Sasko chief lied about price-fixing letter

According to the evidence before the tribunal, a letter of complaint to Goosen and his competitors was sent on 14 December 2006 by Jannie de Villiers, executive director at the Chamber of Baking, prior to the date set to implement the price increases (18 December 2006), pointing out that violation of competition law and price-fixing would not be accepted.

The letter also alleged that bread makers were involved in collusive behaviour.

However, in his testimony, Goosen said that the alleged price fixing issue was brought to his attention only on 20 December from a letter sent out by Roup Attorneys to investigate price-fixing in the Western Cape.

The letter came two days after all bread makers had increased their prices.

“Yes I knew that there were these allegations by Mr De Villiers,” said Goosen.

When told by the Competition Commission's legal representative, David Unterhalter, that he had not been telling the truth before the tribunal, Goosen's response was “correct”.

The commission argued that Goosen could not say that he was not aware of what was happening at those meetings where price increases were being discussed.

It said the letter from De Villiers should have alerted him to probe the reason for the meetings that took place on 6 and 12 December.

“I didn't know of these meetings. We made a conscious decision to increase at the same time for the first time in a number of years.”

He admitted to having made a decision with his competitors on 4 December to increase prices.

However, he maintained that Sasko's level of increase was an independent decision.

Source: Business Day

Published courtesy of