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Competition watchdog reels in fishing groups
The Competition Commission has singled out four companies and two industry associations for closer scrutiny in an investigation of anticompetitive practices in the pelagic fishing industry.
Nandi Mokoena, the commission's manager of strategy and stakeholder relations, said this week it was investigating Foodcorp, Oceana, Premier Fishing SA, Gansbaai Marine, the SA Pelagic Fish Processors' Association and the Pelagic Fishing Industry Association.
The groups were scrutinised after the commission researched the pelagic fishing industry in its investigation of the food spending priorities of low income consumers. Items under the commission spotlight include bread, milk, grain and milling products, vegetable fat and oils, poultry, animal feed and pelagic fish.
Pelagic fish swim in the open ocean, and species include herring, mackerel, horse mackerel, sardinella, blue whiting, sardine and silversmelt.
The commission has had some success in the bread, milk and poultry industries. Investigations resulted in fines for several groups such as Tiger Brands and Foodcorp.
Mokoena said the companies would be investigated to determine if they fixed prices, trading conditions or market allocation.
If the companies were found to be in breach of the Competition Act, the case would be forwarded to the Competition Tribunal for prosecution, Mokoena said.
The industry, which is controlled by regulation limiting how much fish can be caught, is aware of the allegations.
Justin Williamson, CEO of Foodcorp, said the company was aware of the investigation as “it has been developing for nearly a year”.
“We have been assisting the commission with its investigation, and have provided reports we had prepared by our legal advisers as far back as 2004 into the sector.
“We have looked internally and are not aware of any issues from our side.
“However, as we are a player in the sector, I have no doubt our name will come up,” he said.
Mbuyi Mtsheketshe, head of corporate affairs and transformation at Oceana, said the company was notified last July.
The company had held meetings with the commission, and “discussions involved Oceana providing a general overview of the pelagic fishing industry and responding to a number of questions raised by the (commission) in respect of the industry”.
Oceana and Gansbaai Marine have not had any feedback from the commission. Premier Fishing SA did not respond to a request for comment.
Source: Business Day
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