Beef processing companies referred to Competition Tribunal
The Competition Commission has referred two beef processing companies, Karan Beef and Irvin & Johnson, to the Competition Tribunal.
The commission found that the two companies were guilty of cartel conduct in the selling of several products, including beef patties, viennas and boerewors.
The commission says Karan Beef admitted guilt and paid an administrative penalty of R2.7m.
The tribunal has asked the commission to impose an administrative penalty of 10% of I&J’s annual turnover.
Spokesperson, David Maimela, says the cartel conduct has been ongoing since 2000.
"Karan Beef opted to take the option of setting out of court and they have settled for R2.7 million."
Maimela says according to the agreement between the two companies, Karen Beef could not sell certain of its processed beef products to certain customers, which were reserved for I&J.
He says the commission is ready to prosecute I&J.
"We initiated an investigation and uncovered the cartel and believe we have a strong case, we are ready to prosecute in front of the tribunal," Maimela says.