Seven fire control and protection services companies to be prosecuted for cartel conduct
The Competition Commission has referred seven companies specialising in supplying, installing and maintaining fire control and protection systems to the Competition Tribunal for prosecution.
This referral follows an investigation by the Commission and its raid in March 2015 on the offices of Belfa Fire (Pty) Ltd (Belfa), Cross Fire Management (Pty) Ltd (Cross Fire), Fireco Gauteng (Pty) Ltd (Fireco Gauteng), Fire Control Systems (Pty) Ltd, QD Air (Pty) Ltd and Technological Fire Innovations (Pty) Ltd.
The investigation found that from at least 1996 to 2015, the companies, which operate South Africa and the rest of the continent, entered into agreements and/or engaged in a concerted practice to fix prices, divide markets and tendered collusively in relation tenders for supplying, installing and maintaining fire control and protection systems.
The investigation also revealed that the collusive conduct by these companies was carried out through bilateral and multilateral agreements using exchange of cover prices through sharing of bills of quantities, telephone, faxes, emails and occasional meetings.
Further, they agreed to ‘respect’ each other’s allocated customers by not bidding competitively for tenders issued by those customers.
The companies are Afrion Property Services CC; Belfa; Cross Fire; Fire Protection Systems (Pty) Ltd; Fireco (Pty) Ltd; Fireco Gauteng; and Tshwane Fire Sprinklers CC.
The Commission has referred the matter to the Tribunal for adjudication. It is seeking an order declaring that the companies have contravened the Competition Act and that they are liable to pay a maximum administrative penalty equal to 10% of their annual turnover.
Enquiries:
Sipho Ngwema
Tel: 012 394 3493
Cell: 078 048 1213
E-mail: SiphoN@compcom.co.za
