Chicken Boo
Senior Member
From here: http://www.busrep.co.za/index.php?fSectionId=552&fArticleId=5377777
Pioneer foods were recently fined R195mil for colluding in the price-fixing of bread.
Now another story:
http://www.busrep.co.za/index.php?fSectionId=552&fArticleId=5392353
Pioneer, along with Tiger brands and Premier foods, are responsible for fixing the wheat-milling prices (between these 3 lies 90% of bread/bread-related industry in SA). Tiger and Premier appear to have fixed themselves an additional deal where their cooperation (with the inquiry) results in reduced penalties, but Pioneer is looking at a fine of 10% of turnover... R1.6 billion. Whoa.
A fine like that would certainly send a strong signal to other price-fixers but there's a large question here - where are these fines going? To the national budget? Would it not be better to force the corrupt companies to lower their prices and effectively put something back in the consumer's pocket directly?
Also, while I have only admiration and gratitude for the fact that this matter did go to a tribunal and that it is public knowledge now, I think that stories like this need to dominate news headlines. Personal interest stories about what this one did to that one and the like are just fluffy distractions that Pioneer foods and their ilk effectively thrive on.
Pioneer foods were recently fined R195mil for colluding in the price-fixing of bread.
Now another story:
http://www.busrep.co.za/index.php?fSectionId=552&fArticleId=5392353
Pioneer, along with Tiger brands and Premier foods, are responsible for fixing the wheat-milling prices (between these 3 lies 90% of bread/bread-related industry in SA). Tiger and Premier appear to have fixed themselves an additional deal where their cooperation (with the inquiry) results in reduced penalties, but Pioneer is looking at a fine of 10% of turnover... R1.6 billion. Whoa.
A fine like that would certainly send a strong signal to other price-fixers but there's a large question here - where are these fines going? To the national budget? Would it not be better to force the corrupt companies to lower their prices and effectively put something back in the consumer's pocket directly?
Also, while I have only admiration and gratitude for the fact that this matter did go to a tribunal and that it is public knowledge now, I think that stories like this need to dominate news headlines. Personal interest stories about what this one did to that one and the like are just fluffy distractions that Pioneer foods and their ilk effectively thrive on.
