Price fixing probe to include entire food industry

The Competition Commission has appointed a team to investigate collusion and price fixing in the entire food industry. The investigation comes at a time when food prices continue to soar at an alarming rate.

The Competition Commission has already established that there is price fixing and collusion in the production and sale of bread, milk, maize and flour. Now it has decided to investigate the entire food chain, focusing mainly on staple foods for the poor.

The commission has just handed down a fine of R145 million to a scrap metal company -- the biggest uncontested fine ever for price fixing and collusion in the country. The penalty is meant to send a clear message to companies found guilty of the crime.

Meanwhile, the commission says several big construction companies have come forward and confessed to rigging tenders in the government's multibillion rand infrastructure development programme.

This comes after the commission announced that it was investigating allegations that some tenders, including the construction of 2010 stadia and the Gautrain, were rigged.