Commission calls for economic morality revival

Parliament's Portfolio Committee on Trade and Industry has heard submissions by the Competition Commission on the prevalence of cartels and price-fixing by industry.

A call for an economic morality drive as part of South Africa's moral regeneration campaign has been made by the Commission in Parliament today.

The Commission says it's concerned about the lack of ethical corporate governance and corporate accountability in South Africa - and that this may be much more pervasive than originally thought.

The Competition Commission has admitted that price fixing and collusion by companies is widespread in South Africa. One of the most worrying sectors is agro-processing, in particular food processing, such as bread. Investigations into the milk processing sector are already at an advanced stage.

Another industry under the Commission's watchful eye is construction, where pricing is said to be running way above the inflation rate. The Commission says at least one pharmaceutical company has so far confessed to colluding with other industry players.

The most lucrative cash cow for companies in this sector is tendering to supply the State with intravenous solutions.

"The Commission is considering raising the bar when it comes to punishing companies. Instead of a maximum fine of 10% of the previous year's turnover, companies may have to be penalised for the duration of transgressions committed," said Commissioner of the Competition Commission, Shan Ramburuth.