The Competition Tribunal has found a supplier of hand sanitiser to the SA Police Service guilty of excessive pricing amounting to R9.8 million during the Covid-19 pandemic.
BlueCollar Occupational Health, based in Gauteng, supplied the sanitiser in partnership with Atelico Investments, based in KwaZulu-Natal. The Tribunal described BlueCollar's conduct as"shocking" because it exploited the pricing of hand sanitiser, which was seen as crucial for combatting the spread of the Covid-19 virus during the pandemic. SAPS desperately needed hand sanitiser for its members, who had to enforce lockdown restrictions.A deep dive into the big business story of the week, as well as expert analysis of markets and trends.BlueCollar overcharged SAPS R9.
The Tribunal imposed an administrative penalty of R3.55 million on BlueCollar and Atelico"jointly and severally", meaning they bear equal liability. This is the second excessive pricing case successfully prosecuted by the Competition Commission relating to the public procurement process during the pandemic.
In April 2022, another SAPS supplier, Tsutsumani Business Enterprises, was found guilty of price gouging in its supply of face masks in 2020. Tsutsumani was fined R3.4 million. The Tsutsumani matter is currently under review before the Competition Appeal Court.In times of uncertainty you need journalism you can trust. For 14 free days, you can have access to a world of in-depth analyses, investigative journalism, top opinions and a range of features. Journalism strengthens democracy.
_Business So, there's the formula for success. Overcharge by R9.8m, be found guilty by the CC and accept a fine of R3.5m. Rinse and repeat.