CompCom raids wood producers
The Competition Commission says in a statement issued on Thursday that it is conducting more search and seizure operations.
|||Johannesburg - The Competition Commission says in a statement issued on Thursday that it is conducting more search and seizure operations.
This time, the commission - which recently did similar raids on glass producers - has the Gauteng premises of PG Bison and Sonae Novobord in its sights as part of an investigation into alleged collusion.
In the statement, it says: “PG Bison and Sonae are the only two manufacturers of particleboard and Medium Density Fibreboard (MDF) in South Africa. These are wooden products that are used in a variety of applications, including the manufacture of home and office furniture, built in cupboards, kitchen units, coffins and shop fittings.”
Read also: Glass firms get raided
The commission adds it has “reasonable grounds to suspect that PG Bison and Sonae have engaged in collusive practices in contravention of the Competition Act”.
It notes: “The search operation is conducted as part of an ongoing investigation against the two firms and with due regard to the rights of all the affected persons. During the search the Commission will seize documents and electronic data, which will be analysed together with other information gathered to determine whether a contravention of the Competition Act has taken place.”
The Competition Act gives the commission the power to enter and search premises and seize documents which have a bearing on an investigation. The commission has obtained warrants authorising it to search the offices of PG Bison and Sonae at the North Gauteng High Court, Pretoria.
“Cartels are harmful because they result in high prices for consumers and reduce the incentive for firms to be innovative. It is for this reason that the investigation of cartels continues to be a priority for the Commission. Should this investigation uncover evidence of collusion, we will prosecute the firms involved for contravening the Competition Act,” said Competition Commissioner Tembinkosi Bonakele.
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