Police face mask supplier fined R3.4m for excessive pricing

A Johannesburg company has been fined R3.4m for overpricing 3-ply surgical masks in its supply to the police service in April 2020A Johannesburg-based company has been found guilty of excessive pricing when supplying face masks to theTsutsumani Business Enterprises has been ordered to pay a R3.4m administrative penalty after being found guilty by the Competition Tribunal for charging, the Tribunal has found Tsutsumani contravened the Competition Act during from April 5 to 29 2020.

“Tsutsumani was responding to a request for quote issued by the police for the urgent procurement of personal protective equipment from suppliers. This was necessitated by the Covid-19 pandemic and national state of disaster which required all police staff to wear masks. The service required nine million masks per month for use by its staff in the frontline of combating the coronavirus during the lockdown.”concerned” the funding arrangement between the parties contributed to the mark-up.

“The police service procured 500,000 surgical face masks from Tsutsumani at R32.50 per mask. Tsutsumani earned a gross mark-up of 87% on this transaction, which the commission deems excessive.” Tsutsumani has been ordered to pay an administrative penalty of R3,441,689.10 within 30 business days.

Are they off the hook? The PFMA enables accounting officers to manage but, at the same time, holds them accountable for the resources they use. It establishes clear lines of accountability and broad frameworks of best practices that managers can adopt or, where necessary, adapt.

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