Blinkwater Mills fined R10m over maize price fixing
The Competition Commission started probing the price fixing of white maize milling a decade ago after it received a leniency application from Premier Foods.
CAPE TOWN - Blinkwater Mills has been fined R10 million for collusion involving 16 milling companies.
Tiger Brands filed the same application shortly afterwards.
The Competition Commission found 16 companies colluded to fix prices as well as agreeing on the dates when the new pricing would be implemented between 1999 and 2007.
This behaviour led to a price increase of one of South Africa's staple foods.
Blinkwater Mills has agreed to pay a fine of 5% of its 2007 turnover amounting to R10.1 million for its role in the cartel.
This brings the total in fines for this specific case to more than R600 million with Pioneer Foods' fine being the biggest at half a billion rand.
The commission says it hopes the latest settlement encourages the remaining 10 respondents to follow suit.
(Edited by Shimoney Regter)