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Guilty at Provincial Level Only - Baker

Thu. June 25, 2009; Posted: 07:04 AM
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Johannesburg, Jun 25, 2009 (Business Day/All Africa Global Media via COMTEX) -- TBLMY | Quote | Chart | News | PowerRating -- DESPITE all the evidence brought before the Competition Tribunal highlighting Sasko's involvement in bread price-fixing in 2006, Pioneer Foods is sticking by its story that it was never part of a national bread cartel.

Since the start of the hearings, the group has insisted that, although it was guilty on the first complaint in the Western Cape, where Tiger Brands settled and paid a R98m penalty, it was not guilty of colluding on a national level.

"From day one we never said we weren't guilty in the Western Cape case, but nothing has changed in the national case. We are not guilty," said Pioneer Foods CEO Andre Hanekom.

He was speaking to Business Day after Pioneer Foods legal representatives yesterday abruptly wrapped up their case before the tribunal , at the end of the cross- examination of Sasko's GM for baking , Andries Goosen. Goosen had admitted under oath to lying to the tribunal about his knowledge of price-fixing in the bread industry.

Hanekom said: "The hearings were closed because the remaining witnesses were going to talk on the Western Cape issue, and we have already admitted some guilt there. "There was no need for us to continue on something that has already been tabled. All we're waiting for are the final closing arguments in the next few months," he said.

The case has been before the tribunal since June 17 and is scheduled to be heard until June 30. "We have not given up ... and we certainly are not guilty on the national level," said Hanekom.

Goosen yesterday concurred with Hanekom that Pioneer was not party to a national cartel. "The issue that we are part and parcel of a national bread cartel and have been since 2003 (to) 2006 is false, and that is what we are fighting," he said.

Only Goosen and Prof Barend Willemse, an economist at the University of the Free State, appeared as witnesses for Pioneer Foods.

The last two witnesses who were expected to take the stand yesterday were Hendrik Hollenbach, Sasko national sales manager responsible for inland regions, and Jacob Patience, bakery manager for bread firm Duens.

The Competition Commission has argued before the tribunal that Pioneer had been part of a bread cartel involved in price-fixing, fixing the date of price increases, and dividing markets. Closing arguments will be heard on September 9.

For full details for TBLMY click here.

    


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