Stuttaford Van Lines charged for collusive tendering

[schumi]

Johannesburg - Furniture removal company Stuttaford Van Lines on Wednesday was charged with 649 counts of collusive tendering relating to hundreds of government tenders issued for furniture transportation.

The Competition Commission, which charged Stuttaford, said this included tenders issued by the Presidency, Parliament, the SA Secret Service, the SA Police Service, the National Prosecuting Authority, SA Revenue Services, the Reserve Bank, the Department of Justice, the Public Protector as well as State-owned enterprises and private companies.

Stuttaford faces the largest number of charges as one single company in the history of anti-cartel enforcement by the Commission. The Commission is asking the Tribunal to fine the company 10 percent of its annual turnover on each of the 649 charges.

The matter emanates from a Commission investigation that uncovered widespread and deep-rooted anti-competitive and collusive conduct in the furniture removal market.

More at: http://www.iol.co.za/news/south-africa/stuttaford-van-lines-charged-for-collusive-tendering-10599903

 

[UrBaN963]

Yoh, eina.

Is there a Gupta link here? Or is this general corruption?

 

[Messugga]

Yoh, eina.

Is there a Gupta link here? Or is this general corruption?

They've allegedly colluded with virtually every government department there is. Sounds as if this is more a case of the regulator trying to make a point than actual corruption.

 

[UrBaN963]

They've allegedly colluded with virtually every government department there is. Sounds as if this is more a case of the regulator trying to make a point than actual corruption.

Well it's certainly corruption, hence the investigation and fines, as well as the other implicated having to settle. Just wondering how far down the rabbit hole this one goes.

 

[schumi]

Stuttaford Van Lines adamant it complied with competition laws

JOHANNESBURG - Furniture company Stuttaford Van Lines is adamant it's done nothing wrong, insisting it has complied with competition laws.

The Competition Commission has charged the company with over 600 counts of tender collusion relating to hundreds of tenders to move government furniture.

It’s understood the tenders include those issued by the Presidency, Parliament, the National Prosecuting Authority and the South African Revenue Service.

It's understood the case emanates from an investigation that uncovered widespread and deep rooted anti-competitive and collusive conduct in the furniture removal market.

More at: http://ewn.co.za/2017/08/03/stuttaford-van-lines-adamant-it-complied-with-competition-laws

 

[The_MAC]

"The Commission is asking the Tribunal to fine the company 10 percent of its annual turnover on each of the 649 charges"

How does this work?

 

[R13...]

They've allegedly colluded with virtually every government department there is. Sounds as if this is more a case of the regulator trying to make a point than actual corruption.

If they colluded with department it'd be corruption and not a competition matter. From that the article and other reports say, it is collusion among competitors where they agreed to price their bids so that it always favoured a competitor if that competitor is approached first for quotation. It just so happens that Van Lines were more involved than any other company probably a result of them being favoured for tendering lowest, so always approached first. It is also possible that they bought the right to be asked to quote first and that part would be corruption.

 

[Hosehead]

I still wonder if the big 3 movers are not a cartel as their prices are the same pretty much

 

[Geoff.D]

I still wonder if the big 3 movers are not a cartel as their prices are the same pretty much

Well the costs are basically the same for all. The profit margins are similar. The job is very similar. The only thing that will distinguish the one from the other is service quality.

When does "best practice" become collusion and therefore a Cartel?