which were crucial for combatting the pandemic.”
Commission spokesperson Siyabulela Makunga said this is the second case in which the tribunal has found a supplier guilty of excessive pricing in the public procurement process during the Covid-19 pandemic.
In April 2022, Tsutsumani Business Enterprises was found guilty and fined R3.4-million for price gouging when supplying face masks to the police in 2020.
“The Tsutsumani matter is currently under review before the Competition Appeal Court,” said Makunga, adding that BlueCollar and Ateltico have 15 days to appeal the order.
“They can appeal the decision to the Competition Appeal Court. Appeal to Competition Appeals Court is second layer of adjudication by law.”
At the tribunal BlueCollar, which was the first responded, was represented by Mponyana Ledwaba of Mponyana Ledwaba Attorneys and was not available to comment at the time of publishing.
Ateltico was represented by Jonathan de Wet of De Wet Leitch Hands Inc who had not responded to questions at the time of publishing.
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