Collusion Scandal in South Africa

The South African Competition Commission found that chicken companies Astral Operations Limited and its subsidiary Elite Breeding Farms colluded to allocate markets and fix trading conditions.

The Commission further found that Astral has abused its market dominance. This latest scandal in the food industry proves that it has become a norm for companies to connive to make profits by robbing the poor said Cosatu. Cosatu repeated its call for the investigation of all the firms involved in food production and the retailing chain.

Cosatu says that it supports the Commission’s recommendation of 10% administration penalty on both companies' annual turnover and exports for the financial year 2006/07 and will continue to call for CEOs of companies found involved in restrictive practices to be held personally liable.

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