�Bid-rigging� companies ordered to file defences
| Thursday December 4, 2014 11:25
The companies, Creative Business Solutions, trading as Bread and Butter Foods and Rabbit Group were dragged before the commission by the Competition Authority (CA) being accused of colluding on a P114 million tender to supply schools across the country with sugar beans from China.
Bread and Butter Foods was awarded tenders for Palapye, Selebi Phikwe, Francistown and Maun while Rabbit Group was awarded tenders for Lobatse, Gaborone and Mahalapye.
The total price for the former was P58, 047 304 and P55, 956 600 for the latter.
The papers before the commission reveal that the two companies were investigated for bid rigging of Tender No PR: 8/6/2/11 (V) that was awarded by the Ministry of Local Government for the supply of 7,530 metric tones of sugar beans.
It is understood that the Authority acted on a tip-off from an informer alleging that certain companies in response to the tender had colluded in terms of pricing.
“The complainant said he had observed a pattern in pricing by at least three groups of tenderers whose prices were too close to each other’s such as to raise suspicion of collusion,” reads the Competition Authority’s founding affidavit.
When the matter was brought before the commission yesterday, both parties argued on legal points with the respondents arguing that the matter should be dismissed as it was filed later than the prescribed date.
However, the court ordered that the Authority has a prima facie case and that the respondents should file their respective answers in a period of 14 days.
Abel Modimo and Duncan Morotsi represent the Authority while Otto Itumeleng represents Creative Business Solutions and Mboki Chilisa represents Rabbit Group.